CALGARY, ALBERTA--(Marketwire - Feb. 14, 2012) - Open Range Energy Corp. (TSX:ONR.TO - News) ("Open Range" or the "Company") is pleased to announce that it has drilled and cased a strategic step-out well de-risking the northern extension of its Wilrich and Notikewin horizontal inventory at its core Ansell/Sundance Deep Basin property.
The 100 percent Open Range 16-29-54-20-W5M vertical well was recently drilled and cased to a total measured depth of 3,295 metres, intersecting seven prospective Cretaceous horizons. The well firmly establishes the presence of thick Wilrich and Notikewin reservoir on the Company's northern lands, with excellent gas shows and high-quality sand, including over 18 metres of net pay in the Notikewin. A Falher zone, a high-quality Bluesky reservoir and a thick Cadomin interval were also encountered.
This step-out well de-risks at least 20 (18.5 net) horizontal locations in the Company's northern Wilrich and Notikewin inventories in an area of Ansell/Sundance having little well control to date. The well is scheduled for fracturing operations in all seven zones in the coming days.
Production will be tied into the Company's 100 percent owned deep cut gas plant on its eastern Ansell/Sundance lands, currently under construction. The remaining vertical exploratory well of Open Range's planned 2012 capital program is expected to spud in the coming days.
"This is an important step in our prudent 2012 capital program, helping to strengthen our core Ansell/Sundance asset for further growth when natural gas prices recover," said Scott Dawson, Open Range's President and CEO.
Open Range Energy Corp. is a publicly traded Canadian energy company with focused operations in the Deep Basin region of Alberta. Open Range has approximately 74.7 million common shares issued and outstanding, which trade on the Toronto Stock Exchange under the symbol "ONR".
This news release contains certain forward-looking statements and other information (collectively "forward-looking information") about our current expectations, estimates and projections. Forward-looking information in this news release is identified by words such as "anticipate", "believe", "expect", "plan", "forecast", "target", "could", "potential", "may" or similar expressions and includes suggestions of future outcomes, including statements about our growth strategy and related milestones and schedules, forecast operating and financial results, planned capital expenditures, expected future production, including the timing, stability or growth thereof and the commodity price environment. Readers are cautioned not to place undue reliance on forward-looking information as our actual results may differ materially from those expressed or implied. Developing forward-looking information involves reliance on a number of assumptions and consideration of certain risks and uncertainties, some of which are specific to Open Range and others that apply to the industry generally. The factors or assumptions on which the forward-looking information is based include: our projected capital investment levels, the flexibility of capital spending plans and the associated sources of funding; estimates of quantities of oil, bitumen, natural gas and liquids from properties and other sources not currently classified as proved; the successful and timely implementation of capital projects; our ability to generate sufficient cash flow from operations to meet our current and future obligations; our expectations of the general activity of the oil and gas industry; and other risks and uncertainties described from time to time in the filings we make with securities regulatory authorities.
Actual results could differ materially from those currently anticipated due to a number of factors, risks and uncertainties. Such risks and uncertainties include, without limitation, risks associated with oil and natural gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, operating risk liability, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada and the United States, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to Open Range or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Additional information on the foregoing risks and other factors that could affect Open Range's operations and financial results are included in the Company's annual information form and other reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Open Range does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
Certain natural gas volumes have been converted to barrels of oil equivalent ("boe") on the basis of six thousand cubic feet (mcf) to one barrel (bbl). Disclosure provided herein in respect of barrel(s) of oil equivalent (boe) may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Open Range Energy Corp.
President and Chief Executive Officer