CALGARY, ALBERTA--(Marketwire - Feb. 9, 2012) - Open Range Energy Corp. (TSX:ONR.TO - News) ("Open Range" or the "Company") is pleased to provide an operational update on its winter 2012 field operations. Recent activities include successful drilling of the Company's first Montney horizontal well targeting light oil at Waskahigan and record initial productivity on a Wilrich horizontal well at Open Range's core Ansell/Sundance Deep Basin property.
Recent activities include:
-- The 100 percent Open Range 13-24-63-23-W5M horizontal well targeting
Montney light oil at Waskahigan, which spud on January 3, has been
successfully drilled and cased to a total measured depth of 4,140
metres, with packers set;
-- The 13-24 well is currently awaiting completion operations, including
multi-stage fracturing. Test results are anticipated later in the first
quarter. Three additional 100 percent working interest Montney wells are
budgeted at Waskahigan for the second half of 2012;
-- The 100 percent Open Range 13-26-52-20-W5M horizontal well targeting the
Wilrich Formation at Ansell/Sundance, which was drilled in late 2011 on
an existing pad site, recently underwent completion operations. The well
tested on flowback to a peak rate of 14.1 mmcf per day at flowing casing
pressure of 18,100 kPa (2,625 psi), with a 12-hour test flowing on choke
at 9.2 mmcf per day at flowing casing pressure of 14,000 kPa (2,030
-- The 13-26 well was brought on-production via an existing gathering line
and has produced on choke at an initial seven-day rate of 7.8 mmcf per
day at a casing pressure of 17,927 kPa (2,600 psi) plus approximately
150 bbls per day of natural gas liquids including 110 bbls per day of
-- This is the highest IP7 achieved over more than 60 horizontal and
vertical wells by Open Range at Ansell/Sundance to date, and adds
approximately 1,400 boe per day of initial production; and
-- Open Range's 100 percent owned and operated, 20 mmcf per day capacity
deep cut processing facility at Ansell/Sundance is under construction
and is expected to become operational in mid-March. The facility is
engineered to increase liquids recovery to approximately 18 bbls per
mmcf on a significant portion of Company production and future
inventory, and will increase Open Range's operated processing capacity
to 80 mmcf per day.
"Liquids-rich natural gas wells of this high quality and productivity, underpinned by Open Range's low operating costs and control of processing capacity, demonstrate an ability to generate positive cash flow at current commodity prices," said Scott Dawson, Open Range's President and CEO. "We also look forward to adding light oil to our production mix through our Montney program at Waskahigan."
The recent Wilrich well tie-in has increased Open Range's corporate production to approximately 7,000 boe per day, a new milestone for the Company.
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