VANCOUVER, BRITISH COLUMBIA--(Marketwire -04/18/12)- Bucking Horse Energy Inc. (TSX: BUC.TO - News) ("Bucking Horse") announces that effective April 16, 2012, its wholly-owned subsidiary, Arrowhead Resources (U.S.A.) Ltd., collectively (the "Company"), has engaged BMO Capital Markets Corp. as its exclusive advisor to assist the Company in evaluating a range of strategic alternatives, including the potential sale of certain of its producing gas properties in Wyoming with the aim of maximizing shareholder value.
To date during 2012, eight new directional infill wells (1.8 net) have been developed at the Company's Mesa property situated in the Pinedale natural gas field in southwest Wyoming. Initial peak 24 hour gross production rates of the eight wells averaged 4.9 million cubic feet ("MMcf") of natural gas per day per well. The Company owns a 23% working interest in the Mesa property. The Mesa infill wells target pay objectives within tight sandstones of the prolific Lance Formation and may be developed on 32 wells per quarter section spacing, or one well per approximately 5 acres.
The Company's first well in the Pinedale field was developed in 1998. With the new infill wells developed at Mesa in 2012, the Company's producing well inventory at Pinedale now totals 58 wells (20.9 net). The Company's current total production net of royalties is approximately 11.5 MMcf natural gas and 92 barrels of condensate per day or 12.1 million cubic feet equivalent of gas per day.
The Company is participating in eight additional infill development wells (1.8 net) actively being developed at Mesa from a simultaneous operations drill pad. Surface casing has been set in all eight wells to depths of approximately 2,600 feet. One of the eight wells is presently drilling ahead towards total depth. Drilling times associated with each well are approximately two weeks per well and the wells will be completed in groups with all wells anticipated to be on sales by the middle of the third quarter of 2012.
The Company expects to continue to benefit from operator efficiencies associated with simultaneous operations development pads, built for purpose self-moving rigs, and year round development.
About Bucking Horse Energy Inc.
Bucking Horse is an independent oil and gas exploration and production company focused exclusively on its Warbonnet and Mesa natural gas properties in the prolific Pinedale field, within the Green River Basin of southwestern Wyoming. At year-end 2011, the Company had proved reserves of approximately 278 billion cubic feet equivalent, comprising 95% natural gas and 5% condensate liquids. The common shares of Bucking Horse are listed for trading on the Toronto Stock Exchange under the symbol "BUC."
On behalf of the Board of Directors:
Gordon Nielsen, President & CEO
Certain statements contained in this news release may constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "plan", "expect", "may", "will", "intend", "should", and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Forward looking statements in this news release include: the potential sale of certain of the Company's producing gas properties in Wyoming with the aim of maximizing shareholder value; drilling times associated with each Mesa well are approximately two weeks per well and the wells will be completed in groups with all wells anticipated to be on sales by the middle of the third quarter of 2012; and the Company expects to continue to benefit from operator efficiencies associated with simultaneous operations development pads, built for purpose self-moving rigs, and year round development. Natural gas equivalent amounts have been calculated using a conversion rate of six thousand cubic feet ("Mcf") of natural gas per barrel ("bbl") of oil or natural gas liquids. A conversion ratio of six Mcf to one bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent equivalency at the wellhead. Mcfe disclosure may be misleading, particularly if used in isolation. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of regulatory decisions, competitive factors in the industries in which the Company operates, prevailing economic conditions, market prices for our products, and other factors, many of which are beyond the control of the Company. Any significant variance in these assumptions could materially affect the estimated quantities and present values of reserves.
The forward-looking statements contained in this news release represent the Company's expectations as of the date hereof, and are subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.
Bucking Horse Energy Inc.