CALGARY, ALBERTA--(Marketwire - Jan 30, 2013) - Traverse Energy Ltd. (the "Corporation") (TSX VENTURE:TVL) is pleased to announce that the Board of Directors has approved an exploration and development program of $12.6 million for 2013. The Corporation plans an active drilling program for 2013 with 10 wells planned on existing properties. Drilling and related production expenditures comprise 75% of the budget. The budget is to be financed by existing working capital, cash flow and new equity issues or debt where appropriate.
The 2013 drilling program will continue to focus on light oil projects at Turin (11,400 acres) in southern Alberta and at Carbon and Willow (44,000 acres) in central Alberta. In addition, the Corporation anticipates additional drilling of horizontal wells by an industry partner on the Brazeau property in west central Alberta. At Brazeau (6,400 acres), the Corporation holds a 5-10% gross overriding royalty on oil and a 10% royalty on natural gas and natural gas liquids. Fifteen wells were producing on the Brazeau property in December, 2012.
Undeveloped land holdings in Alberta at December 31, 2012 totalled 147,500 gross (144,700 net) acres with an average working interest of 98%. At December 31, 2012, the Corporation remained debt free and had an estimated $2.7 million of working capital.
Production during the fourth quarter of 2012 was estimated at 550 BOE per day (53% oil and natural gas liquids).
About the Corporation
The Corporation is a junior oil and natural gas exploration and production company in Alberta. The common shares of the Corporation are listed on the TSX Venture Exchange under the trading symbol "TVL". There are currently 47,087,911 common shares issued and outstanding. The current corporate presentation is available on the Corporation''s website at www.traverseenergy.com.
This news release contains forward-looking information which is not comprised of historical fact. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes statements with respect to the drilling of wells on existing properties; the Corporation''s focus in 2013 on its existing light oil properties in central and southern Alberta; and anticipated drilling in west central Alberta. This forward looking information is subject to a variety of substantial known and unknown risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward looking information. The Company''s Annual Information Form filed on April 23, 2012 with securities regulatory authorities (accessible through the SEDAR website www.sedar.com) describes the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference.
Although the Corporation believes that the material assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur. The Corporation disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.