Symbol: BEN - TSX
CALGARY, Dec. 11 /CNW/ - Berens Energy Ltd. ("Berens") is pleased to provide guidance regarding its 2007 capital spending plans and production volumes.
The planned capital budget for 2007 is $45 million with capital being directed toward all four core areas of Pembina, the Deep Basin, Marten Hills and Lanfine. The plan includes up to 56 locations from our current undeveloped land base of 152,000 net acres. Thirty drilling locations are already approved with an additional 40 locations at various stages of review and approval.
Fifty percent of the capital budget is being directed toward Pembina which represents the best combination of risk and reward with 25 drilling opportunities planned. The Lanfine and Marten Hills areas which offer lower risk natural gas opportunities will receive 25 percent of the 2007 planned spending. The Deep Basin, primarily at Simonette and Waskahigan, will receive the remaining 25 percent of the planned spending.
Production volumes are expected to average 4,200 to 4,400 boe/d for the year, up 25 to 30 percent from 2006 production volumes. The production mix is expected to remain at 85 percent weighted toward natural gas, 13 percent light oil and natural gas liquids, and 2 percent heavy oil.
The budget is based on average natural gas price of Cdn. $7.50/mcf for AECO and an Edmonton par price of Cdn. $60.00/bbl. Berens may adjust its capital spending plans up or down, if, among other reasons, natural gas or oil prices vary materially from these assumptions, which may have an affect on production volumes.
Caution Regarding Forward Looking Information
This press release contains forward looking information within the meaning of applicable securities laws. Forward looking statements may include estimates, plans, expectations, forecasts, guidance or other statements that are not statements of fact. Forward looking information in this Press Release include, but are not limited to statements with respect to capital expenditures and related allocations, production volumes, production mix and commodity prices.
Forward-looking statements and information are based on current beliefs as well as assumptions made by and information currently available to Berens concerning anticipated financial performance, business prospects, strategies and regulatory developments. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution readers not to place undue reliance on these statements as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations and anticipations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to: crude oil and natural gas price volatility, exchange rate and interest rate fluctuations, availability of services and supplies, market competition, uncertainties in the estimates of reserves, the timing of development expenditures, production levels and the timing of achieving such levels, the Company's ability to replace and increase oil and gas reserves, the sources and adequacy of funding for capital investments, future growth prospects and current and expected financial requirements of the Company, the cost of future dismantlement and site restoration, the Company's ability to enter into or renew leases, the Company's ability to secure adequate product transportation, changes in environmental and other regulations and general economic conditions.
The forward-looking statements contained in this press release are made as of the date of this press release, and Berens does not undertake any obligation to up-date publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. This cautionary statement expressly qualifies the forward-looking statements contained in this press release.
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