CALGARY, April 25 /CNW/ - Breaker Energy Ltd. ("Breaker" or "Company")
(TSX-V: WAV.A and WAV.B) is pleased to announce that it has successfully
completed its 100% working interest 3-28-76-22W5 discovery as a Slave Point
oil well. In addition, Breaker is currently drilling the second well in the
program at 11-29-76-22W5, which is expected to reach total depth in several
days. To leverage this early success Breaker is increasing the program from
3 wells to 5, most of which should be finished drilling in the second quarter.
The 3-28 well is expected to be producing by month end at an initial rate
exceeding 400 bbl/d of 46 API oil, from a 6m thick Slave Point Reef. No
appreciable formation water has been noted in initial testing. After a period
of flush production, the well is expected to stabilize at 150-200 bbl/d,
similar to Breaker's 2005 discovery at 7-29-76-22W5. Additional potential pay
zones remain behind pipe in the Granite Wash and Beaverhill Lake formations.
Encouraged by this significant early success, Breaker is adding two more
deep light oil wells to the current program, to be drilled in succession. The
first is a high-impact prospect located on lands recently acquired at the
April 6th landsale, with the location pinpointed by Breaker's proprietary 3D
seismic shot in late 2005. The second is a twin of the 7-29 discovery well, to
access 150-200 bbl/d of behind pipe deliverability in the Beaverhill Lake
formation.
Breaker's large drilling inventory, in excess of 100 light/medium oil and
natural gas locations, has enabled it to focus capital on its high netback
light oil drilling activities to take advantage of strong oil prices.
Breaker's significant natural gas drilling program will commence in the second
and third quarters, in anticipation of better gas prices later in the year.
Breaker is well positioned to meet or exceed its production targets with the
success it has experienced so far this year.
Breaker Energy Ltd. is a junior oil and gas company focused on creating
shareholder value by growing per share production and reserves through
acquisitions and a focused exploration, development and exploitation plan.
Breaker Energy trades on the TSX Venture Exchange under the symbols WAV.A
and WAV.B.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy any securities of Breaker within the United
States. The securities of Breaker have not been and will not be registered
under the United States Securities Act of 1933, as amended (the "1933 Act"),
or any state securities laws. Accordingly, the shares may not be offered or
sold in the United States or to U.S. persons (as such terms are defined in
Regulation S under the 1933 Act) unless registered under 1933 Act and
applicable state securities laws or an exemption from such registration is
available.
NOTE: Boe means barrel of oil equivalent on the basis of 1 Boe to
6,000 cubic feet of natural gas. Boe's may be misleading, particularly if used
in isolation. A Boe conversion ratio of 1 Boe for 6,000 cubic feet of natural
gas is based on an energy equivalency conversion method primarily applicable
at the burner tip and does not represent a value equivalency at the wellhead.
Boe/d means a Boe per day.
Forward-looking Statements
This press release contains forward-looking statements including
management's assessment of future plans and operations, expectations of future
production, cash flow and earnings. These statements are based on current
expectations that involve a number of risks and uncertainties, which could
cause actual results to differ materially from those anticipated. These risks
include, but are not limited to: the risks associated with the oil and gas
industry (e.g. operational risks in development, exploration and production;
delays or changes in plans with respect to exploration or development projects
or capital expenditures; the uncertainty of reserve estimates; the uncertainty
of estimates and projections relating to production, costs and expenses and
health, safety and environmental risks), acquisitions, commodity price and
exchange rate fluctuation and uncertainties resulting from competition from
other producers and ability to access sufficient capital from internal and
external sources. Additional information on these and other factors that could
affect Breaker's operations and/or financial results are included in Breaker's
reports on file with Canadian securities regulatory authorities. Since
forward-looking statements address future events and conditions, by their very
nature they involve inherent risks and uncertainties.
The forward-looking statements contained in this press release are made
as of the date hereof and Breaker undertakes no obligation to update publicly
or revise any forward-looking statements or information, whether as a result
of new information, future events or otherwise, unless so required by
applicable securities laws.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
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