CALGARY, June 27 /CNW/ - Breaker Energy Ltd. ("Breaker" or "Company")
(TSX-V: WAV.A and WAV.B) is pleased to announce the following operational
updates:
- In the Medicine Hat area, Breaker has recently placed two of four
new discoveries on production at approximately 1.0 mmcf/d of gas
combined (170 boed). Two more wells are still in the completion
and equipping phase of operations. All four wells originally
tested at a combined rate of 2.3 mmcf/d (380 boed), with total
initial production expected to be kept lower for reservoir
management purposes. New seismic is being acquired in anticipation
of a follow up drilling program to this early success which is on
more than 115,000 acres under option.
- In the Suffield area, Breaker was successful in acquiring seven
sections of land (net) at Crown sales offsetting the winter
exploratory drill program. The company is planning a multi-well
follow up drill program which will commence later this year, and
has exercised its rolling option with the farmor.
- In Saskatchewan, Breaker is pursuing a new extensive shale gas
resource play via the successful acquisition of 167 sections
(greater than 100 000 acres) of land contained within a Special
Exploratory Permit. The play has high risk/ reward attributes with
very low cost of entry. The Company has calculated potential gas
in place of approximately 321 BCF on the lands, based on net
organic shale pay of 35 m and 10 scf/tonne gas content. A recovery
of 50% is possible based on the Antrim shale analog in the
Michigan basin, which has cumulative production of over 2 TCF.
Breaker's play is subject to successfully piloting and testing the
prospect. This play type is a good fit to Breaker's resource play
expertise. Initial wells are planned later in the year.
- Breaker continues to acquire production, and is in the process of
consolidating its position at Girouxville via a small acquisition
that will result in Breaker having a 100% working interest in its
operated production in the area.
Breaker previously upwardly revised its production target guidance for
2005 on April 19 to an average rate of 900 boed and exit rate of 1300 boed.
With the recent addition of the 170 boed in the Medicine Hat area production
is currently at 1100 boed. Breaker also has more than 500 boed (net) flow
tested and waiting on tie in on its High Prairie property.
Breaker expects to commence its exploitation drilling program in the
Provost area early in the third quarter.
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 has access to a land base of over 400,000 net acres in Western Canada.
Breaker Energy trades on the TSX Venture Exchange under the symbols WAV.A
and WAV.B.
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.
Boed means a boe per day.
ADVISORY: This press release may contain 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.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
%SEDAR: 00021180E
