CALGARY, Feb. 27 /CNW/ - Unitech Energy Resources Inc. ("Unitech" or the "Company") (TSXV: URX) is pleased to announce the following updates to its operations:
1. Kotcho, B.C. - Unitech has been advised that the current operator of
the Kotcho c-B67-K/94-E-14 test well in N.E. British Columbia
("Disposal Well"), in which Unitech has an approximate 23% working
interest and for which a salt water disposal license was recently
granted, has signed a letter of intent to sell the operator's
approximate 70% working interest in the Disposal Well to an
established disposal well operator ("Disposal Operator"). Unitech was
also approached by the Disposal Operator to sell Unitech's working
interest in the Disposal Well but, upon analysis of the disposal
opportunity, Unitech concluded that it was in the Company's best
interests to remain a participant in the Disposal Well. Unitech has
been advised that the Disposal Well Operator is currently acting to
place the Disposal Well on disposal, with the first injection under
the disposal licence to commence by mid-March 2009. This new facility
is expected to operate continuously throughout the year.
2. Caroline gas well - Unitech is the operator of, and holds a 35%
working interest in, the 10-29-030-03W5 gas well. This well has been
pressure tested and preliminary results, using standard engineering
material balance calculations, indicate remaining reserves of
approximately 5 BCF. Flow tests were conducted at rates in excess of
1MMcf per day and it is expected that the well will initially produce
at greater than 500 Mcf per day. Pipeline installation is expected
within 60 days with production expecting to commence shortly
thereafter. The Company has sufficient cash on hand to funds its
obligations for this play.
3. Garrington oil well - The operator of the Garrington 4-20-34-3W5
well, in which Unitech has a 50% before payout and 25% after payout
working interest, reports that the well was fracture stimulated as
planned and is producing both oil and gas at intermittent rates while
on cleanup. Work continues on the well to determine the optimal
production configuration for the plunger lift system. The Company
believes that this well will be a producing well but cannot project
net returns to the Company at this time.
4. Stettler gas well - At current market pricing, the Company does not
expect economic production from the 02/10-31-39-18W4 well, however,
the operator of this well continues to look for alternatives to
increase its productive capabilities.
5. LeadScan Study overrides - The operator of one of the override
properties for whom a LeadScan study was performed, has informed the
Company that a well on the subject lands has been fracture stimulated
and has exceeded expectations. This well was a test well for a shale
gas prospect which ultimately will be exploited using the horizontal
multi-frac technique. The operator of the well is currently gathering
additional flow and pressure data for analysis. The pressure data
will be collected by downhole pressure gauges and will take 30 to 45
days before retrieval of the gauges for analysis of the data. The
timing of follow-up production drilling was not announced. Unitech
has a 5% no-deduction gross overriding royalty on 4 contiguous
sections of land on the prospect.
There are no other activities to report on other lands in which Unitech earned an interest by providing LeadScan studies.
About Unitech Energy Resources Inc.
Unitech uses its proprietary image analysis and pattern recognition system, called LeadScan, for a 'first look advantage' that drives Unitech's exploration strategy. Please visit Unitech's website at www.leadscan.ca. Shares of Unitech are listed for trading on the TSX Venture Exchange under the symbol URX.
Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. In particular, forward-looking information includes, but is not limited to, statements with respect to: drilling plans and timing of drilling; re-completion and tie-in of wells; completion timing and method of funding thereof; productive capacity of wells, anticipated or expected production rates and anticipated dates of commencement of production; drilling, and completion costs; results of our various projects; the performance characteristics of our oil and natural gas properties; oil and natural gas production levels; the size and quantity of oil and natural gas reserves; projections of market prices and costs; supply and demand for oil and natural gas and commodity prices; expectations regarding the ability to raise capital and to continually add to reserves through acquisitions, exploration and development; treatment under governmental regulatory regimes and tax laws; tax horizons; expected levels of royalty rates, operating costs, general administrative costs, costs of services and other costs and expenses; and realization of the anticipated benefits of acquisitions and dispositions. Statements relating to "reserves" are deemed to be forward-looking information, as they involve the implied assessment that, based on certain estimates and assumptions, the reserves described can be profitably produced in the future. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, level of activity, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.
Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors could cause results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Canada, the United States and globally; industry conditions, including fluctuations in the prices of oil and natural gas; governmental regulation of the oil and gas industry, including environmental regulation; geological, technical, drilling and processing problems and other difficulties in producing reserves; unanticipated operating events or performance which can reduce production or cause production to be shut in or delayed; failure to install pipeline facilities as and when expected; failure to obtain industry partner and other third party consents and approvals, if and when required; competition for and/or inability to retain drilling rigs and other services; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; volatility in market prices for oil and natural gas; liabilities inherent in oil and natural gas operations; uncertainties associated with estimating oil and natural gas reserves; competition for, among other things, capital, acquisitions of reserves, undeveloped lands, skilled personnel and supplies; incorrect assessments of the value of acquisitions; geological, technical, drilling, processing and transportation problems; changes in tax laws and incentive programs relating to the oil and gas industry; failure to realize the anticipated benefits of acquisitions and dispositions; and the other factors. Readers are cautioned that this list of risk factors should not be construed as exhaustive.
The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.
The TSX Venture Exchange has not reviewed, and does not accept responsibility for, the adequacy or accuracy of this news release.