Canadian Energy Exploration Inc. Third Quarter 2011 Highlights and Update
29 Novembre 2011 - 12:22AM
Marketwired
Canadian Energy Exploration Inc. ("Canadian Energy" or the
"Company") (TSX VENTURE:XPL) announces financial and operating
results for the third quarter ended September 30, 2011 and an
update of current activities. The unaudited condensed interim
consolidated financial statements for the three and nine months
ended September 30, 2011, together with the notes thereto; and
management's discussion and analysis of financial condition and
results of operations as at and for the for the three and nine
months ended September 30, 2011 can be accessed electronically on
the System for Electronic Document Analysis and Retrieval (SEDAR)
at www.sedar.com.
Third Quarter and Nine Months Ending September 30, 2011
Highlights
-- During the nine months ended September 30, 2011, cash used in investing
activities increased from $201,208 to $5,459,248 during the same period
2010.
-- Average production during the third quarter 2011 was lower at 7.8 versus
14.8 Boe per day; inclusive of an average NGL production during the
third quarter 2011 of 0.4 Boe per day for the same period in 2010.
-- Petroleum and natural gas sales gross revenue was $28,742, and net loss
was $417,619 for the three months ended September 30, 2011.
Operational Update
-- On the Company's Hardy Southeast Saskatchewan prospect, the Company has
earned or has under option 53.50 sections (approx. 13,857 hectares) and
has acquired at Crown sales another six sections (approx. 1,554
hectares.) The Company has expended a total of $6,799,596 exploring the
lands to-date, including $5,528,123 for the nine months ended September
30, 2011.
-- The Company has drilled and evaluated four wells (three Devonian-depth
wells and one Mississippian-depth well.) Nine separate formations were
evaluated and three wells warranted equipping and production testing.
-- Currently two wells remain on production testing in the Bakken formation
and the Company intends to license one new horizontal drilling location,
while seeking a joint venture partner for that operation. The Company
received permission from the Saskatchewan regulatory bodies to convert
its vertical wells in the Hardy area to horizontal well licenses. The
Company has obtained a horizontal survey to change its vertical well at
Hardy 12-4-5-21W2 to CEEI HARDY HZ 4B12-4-4B5-33-4-21W2 and intends to
apply for a license to drill same for Bakken. It is the Company's
intention to seek a joint venture farmin partner for the drilling of the
well expected to cost $2.75 million (drilled, completed and equipped).
The Company has also licensed an additional Ratcliffe well at 13-36-5-
21W2 on lands due to expire in March 2016.
-- The 2011 drilling program has not had economic results but the Company
is encouraged enough to continue testing and evaluation, believing a
horizontal wellbore is required to unlock ultimate potential. Our
activity has extended the expiry of lands with all petroleum and natural
gas rights held to the end of March 2012 on 12.75 sections (approx.
3,302 hectares). The Company has applied for continuation of another
40.75 sections (approx. 10,554 hectares) to the end of March 2012.
-- Third parties have licensed seven wells on offsetting lands along what
the Company interprets as similar structural trends identified on 3D
seismic, under license to the Company. They have drilled and are
producing four horizontal Bakken wells but well information has not been
completely released to the public.
-- As at September 30, 2011 the Company has $4,254,890 uncommitted cash on
hand and expects to fund additional capital requirements by joint
ventures, reducing Company participation to conserve capital and reduce
risk.
-- The Company intends to license a re-entry of a vertical well on a new
focus property in Pembina Alberta in anticipation of re-entering this
wellbore and completing a potential light oil bearing zone. This
activity could begin in Q4 2011 and would be conducted 100% by the
Company.
-- The Company continues to look at all opportunities available to it
including, but not limited to, high potential resource plays using low-
cost wellbore re-entries. Further, should the potential of such resource
plays be established, the Company intends to pursue additional financing
to develop these plays. The Company is currently restricted by the rules
of the TSX Venture Exchange in raising additional financing below $0.05,
and as such the Company is also looking at mergers or corporate
acquisitions. With approximately $4,000,000 cash on hand, the Company
has taken steps to reduce its expenses and conserve capital.
In this Press Release the calculation of barrels of oil
equivalent (Boe) is calculated at a conversion rate of six thousand
cubic feet (Mcf) of natural gas for one barrel (Bbl) of oil based
on an energy equivalency conversion method. Boe's may be misleading
particularly if used in isolation. A Boe conversion ratio of 6 Mcf:
1Bbl is based on an energy equivalency conversion method primarily
applicable to the burner tip and does not represent a value
equivalency at the wellhead.
Forward-Looking Statements:
This press release contains certain statements which constitute
forward-looking statements or information ("forward-looking
statements"), including statements regarding Canadian Energy's
business, such as the review of strategic alternatives and
licencing and drilling new wells, seeking a joint venture
partner(s), which by their nature are forward-looking statements
and which are subject to numerous risks and uncertainties, some of
which are beyond Canadian Energy's control, including the impact of
general economic conditions, industry conditions, volatility of
commodity prices, currency fluctuations, imprecision of reserve
estimates, environmental risks, operational risks in exploration
and development, competition from other industry participants, the
lack of availability of qualified personnel or management, stock
market volatility and the ability to access sufficient capital from
internal and external sources. Although Canadian Energy believes
that the expectations in our forward-looking statements are
reasonable, our forward-looking statements have been based on
factors and assumptions concerning future events which may prove to
be inaccurate. Those factors and assumptions are based upon
currently available information. Such statements are subject to
known and unknown risks, uncertainties and other factors that could
influence actual results or events and cause actual results or
events to differ materially from those stated, anticipated or
implied in the forward looking information. As such, readers are
cautioned not to place undue reliance on the forward looking
information, as no assurance can be provided as to future results,
levels of activity or achievements. The forward-looking statements
contained in this document are made as of the date of this document
and, except as required by applicable law, Canadian Energy does not
undertake any obligation to publicly update or to revise any of the
included forward-looking statements, whether as a result of new
information, future events or otherwise. The forward-looking
statements contained in this document are expressly qualified by
this cautionary statement.
About Canadian Energy Exploration Inc.
Canadian Energy Exploration Inc. is a junior oil and gas company
engaged in the exploration for and development and production of
natural gas and oil reserves. Canadian Energy has 135,497,209
common shares outstanding and an aggregate of 16,292,937
unexercised warrants.
The Company's common shares are listed to trade on the TSX
Venture Exchange under the symbol "XPL".
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Canadian Energy Exploration Inc. Larry Buzan President
and Chief Executive Officer (403) 229-2800buzan@cdnenergy.com
Canadian Energy Exploration Inc. (TSXV:XPL)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Canadian Energy Exploration Inc. (TSXV:XPL)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024