Churchill Energy Inc.
TSX VENTURE : CEI

Churchill Energy Inc.

January 19, 2007 09:00 ET

Churchill Provides Smoky Drilling Update

CALGARY, ALBERTA--(CCNMatthews - Jan. 19, 2007) - At Smoky, Churchill Energy Inc. (TSX VENTURE:CEI) ("Churchill") has finished drilling its operated well (0.85 net) at 1-16-59-2W6M. The well reached a total depth 3,585 m. and has been cased as a potential gas well. Completion operations are expected to commence in early February. In addition the Company participated in a well (0.125 net) at 8-17-59-2W6, which has also been cased as a potential gas well and completion operations should take place later this month. The Company previously shut-in its production from the 13-10-59-2W6M well (0.85 net) in order to complete an additional zone in the well bore. Operations on this well are continuing and the Company expects to have the well back on production in early February.

The Company exited 2006 with production of approximately 420 boe/d and 150 boe/d behind pipe. The Company expects that the gas behind pipe should be on production by the end of January.

The Board of Directors of the Company has approved a base capital budget of $10 million for 2007. The majority of the spending will occur in the Smoky and Alexander areas of Alberta. Approximately $ 8 million will be spent on drilling with the remaining $2 million to be allocated to facilities, land and seismic.

Churchill is a Calgary-based junior oil and natural gas company with operations in Alberta and Saskatchewan. The common shares of Churchill are listed on the TSX Venture Exchange and trade under the symbol "CEI".

Forward Looking Statements: Certain information regarding Churchill in this news release including management's assessment of future plans and operations, production estimates, drilling inventory and wells to be drilled, timing of drilling and tie-in of wells, productive capacity of new wells, capital expenditures and the timing thereof, may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services,, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence Churchill's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly no assurance can be given that any events anticipated by the forward-looking statements will transpire or occur, or, if any of them do so, what benefits Churchill will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could effect Churchill's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com), at Churchill's website (www.churchillenergy.ca). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Churchill does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.


The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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