Desmarais Energy Corporation

August 12, 2009 17:23 ET

Desmarais Provides Further Operations Update

CALGARY, ALBERTA--(Marketwire - Aug. 12, 2009) - Desmarais Energy Corporation (TSX VENTURE:DES) ("Desmarais" or the "Corporation") is pleased to provide the following update with respect to a new well drilled in the Barrhead area of west central Alberta in early May 2009 as previously announced in our news release dated June 17, 2009. After a third party reservoir engineering evaluation confirmed sufficient gas reserves for an immediate tie-in, a 2.4 km pipeline was constructed and tied-in to our main 4.5" line. The well has flowed 7.1 Mmcf of gas and 435 barrels of liquids in its initial three weeks of production or approximately 65 boe/d. Desmarais has a 50% working interest in the well and a 100% working interest in nine (9) offsetting sections of undeveloped land. Desmarais plans to drill an additional well on this prospect shortly, and a location has been selected with the use of our proprietary 3D seismic control.

In the Medicine Hat area, Desmarais has surveyed the first 4 locations of a shallow gas program, on 100% Desmarais lands, with drilling operations scheduled to commence in Sept/Oct 2009. The resulting wells are expected to add long life reserves to our production mix, which is weighted more than 80% toward natural gas.

Desmarais is a Calgary based oil and gas exploration, development and production company operating in two core areas: southeast Alberta and west central Alberta. The Company operates 71% of its production base, which consists of varying interests, averaging 35% in 28 gas wells. Desmarais has high working interests, facilities ownership, and operatorship in core areas; and a large undeveloped land base in contiguous blocks, with seismic control.


Certain statements regarding Desmarais include management's assessments of future plans, the drilling of additional wells in Barrhead and Medicine Hat and other operations, may constitute forward-looking statements under applicable securities laws and necessarily involve known and unknown risks and uncertainties, most of which are beyond Desmarais' control. These risks may cause actual financial and operating results, performance, levels of activity and achievements to differ materially from those expressed in, or implied by, such forward-looking statements.

Such factors include, but are not limited to: the impact of general economic conditions in Canada and the United States; industry conditions including changes in laws and regulations including adoption of new environmental laws and regulations, and changes in how they are interpreted and enforced; competition; the lack of availability of qualified personnel; fluctuations in commodity prices; the results of exploration and development drilling and related activities; imprecision in reserve estimates; the production and growth potential of Desmarais' various assets; fluctuations in foreign exchange or interest rates; the ability to access sufficient capital from internal and external sources; and obtaining required approvals of regulatory authorities.

Accordingly, Desmarais gives no assurance nor makes any representations or warranty that the expectations conveyed by the forward-looking statements will prove to be correct and actual results may differ materially from those anticipated in the forward looking statements. Desmarais undertakes no obligation to publicly update or revise any forward-looking statements.

Barrels of Oil Equivalent

Barrels of oil equivalent (boe) is calculated using the conversion factor of 6 Mcf (thousand cubic feet) of natural gas being equivalent to one barrel of oil. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf:1 bbl (barrel) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Neither 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.

Contact Information