Endev Energy Inc.

Endev Energy Inc.

January 29, 2007 07:00 ET

Endev Meets Exit Guidance and Announces Early Results of Mannville Program

CALGARY, ALBERTA--(CCNMatthews - Jan. 29, 2007) - Endev Energy Inc. ('Endev') (TSX:ENE) is pleased to announce it achieved its anticipated exit production target for 2006. The Company had an exit production rate of 4,400 boe per day on a target of 4,200 - 4,600 boe per day. This compares to third quarter average production of 3,746 boe per day. The 2006 production was 79% natural gas and 21% crude oil.

"We executed a very different program in the second half of 2006 compared to the first half," commented Cameron MacGillivray, President and Chief Executive Officer of Endev Energy. "Given the continued soft natural gas prices we shifted our capital program away from our Majorville shallow gas drilling and focused on exploring our deeper Mannville rights for both oil and gas. The program has been highly successful and has allowed us to develop at least one new core area and a more diversified asset base. We are just starting to see the impact of this program on our production levels."

During the fourth quarter Endev drilled and completed nine gross (9 net) wells, of which one was an oil well and eight were gas wells. Our 100% success rate is a continuation of an outstanding record of success in the Company's drilling program. This brings the total well count for 2006 to 101 gross (82.5 net) wells drilled, resulting in 92 gross (73.5 net) gas wells, eight gross (8 net) oil wells and one gross (one net) dry hole. A total of 34 wells were completed and tied in during the fourth quarter.

The Company has set its capital budget for 2007 at $40 million, of which 90% will be allocated to the new drilling programs, and expects to drill 105 wells.

The Company has recently entered into a series of costless collar financial instruments to hedge the risk of lower gas prices in the summer of 2007. The contracts are for the sale of 6,000 GJ per day of gas at an average floor price of $6.46 per GJ and an average ceiling price of $7.55 per GJ for the period April 2007 through October 2007.

"We feel we have a good understanding today of the deeper Mannville opportunities and are excited by the results we are seeing. For example, two of the Mannville wells recently placed on production had initial test rates of 2 mmcf to 3 mmcf per day, and in December were producing at controlled rates averaging over 1 mmcf per day per well. We see opportunities to find more wells like these and will be drilling several follow up locations this year," commented MacGillivray.

Endev's growth to date has been achieved through a drill bit strategy and expanding its asset base through land acquisition and farm-in. The Company will continue to actively pursue new opportunities in 2007.

Endev is an oil and natural gas exploration, development and production company based in Calgary, Alberta. The Company's shares trade on the Toronto Stock Exchange under the symbol ENE.

Certain information regarding Endev Energy Inc. set forth in this document, including management's assessment of the Company's future plans and operations contains forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Company's and management's control including, but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of foreign exchange rates, imperfection of reserve estimates, environmental risks, industry competition, availability of qualified personnel and management, stock market volatility, and timely and cost-effective access to sufficient capital from internal and external sources. Endev's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated to occur or transpire from the forward-looking statements will provide what, if any, benefits to Endev Energy Inc.

The Toronto Stock Exchange has neither approved nor disapproved of the contents of this press release.

Contact Information

  • Endev Energy Inc.
    Cameron MacGillivray
    President and CEO
    (403) 750-2600
    Endev Energy Inc.
    Scott Bonli, C.A.
    Vice President, Finance and CFO
    (403) 750-2600
    Email: info@endevenergy.com
    Website: www.endevenergy.com