Great Plains Exploration Inc.
TSX : GPX

Great Plains Exploration Inc.

April 14, 2010 08:30 ET

Great Plains Announces New Oil Production at Crossfire

CALGARY, ALBERTA--(Marketwire - April 14, 2010) -

NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Great Plains Exploration Inc. (TSX:GPX) (Great Plains) is pleased to announce that the Pembina/Crossfire pipeline project has been completed and production has commenced from the first of two Company-owned (40% working interest) Nisku oil wells. The pipeline became operational on April 1, 2010 and was completed on schedule and under budget. 

The well at 15-33-50-5 W5M was placed on production at rates increasing from approximately 400 BOE/d during line fill to currently just over 900 BOE/d (360 net to Great Plains). The Company estimates that the well will be produced at an initial stabilized rate of approximately 1,000 BOE/d (400 net to Great Plains). Total corporate production is now at approximately 1,700 BOE/d of which 50% is oil.

The 11-12-51-5 W5M oil well in which Great Plains holds 40% working interest has also been tied-in though is not yet producing pending stabilized production from the 15-33 well. Plans are now being finalized with the operator to the expected on-stream date and start-up production rates for the 11-12 well.

Also at Pembina, Great Plains' horizontal Cardium oil well at 13-07-50-5 W5M is now being equipped for production and is expected to be on-stream by April 19, 2010. The oil will initially be trucked; however, Great Plains is currently evaluating different pipeline options to lower future operating expense.

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

Advisory Regarding Forward Looking Statements

This press release contains forward-looking statements which include, but are not limited to: production timing, production rates, plans for development of Cardium and Nisku at Pembina, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurance that such expectations will prove to be correct. The forward-looking statements contained herein reflect management's current view and are based on certain assumptions including timing and amount of capital expenditures, production of new and existing wells, performance characteristics of oil properties, the continued availability of capital, land and skilled personnel and the ability to obtain equipment in a timely matter. Results of the Company may be affected by a variety of variables and risks associated with oil and gas exploration, production and transportation, such as loss of market, volatility of oil and gas prices, currency fluctuations, imprecision of reserve estimates, environmental risks, regulatory changes, competition from other producers, ability to access sufficient debt and equity capital from internal and external sources, ability to replace and expand oil and gas reserves, ability to generate sufficient cash flow from operations to meet its current and future obligations, and risks associated with existing and potential future lawsuits and regulatory actions made against the Company; as a consequence, actual results could differ materially from those anticipated or implied in the forward-looking statements. Readers are also cautioned that the list of factors is not exhaustive.

The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement and are made as of the date of this news release. Unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or review any forward-looking statements to reflect subsequent information, event, results or circumstances or otherwise.

Contact Information

  • Great Plains Exploration Inc.
    Stephen P. Gibson
    President & CEO
    (403) 262-9620
    or
    Great Plains Exploration Inc.
    Sean Bovingdon
    Vice-President Finance & CFO
    (403) 262-9620
    (403) 262-9622 (FAX)
    www.greatplainsexp.com
    info@gpexploration.ca