Sierra Vista Energy Ltd.
TSX VENTURE : SVR.A
TSX VENTURE : SVR.B

Sierra Vista Energy Ltd.

October 17, 2007 14:59 ET

Sierra Vista Issues Clarification of Ante Creek Holdings

CALGARY, ALBERTA--(Marketwire - Oct. 17, 2007) -

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

Sierra Vista Energy Ltd., (TSX VENTURE:SVR.A) (TSX VENTURE:SVR.B) ("Sierra Vista" or the "Company") announces a further update to the news release issued on October 16, 2007. Following the Company's decision not to proceed with the drilling of the next well under its Ante Creek farm-in agreement, and the resulting forfeiture of 50% of working interest in the 3.25 sections of earned lands under the Ante Creek farm-in agreement, the Company still holds a 32.5% working interest in the 3.25 section of earned lands relating to this particular farm-in agreement. In total, the Company continues to hold ownership in 30.75 sections of land in the Ante Creek area with an average working interest of 82%.

As stated in the previous release, the forfeited production represents approximately 45 boe/d based on current production. After the production forfeiture, the Company is producing approximately 220 boe/d, approximately 65% of which is natural gas. As previously disclosed, the Company is in the process of updating its reserves report which will reflect the impact of the forfeited production and reserves. The updated reserves report is expected to be completed by the end of October 2007. As a result of the termination of the Ante Creek farm-in agreement, the Company has eliminated approximately $6,868,000 in future capital commitments that would have been required to satisfy its obligations under the farm-in agreement. The Company is continuing to review current operations and plans.

Also as stated in the previous release, the Company is continuing its efforts to identify and recruit a new President and Chief Executive Officer and will provide an update in the future on these efforts.

Sierra Vista is a junior oil and gas company engaged in the exploration for, and development and production of, crude oil and natural gas focusing in the Peace River Arch region of central Alberta. The Corporation's shares trade on the TSX Venture Exchange under the symbols "SVR.A" and "SVR.B".

CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION

Some of the statements contained herein including, without limitation, financial and business prospects, financial outlooks, and production forecasts may be forward-looking statements which reflect management's expectations regarding future plans and intentions, growth, results of operations, performance and business prospects and opportunities. In particular, this news release contains forward-looking statements pertaining to the quality of reserves, oil and natural gas production levels, capital expenditure programs, projections of market prices and costs, supply and demand for oil and natural gas; and expectations regarding the Company's ability to raise capital and to continually add to reserves through acquisitions and development.

The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of the risk factors set forth above and elsewhere in this news release including uncertainty of reserve estimates, volatility in market prices for oil and natural gas, liabilities and risks inherent in oil and natural gas operations, uncertainties associated with estimating reserves, competition for, among other things, capital, acquisitions or reserves, undeveloped lands and skilled personnel, geological, technical, drilling and processing problems.

Words such as "may", "will", "should", "could", "anticipate", "believe", "expect", "intend", "plan", "potential", continue" and similar expressions have been used to identify these forward-looking statements. These statements reflect management's current expectations and are based on uncertainties. Although the forward-looking statements contained within this news release are based upon what management believes to be reasonable assumptions, management cannot assure that actual results will be consistent with these forward-looking statements. Investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and we assume no obligation to update or revise them to reflect new events or circumstances unless required under applicable securities laws.

Where amounts are expressed on a barrel of oil equivalent ("BOE") basis, natural gas volumes have been converted to BOE using a ratio of 6,000 cubic feet of natural gas to one barrel of oil equivalent. This conversion ratio is based upon energy equivalent conversion method primarily applicable at the burner tip and does not represent value equivalence at the wellhead. BOE figures may be misleading, particularly if used in isolation.

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

Contact Information

  • Sierra Vista Energy Ltd.
    Mr. Morley Mychaluk
    Interim President & CEO
    (403) 265-9393 ext 202
    (403) 265-9224 (FAX)
    or
    Sierra Vista Energy Ltd.
    Mr. Bruce A. Stewart
    Chief Financial Officer
    (403) 265-9393 ext 205
    (403) 265-9224 (FAX)
    or
    Sierra Vista Energy Ltd.
    Suite 850, 101 - 6th Avenue S.W.
    Calgary, Alberta T2P 3P4