Stonefire Energy Corp.
TSX VENTURE : SFE.A
TSX VENTURE : SFE.B

Stonefire Energy Corp.

October 03, 2007 17:57 ET

Stonefire Energy Corp. Announces October 2007 Operations Update

CALGARY, ALBERTA--(Marketwire - Oct. 3, 2007) -

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

Stonefire Energy Corp. (TSX VENTURE:SFE.A) (TSX VENTURE:SFE.B) ("Stonefire" or the "Company") is pleased to announce an Operations Update as of October 3, 2007.

With the start-up of the Company's new Edson 10-28 gas plant in late Sept 2007, Stonefire's current net production has reached an all time high of 550 barrels oil equivalent per day (boepd). Current production is comprised of 70% natural gas and 30% condensate and natural gas liquids. The Edson 10-28 gas plant is a Stonefire operated, 100% working interest facility with a license capacity of 1,242 boepd. Additionally, Stonefire has a net 75 boepd of tested natural gas production awaiting tie-in in the Mcleod field which places the company on track to meet or exceed its 2007 exit target rate of 600 - 700 boepd.

Year to date Stonefire has drilled 2 gross (1.5 net) exploration wells with a 100% success rate in the Edson and Mcleod fields. A third, 100% working interest, exploration well was spud by Stonefire in the Edson field on October 2nd, 2007. It is currently drilling and is expected to reach a total vertical depth of 2,350 meters by mid October. This well is targeting multi-zone, deep basin, liquids rich natural gas. Two additional Stonefire operated, exploration wells are planned to be drilled prior to year end 2007 in the Edson area. All three wells are close to Stonefire operated infrastructure.

Stonefire's gross land base in the greater Edson area stands at 39.25 sections (25,120 acres) with an average working interest of 68%. The majority of these lands were acquired via crown land sales and are not subject to payout working interest changes or gross overriding royalties. Stonefire has a drilling inventory of over 40 gross (30 net) high impact exploration and development wells. All wells are Stonefire operated and the majority target multi-zone deep basin type prospects.

Stonefire Energy Corp. is an Alberta-based company formed to participate in oil and gas exploration, development and acquisitions focusing in the West Central region of Alberta. The Company's shares trade on the TSX Venture exchange under the symbols SFE.A and SFE.B. The Company currently has 15,265,000 Class A shares and 1,012,000 Class B shares outstanding.

Reader Advisory

This news release contains certain forward-looking statements, including management's assessment of future plans and operations, and capital expenditures and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond Stonefire's control. Such risks and uncertainties include, 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, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. Stonefire's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that Stonefire will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to Stonefire or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Stonefire 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."

Petroleum and natural gas volumes are converted to an equivalent measurement basis referred to as a "barrel of oil equivalent" (boe) on the basis of 6 thousand cubic feet of natural gas equalling 1 barrel of oil. This is based on an energy equivalency conversion method applicable at the burner tip and does not necessarily represent a value equivalency at the wellhead. Readers are cautioned that boe figures may be misleading, particularly if used in isolation.

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

Contact Information

  • Stonefire Energy Corp.
    Mr. Richard Dahl
    President & Chief Executive Officer
    (403) 262-9885 ext 222
    (403) 262-9887 (FAX)
    or
    Stonefire Energy Corp.
    Mr. Ronald Williams
    Vice President Finance and CFO
    (403) 262-9885 ext 228
    (403) 262-9887 (FAX)
    or
    Stonefire Energy Corp.
    Suite 320, 333 - 5th Avenue SW
    Calgary, Alberta T2P 3B6