Stonefire Energy Corp.

Stonefire Energy Corp.

September 24, 2007 17:48 ET

Stonefire Energy Corp. Announces Start Up of Edson 10-28-53-16W5M Gas Plant

CALGARY, ALBERTA--(Marketwire - Sept. 24, 2007) -


Stonefire Energy Corp. (TSX VENTURE:SFE.A) (TSX VENTURE:SFE.B) ("Stonefire" or the "Company") is pleased to announce that production commenced on September 22nd from it's newly constructed 100% working interest (W.I.) sweet gas plant in the Company's core Edson area at 10-28-53-16W5M. The 10-28 gas plant has a license capacity of 5.65 mmscfd sales gas and 300 bbls/d natural gas liquids or a combined capacity of 1242 Barrels Oil Equivalent per day (BOEPD).

Stonefire is the operator of the gas plant which is producing at rates of 400 to 500 BOEPD from two 100% working interest multi-zone gas wells drilled and operated by Stonefire. The gas plant, gathering system and sales line were constructed in July and August 2007 with total costs coming in approximately 10% under budget thanks to the efforts and dedication of Stonefire staff and contractors.

The Edson 10-28 gas plant was constructed to allow Stonefire to control development of its 100% W.I. land base in it's core Edson area. Other benefits will include lower operating costs, higher netbacks and maximum liquids recovery from the liquids rich natural gas zones prevalent in the Edson area. The company's drilling inventory on lands adjacent to the 10-28 plant stands at up to 20 operated, 100% W.I development and exploration wells. Stonefire has licensed and is proceeding with the drilling of two 100% W.I. multi-zone exploration wells close to the 10-28 gas plant. Both wells are scheduled to be drilled in October 2007.

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)
    Stonefire Energy Corp.
    Mr. Ronald Williams
    Vice President Finance and CFO
    (403) 262-9885 ext 228
    (403) 262-9887 (FAX)
    Stonefire Energy Corp.
    Suite 320, 333 - 5th Avenue SW
    Calgary, Alberta T2P 3B6