Welton Energy Corporation
TSX : WLT
TSX : WLT.DB

Welton Energy Corporation

October 01, 2007 09:19 ET

Welton Energy Corporation Announces New Joint Venture

CALGARY, ALBERTA--(Marketwire - Oct. 1, 2007) -

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

Welton Energy Corporation (TSX:WLT) (TSX:WLT.DB) ("Welton", "the Company") is pleased to announce it has entered into a new joint venture and provides an update on its drilling programs.

The Company has agreed to a two well commitment in the Jensen area of southern Alberta. Welton will pay 50% of the costs to drill, complete and equip two wells to earn a 50% interest in the wells and in 17,760 acres. The wells, the first of which will be spudded today, will target oil-bearing sands with potential reserves in the one to four million barrel range. They are to be operated by an industry partner.

During Q3, the Company has participated in six wells, of which five were successful. An additional five wells, including the two above, are to be drilled this fall.

The additional production added by the three (net 1.5) successful wells at Mantario is almost 200 bopd of oil. Several step out locations have been identified. In addition, the Company has further locations planned in the neighbouring areas of Eatonia and Dankin. An exploratory well near Mantario was unsuccessful.

At Chime, where Welton has a 19% interest in a recently drilled gas well that tested at 1,500 mmcf/d, production is expected to be brought on in the next few days.

Plans are under way to tie in an oil well at Ricinus which has tested successfully at 300 boepd. The Company has a 16% W.I. in this well. A second zone is to be completed and tested.

The Company is preparing three locations for wells in the Trutch area of northeastern B.C.. This is a potentially high impact play where wells have multi-zone potential. Further seismic and drilling activity is contemplated based on the success of this initial program. Welton is paying 75% of all costs to drill, case or abandon these wells to earn 45% in these wells and in 5,760 acres. Welton will operate the drilling of the earning wells.

Although operational production issues continued to impact Q3 production rates, remedial action and new production additions have enabled Welton to exit Q3 at approximately 900 boepd.

Welton reaffirms its commitment to evaluating possible corporate opportunities to complement its active drilling program.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the common shares in any jurisdiction. Such securities have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States, or to a U.S. person, absent registration or an applicable exemption from the registration requirement.

Cautionary Statements

Certain information set forth in this document contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Corporation's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of the preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Welton'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 by the forward-looking statements will transpire or occur, or if any of them do so, what benefits Welton will derive therefrom. Welton disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. A barrel of oil equivalent (boe) is derived by converting natural gas to oil in the ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent. A boe conversion may be misleading, particularly if used in isolation, as it is based on an energy equivalency conversion method primarily applicable at the burner tip and may not represent a value equivalency at the wellhead.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Welton Energy Corporation
    Donald A. Engle
    President & Chief Executive Officer
    (403) 215-4747
    or
    Welton Energy Corporation
    Giles Twogood
    Acting Vice President, Finance
    (403) 215-4750
    Website: www.weltonenergy.com