WestFire Energy Ltd.

WestFire Energy Ltd.

June 22, 2010 16:33 ET

WestFire Energy Provides Viking Operational Update And Adds to Its Viking Land Base

CALGARY, ALBERTA--(Marketwire - June 22, 2010) - WestFire Energy Ltd. ("WestFire" or the "Company") (TSX:WFE) is pleased to provide an update of operational and land acquisition activities.

Viking Operational Update

WestFire has established a strong presence in the Viking light oil resource play in the Redwater area of Central Alberta. Over the past nine months, WestFire participated in the drilling of 13 (10.9 net) Viking horizontal wells at Redwater, of which 11 (9.9 net) of these wells are operated by the Company.

These thirteen wells produced an average gross production rate of 80 barrels of oil per day (bopd) per well for the first month with individual well rates ranging from 26 to 124 bopd per well. Of the thirteen wells, eight were drilled as monobores, three with intermediate casing and liners, while two were completed using open hole packer systems. An average of 14 fracs per well with 12 tonnes of sand per frac were performed on each well along an average horizontal length of 858 meters. Oil was used as the carrying fluid on eleven wells while water was used on the remaining two. Six of the wells have recovered all of their load fluids to date.

The Company continues to make refinements to its Viking horizontal drilling and completion techniques in an effort to improve well productivity and lower capital costs. The net on-stream costs on WestFire operated wells this past winter averaged $1.5 million per well. Modifications to our program gained from our field experience are expected to lower these costs to $1.2 million per well.

The Company has initiated the preparation of 17 drilling pad sites at Redwater. Each pad will allow for the drilling of up to four wells. The first well of an 18 well program in this area is expected to be spud in late June.

In addition, WestFire has a program in West Central Saskatchewan that allows for the drilling of 11 Viking horizontal wells for the balance of 2010.

Viking Land Acquisition

WestFire is also pleased to announce that it has entered into a lease option and drilling agreement that provides access to approximately 40 sections of undeveloped land with Viking light oil potential in the Dodsland/Kerrobert area of West Central Saskatchewan.

WestFire's land base on the Viking light oil resource play now stands at approximately 242 (220 net) sections representing a future drilling inventory exceeding 500 potential horizontal development locations.

About WestFire

WestFire is a Calgary, Alberta based oil and gas exploration, development and production company which shares trade on the Toronto Stock Exchange under the trading symbol of "WFE".

Cautionary Statements

Forward-looking information and statements

This news release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the forgoing, this news release contains forward-looking information and statements pertaining to the following; anticipated improvements in drilling and completion techniques, future net on-stream costs, the timing of spudding wells and potential development drilling.

In addition, forward-looking statements or information are based on a number of material factors, expectations or assumptions of WestFire which have been used to develop such statements and information but which may prove to be incorrect. Although WestFire believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because WestFire can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding, among other things: results from drilling and development activities consistent with past operations; the continued and timely development of infrastructure in areas of new production; continued availability of debt and equity financing and cash flow to fund WestFire's current and future plans and expenditures; the impact of increasing competition; the general stability of the economic and political environment in which WestFire operates; the timely receipt of any required regulatory approvals; the ability of WestFire to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects in which WestFire has an interest in to operate the field in a safe, efficient and effective manner; the ability of WestFire to obtain financing on acceptable terms; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development and exploration; the timing and cost of pipeline, storage and facility construction and expansion and the ability of WestFire to secure adequate product transportation; future commodity prices; currency, exchange and interest rates; regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which WestFire operates; the ability of WestFire to successfully market its oil and natural gas products that all necessary regulatory approvals will be obtained as and when required, that there will be no material adverse change in the Company's affairs or laws, rules or regulations relating to the Company, its securities or business, there will be no regulatory proceedings involving the Company or any of its directors or officers, or any cease trade or other order prohibiting or restricting trading in the Company's securities and no major national or international event will have occurred that has or would reasonably be expected to have a material adverse effect on financial markets or the business, operations or affairs of the Company.

The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such information and statement, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors that may cause actual results or events to defer materially from those anticipated in such forward-looking information or statements including, without limitation: changes in commodity prices; changes in the demand for or supply of WestFire's products; unanticipated operating results or production declines; changes in tax or environmental laws, royalty rates or other regulatory matters; changes in development plans of WestFire or by third party operators of WestFire's properties, increased debt levels or debt service requirements; inaccurate estimation of WestFire's oil and gas reserve and resource volumes; limited, unfavorable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; and certain other risks detailed from time-to-time in WestFire's public disclosure documents, (including, without limitation, those risks identified in this news release and WestFire's Annual Information Form filed on SEDAR).

The forward-looking information and statements contained in this news release speak only as of the date of this news release, and WestFire does not assume any obligation to publicly update or revise any of the included forward-looking statements or information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.

BOE Equivalent

Barrel of oil equivalents or BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.

Contact Information

  • WestFire Energy Ltd.
    Lowell Jackson
    President and CEO
    (403) 718-3601
    (403) 261-9658 (FAX)
    WestFire Energy Ltd.
    Stephen Burtt
    Vice President Finance and CFO
    (403) 718-3603
    (403) 261-9658 (FAX)