Argosy Energy Inc.

Argosy Energy Inc.

October 20, 2008 13:58 ET

Argosy Energy Inc. Provides Operational Update

CALGARY, ALBERTA--(Marketwire - Oct. 20, 2008) - ARGOSY ENERGY INC. (TSX:GSY) ("Argosy") commenced trading on the Toronto Stock Exchange (TSE) under the symbol "GSY" on October 17, 2008 and is pleased to provide the following operational update.

ARGOSY was established through a Plan of Arrangement between Pengrowth and Accrete approved by shareholders of Accrete at the shareholders meeting held on September 29, 2008. Its primary area of operations is in the Claresholm area of Alberta approximately 150km south of Calgary with other interests in the Saxon area of NW Alberta. Current production is 1100 BOED with an additional 430 BOED waiting to be tied in.

Argosy's drilling program in the Claresholm area has resulted in 3 (3.0 net) oil wells and 3 (2.6 net) gas wells. The gas wells will be tied into the Company owned (75% net) and operated processing facilities while the oil wells will operate as single well batteries until such time as a central battery is built with further pool delineation. These six wells will add an additional 500 BOEPD net (70 BOPD and 2.6 MMCFD) bringing Argosy's total production to 1500 BOED (after decline) when tied in during the first week of November, 2008. The drilling and success of these wells have opened up additional opportunity for Argosy in the Claresholm area with 2 additional wells planned towards year-end and into the first Quarter of 2009.

The Company also completed an acquisition for $800K to increase its working interest position at Claresholm from 60 % to 100 % and added 20 BOEPD and 1770 net acres.

In addition, Argosy is finalizing its plans to drill 2 wells in December, 2008 and up to 5 wells in the first Quarter of 2009 on its Saxon area prospect, targeting the Lower Mannville and Montney horizons as identified on its 3D seismic survey.

BOE conversion rate of 6000 cubic feet of gas to 1 barrel liquid has been used for volume determination where indicated.

This news release contains forward-looking statements relating to management's approach to operations, assumptions and statements about future events or performance. The reader is cautioned that the assumptions presented by Argosy at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. Such factors include, but are not limited to: general economic, market and business conditions; industry capacity; competitive action by other companies; fluctuations in oil and gas prices; the results of exploration and development drilling and related activities; the uncertainty of estimates and projections relating to productions, costs and expenses; uncertainties as to the availability and cost of financing; fluctuations in currency exchange rates; the imprecision in reserve estimates; risks associated with oil and gas operations, such as operational risks in exploring for, developing and producing crude oil and natural gas; risks and uncertainties involving geology of oil and gas deposits; the weather in the Company's area of operations; the ability of suppliers to meet commitments and changes in environmental and other regulations. There is no representation by Argosy that the actual results achieved during the forecast period will be the same in whole or in part as that forecast.

The Toronto Stock Exchange has neither approved nor disapproved of the contents of this press release.

Contact Information

  • Argosy Energy Inc.
    Peter Salamon
    President and CEO
    (403) 269-8846
    (403) 269-8366 (FAX)