C1 Energy Ltd.
TSX : CTT

C1 Energy Ltd.

August 31, 2005 20:17 ET

C1 Energy Drilling Update

CALGARY, ALBERTA--(CCNMatthews - Aug. 31, 2005) - C1 Energy Ltd. (TSX:CTT) ("C1") is providing this operational update with respect to the drilling of the C1 et al Sarcee 12-13-23-4W5M exploration well due to a press release recently issued by our partner in this well.

The well has now been drilled and logged to a total depth of 3254m. Casing has been set to 3160m to allow for an open hole (barefoot) completion and testing of the primary target. No testing or completions have been conducted and the commercial viability of the well, including potential production rates and reserves, have not been determined. Completion and testing will commence in the next month.

In accordance with the farm-out agreement C1 is funding 25% of the costs associated with the drilling and completion of the well and will retain a 55% working interest after these operations.

C1 currently has an inventory of approximately 60 drilling locations on an undeveloped land base of approximately 146,000 acres, net to C1. C1 has exclusive access to an additional 168,000 acres of undeveloped land bringing the company's total undeveloped land inventory to 314,000 acres. C1 currently has approximately 32.7 million common shares outstanding.

Certain information set forth in this press release contains forward-looking statements. All statements other than historical fact contained herein are forward-looking statements, including, without limitation, statements regarding the future financial position, business strategy, production rates and plans and objectives of or involving C1 Energy Ltd. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond C1's control, including the impact of general economic conditions, industry conditions, governmental regulation, 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 preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. C1'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 that C1 will derive therefrom. C1 disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information

  • C1 Energy Ltd.
    Hugh Pattillo
    President & CEO
    (403) 232-1115
    or
    C1 Energy Ltd.
    Gary Lobb
    VP Finance & CFO
    (403) 232-1115
    or
    C1 Energy Ltd.
    500, 521-3rd Avenue S.W.
    Calgary, AB T2P 3T3
    Canada
    (403) 232-1130 (FAX)