Crew Energy Inc.
TSX : CR

Crew Energy Inc.

September 24, 2007 09:00 ET

Crew Energy Provides Production and Operational Update

CALGARY, ALBERTA--(Marketwire - Sept. 24, 2007) - Crew Energy Inc. ("Crew") (TSX:CR) announces a series of exploration drilling successes and an unscheduled facility outage at a northeast British Columbia sour gas facility.

Over the course of the last nine months Crew has drilled a series of exploration successes in the deep basin of west central Alberta. Since the initial discovery Crew has amassed an interest in over forty sections of land in the area and has identified seventeen drilling locations (before down-spacing) to be drilled in the area.

Crew (W.I. - 100%) has drilled four wells that have cumulative net pay sections of between 34 and 79 feet with exceptional reservoir characteristics:



Test Rate Final Flowing Pressure
------------------------------------
(mmcf/d) (psi)
Well #1 Zone 1 2.7 490

Well #2 Zone 1 12.1 1,146

Zone 2 5.0 533

Well #3 Zone 1 2.0 1,244

Zone 2 1.4 420

Well #4 Zone 1 12.8 1,466


Natural gas liquid yields are expected to be approximately 50 bbls per mmcf of natural gas produced.

Crew plans to build a sour natural gas facility to accommodate the production from these wells. Phase one construction of this facility is expected to be operational at 10 mmcf per day by December 1, 2007. The facility design allows for an efficient multiple phase expansion to accommodate additional production volumes. Crew plans on drilling three additional wells in this area by year end.

Crew is currently is currently drilling two wells. The first well is drilling at Pine Creek, Alberta targeting liquids rich natural gas and the second is drilling a Leduc exploration test at Medicine River, Alberta targeting light oil. Crew will drill eight wells in the third quarter and has plans to drill up to ten wells in the fourth quarter of 2007.

The unscheduled outage in northeast British Columbia involves a diesel driver for the sour gas compressor at the Company's Sierra facility. This facility has been down intermittently over the last month before being shut-in on September 21st. Repairs are currently scheduled to be completed by September 30th when the 100% owned facility is expected to resume operating at 13 mmcf per day. The Company is currently examining the potential for drilling sweet natural gas targets in the area in order to provide fuel for a conventional natural gas driven compressor to increase reliability and to substantially reduce operating costs. It is expected that facility downtime in the third quarter will result in average production of approximately 9,250 boe per day which represents a 60% increase over the third quarter of 2006. Once production volumes are restored at Sierra and Crew's new facility becomes operational, the Company is well positioned to achieve its production exit targets of 11,500 to 12,500 boe per day.

Crew's strong financial position, high quality development inventory and diverse exploration portfolio positions the Company with growth prospects through 2008 and beyond.

Crew Energy Inc. is a Calgary-based oil and natural gas exploration and development company. Crew's common shares trade on the Toronto Stock Exchange under the symbol CR.

READER ADVISORY

Forward-Looking Statements: Certain information regarding the Company in this news release including management's assessment of future plans and operations, production estimates, drilling inventory and wells to be drilled, timing of drilling, productive capacity of new wells, may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, 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, the timing and length of plant turnarounds and the impact of such turnarounds and the timing thereof, delays resulting from or inability to complete the transaction or obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, the Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly no assurance can be given that any events anticipated by the forward-looking statements will transpire or occur, or, if any of them do so, what benefits the Company will derive therefrom.

Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the Company's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com), and the Company's website (www.crewenergy.com). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company 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.

BOE Disclosure: Disclosure provided herein in respect of barrels of oil equivalent (boe) 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.

Contact Information

  • Crew Energy Inc.
    Dale O. Shwed
    President and Chief Executive Officer
    (403) 231-8850
    or
    Crew Energy Inc.
    John G. Leach
    Vice President, Finance and CFO
    (403) 231-8859