E4 Energy Inc.

E4 Energy Inc.

January 18, 2006 06:00 ET

E4 Energy Announces 2006 Capital Program and Operational Highlights

CALGARY, ALBERTA--(CCNMatthews - Jan. 18, 2006) -

Not for distribution to the United States newswire services or for dissemination in the United States.

E4 Energy Inc. (TSX VENTURE:EFE) ("E4" or the "Company") is pleased to announce today that the company's Board of Directors has approved a $20 million exploration and development capital program for 2006. Additionally, E4 is pleased to announce the company has reached their 2005 production target and is presently producing approximately 900 boe/d.

The 2006 capital program provides for the drilling of 28 wells (25 net) at an average working interest of 90 percent. Drilling and completions expenditures are expected to be approximately $10 million with field facilities, equipment and optimization projects in the amount of $5.5 million. Additional spending is allocated towards land and seismic in the amount of $4 million.

Based upon this drilling program, E4 expects corporate production to average 1,200 boe/d in 2006 (70 percent natural gas) and exit the year at approximately 1,450 boe/d. The company will remain in a very strong financial position with a projected cash flow of $17.5 million for 2006. E4 presently has no bank debt and a $10 million unused credit facility. This combination places E4 in an enviable position to further expand its capital program should conditions dictate.

In December of 2005, E4 drilled and cased two wells in Provost, Alberta as part of a three well commitment farm-in. These wells have recently been tested and both wells are expected to be on production by March.

In the first quarter of 2006, E4 expects to drill up to eight wells, of which two wells have already been drilled and cased. One of these two wells is the third well in the Provost farm-in. Both wells are to be tested in Q1 with the Provost well expected to be on production by March. Based on E4's recent successful drilling, the company has more than 10 development locations in this area.

The company continues to grow its extensive inventory of drilling opportunities and land in both B.C. and Alberta and will focus operations in both provinces throughout the year. With the combined efforts of a strong technical team and strategic business plan, E4 is in the initial stages of an aggressive exploration and development program for 2006. Prospects with multi-zone and all year access range from shallow CBM (coal bed methane) drilling and recompletions to medium depth, high working interest gas plays in B.C. E4 is well positioned to deliver on its corporate objectives for the coming year.

E4 Energy Inc. is a junior oil and gas company engaged in the exploration for, and development and production of natural gas and crude oil reserves primarily in the provinces of British Columbia and Alberta. E4's common shares trade on the TSX Venture Exchange under the symbol "EFE".

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The common shares offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered or sold within the United States absent registration or applicable exemption from the registration requirements of the U.S. Securities Act.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • E4 Energy Inc.
    Paul Starnino
    President and Chief Executive Officer
    (403) 266-6747
    E4 Energy Inc.
    Franco Civitarese
    Vice President Finance and Chief Financial Officer
    (403) 266-6747