Ember Resources Inc.
TSX : EBR

Ember Resources Inc.

November 29, 2007 18:45 ET

Ember Resources Inc. Puts Acme on Stream Ahead of Schedule

CALGARY, ALBERTA--(Marketwire - Nov. 29, 2007) -

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Ember Resources Inc. ("Ember") (TSX:EBR) announced today that coalbed methane ("CBM") production has commenced from its Acme, Alberta property. Since acquiring an average working interest of 75% and operatorship of the property in early March 2007, Ember has successfully drilled and/or completed and tied in 31 (29.1net) wells under budget and ahead of schedule.

Production at Acme commenced on November 18, 2007 and productivity has varied day to day from 3-4 mmcf/d as field operations are optimized and a recently constructed plant moves to full productive capacity. The Company is working to achieve a sustainable 4 mmcf/d over the next few weeks. Production is being processed at a gas plant owned and operated by AltaGas Income Trust which was constructed to handle the Company's CBM volumes at Acme.

In Ember's project, a total of 31 CBM (29.1 net) wells, have been connected and are producing to the new processing facility. Of the 31 producing wells, 23 (21.1 net) were new wells drilled this fall and eight were existing shut-in wells purchased with the property. Ember's production in the area is from the Horseshoe Canyon coal trend which is characterized by wells with production rates typically in the range of 100 mcf/d and a long production life.

Ember's project was completed one month ahead of schedule and the Company estimates capital costs to be significantly under budget by at least $1 million. Drilling and production growth is forecast to continue at Acme in first quarter 2008 with a 10-15 net well drilling program.

"Acme was a key project for Ember as it has allowed us to build momentum in our production growth, and has set the stage for further drilling and production additions in 2008. Completion of the project ahead of schedule and below budget demonstrates the technical competency and execution skills of the Ember team," said Doug Dafoe, Chairman and Chief Executive Officer.

The Acme property is one of two Horseshoe Canyon properties operated by Ember. The Company's current production is on track to achieve our year end exit rate target of 10 mmcf/d, primarily from its Horseshoe Canyon projects. Ember plans to proceed with full development of its 200-well drilling inventory in these Horseshoe Canyon areas over the next few years.

FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements including expectations of future production, funds from operations, earnings, operating expenses and capital expenditures. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Additional information on these and other factors that could affect the Company's operations or financial results are included in the Company's reports on file with Canadian securities regulatory authorities.

Ember Resources Inc. is a resource company specializing in coalbed methane (CBM) with extensive land and resource holdings in Alberta, Canada. Ember's shares are traded on the Toronto Stock Exchange under the trading symbol "EBR".

Contact Information

  • Ember Resources Inc.
    Mr. Douglas A. Dafoe
    Chairman & CEO
    (403) 270-0803
    or
    Ember Resources Inc.
    Mr. Terry S. Meek
    President & COO
    (403) 270-0803
    (403) 270-2850 (FAX)