Endev Energy Inc.
TSX : ENE

Endev Energy Inc.

December 11, 2006 17:53 ET

Endev Energy Inc. Announces 2007 Capital Program and Updates Operations

CALGARY, ALBERTA--(CCNMatthews - Dec. 11, 2006) - Endev Energy Inc. (TSX:ENE) is pleased to announce that it has established a capital program of $40 million for 2007. Endev plans to drill a total of 105 gross (79 net) wells in 2007.

Approximately $36 million, or 90 percent of the funds, will be spent on Endev's New Ventures program, with the remaining $4 million of the budget spent on drilling shallow gas wells at Majorville. Endev's New Ventures Program has allowed Endev to expand its scope of opportunities. Endev will continue to build on its successful 2006 program which added medium risk, higher reward drilling prospects to complement its shallow gas operations. With softening gas prices in 2006 Endev was able to use its significant opportunity inventory to shift capital towards these more attractive drilling prospects.

Endev expects to fund its 2007 capital program from internally generated cash flow and existing bank lines, assuming an average gas price of AECO $7.00/mcf and an average oil price of WTI US$60.00 per bbl.

As a result of this capital program, our preliminary estimate of Endev's annual average production for 2007 is 4,200 to 4,400 boe per day, approximately 15 percent above 2006.

Endev's operational plans are on track for the fourth quarter of 2006, which included drilling up to eight new wells, placing 40 existing wells on production and field optimization work. Daily production has grown steadily, surpassing 4,200 boe per day early in December. We are reconfirming our estimate of exit volumes to be within the range of 4,200 to 4,600 boe per day.

"Our operations are on track and we are really excited about pursuing the opportunities in 2007 targeted by our New Ventures program," said Cameron MacGillivray, Endev's President and Chief Executive Officer. "We've had some very positive early results from our Mannville program at Majorville and from the initial drilling activity in the two large farm-in areas at Provost and Admiral which we will be discussing further in the new year."

(All amounts are in Canadian dollars unless stated otherwise)

Endev is an oil and natural gas exploration, development and production company based in Calgary, Alberta. The Company's shares trade on the Toronto Stock Exchange under the symbol ENE.

Certain information regarding Endev Energy Inc. set forth in this document, including management's assessment of the Company's future plans and operations contains forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Company's and management's control including, but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of foreign exchange rates, imperfection of reserve estimates, environmental risks, industry competition, availability of qualified personnel and management, stock market volatility, and timely and cost-effective access to sufficient capital from internal and external sources. Endev'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 to occur or transpire from the forward-looking statements will provide what, if any, benefits to Endev Energy Inc.

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

Contact Information

  • Endev Energy Inc.
    Cameron MacGillivray
    President and CEO
    (403) 750-2600
    or
    Endev Energy Inc.
    Scott Bonli
    Vice President, Finance and CFO
    (403) 750-2600
    Email: info@endevenergy.com
    Website: www.endevenergy.com