Endev Energy Inc.

Endev Energy Inc.

December 12, 2007 18:00 ET

Endev Energy Inc. Announces 2008 Capital Program and Updates Operations

CALGARY, ALBERTA--(Marketwire - Dec. 12, 2007) - Endev Energy Inc. (TSX:ENE) is pleased to announce that it has established a capital program of $38 million for 2008. Endev plans to drill a total of 36 gross (31 net) wells in 2008.

Endev's successful 2007 program has broadened the Company's scope of opportunities, adding medium risk, reward drilling prospects to complement its shallow gas operations. Under the current economic climate Endev does not anticipate drilling new wells on its shallow gas properties in Alberta and Saskatchewan in 2008.

Approximately $20 million will be spent on furthering Endev's success in its medium risk Mannville drilling program in Southern Alberta (W4). Of the remaining $18 million, $9 million, or approximately 25 percent of the funds, will be spent on drilling programs in two new areas in Western Alberta (W5). The balance will be spent on commercial activities which grow our presence in these areas, including joint ventures, farm-ins and acquisitions. The W5 program will explore Endev's higher risk, higher reward prospects in formations of up to 3,000 metres in depth.

Endev expects to fund its 2008 capital program from internally generated cash flow and existing bank lines, assuming an average gas price of AECO $6.50/mcf and an average oil price of WTI US$75.00 per bbl.

As a result of this capital program, our preliminary estimate of Endev's annual average production without including production additions from commercial activities is 4,300 to 4,500 boe per day, approximately 7 percent above 2007.

"Our drilling operations in the fourth quarter of 2007 are on track, with five wells drilled to date. We've had some very positive early results in our W4 program and we are really excited about adding to our portfolio with the W5 program in 2008," said Cameron MacGillivray, Endev's President and Chief Executive Officer. "Our solid base of cash flow together with our planned 2008 drilling program will provide us with even greater balance than we've had to date."

Endev is a technically driven, operationally strong and financially sound, 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.

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 has been used by the Company and is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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