Great Plains Exploration Inc.

Great Plains Exploration Inc.

October 15, 2010 08:00 ET

Great Plains Provides Corporate Update

CALGARY, ALBERTA--(Marketwire - Oct. 15, 2010) - Great Plains Exploration Inc. (TSX:GPX) (Great Plains) is pleased to announce that it has been granted an Interim Order by the Court of Queen's Bench of Alberta for the acquisition of Great Plains by Avenir Diversified Income Trust by way of a Plan of Arrangement. The application to the Court of Queen's Bench of Alberta for the Final Order will be submitted on November 5, 2010. This application will proceed subject to the approval of the Arrangement by Great Plains' shareholders and option holders at a special meeting to be held at 10:00 am on Thursday, November 4, 2010, at the Calgary Petroleum Club in Calgary, Alberta. The Information Circular, Proxy, Notice and related materials in respect of this Arrangement and special meeting have been mailed to all shareholders of record as at October 5, 2010. The proxy materials have been filed on SEDAR under Great Plains' profile and are also available at Great Plains website at

In operations, on September 27, 2010, Great Plains successfully completed a 14-stage horizontal multi-frac on their third Cardium oil well in the Pembina area located at 4-18-50-5 W5. The well has been flowing on clean-up since September 29, and is currently producing at 310 Bbls of oil per day (155 Bbls/d net to GPX) up 2 7/8" tubing with no water production. By October 6, the well had recovered all of the load oil from the frac, and since that time the well has produced an additional 2,700 Bbls of new oil. This well is now being equipped for commercial production. The next Cardium well to be completed in the program is located at 8-24-50-6 W5. This well has been successfully drilled to total depth of 2,268 metres, and a 13-stage horizontal multi-frac completion is scheduled to commence later this week. Great Plains owns an undivided 22.5% working interest in this 8-24 well.

Great Plains has also farmed-in (paying 75% to earn a 50% interest in four sections) on an exploratory prospect at b-34-F/94-P-1 in the Peace River Arch, targeting multiple horizons in a deep basin gas play, including Cadomin and Nikanassin. This well is expected to spud today. In addition, Great Plains is building the location to drill a wholly-owned exploratory Mannville oil prospect at 3-13-51-5 W5 in Pembina. Drilling of this well is expected to commence in late October 2010. The drilling and casing of these wells will substantially meet the CEE commitments of Great Plains that are required prior to year end.

Investors should note that BOEs may be misleading, particularly if used in isolation. A BOE conversion rate of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Advisory Regarding Forward Looking Statements

This press release contains forward-looking statements which include, but are not limited to: timing of court applications and the special meeting, drilling plans, production plans, plans for future development of Cardium and Nisku at Pembina, and the Cadomin and Nikanassin in the Peace River Arch, quality of Cardium oil, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurance that such expectations will prove to be correct. The forward-looking statements contained herein reflect management's current view and are based on certain assumptions including timing and amount of capital expenditures, production of new and existing wells, performance characteristics of oil properties, the continued availability of capital, land and skilled personnel, legal requirements and the ability to obtain equipment in a timely matter. Results of the Company may be affected by a variety of variables and risks associated with oil and gas exploration, production and transportation, such as loss of market, volatility of oil and gas prices, currency fluctuations, imprecision of reserve estimates, environmental risks, regulatory changes, competition from other producers, ability to access sufficient debt and equity capital from internal and external sources, ability to replace and expand oil and gas reserves, ability to generate sufficient cash flow from operations to meet its current and future obligations, and risks associated with existing and potential future lawsuits and regulatory actions made against the Company; as a consequence, actual results could differ materially from those anticipated or implied in the forward-looking statements. Readers are also cautioned that the list of factors is not exhaustive.

The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement and are made as of the date of this news release. Unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or review any forward-looking statements to reflect subsequent information, event, results or circumstances or otherwise.

Contact Information

  • Great Plains Exploration Inc.
    Stephen P. Gibson
    President & CEO
    (403) 262-9620
    (403) 262-9622 (FAX)
    Great Plains Exploration Inc.
    Sean Bovingdon
    Vice-President Finance & CFO
    (403) 262-9620
    (403) 262-9622 (FAX)