Guardian Exploration Inc.
TSX VENTURE : GX

Guardian Exploration Inc.

April 21, 2008 09:45 ET

Guardian Announces Kotcho Lake Field Production and Acquisition of a Gas Well and Additional Development Lands

CALGARY, ALBERTA--(Marketwire - April 21, 2008) - Guardian Exploration Inc. (TSX VENTURE:GX)("Guardian" or the "Company" or the "Corporation") -

Ft. Nelson, British Columbia - Kotcho Lake Update

Guardian Exploration Inc. is pleased to announce that on March 31, 2008, the Corporation purchased an additional 35% working interest in a gas well from a mid-sized, Alberta-based oil & gas exploration company. The purchase, at B-71-H-94-P-4, brings Guardian's interest in this well, and one additional undeveloped section, up to 100%. The lands are located in the Kotcho Lake area of Northeastern British Columbia. This area is a core area for Guardian which now operates three gas wells in this field and plans for future expansion are underway.

Currently the B-71-H-94-P-4 well is producing 166 BOE of gas per day. Guardian has identified one additional location on the purchased acreage, which it plans to develop in the winter of 2008/09. The effective date of this acquisition was January 1, 2008.

Currently the B-100-E-94-P-3 well is also producing at 166 BOE of gas per day. The well currently has a delinquent partner who is now in penalty, thus Guardian receives 100% of the revenue from the well.

The pipeline and facility work undertaken by Guardian this winter has been successfully completed on budget and the Company is now selling gas from the Kotcho Lake field. Production from the Kotcho Lake installations has stabilized at approximately 332 BOE per day and Guardian is pleased with the operation of its new 100% owned facilities.

Girouxville, Alberta - Farm-In Update

03-21-76-22W5M - This well has been pipelined into the operator's surrounding facilities and continues to flow nicely at a EUB restricted rate of 150 BOE per day, water free. Guardian has a 50% working interest in this well.

02-29-74-21W5M - The operator of this well is currently testing and evaluating the Gilwood formation, with operations likely to be completed after breakup. Guardian owns a 55% working interest in this well.

Future Wells In The Girouxville Area - Two more locations have been selected on the farm-in lands and Guardian anticipates drilling to proceed after breakup. Under the terms of the farm-in agreement Guardian has a rolling option to drill 12 more locations with its partner.

K2 America - Cut Bank, Montana

The wells in this region are back to producing approximately 40 BOE per day. Extreme cold temperatures caused operational issues in the months of January and February and affected production for those months.

Future Wells in Montana

Guardian is reviewing a 100% owned seismic program over its solely owned Tesoro field. Management is optimistic that this area could yield the largest amount of production in Guardian's current portfolio.

Overall Outlook

Graydon Kowal, Guardian's President, said "I am pleased that as of today's date Guardian has increased its overall production by 1,000 per cent (ten fold) from the start of 2008." Guardian has no bank debt, a $400,000 8% debenture secured by part of the companies properties, and is working with its suppliers to clean up old joint venture operations, left from delinquent partners defaulting on commitments. This firmed up cash flow will allow the Company to get positive working capital and further ramp up production from the areas of Kotcho, Girouxville, and Cutbank.

Information about Guardian Exploration Inc.

Guardian Exploration Inc. is an Alberta-based oil and natural gas company. Guardian is engaged in the exploration for, and the acquisition, development and production of, natural gas and crude oil with emphasis on the shallow to mid-depth hydrocarbon prone zones of the western Canadian sedimentary basin in Alberta and northeastern British Columbia.

The term barrels of oil equivalent ("BOE") may be misleading, particularly if used in isolation. In accordance with NI 51-101, a BOE conversion ratio of six thousand cubic feet per barrel (6mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All BOE conversions herein are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil.

Investors are cautioned that the preceding statements of the Corporation may include certain estimates, assumptions and other forward-looking information. The actual future performance, developments and/or results of the Corporation may differ materially from any or all of the forward-looking statements, which include current expectations, estimates and projections, in all or part attributable to general economic conditions and other risks, uncertainties and circumstances partly or totally outside the control of the Corporation, including natural gas/oil prices, reserve estimates, drilling risks, future production of gas and oil, rates of inflation, changes in future costs and expenses related to the activities involving the exploration, development and production of gas and oil hedging, financing availability and other risks related to financial activities. The Corporation undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

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

Contact Information

  • Guardian Exploration Inc.
    Graydon Kowal
    President and Chief Executive Officer
    (403) 232-1748
    (403) 269-6085 (FAX)