Guardian Exploration Inc.

Guardian Exploration Inc.

July 07, 2011 09:15 ET

Guardian Exploration Acquires Land in Jenner Area of Alberta

CALGARY, ALBERTA--(Marketwire - July 7, 2011) - Guardian Exploration Inc. (TSX VENTURE:GX) ("Guardian" or the "Company") today announced the successful acquisition of 3,360 acres from the Alberta Crown and another 320 acres from a Calgary based energy company, in the Jenner area of Southern Alberta targeting Pekisko oil. The Company acquired these leases based on a geological evaluation of the area and production from an offsetting well that has already produced over 35,000 barrels of oil since coming on stream in November 2010. Some of the acquired land was drilled in the 1980's and early 1990's with vertical wells that economically produced for several years and have since been abandoned. Guardian intends to use horizontal drilling technology to increase both initial production rates and recoverable reserves from these Pekisko pools. An average of 8.0 meters of oil pay and porosities ranging from 10.0 to 15.0% are present on Guardian land. Unlike many of the resource plays being developed around North America, this formation would not require any Hydraulic fracturing. This translates to a simpler completion process that involves less risk, and is less expensive.

The Company intends to drill at least one well before year-end and from its current evaluation has identified a minimum of 4 well locations. A 3D seismic program is currently being planned to help identify additional step out locations but the initial locations can be drilled with the existing downhole and 2D seismic data.

Montana Update

The Company has also recently added 1,276 acres around its existing Alberta Bakken position, bringing its total holdings in the play to just over 10,000 acres. Wells continue to be drilled and completed next to Guardian lands, primarily by Newfield Exploration and Rosetta Resources. Although no production numbers have yet become publicly available, it is known that Newfield's Sheriff 1-11H is a producing horizontal well and is only 7 miles north-west of Guardian's Montana lands.

Guardian's President, Graydon Kowal, stated "The Pekisko play in this area has one of the highest investment rates of return in North America. Given the offsetting production and well control on our land, it is exactly what the Company was looking for in terms of a low risk and highly profitable play to compliment our exploration lands in Montana. The Alberta Bakken is still the primary focus of Guardian and we continue to watch the activity around us and perform our own research but developing the Montana asset won't happen overnight. The Pekisko play will provide a solid foundation from which to build by providing consistent cash flow for years to come."

The Company anticipates the formal announcement of a significant brokered financing in the coming weeks. The funds will be primarily used for drilling the Jenner/Pekisko targets and a water disposal well to minimize operational costs as early as possible. $350,000 will also be directed to the Oil and Gas Commission of British Columbia as a refundable operator bond for existing natural gas assets in North East B.C. (previously the Company was bonded through a contract that Guardian held with one of Canada's major exploration companies).

Guardian is a Calgary-based corporation engaged in the acquisition, exploration and development of resource properties. Common shares of the company trade on the TSX Venture Exchange under the trading symbol "GX".

Investors are cautioned that this news release contains forward looking information. Such information is subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, as no assurances can be given as to future results, levels of activity or achievements.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Guardian Exploration
    Graydon Kowal
    President and CEO
    (403) 269-5870