Newton Energy Corporation
TSX VENTURE : NTN

Newton Energy Corporation

October 27, 2011 18:53 ET

Newton Energy Corporation Announces Directors and Officers and Provides Operations Update

CALGARY, ALBERTA--(Marketwire - Oct. 27, 2011) - Newton Energy Corporation (the "Company" or "Newton") (TSX VENTURE:NTN) held its Annual General and Special meeting of shareholders today and is pleased to announce the following re-election of directors of Merv Chia, Bruce Williams, Richard Schmitt and Steve Engwall. In addition, subsequent to the shareholders meeting, the directors made the following appointments:

  • Merv Chia, Chairman of the Board;
  • Steve Engwall, President and Chief Executive Officer; and
  • Barry Sadrehashemi as Vice-President, Finance, Chief Financial Officer and Secretary.

Operations

Mr. Engwall provided an update on management activities and operational matters in the East Midlands Basin.

The Company is making progress towards drilling its first well in the East Midlands which will be on the Harlequin prospect, east of the City of Nottingham. The site preparation was completed by Fox (Owmby) on September 30, 2011. Long lead items (wellhead and tubing hanger) have been purchased and received into the warehouse of Newton's project managers, Moorhouse Petroleum.

The Company also announces that negotiations have commenced with drilling contractors to provide a drilling rig for the Harlequin prospect. Delivery of the rig will most likely occur in the first or second quarter of 2012 and applications to the Department of Energy and Climate Change for permission to drill the well are expected to be commenced in the next few days.

East Midlands Reserves

The Company also anticipates that certain of the prospects on Newton's East Midlands acreage may see reductions in their associated Proved and Probable Reserves categories as a result of re-interpretation of 2D seismic data and well logs.

In particular, it is expected that the reserves on the Cropwell Butler and Harlequin prospects will be reviewed by independent Qualified Reserves Evaluators, Chapman Petroleum Engineering Ltd. ("Chapman") and there will likely be downward revisions.

However, the new mapping work has also brought insight into at least one new prospect on the acreage, whose reserves are still under evaluation, but may well help to mitigate some of the above reductions. It is expected that further details of any significant reserves revisions will be announced following Newton's year end review of reserves with Chapman.

Third Quarter Financial Statements

The Company has filed its third quarter financial statements on SEDAR.

About Newton

Newton is an oil and gas company focused on drilling exploration wells on its East Midlands licenses in the United Kingdom. Newton maintains offices in Woking, England and Calgary, Alberta.

ADVISORY:

Except for the historical and present factual information contained herein, the matters set forth in this news release, including words such as "expects", "projects", "plans", "anticipates", and similar expressions, are forward-looking statements that represents management of Newton's internal projections, expectations or beliefs concerning, among other things, future operating results and various components thereof or the economic performance of Newton. The projections, estimates and beliefs contained in such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Newton's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, those described in Newton's filings with the Canadian securities authorities. Accordingly, holders of Newton's shares and potential investors are cautioned that events or circumstances could cause results to differ materially from those predicted. Newton disclaims any responsibility to update these forward-looking statements except as required by applicable securities legislation.

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

  • Newton Energy Corporation
    Steve Engwall
    CEO

    Newton Energy Corporation
    Barry Sadrehashemi
    CFO
    (403) 410-3822
    barry@newtonenergy.ca

    Newton Energy Corporation
    200, 638 - 11th Avenue SW
    Calgary, Alberta T2R 0E2