NiMin Energy Corp.

NiMin Energy Corp.

March 10, 2011 15:38 ET

NiMin Energy Corp. Discloses 2011 Development Plan

CARPINTERIA, CALIFORNIA--(Marketwire - March 10, 2011) - NiMin Energy Corp. (TSX:NNN)(OTCQX:NEYYF) ("NiMin" or the "Company") today disclosed the details of the Company's 2011 Development Plan.

Highlights for 2011 Development Plan include:

  • Drilling to commence in April with 18 wells planned in Wyoming and two wells planned in California.
  • Implementation of a water flood at the Ferguson Ranch field.
  • Expansion of facilities at the Willow Draw field to process 1,100 barrels of oil per day ("BOPD").
  • Doubling of oxygen injection at the Pleito Creek field from 500 million cubic feet per day ("MCFD") to 1,000 MCFD.

The Company has entered into a multi-well drilling contract for 2011 and plans to drill 18 wells in Wyoming within the four oil fields it operates. This drilling program will begin in April. NiMin will also drill two wells in California at the Pleito Creek field where the Company is applying its patented Combined Miscible Drive ("CMD") technology.

The Company will begin a water flood program at the Ferguson Ranch field with water injection beginning in the third quarter. This is consistent with successful field development in the area.

Facility expansion at the Willow Draw field in Wyoming will be implemented ahead of schedule in order to process higher than expected oil production from recent development. Expansion of the facilities will be implemented in two phases. Phase 1, to be completed in the second quarter, will increase capacity from 465 BOPD and 35,000 barrels of water per day ("BWPD") to 715 BOPD and 37,000 BWPD. Phase 2, to be completed in the third quarter, will increase capacity to 1,100 BOPD and 45,000 BWPD.

Based on the success of the Company's patented CMD enhanced oil recovery project at Pleito Creek, the Company plans to double oxygen injection by the third quarter of 2011.

Mr. Clancy Cottman, Chairman and CEO, said, "2010 was a great operational year for Nimin. The Wyoming drilling program and successful application of CMD in California beat our expectations as reflected by our most recent year-end reserve report which showed a 45 percent increase in proved reserves. Our technical team has worked to continuously improve how we approach each of our fields and our fourth quarter 2010 average daily production was up 72 percent year over year to 1,035 BOE. This demonstrates the effectiveness of the program and their hard work."

Mr. Cottman continued, "In addition to executing a successful 2010 drilling program, our team has identified an opportunity to further increase recovery of oil at Ferguson Ranch by implementing a water flood. We plan to have water injection established by the third quarter of this year, and look forward to what we believe will be a significant increase in production as a result of this enhancement."

Mr. Cottman concluded, "I am confident we will be able to execute our development plans in Wyoming and California. Staffing changes have increased our efficiency, we've partnered with experienced contractors in both of our areas of operation, and we've fostered relationships with service providers to ensure our projects can be implemented on schedule and within our budget. 2011 will be an exciting year for the Company."

About NiMin Energy

NiMin is a California based independent oil and gas exploitation and production company with principal operations in the Bighorn Basin of Wyoming, the San Joaquin Basin in California and South Louisiana onshore areas of the U.S. The Company has over 28 million barrels of proved and probable reserves, 98% of which are oil.

Cautionary Statements

This news release contains forward-looking statements and information ("forward-looking statements") within the meaning of applicable securities laws, including the drilling program to be commenced by NiMin during 2011, production gains, the long-term upside potential of the patented CMD process and the Ferguson Ranch water flood and the increase in oil recovery resulting therefrom. Although NiMin believes that the expectations reflected in its forward-looking statements are reasonable, such statements have been based upon currently available information to NiMin. Such statements are 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 forward-looking statements. Risks include, but are not limited to: the risks associated with the oil and gas industry (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price, price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. The risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in more detail in our Annual Information Form and other documents available at Readers are cautioned to not place undue reliance on forward-looking statements. The statements in this press release are made as of the date of this release, and, except as required by applicable law, NiMin does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement. NiMin undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of the NiMin, Legacy or their respective financial or operating results or, as applicable, their securities. The net present value of future net revenue attributable to NiMin's reserves do not represent fair market value. Barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet ("mcf"): one barrel ("bbl") is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Contact Information

  • NiMin Energy Corp. - Investors
    Jonathan Wimbish, CFA
    Chief Financial Officer
    +1 (805) 566-2900
    Sard Verbinnen & Co - Media
    Dan Gagnier/Jared Levy
    +1 (212) 687-8080