NiMin Energy Corp.

NiMin Energy Corp.

May 09, 2011 06:30 ET

NiMin Energy Corp. Provides Operations Update

CARPINTERIA, CALIFORNIA--(Marketwire - May 9, 2011) - NiMin Energy Corp. (TSX:NNN)(OTCQX:NEYYF) ("NiMin" or the "Company") today announced the following operations update, including:

  • Commencement of the 2011 drilling program in Wyoming;
  • Completion of Phase 1 and 2 of the Willow Draw facilities expansion this quarter, ahead of schedule; and
  • Drilling of the first of two wells in California's Pleito Creek Field where the Company is applying its patented Combined Miscible Drive ("CMD") technology.

Wyoming Update

The Company commenced its 2011 drilling program in Wyoming at the Hunt field, which began in late April and will continue through the end of 2011. The program includes a total of 18 wells at all four of the Company's fields.

Phases 1 and 2 of the facility expansion at the Willow Draw field in Wyoming will be completed in the second quarter, one quarter ahead of previous estimates. This expansion of the facilities will increase the capacity from 465 barrels of oil per day ("BOPD") and 35,000 barrels of water per day ("BWPD") to 1,100 BOPD and 47,000 BWPD. Phase 3, to be completed in the fourth quarter, will increase capacity to handle all production from the 2011 program.

Pleito Creek Update

NiMin will also begin the drilling of two consecutive wells in California at the Pleito Creek field this week. These wells will be drilled vertically and completed with fracture stimulation in the Santa Margarita formation where the Company is applying its patented CMD technology.

Management Comments

Mr. Clancy Cottman, Chairman and CEO, said, "The accelerated completion of Phases 1 and 2 of the Willow Draw facilities expansion will allow us to put all of our existing wells and workovers online, maximizing production throughout the year. Phase 3 will create capacity for all new wells that we drill in 2011, giving the Company flexibility to drill more wells at the Willow Draw field.

"The progress of our drilling program in California underscores our commitment to exploiting the heavy oil resource in the Pleito Creek field. In addition, through the application of NiMin's innovative CMD technology, we expect to improve production rates and ultimate recovery within this acreage. In Wyoming, we will drill in all four fields to maximize the utilization of our facilities and minimize production downtime.

"Our staff continues to make significant progress on or ahead of schedule. We are very pleased with the team effort to improve operations and implement this exciting drilling program, which we believe will create value for shareholders."

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, facilities expansion and resulting production gains. 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