NiMin Energy Corp.

NiMin Energy Corp.

October 25, 2010 06:01 ET

NiMin Energy Doubles Production in Wyoming and Continues Progress in California

CARPINTERIA, CALIFORNIA--(Marketwire - Oct. 25, 2010) - NiMin Energy Corp. (TSX:NNN)(OTCQX:NEYYF) ("NiMin" or the "Company") today announced continued success and production growth in Wyoming, and commercial progress in California.

  • NiMin's Wyoming production has doubled in 2010 from 320 barrels of oil per day ("bopd") to over 650 bopd.
  • The Company expects to complete ten additional operations in Wyoming before year-end to further increase production, including new drilling, fracture stimulation, polymer treatments and recompletions.
  • The Company is proceeding with the next phase of development at the Pleito Creek Field in California in order to increase production and reduce operating costs.
  • NiMin's current production is in excess of 1,000 bopd, a greater than 40% increase in production since the beginning of the year.


Through drilling activity at the Ferguson Ranch Field and workover activity at the Willow Draw Field, the Company has increased oil production from 320 bopd at the beginning of 2010 to over 650 bopd currently. This increase is a result of drilling and completing four new wells and one polymer treatment. For the remainder of the year, plans include the drilling of four additional wells, completion of two recently drilled wells, two polymer treatments and reactivation of two shut-in wells.


At the Pleito Creek Field, the Company's proprietary Combined Miscible Drive ("CMD") process continues to deliver month over month production growth. Current production is 260 bopd or 100 bopd above the natural decline of the field. Based on these results, NiMin plans to move from the initial phase to commercial implementation of the CMD process at the Pleito Creek Field. The next phase will include installation of permanent onsite oxygen generation, reactivation of shut-in wells and new drilling. These activities will take place in 2011 and are expected to both increase production and reduce operating expenses.

Management Comments

"Our operating results in Wyoming have delivered significant production growth, and our inventory of planned activities is expected to continue adding new production," said Clancy Cottman, Chairman and CEO. Mr. Cottman continued, "Based on the technical and commercial results of our CMD process at the Pleito Creek Field, we are planning further development that will increase production and reduce operating costs."

For more detailed information, please see the presentation available on NiMin's website at

About NiMin Energy Corp.

NiMin is an Alberta, Canada-incorporated, California-based independent oil and gas exploitation and production company. Principal operations are located in the Bighorn Basin of Wyoming, the San Joaquin Basin in California and onshore South Louisiana. The Company has over 27 million barrels of oil equivalent ("boe") of proved and probable reserves, 97% of which are oil in California and Wyoming.

Forward- Looking Statement

A boe conversion ratio of six thousand cubic feet per barrel (6mcf/bbl) of natural gas to barrels of oil equivalence is based upon an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency for the individual products at the wellhead. Such disclosure of boe's may be misleading, particularly if used in isolation.

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 on the acquired fields, production estimates and expectations, and the viability of NiMin's drilling program. 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 does not represent fair market value.

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