Online Energy Inc.
TSX VENTURE : ONL

March 29, 2011 09:00 ET

Online Energy Inc. Announces Appointment of Chairman, Operations Update and Approval of 2011 Capital Budget

CALGARY, ALBERTA--(Marketwire - March 29, 2011) - Online Energy Inc. ("Online" or the "Company") (TSX VENTURE:ONL) is pleased to announce that Mr. Raymond Smith has been appointed Chairman of the Board of Directors of the Company. Mr. Smith is currently President and CEO of Bellatrix Exploration Ltd. and Chairman of the Board of Madelena Ventures Inc.

The Company also announces that it has drilled the Online 103 Charlie 11-1-89-5W6M well (100% working interest) to a total depth of 1,202 meters. The well has been cased and completed as a gas well in a secondary target horizon. The primary target horizon was found to be non-prospective. 

Online is currently in the process of re-activating a Nordegg oilwell in the Paddle River area of central Alberta. This is the first of a series of re-activations, re-entries and re-completions that the Company plans to execute to supplement its current production base of approximately 300 boe/d (32% oil and liquids).

The Board of Directors of Online has approved an initial capital budget of $8,000,000 for 2011. The majority of these funds will be directed towards ongoing activities in the greater Paddle River area. Specifically, the Company will focus on identified and captured oil exploration and development projects in the Viking, Ostracod and Nordegg formations and liquids-rich gas opportunities in the Notikewin formation. The Company controls approximately 22,400 net acres of undeveloped land in this area and continues to accumulate assets through Crown landsales and third-party acquisitions.

The Company currently has approximately $7,000,000 of working capital, no debt and 33,309,889 common shares outstanding.

To date, Online's management team has made significant progress assembling a solid platform for growth and looks forward to providing updates on specific progress in the near future.

Basic corporate information and periodically updated presentations will soon be available on the Company's website at www.onln.ca.

Cautionary Statements:

This press release contains certain forward-looking statements (forecasts) under applicable securities laws relating to future events or future performance. Forward-looking statements are necessarily based upon assumptions and judgements with respect to the future including, but not limited to, the outlook for commodity markets and capital markets, the performance of producing wells and reservoirs, well development and operating performance, general economic and business conditions, weather, the regulatory and legal environment and other risks associated with oil and gas operations. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "projects", "plans", "anticipates" and similar expressions. These statements represent management's expectations or beliefs concerning, among other things, future operating results and various components thereof affecting the economic performance of Online. Undue reliance should not be placed on these forward-looking statements which are based upon management's assumptions and are subject to known and unknown risks and uncertainties, including the business risks discussed above, which may cause 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. Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted.

In the interest of providing Online shareholders and potential investors with information regarding the Company, including management's assessment of Online's future plans and operation, certain statements throughout this press release constitute forward looking statements. All forward-looking statements are based on the Company's beliefs and assumptions based on information available at the time the assumption was made. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward looking statements. By its nature, such forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward looking statements. Online believes the expectations reflected in those forward looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward looking statements contained throughout this press release should not be unduly relied upon. These statements speak only as of the date specified in the statements. 

In particular, this press release may contain forward looking statements pertaining to the following:

  • the performance characteristics of the Company's oil and natural gas properties;
  • oil and natural gas production levels;
  • capital expenditure programs;
  • the quantity of the Company's oil and natural gas reserves and anticipated future cash flows from such reserves;
  • projections of commodity prices and costs;
  • supply and demand for oil and natural gas;
  • expectations regarding the ability to raise capital and to continually add to reserves through acquisitions and development; and
  • treatment under governmental regulatory regimes.

The material assumptions in making these forward-looking statements include certain assumptions disclosed in the Company's most recent management's discussion and analysis included in the material available on this press release.

The Company's actual results could differ materially from those anticipated in the forward looking statements contained throughout this press release as a result of the material risk factors set forth below, and elsewhere in this press release:

  • volatility in market prices for oil and natural gas;
  • liabilities inherent in oil and natural gas operations;
  • uncertainties associated with estimating oil and natural gas reserves;
  • competition for, among other things, capital, acquisitions of reserves, undeveloped lands and skilled personnel;
  • incorrect assessments of the value of acquisitions and exploration and development programs;
  • geological, technical, drilling and processing problems;
  • fluctuations in foreign exchange or interest rates and stock market volatility;
  • failure to realize the anticipated benefits of acquisitions;
  • general business and market conditions; and
  • changes in income tax laws or changes in tax laws and incentive programs relating to the oil and gas industry.

These factors should not be construed as exhaustive. Unless required by law, Online does not undertake any obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

Barrels of oil equivalent (boe) may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet (mcf) of natural gas to one barrel (bbl) of oil is based on an energy conversion method primarily applicable at the burner tip and is not intended to represent a value equivalency at the wellhead. All boe conversions in this press release are derived by converting natural gas to oil in the ratio of six thousand cubic feet of natural gas to one barrel of oil. Certain financial amounts are presented on a per boe basis, such measurements may not be consistent with those used by other companies.

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

Contact Information

  • Online Energy Inc.
    Steve Dabner
    President & Chief Executive Officer
    (403) 262-1901 ext. 228
    sdabner@onln.ca
    or
    Online Energy Inc.
    Thomas Love
    Chief Financial Officer
    (403) 262-1901 ext. 227
    tlove@onln.ca
    www.onln.ca