Open Range Energy Corp.
TSX : ONR

Open Range Energy Corp.

January 09, 2007 08:30 ET

Open Range Energy Corp. 'TSX:ONR' Announces 2007 Capital Investment Program and Production Guidance

CALGARY, ALBERTA--(CCNMatthews - Jan. 8, 2007) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Open Range Energy Corp. (TSX:ONR) is pleased to announce that its Board of Directors has approved a $30.0 million capital investment program for 2007. The capital program will be focused on development and exploration drilling opportunities. Of the budgeted amount, the Company contemplates spending $23.0 million on drilling and completions, $4.8 million on land, seismic and capitalized G&A costs and $2.2 million on facilities. Open Range anticipates that the 2007 capital investment program will be funded by cash flow from operations and the Company's credit facilities.

Based on the approved capital investment program, Open Range's 2007 production is expected to average more than 1,450 boe/d, and the Company should exit the year at approximately 1,650 boe/d. Natural gas is forecast to comprise 90 percent of total production in 2007.

Over 90 percent of the 2007 capital expenditures are scheduled to occur at the Company's core Ansell/Sundance property, where Open Range has experienced 100 percent drilling success to date. The initial drilling program at Ansell/Sundance will consist of approximately 10 drilling locations, all of which will be operated by Open Range, with the Company holding working interests of between 30 and 50 percent.

The 2007 Ansell/Sundance drilling program has been designed with a focus on step-out and infill development locations offsetting multi-zone producing wells. In addition, an exploration component will continue the evaluation of the Company's highly prospective undeveloped lands. Drilling locations will be supported by the Company's proprietary 3D seismic, which was shot during 2006.

Open Range is financially positioned to execute its 2007 capital investment program. At the end of 2006 Open Range had an estimated $3.3 million in net debt on bank credit facilities of $14 million. In addition, the Company has approximately 45 percent or 3,750 Gj/d of its forecast average 2007 natural gas production hedged at a floor price of Cdn$7.00 per Gj and blended average ceiling prices of Cdn$10.10 per Gj for winter 2007 and Cdn$9.47 per Gj for summer 2007.

Open Range continues to be very encouraged by its multi-zone drilling results and production performance at its Ansell/Sundance property. The Company's financial flexibility and its expanding development and exploration drilling inventory position Open Range for continued growth through 2007, while confirming prospects for the 2008 drilling program.

OPEN RANGE ENERGY CORP. IS A PUBLICLY TRADED CANADIAN ENERGY COMPANY INVOLVED IN THE EXPLORATION, DEVELOPMENT AND PRODUCTION OF NATURAL GAS AND CRUDE OIL IN WESTERN CANADA.

Reader Advisory

This disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond Open Range's control, including: the impact of general economic conditions in Canada and the United States, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. Open Range's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that Open Range will derive there from. All amounts are denominated in Canadian funds unless otherwise specified.

The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.

Contact Information

  • Open Range Energy Corp.
    A. Scott Dawson, P.Eng.
    President and Chief Executive Officer
    (403) 205-3704
    Website: www.openrangeenergy.com