Redcliffe Exploration Inc.
TSX VENTURE : RXP.A
TSX VENTURE : RXP.B

Redcliffe Exploration Inc.

March 03, 2008 12:06 ET

Redcliffe Announces Capital Program for 2008

CALGARY, ALBERTA--(Marketwire - March 3, 2008) -

THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO U.S. PERSONS.

Redcliffe Exploration Inc. (TSX VENTURE:RXP.A) (TSX VENTURE:RXP.B) ("Redcliffe") announces its capital program and exploration focus for 2008.

Redcliffe has budgeted $17.5 million for exploration and development in 2008. We currently plan to drill 11-16 wells primarily in the Peace River Arch ("PRA") area of northwestern Alberta. This program is based upon the success achieved to date in this basin at Gold Creek, Wapiti and Elmworth. The first of these wells is scheduled for drilling in March at Gold Creek. The remainder of the program will be focused in the second half of 2008. Included within this program will be 3-5 wells in the Pembina area. Two of these will complete the earning on our major Pembina block announced last year and one well will test a new prospect multi-section farm-in recently completed with a major Canadian Trust. These wells are anticipated to commence drilling in June 2008.

Redcliffe currently has an inventory of over 30 drilling prospects, which will be focusing on lower risked development prospects in 2008 to maximize the facility and transportation expansions undertaken in 2007. While Redcliffe fulfilled its 2007 flow through commitments, it retains a commitment to expend an estimated $5.7 million in additional flow-through exploration expenditures in 2008, a portion of which has already been incurred to date. These expenditures will be focused in the PRA targeting liquid rich natural gas at below 2000 metres. Such drilling will qualify for reduced royalty rates under the proposed new Alberta royalties starting in January 1, 2009.

While all capital expenditures are reviewed quarterly in the case of junior exploration companies, it is important to identify primary targets and objectives. In terms of capital spending, Redcliffe will be restricted to funding these expenditures through a combination of cash flow, debt and new equity. These levels are themselves dependent on present and forecasted future oil and gas product pricing as well as the investment environment towards the fiscal regime in which Redcliffe explores. Western Alberta, and more specifically, Peace River Arch, will remain our primary focus for 2008.

Based on this capital program, Redcliffe anticipates averaging 1400 boepd for 2008. We have established an exit rate target of 2000 boepd at this time. Achieving these average and exit rates will depend on existing well performance, timing and success of new wells, and processing access and capacity limitation.

A revised corporate presentation may be accessed at our website www.redcliffe.ca effective March 4, 2008 detailing specific areas of capital focus and upside potentials from this drilling.

Redcliffe is also pleased to announce that Danny Ho has joined the Company as Controller, effective March 1, 2008.

Redcliffe is a Calgary, Alberta based company engaged in the exploration for, and development and production of conventional crude oil and natural gas reserves in western Canada. Redcliffe's strategy is to build shareholder value through internally generated exploration and development drilling, and through selective acquisitions. Redcliffe's areas of operational focus include the Peace River Arch and Pembina areas of Alberta.

Forward-Looking Statements: This news release contains certain forward-looking statements, including management's assessment of future plans and operations, and capital expenditures and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Such risks and uncertainties include, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, 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. The Company'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 the Company will derive there from. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could effect the Company's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

BOE may be misleading, particularly if used in isolation. A BOE conversion of 6 Mcf: 1 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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Redcliffe Exploration Inc.
    Daryl H. Connolly
    President & CEO
    (403) 539-8440
    (403) 539-8433 (FAX)
    Email: dconnolly@redcliffe.ca
    or
    Redcliffe Exploration Inc.
    George Gramatke
    Vice President, Finance & CFO
    (403) 539-8442
    (403) 539-8433 (FAX)
    Email: ggramatke@redcliffe.ca