Redcliffe Exploration Inc.

Redcliffe Exploration Inc.

November 15, 2007 09:30 ET

Redcliffe Announces Wapiti Well on Production and Updates Drilling Activity

CALGARY, ALBERTA--(Marketwire - Nov. 15, 2007) -


Redcliffe Exploration Inc. ("Redcliffe" or the "Company") (TSX VENTURE:RXI.A) (TSX VENTURE:RXI.B) provides the following activity update:

Completion Activities

Redcliffe is pleased to announce that the recently completed Wapiti exploratory well (37.5% W.I.), in the Peace River Arch has been placed on production this past weekend at an initial rate of 3,000 mcf/d plus an estimated 20 bbl/mmcf of liquids from two zones. Sustainability of this production rate will be established with further production data. Redcliffe Energy Ltd. ("REL"), a private company subject to an outstanding offer to amalgamate with Redcliffe, also owns a 12.5% interest in this well. This increases Redcliffe's current production to approximately 700 boepd, while REL's production increases to approximately 225 boepd.

Q4 Drilling Program

Redcliffe previously announced the initiation of its fall drilling program, pursuant to which the Company expects to drill 11-13 wells. A minimum of six wells are planned to be drilled in the Pembina area and five wells on the Gold Creek/Wapiti properties, all by the end of February 2008. To date the Company has operated the drilling of 3 gross (1.5 net) Pembina wells with 2 (1.0 net) wells cased as potential natural gas producers. Completion operations will begin this month on these two wells. The remaining 3 gross (1.8 net) wells in the Pembina area will be drilled starting in late November with Redcliffe operating all three wells.

In the Gold Creek/Wapiti area located on the southern flank of the Peace River Arch, Redcliffe is currently participating (W.I. 20%) in the drilling of the 15-2 location offsetting its 4-11 (W.I. 40%) Halfway gas well. Three additional wells are scheduled for the Gold Creek area prior to the end of February 2008. Redcliffe's working interest in these wells will vary from 22.5% to 50%. All of these locations benefit from not only geologic mapping and 3-D seismic, but also recent offsetting competitor drilling. Redcliffe, in association with REL, will operate an additional exploratory location at Wapiti 7-3 (Redcliffe W.I. 45%, REL W.I. 27%) that is anticipated to commence drilling in early December. With success, tie-in of these wells into the newly expanded gathering and processing system is anticipated to require 1-2 months following completion, with production on stream before spring breakup.

Production Tie-ins

Redcliffe anticipates further 2007 production increases estimated at approximately 125 boepd from one shut-in oil well in the Pembina area and commencement of full production from the Gold Creek 13-25 gas discovery in December. REL will also increase production by an approximate 50 boepd as a result of these wells. In addition, the completion of the recently cased wells in Pembina, may add to Redcliffe's production capability in Q4 2007. Redcliffe's target production capability at year-end remains 1,000 boe/d. The previously announced business combination with REL, completion of which is expected before year-end, will further add approximately 250-300 boe/d of production once the two entities are amalgamated.

Redcliffe's strategy is to build shareholder value through internally generated exploration and development drilling, and through selective acquisitions. Redcliffe explores for liquid-rich, multi- zone gas at depths of 1,500 - 2,800 meters in the Pembina and Peace River Arch areas of western Alberta. This strategy will be subject to a detailed review of the recently announced Alberta royalty changes proposed to commence January 1, 2009.

Forward-Looking Statements: This news release contains certain forward-looking statements, which include assumptions with respect to production and future capital expenditures. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. All such forward looking statements 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, that the Company will derive there from. Readers are cautioned that the foregoing list of factors is not exhaustive. 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. In addition, the term "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 necessarily 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)
    Redcliffe Exploration Inc.
    George Gramatke
    Vice President, Finance & CFO
    (403) 539-8442
    (403) 539-8433 (FAX)