Seaview Energy Inc.

Seaview Energy Inc.

March 18, 2008 09:20 ET

Seaview Energy Inc. Announces the Successful Drilling and Testing of Two New Pool Discoveries, Updates Its Winter Drilling Program and Execution of the Definitive Agreement With 1332915

CALGARY, ALBERTA--(Marketwire - March 18, 2008) -


Seaview Energy Inc (TSX VENTURE:CVU.A) (TSX VENTURE:CVU.B) ("Seaview" or the "Company") is pleased to announce that it has drilled 5 wells (2.9 net) in the first quarter of 2008 with an 80% success rate.

Two exploration wells in Boundary Lake (0.5 net) and Clayhurt (1.0 net), have been production tested and we believe significant natural gas pools have been discovered. Production tests of these wells have established significant production capacity and Seaview is awaiting reservoir buildup data to assess the reserve potential of these discoveries.

Two additional wells at Valhalla (0.9 net) have been cased and are currently being evaluated to assess their potential. In addition, one well (0.3 net) is currently drilling in the Gordondale area and is expected to reach total depth this week.

In addition, Seaview is pleased to announce that it has signed a definitive agreement with 1332915 Alberta Ltd, ("1332915"), in respect of the strategic acquisition previously announced on February 27, 2008. The acquisition is expected to close on or about March 31, 2008 and is subject to customary regulatory approvals and other typical conditions for this type of transaction.

Exploration Discovery Wells in Boundary Lake and Clayhurst

Seaview drilled the Boundary Lake and Clayhurst discoveries pursuant to a farm-in agreement with 1332915 in which Seaview paid 100% of 1332915's capital costs to drill, case, evaluate and tie-in. Upon closing of the acquisition of 1332915, expected to occur on or about March 31, 2008, Seaview will have a 50% and 100% working interest in the respective discoveries and the reported working interest and net well interest represents a consolidated position.

At Boundary Lake, in the Peace River area of northwest Alberta, Seaview drilled a Kiskatinaw Formation new pool discovery which encountered multiple reservoir zones. The well, in which Seaview has a 50% working interest, has been cased and dually completed within two distinct reservoirs within the Kiskatinaw Formation. The lower zone (4.8 meters net pay) is a new pool discovery which flow tested (on an extended 48 hour flow test) at stabilized rates of 1.8 MMSCF/D at a flowing tubing pressure of 1,150 psi.

A second Kiskatinaw zone flow tested (on an extended 36 hour flow test) at stabilized rates of 1.4 MMSCF/D at a flowing tubing pressure of 890 psi. This second reservoir zone encountered a partially depleted reservoir that has produced from an offset well in which 3 BCF had been produced. This reservoir zone has 1.5 meters of net pay and has similar reservoir characteristics as the offset well.

Both zones are currently shut-in to record pressure build up, at which time the Company will be able to assess the reserves potential from this dual zone discovery. Based on the stabilized test rates, the combined flow rate capacity of both zones was measured at 3.2 MMSCF/D (1.6 MMSCF/D net or 265 Boe/d). This well produced at combined rates of greater than 4 MMSCF/D at times during the test period and, once on production, this well is likely capable of flowing at these higher rates, depending on pipeline operating pressures.

At Clayhurst in the Peace River Arch area of northwest Alberta, the Company successfully drilled and tested a new pool discovery (100% working interest). This high quality Montney reservoir zone has 5.7 meters of net pay and was tested over a 48 hour period at stabilized rates of 1.5 MMSCF/D (250 Boe/d net) at a restricted flowing tubing pressure of 460 psi. This new pool discovery offsets a similar Montney pool currently producing from 2 wells at combined rates of 5.9 MMSCF/D. The reservoir has produced 2.9 BCF of gas to date. Seaview's discovery well encountered similar reservoir characteristics and, based on reservoir pressure, is in a separate pool.

Pipeline and facility construction has commenced for both the Boundary Lake and Clayhurst discoveries and Seaview expects initial production from both wells in the near term as the tie-ins are relatively short. Initial net incremental production rate is estimated at 250 Boe/d with potential to increase production in the second or third quarter based on facility and pipeline optimization. The Boundary Lake well will be temporarily restricted due to a pipeline bottleneck that will be upgraded during the summer of 2008. At Clayhurst, Seaview is reviewing available third party compression for optimization or expansion, as warranted, to maximize production from this well.

Valhalla and Gordondale Wells

At Valhalla in the Peace River area in northwest Alberta, Seaview has drilled and cased 2 wells (0.9 net). The first well (0.4 net) targeted a new pool prospect and completion operations are currently underway to evaluate its potential. The second successful well (0.5 net) was drilled to test an extension to an existing pool and will be completed and tested over the two weeks.

The final location in Gordondale (0.3 net) is currently drilling and is targeting a Kiskatinaw exploration prospect. Additional information on these operations will be provided when the projects have been completed and fully evaluated.

Seaview will provide a production and financial forecast based on a revised capital program once the acquisition of 1332915 has been completed and additional information is obtained from its current drilling program. Seaview has an inventory in access of 30 drilling and re-completion opportunities that are expected to provide additional organic growth.

Seaview is a Calgary, Alberta based company engaged in the exploration, development and production of conventional crude oil and natural gas reserves in Canada. Seaview's strategy is to build shareholder value through a balance of exploration and development drilling complimented by a focused acquisition program. Seaview's initial core focus area is in the Peace River area of northwest Alberta.

Forward-Looking Statements

This press release may include forward-looking statements including opinions, assumptions, estimates and expectations of future production, cash flow and earnings. When used in this document, the words "anticipate," "believe," "estimate," "expect," "intend," "may," "project," "plan", "will", "should" and similar expressions are intended to be among the statements that identify forward-looking statements. Forward-looking statements are subject to a wide range of risks and uncertainties, and although the Company believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. Any number of important factors could cause actual results to differ materially from those in the forward-looking statements including, but not limited to, the volatility of oil and gas prices, the ability to implement corporate strategies, the state of domestic capital markets, the ability to obtain financing, changes in oil and gas acquisition and drilling programs, operating risks, production rates, reserve estimates, changes in general economic conditions and other factors more fully described from time to time in the reports and filings made by the Company with securities regulatory authorities. References to forecasted cash flow or cash flow per share disclosed herein do not represent fair market value.

Oil equivalent amounts have been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil. BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio 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 release

Contact Information

  • Seaview Energy Inc.
    Michael Wuetherick
    President & CEO
    (403) 770-2961
    Seaview Energy Inc.
    Stephanie Bunch
    VP - Finance & CFO
    (403) 770-9503
    Seaview Energy Inc.
    Teresa Beets
    Manager, Corporate
    (403) 668-4492