Seaview Energy Inc.

Seaview Energy Inc.

February 22, 2008 11:55 ET

Seaview Energy Inc. Provides Operational Update and Commencement of Winter 2008 Capital Program

CALGARY, ALBERTA--(Marketwire - Feb. 22, 2008) -


Seaview Energy Inc. ("Seaview" or the "Company") (TSX VENTURE:CVU.A) (TSX VENTURE:CVU.B) is pleased to provide an update on the recent operations in the company's Peace River Arch focus area including current production, developments in the company's exploration program and plans for winter 2008 capital expenditures.


Current production, based on field estimates, is 280 - 300 Boe/d (95% natural gas weighting). Relative to the 180 Boe/d of production acquired from 1276921 Alberta Ltd. ("Privateco"), this represents a 67% increase in production in the first quarter of operations. The Company estimates there is an additional 30-35 Boe/d of production behind pipe from tested wells which have been released for tie-in and are expected to come online before the end of the first quarter of 2008.


Fourth quarter drilling focused on the Company's exploration strategy targeting a combination of conventional exploration targets and resource plays. The conventional program, focused in Gordondale, resulted in two new pool discoveries both of which are now on production. Seaview successfully drilled 3 (1.59 net) wells, including 2 exploration wells in the Pouce Coupe area, successfully targeting the Montney-Doig tight gas resource play.

The Montney-Doig sands in Pouce Coupe represents a material upside opportunity for Seaview through the Company's exposure to this emerging play. The Montney-Doig sands offer a significant resource exposure with original-gas-in-place ("OGIP") estimates of 10-12 BCF per section within the exploration fairway. Advances in horizontal drilling and multi-stage fracturing technology are proving to enhance the productivity and economics of this play. Analogues offsetting Seaview's lands have indicated potential initial production rates up to 5 MMscf/d per horizontal well. Seaview's exposure to the Montney play represents an inventory of 6 - 12 horizontal wells and over 30 BCF net OGIP representing a material development upside to the company.

Plans for the winter 2008 capital program include a total of 11 (5.69 net) operations with 8 (4.06 net) drilling locations. The winter program commenced in late January and will continue through to break-up targeting both the conventional and resource prospects. Seaview remains active in evaluating acquisition opportunities to further expand its existing core areas and capitalize on the Company's strong balance sheet capacity and operating momentum.

Operations Update:

Commencing with the acquisition of Privateco and the successful closing of the Company's Initial Public Offering ("IPO") on October 17, 2007, the Company completed 8 (4.06 net) operations prior to the end of 2007 with a success rate of 88%.


In Gordondale, 3 (1.75 net) wells were drilled with 100% success, including two new pool discoveries. Of the new wells drilled in the fourth quarter of 2007, 2 (1.15 net) wells have been placed on production. The remaining 1 (0.6 net) well has been completed and is currently being evaluated for tie-in. The Company attempted a completion on a previously suspended wellbore but was unsuccessful.

Combining the operations history of Seaview and Privateco (as the management team of Privateco continued with Seaview post acquisition) a total of 15 (7.26 net) operations were completed in 2007 with an overall success rate of 92%. Gordondale is a multi-zone area offering a diverse mix of low to medium risk drilling targets at depths of 1,700 m, with additional exploration upside in the Kiskatinaw zone to depths of 2,200 m. The Company has several additional drilling prospects in Gordondale to be capitalized over the remainder of 2008.

Pouce Coupe

The Montney tight gas play is an emerging new resource play offering an attractive combination of low risk exploration with high reserves potential. The Montney play is characterized as a resource play with 10-12 BCF per section of gas in place. Seaview's focus area is within a well established fairway with over 130 wells having produced from the Montney formation.

Seaview has entered into 3 separate farm-in agreements resulting in a 4 well drilling commitment earning an interest in 7 sections (2.78 net) of land, exposing the company to over 30 BCF of resource potential. Recent land sales offsetting the Pouce Coupe focus area have been sold at $750,000 per section, further validating Seaview's value potential in this rapidly developing area.

Offset producers have begun to use horizontal drilling and advanced completion techniques resulting in attractive project economics for full development of the resource. Based on publicly available data, the horizontal wells have initial production rates of 3 - 5 MMscf/d compared to 0.5 - 0.75 MMscf/d for the vertical producers. Assuming initial development of 2 horizontal wells per section, Seaview's current inventory would support 6 horizontal development locations.

Given the potentially high deliverability of these prospects, the impact on Seaview' production capability represents material upside potential. The completion techniques are changing rapidly as industry partners refine the best practices for drilling and completing the Montney wells. Competitors regionally are reporting capital costs of $4 - $5 MM per horizontal well with the expectation that costs over time will be reduced as activity levels pick up.

The company will be drilling the fourth and final earning well on its farm-in commitments during the first quarter of 2008. Of the 3 wells drilled to date 1 (0.46 net) well is on production and the other 2 (1.13 net) wells have been successfully completed and are awaiting tie-in.

Winter 2008 Capital Program

Seaview has kicked-off its winter drilling program consisting of 11 operations (5.69 net) to be completed prior to spring break-up. The highlights of the winter plans include 8 (4.06 net) drilling locations, 1 (0.5 net) recompletion project and equip and tie-in of 2 (1.13 net) wells drilled in Pouce Coupe in the fourth quarter of 2007. Total net capital is expected to be $4.6 MM to be committed over the coming months.

We are pleased to report the production growth since the successful acquisition of Privateco. We believe the exposure to the Montney resources play as well as the multi zone conventional targets in Gordondale will provide more positive results during the coming months.

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.

This press release may contain forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, anticipations, expectations, opinions, forecasts, projections, guidance or other similar statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses and health, safety and environmental risks), commodity price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

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

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