Shoreline Energy Corp.

May 06, 2011 09:33 ET

Shoreline Energy Corp. Announces 2011 Capital Expenditure Program and Production Guidance

CALGARY, ALBERTA--(Marketwire - May 6, 2011) -


Shoreline Energy Corp. ("Shoreline" or the "Company") (TSX:SEQ) is pleased to announce its 2011 Capital Expenditure Program and Production Guidance


On April 29, 2011 Shoreline successfully acquired a combination of operated and non-operated production, undeveloped land, and production facilities from a senior integrated energy producer. The Company acquired between 800 and 850 barrels of oil equivalent per day (80% natural gas and 20% oil & liquids), over 40,000 net acres of undeveloped land, and ownership in over ten major production facilities. Over the past four months, the engineering and geological team has identified a number of projects to execute, generating growth in reserves, cash flow, and production value, a subset of which have been approved for the remainder of 2011.

2011 Capital Expenditure Program

The Company has approved a capital budget of $5.4 million dollars for the remainder of 2011 (excluding asset acquisitions), investing capital into phase one of a multiyear inventory of projects.

Beginning immediately following annual "spring break up" and continuing through the remainder of 2011 Shoreline will invest an estimated $3.4 million dollars developing light oil through a combination of low risk development projects (well restarts, recompletions, and facility optimization), development drilling in existing light oil pools and will perform required wellbore abandonments and reclamation. An additional $2.0 million dollars is budgeted for acquisition of additional seismic data designed to decrease risk on existing lands and for increasing Shoreline's undeveloped land position.

Based on internal evaluation, the proposed 2011 projects on a risked basis are anticipated to add net production of 225 BOED at a production on stream cost of $15,111 per flowing BOE per day (excluding land and seismic capital).

The Company anticipates that capital operations will continue uninterrupted through the first quarter of 2012, with investment continuing to focus on development of light oil production and reserves.

Production Guidance

For the remainder of 2011, the Company forecasts an average of 875 BOE per day of production, with an anticipated exit rate of 1025 BOE per day at a product mix of 33% Oil & Liquids and 67% natural gas.

About Shoreline

Shoreline Energy Corp., is an emerging junior oil and gas company based in Calgary Alberta. Shoreline offers shareholders a combination of value growth through development of oil and gas reserves and production with a specific focus in the Peace River Arch of northwest Alberta. In addition to value growth through development, the Company offers investors a fixed quarterly dividend of $0.20 per share.

Forward-Looking Statements

Certain information in this press release constitutes forward-looking statements under applicable securities law. Any statements that are contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may," "should," "anticipate," "expects," "seeks" and similar expressions. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, that the final set-off amounts may impact the financial exposure of Shoreline differently than currently anticipated, the availability of drilling services and risks associated with oil and gas production; marketing and transportation; loss of markets; volatility of commodity prices; currency and interest rate fluctuations; imprecision of reserve estimates; environmental risks; competition; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions or dispositions; inability to access sufficient capital from internal and external sources; changes in legislation, including but not limited to income tax, environmental laws and regulatory matters. Readers are cautioned that the foregoing list of factors is not exhaustive.

Readers are cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. In particular, drilling plans, on-production dates and production continuity are particularly subject to uncertainties and uncontrollable events such as surface access, rig availability, equipment availability, weather conditions, changes in geological interpretation, and other factors. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

Additional information on these and other factors that could affect Shoreline's operations or financial results are included in Shoreline's reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website ( or by contacting Shoreline. Furthermore, the forward looking statements contained in this news release are made as of the date of this news release, and Shoreline 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 expressly required by securities law.

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