CALGARY, ALBERTA--(Marketwire - Nov. 14, 2012) - Shoreline Energy Corp. ("Shoreline" or the "Company") (TSX:SEQ) is pleased to provide the following operational update;
- Shoreline has tested its most recent and most prolific Charlie Lake Horizontal well (44.8% WI). A 24 hour flow test averaged over 500 bbls/d clean oil and 1 Mmcf/d at flowing pressures of 3200 kPa SICP and 1020 kPa FTP. This well is expected to produce 200 bbls/d and 450 mcf/d when brought on stream.
- Since closing the recent financing the Company has drilled 4 gross (2.9 net) horizontal oil wells in its Progress, Tangent and Valhalla core development areas.
- 3 gross (1.9 net) net wells oil wells have been completed and production tested.
- 1 gross (1.0 net) has commenced completion operations.
- Drilling operations have begun on the Company's third Montney horizontal 100% working interest light oil well.
- 1 gross (0.7 net) horizontal oil well and 1 gross (0.9 net) vertical oil well remain to be drilled in Q4 2012.
- Tie in operations are underway. Shoreline anticipates the volumes from the first 3 wells to be on stream between December 15th 2012 and January 15th, 2013.
- Production volumes for the remaining 4 wells are anticipated to be on stream before February 15th, 2013.
- Shoreline has named Brian Ness as Operations Manager effective October 29, 2012. Mr. Ness brings over 30 years of operational expertise as well as extensive experience in horizontal drilling and completions.
Growth and Acquisitions
Shoreline is a growth oriented company and achieves growth by drilling for light sweet crude on the Company's 130,000 acres of land and by acquiring light oil production and reserves.
To achieve the Company's growth mandate of acquiring light sweet crude oil production and undeveloped reserves. Shoreline has expanded it's mandate beyond the Peace River Arch area to include but not be limited to; large resource plays in Cardium oil, Bakken oil and other large world class basins in Canada and United States which share the following attributes;
- Incremental light sweet crude reserves and production volumes,
- Multi-location, multi-year drilling inventory,
- Infrastructure access with efficient access to markets, and
- Favorable operating cost and royalty structure.
Such acquisitions are anticipated to improve Shorelines ability to continue to pay a sustainable dividend and to substantially grow production and cash flows.
Shoreline is a Calgary, Alberta based corporation engaged in the exploration, development and production of petroleum and natural gas. Shoreline offers investors a combination of value growth via lower risk development of additional oil reserves and production on its current lands and pays a quarterly dividend. Shoreline has 5,664,679 common shares outstanding. The Company's common shares are currently listed on the TSX under the trading symbol "SEQ" and its debentures under the trading symbol "SEQ.DB". Additional information regarding Shoreline is available under the Company's profile at www.sedar.com or at the Corporation's website, www.shorelineenergy.ca.
Forward-Looking and Cautionary Statements
This news release contains forward-looking statements relating to the Corporation's plans and other aspects of the Corporation's anticipated future operations, strategies, financial and operating results and business opportunities. These forward-looking statements may include opinions, assumptions, estimates, management's assessment of value, reserves, future plans and operations.
Forward-looking statements typically use words such as "will," "anticipate," "believe," "estimate," "expect," "intend," "may," "project," "should," "plan," and similar expressions suggesting future outcomes, and include statements that actions, events or conditions "may," "would," "could," or "will" be taken or occur in the future. The forward-looking statements are based on various assumptions including expectations regarding the success of current or future drill wells; the outlook for petroleum and natural gas prices; estimated amounts and timing of capital expenditures; estimates of future production; assumptions concerning the timing of regulatory approvals; the state of the economy and the exploration and production business; results of operations; business prospects and opportunities; future exchange and interest rates; the Corporation's ability to obtain equipment in a timely manner to carry out development activities; and the ability of the Corporation to access capital and credit. While the Corporation considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
Forward-looking statements are subject to a wide range of assumptions, known and unknown risks and uncertainties and other factors that contribute to the possibility that the predicted outcome will not occur, including, without limitation: risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation; loss of markets; volatility of commodities prices; currency fluctuations; imprecision of reserves estimates; environmental risks; competition from other producers; inability to retain drilling rigs and other services; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions; general economic conditions; delays resulting from or inability to obtain required regulatory approvals and to satisfy various closing conditions; and ability to access sufficient capital from internal and external sources. Readers are cautioned that the foregoing list of factors is not exhaustive.
Although Shoreline believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements and you should not rely unduly on forward-looking statements. The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by applicable law, Shoreline does not undertake any obligation to publicly update or revise any forward-looking statements.
Note Regarding BOEs
The term barrel of oil equivalent ("boe") may be misleading, particularly if used in isolation. A conversion ratio for gas of 6 mcf:1 boe is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly equivalency conversion ratio of 6:1, utilizing a conversion on a 6:1 basis is misleading as an indication of value.