SkyWest Energy Corp.
TSX VENTURE : SKW

SkyWest Energy Corp.

November 10, 2011 09:00 ET

SkyWest Energy Corp. Provides Update on Proposed Business Combination and Operational Update

CALGARY, ALBERTA--(Marketwire - Nov. 10, 2011) - SkyWest Energy Corp. ("SkyWest" or the "Company") (TSX VENTURE:SKW) is pleased to provide an update to its news release of October 11, 2011 (the "Initial Announcement") announcing the proposed combination of the businesses of SkyWest Energy Corp. and Marquee Petroleum Ltd. ("Marquee") (TSX VENTURE:MQE) (the "Arrangement"). Further to the Initial Announcement, the special meeting of SkyWest security holders to consider the Arrangement and certain related matters will be held in the Strand Tivoli Room of the Metropolitan Centre, 333 - 4th Avenue SW, Calgary, Alberta at 10:00 a.m. (Calgary time) on December 5, 2011. The notice of meeting and management information circular, which will contain a detailed description of the Arrangement, was mailed on November 7, 2011 to security holders of record on November 3, 2011 and is available for review at www.sedar.com. Please refer to the Initial Announcement for further information regarding the terms and conditions of the Arrangement and the pro forma entity's business and management team.

SkyWest is also pleased to report its recent drilling and completion results. SkyWest has drilled 5 gross (2.42 net) new Cardium horizontal wells, 2 gross (1.6 net) in the Carrot Creek area and 3 gross (0.82 net) in the Willesden Green area in west central Alberta. (All production rates are reported below on a gross basis)

Carrot Creek Area

The first well, the 05-08 (100% working interest) has been on production for 65 days at an average approximate rate of 100 bbl/d of oil and 8 boepd of gas. The second well, 15-19 (60% working interest) has been on production for 50 days at an average rate of approximately 100 bbl/d of oil.

Willesden Green Area

SkyWest has drilled and completed a total of 3 gross (0.82 net) wells in the Willesden Green area. The first well 16-34 (35.00% working interest) has been on production for 17 days at an average rate of 655 boepd (301 bblsd of oil and 354 boepd of gas). Based off test results of the 16-34 well, the remaining 2 wells look very promising and they are expected to be tied in and on production by November 20th, 2011. The 16-34 well has been tied in and the remaining 2 wells will also be tied into SkyWest's Evening Star Facility.

SkyWest's current production is 1700 boepd (not including the 2 new latest wells) at Willesden Green).

Information Regarding SkyWest

SkyWest Energy Corp. is a Cardium focused public oil and gas exploration and Development Company, located in Calgary, Alberta with operations in Alberta. SkyWest currently trades on the TSX Venture Exchange (TSXV) under the Symbol "SKW".

Statements herein that are not historical facts may be considered forward looking statements including management's assessment of future plans and operations, growth expectations within the Corporation, expected initial production rates from certain new wells, timing of completion of wells and of production additions, expected size of various plays, construction or expansion of facilities and the timing thereof and expected costs and the effects thereof, drilling plans and the effects thereof. These forward-looking statements sometimes include words to the effect that management believes or expects a stated condition or result. All estimates and statements that describe the Corporation's objectives, goals or future plans are forward-looking statements. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties including, without limitation, risks associated with the Acquisition, 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, failure to realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, SkyWest's actual results may differ materially from those expressed in, or implied by, the forward-looking statements.

Forward-looking statements or information are based on a number of factors and assumptions which have been used to develop such statements and information but which may prove to be incorrect. Although SkyWest believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward- looking statements because SkyWest can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this document, assumptions have been made regarding, among other things: the impact of increasing competition; the ability of SkyWest to obtain equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects which SkyWest has an interest in to operate the field in a safe, efficient and effective manner; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development or exploration; the timing and costs of pipeline, storage and facility construction and expansion; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which SkyWest operates; and the ability of SkyWest to successfully market its oil and natural gas products.

Readers are cautioned that the foregoing list of factors and assumptions is not exhaustive. Additional information on these and other factors that could effect SkyWest's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and SkyWest 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.

BOEs

Disclosure provided herein in respect of barrels of oil equivalent (boe) 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.

Contact Information

  • SkyWest Energy Corp.
    Lawrence Urichuk
    President & CEO
    (403) 265-0071
    (403) 265-0073 (FAX)

    SkyWest Energy Corp.
    Joel MacLeod
    VP Finance and CFO
    (403) 265-0071
    (403) 265-0073 (FAX)

    SkyWest Energy Corp.
    Suite 480, 435 - 4th Ave S.W.
    Calgary, Alberta T2P 3A8