Sure Energy Inc.

Sure Energy Inc.

June 28, 2012 18:32 ET

Sure Energy Inc. Sells Beaverhill Lake Assets and General Operations Update

CALGARY, ALBERTA--(Marketwire - June 28, 2012) - Sure Energy Inc. (TSX:SHR) ("Sure Energy" or "the Company") is pleased to announce that it has sold its Beaverhill Lake land interests and approximately 60 barrels of oil per day of associated production for $9 million. The deal closed on June 28, 2012 and is effective June 1, 2012. As a result of this disposition and the adjustment to the current price deck, the Company's revolving credit facility will be reduced to $30 million from $33 million. The Company will retain its operating demand loan of $7 million to give it a total $37 million bank credit facility.

Operations Update

The Company purchased 6,400 acres of additional land on its heavy oil play at Hatton in SW Saskatchewan at the June 4th, 2012 Crown landsale. It plans to drill one exploration well on these lands in 2012.

At Queensdale, in SE Saskatchewan, the Company's oil battery, which includes a salt water disposal well, became fully operational on June 25, 2012. The ability to dispose of salt water on site will save the Company an estimated $80,000 per month in trucking costs. The Company plans to drill an additional horizontal oil well at Queensdale in July, 2012.

At the Company's main core property at Redwater, six 40% working interest horizontal Viking oil wells are planned to commence production in late July, 2012.

Sure Energy Inc. is a publicly traded oil and gas exploration and development company listed on the Toronto Stock Exchange under the symbol "SHR".

Forward-looking Information

Certain statements contained in this release constitute forward-looking information. These statements relate to future events or Sure Energy's future performance. The use of any of the words "could", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on Sure Energy's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, Sure Energy's stated expected timing for the drilling of the Hatton and Queensdale wells, the timing of the Redwater wells to be on production, and the estimated cost savings of the oil battery at Queensdale is forward looking information. Sure Energy's Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR website describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference. Sure disclaims any intention or obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.

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Contact Information

  • Sure Energy Inc.
    Mr. Jeff Boyce
    Chairman and CEO
    (403) 410-3100

    Sure Energy Inc.
    Mr. Chris Baker
    President and COO
    (403) 410-3100

    Sure Energy Inc.
    Mr. Lance Wirth
    Vice President, Finance and CFO
    (403) 410-3100
    (403) 410-3111 (FAX)