Unbridled Energy Corporation

Unbridled Energy Corporation

July 18, 2007 08:45 ET

Unbridled Energy Provides Operational Update for Chautauqua Lake Properties in New York, USA

CALGARY, ALBERTA and PITTSBURGH, PENNSYLVANIA--(Marketwire - July 18, 2007) - Unbridled Energy Corporation (TSX VENTURE:UNE)(FRANKFURT:O4U) (the "Company") is pleased to provide the following operational update on its Chautauqua Lake property in New York, USA. Management anticipates issuing a further comprehensive update on its Canadian and US operations on or before July 31, 2007.


On April 2, 2007, Unbridled Energy purchased a 50% working interest in 13,280 gross acres, in the State of New York. This property, with modest production, was primarily acquired to develop proven and probable undeveloped unconventional natural gas reserves in tight gas sand and shale reservoirs.

During the first month of management by Unbridled, the property produced an incremental 25% in gas volume. The Company has now also completed 9 of the 11 initial well workovers discussed in previous releases and will provide a production update after all the wells are in line for a few months. The remaining two workovers will begin in late July.

Reserve estimates established by Schlumberger Data & Consulting Services ("Schlumberger"), an independent qualified reserve estimator, are in excess of 31 billion cubic feet net to the Company of P3 (proven probable possible) reserves. It is Unbridled's intention, as operator, to apply the latest proven technology to develop this reserve base.

Management is on track to complete a field-wide geologic, reservoir, completion, and stimulation study during the first week of August 2007. These studies will establish the most effective technology for the ongoing development of these reserves and the best location for the first group of new wells. The Company has started the process to secure a drilling rig to commence drilling 8-12 new wells in Q4.

Specifically, as operator, it is Unbridled's intention to:

1. identify re-completion potential in the existing producing reservoirs,

2. identify behind pipe reserves,

3. establish infill locations, and

4. high grade proven, undeveloped locations for the fourth quarter ("Q4") drilling program.

On other developments to improve long-term production from the property, additional gas sales outlets have been identified and will be utilized to provide alternative production outlets. In past years, some or all of the gas production from the property was shut-in for many weeks annually during repairs to the sales pipeline system and compressors owned by a third party gathering company. To resolve this issue, the Company is securing other sales outlets as a means to address shut-down periods which, in turn, could improve yearly production by up to 10%.

Further, the Company is in negotiations to acquire additional interests in the Chautauqua Lake area. If completed, this acquisition will include working interest in 24 wells, undeveloped acreage, and 2D seismic data that will be used to evaluate deeper formations of interest.

President & CEO, Joe Frantz said, "The Chautauqua Lake area provides us a good foundation to grow reserves during the next few years in New York. There are many reservoirs to exploit with good upside potential. The location to market is excellent, as is the preferentially higher basis differential we obtain on gas prices. It is a vital area in our strategy to exploit various shale and tight gas reservoirs across the Appalachian Basin."

The Company also announces that it has engaged Mark Mastiliak of Victoria, British Columbia, to provide investor relations services. Under the supervision of Company management, Mastiliak will initiate and maintain contact with the financial community, shareholders and investors, and will assist the Company's management in strategizing, formulating and implementing its communications programs. Mastiliak has been engaged under a services agreement having an initial term of one year. He will be paid cash consulting fees of C$5,000 per month, and will be reimbursed for expenses that have been pre-approved by the Company. In addition, in accordance with the subject services agreement, the Company has granted to Mastiliak an option to acquire up to 50,000 Common shares of the Company for a period of three years ending on July 17, 2010 at an exercise price of $0.75 per share. This option will vest as to one quarter of the total grant every three months, with the first 12,500 options vesting on October 17, 2007. This agreement with Mastiliak replaces the Company's investor relations services agreement with Highlands Capital, Inc. which has ended.

About Unbridled Energy

Unbridled Energy is an independent natural gas evaluation and production company specializing in shale gas and tight gas sands ("TGS") opportunities in two main basins within North America; the eastern US Appalachian Basin and the Western Canadian Sedimentary Basin. The Company is applying a lower risk production enhancement strategy on existing wells, and the latest horizontal drilling and fracing technologies on new wells in well known shale gas and TGS formations in the Appalachian Basin. Importantly, management is also employing a "first mover" approach to large scale shale gas and TGS resource opportunities in the 580,000 square mile Western Canadian Sedimentary Basin. The Company has offices in Pittsburgh, Pennsylvania and Calgary, Alberta.

By Order of the Board of Directors

Unbridled Energy Corporation

Joseph H. Frantz Jr., President & CEO

Forward-looking Statements

This press release contains certain "forward-looking statements", as defined in the United States Private Securities Litigation Reform Act of 1995, and within the meaning of Canadian securities legislation, relating to the proposed use of proceeds. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "aims", "potential", "goal", "objective", "prospective", and similar expressions, or that events or conditions "will", "would", "may", "can", "could" or "should" occur. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements with respect to the Company's plans for the use of proceeds include: the volatility of natural gas prices, the possibility that exploration efforts will not yield economically recoverable quantities of gas, accidents and other risks associated with gas exploration and development operations, the risk that the Company will encounter unanticipated geological factors, the Company's need for and ability to obtain additional financing, the possibility that the Company may not be able to secure permitting and other governmental clearances necessary to carry out the Company's exploration and development plans, and the other risk factors discussed in greater detail in the Company's various filings on SEDAR (www.sedar.com) with Canadian securities regulators and its filings with the U.S. Securities and Exchange Commission, including the Company's Form 20-F (Amended) dated January 9, 2007.

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

Contact Information

  • Unbridled Energy Corporation
    Mark Mastiliak
    Investor Relations Consultant
    Website: www.unbridledenergy.com