Waldron Energy Corporation

Waldron Energy Corporation

January 06, 2011 16:15 ET

Waldron Energy Announces Operational Update

CALGARY, ALBERTA--(Marketwire - Jan. 6, 2011) -


Waldron Energy Corporation (TSX:WDN) ("Waldron" or the "Corporation") is pleased to provide the following operational update in the Corporation's core Ricinus/Strachan area.

In Strachan, Waldron has successfully cased its dual Ellerslie/Glauconite vertical well at 14-20-37-8W5, (the "14-20 well"). The Corporation expects completion operations to commence within the next two weeks. Additionally, on December 28, 2010, Waldron spud the 100% vertical 7-29-37-8W5 well (the "7-29 well") at Strachan. 

By drilling the 14-20 well, Waldron earned 100% working interest in 2.5 sections of multi-zone high potential P&NG rights on the southern extension of the prolific Hoadley Glauconite trend. Included in these sections are two cased wellbores which Waldron is developing plans to re-enter as Glauconite horizontal wells.

The Corporation has completed the previously announced 25 square kilometer 3D seismic shoot in Ricinus (six miles to the south of Strachan). As interpreted, this shoot ties in the successful 15-10-39-9W5 well (the "15-10 well") to the recently drilled 3-14-36-9W5 well (the "3-14 well"). The results have confirmed and further defined the Ellerslie channel and Waldron's geological model. 

The Ricinus dual Ellerslie/Viking 3-14 exploratory well has been cased and will be completed as a vertical low perm Ellerslie and Glauconite commingled gas well. The new 3D seismic, completed on December 23, indicates the presence of the high impact Ellerslie channel at 13-11-36-9W5M (the "13-11 well"), the Corporations next drill well, directly adjacent to the 3-14 well. Lease construction at 13-11 has commenced and Waldron plans to drill this well after the 7-29 well. 

2010 Update

The 14-20 well and 7-29 well are expected to be on production by February 28, 2011. The 3-14 and 13-11 wells are expected to be on production on March 31, 2011.

During 2010, Waldron averaged approximately 2,100 boepd for the year and exited December 2010 with average monthly production of approximately 2,600 boepd. The Corporation expects to exit 2010 with a combined debt and working capital deficiency totaling approximately $16 million. 

The Corporation will release the 2011 budget and 2011 guidance at the end of January 2011.

Investor Information

Waldron is a Calgary, Alberta based corporation engaged in the exploration, development and production of petroleum and natural gas. The Corporation's common shares are listed on the Toronto Stock Exchange under the trading symbol "WDN." Additional information regarding Waldron is available under the Corporation's profile at www.sedar.com or at the Corporation's website, www.waldronenergy.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,," "intend," 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. Specifically, this press release contains forward-looking statements relating to the timing of completion operations; development of drilling and re-entry plans; whether or not geological zones are prospective; results and confirmation of exploration concepts; timing of operations; yearly average production; December 2010 average production; and combined debt and working capital deficiency. In addition, statements regarding reserves are deemed to be forward-looking statements, as they involve estimates and assumptions as to the expectation that the reserves can be economically exploited 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 ability to access sufficient capital from internal and external sources. Readers are cautioned that the foregoing list of factors is not exhaustive.

Although Waldron 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, Waldron 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 six mcf to one 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.

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