Waldron Energy Corporation
TSX : WDN

Waldron Energy Corporation

May 24, 2011 08:00 ET

Waldron Energy Announces Operational Update

CALGARY, ALBERTA--(Marketwire - May 24, 2011) - Waldron Energy Corporation (TSX:WDN) ("Waldron" or the "Corporation") announces that its horizontal Strachan 2-29-37-8W5 well (the "2-29 well") has been drilled with completion operations ongoing. The 2-29 well was drilled to a measured depth of 4,064 meters in the Glauconite Formation with the length of the horizontal being 1,072 meters. The entire 1,072 meter horizontal leg encountered very good reservoir with 22 meters of vertical net pay, with approximately 400 meters of 12-15% porosity, 500 meters of 9-12% porosity and 150 meters of 6-9% porosity. Waldron initiated a ten-interval fracture stimulation program with the first two intervals being successfully stimulated. Subsequently, a crack occurred in the heel of the frac string and the remaining seven intervals were not stimulated. Currently, the 2-29 well is flowing up the 4 ½ inch frac string on continuous production, at approximately 3.0 MMcf/d of liquids rich natural gas while recovering the frac oil with 31 MPa of down-hole pressure. The Corporation is planning on patching the frac string, at a budgeted cost of $0.5 million, and will then continue to fracture stimulate the remaining intervals. The Corporation anticipates the timeframe to engineer and install the patch to be approximately 30 days with completion operations to follow.

On May 3, 2011, Waldron spud the vertical Ricinus 4-12-36-9W5 well (the "4-12 well") targeting the Ellerslie formation. The 4-12 well is currently drilling at approximately 2,800 meters with a target depth of approximately 3,500 meters. Drilling and logging operations at the 4-12 well are expected to be finished by the end of the first week of June 2011 with completion operations to follow.

Waldron currently has identified an inventory of 36+ high perm Ellerslie and 10+ horizontal Glauconite drilling locations in the Ricinus/Strachan area on the Corporation's lands.

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 currently 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," "intent," "may," "project," "should," "plan," "intend," and similar expressions suggesting future outcomes, and 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 2-29 well and the 4-12 well, including the quality of the reservoir; porosities encountered on the horizontal leg; continuous production rates and recovered volumes; budgeted costs; timing of fracture operations; estimated drill depths; the estimated timing of the drilling, logging and completion of the 4-12 well; and identified drilling locations. 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; performance; 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 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.

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