Waldron Energy Corporation

Waldron Energy Corporation

April 26, 2012 07:00 ET

Waldron Energy Corporation Announces Operational Update

CALGARY, ALBERTA--(Marketwire - April 26, 2012) - Waldron Energy Corporation ("Waldron" or the "Corporation") (TSX:WDN) is pleased to provide an operational update for the Belly River oil pool activity at Ferrybank, Alberta and announce that the Corporation's credit facilities have been renewed by its lender.

Waldron has drilled two successful horizontal Belly River oil wells in the Ferrybank Belly River G Pool and testing is underway. Currently, the Corporation has added 100 barrels of oil per day from the two horizontal wells. Early production results from these wells continue to improve daily as the completion fluid used in the stimulation diminishes. The Corporation is currently testing the wells and updated test data will be included when Waldron reports the first quarter 2012 results on May 15, 2012.

The Belly River oil pool provides the Corporation with a significant oil play opportunity as Waldron has 100% working interest in twelve sections of lands on the pool with estimated discovered original oil in place of 61 million barrels. Currently, the Belly River Oil Pool has recovered approximately 5.8% or 3.6 million barrels of oil to date from Waldron's wells. Waldron estimates that infill drilling with horizontal oil wells and reactivation of the waterflood could improve the recovery to 17% - 20% (10 - 12 million barrels) as demonstrated in similar Belly River pools in the area. At current crude oil prices and production rates, the field netback is approximately $65 per barrel of oil resulting in a proved plus probable net present value discounted at 10% of $1.8 million per well (net of capital). The Belly River oil pool at Ferrybank is characterized by its shallow depths (1,000 meters TVD), low capital per well ($1.5 - $1.9 million), repeatable development drilling with large oil in place, oil quality of 35° API, low declines within an existing water flood and minimal Belly River oil reserves have been booked by Waldron.

Waldron's credit facilities have been renewed by its lender with the same terms and conditions. The Corporation is planning to release its first quarter 2012 financial statements after the close of market on May 15, 2012.

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 TSX 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," 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 production rates and results; timing of additional and updated test data, which data currently should be considered to be preliminary; whether or not recovery is improved; estimated field netbacks; and characteristics of the Belly River oil pool at Ferrybank. 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 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.

Note Regarding BOEs

The term barrel of oil equivalent ("boe") may be misleading, particularly if used in isolation. A conversion ratio for gas of 6 mcf:1 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. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency conversion ratio of 6:1, utilizing a conversion on a 6:1 basis is misleading as an indication of value.

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