Welton Energy Corporation

Welton Energy Corporation

June 11, 2007 17:27 ET

Welton Energy Corporation Announces Participation in New Joint Venture

CALGARY, ALBERTA--(Marketwire - June 11, 2007) -


Welton Energy Corporation (TSX:WLT) (TSX:WLT.DB) (TSX:WLT.WT) ("Welton", "the Corporation") is pleased to announce its participation in a 19 section joint venture in the emerging natural gas area of Trutch in Northeastern British Columbia. The area has multi-zone natural gas potential with the Bluesky and Halfway sandstones being the primary zones of interest. Other potential zones include the Baldonnel, the Charlie Lake and the Artex zones. Reviews of the area indicate that reserves per well could be approximately 3 billion cubic feet (BCF). Welton has committed to pay 75 percent of the drilling and casing costs for the first three wells drilled plus 100 percent of the first $550,000 of seismic work done on the lands to earn a 45 percent working interest. Welton will operate the drilling phase of the earning wells operations. Of the three wells to be drilled, one will offset a bypassed Bluesky well, one will be a step out from a new Bluesky well that is producing approximately 5 million cubic feet (mmcf) per day and one will be an exploration location. These locations are in close proximity to a natural gas pipeline. Each well drilled will earn three sections and following the drilling of the third well, Welton has a continuing option to drill additional wells to earn similar interests until all 19 sections have been earned. The first three wells are expected to be drilled this summer. Success on these wells will be followed up with a larger drilling program this winter.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the common shares in any jurisdiction. Such securities have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States, or to a U.S. person, absent registration or an applicable exemption from the registration requirement.

Cautionary Statements

Certain information set forth in this document contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Corporation's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of the preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Welton's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits Welton will derive therefrom. Welton disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. A barrel of oil equivalent (boe) is derived by converting natural gas to oil in the ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent. A boe conversion may be misleading, particularly if used in isolation, as it is based on an energy equivalency conversion method primarily applicable at the burner tip and may not represent a value equivalency at the wellhead.

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

Contact Information

  • Welton Energy Corporation
    Donald A. Engle
    President & Chief Executive Officer
    (403) 215-4747
    Welton Energy Corporation
    Shyla M. Stinson
    Vice President, Finance
    (403) 215-4750
    Website: www.weltonenergy.com