Welton Energy Corporation
TSX : WLT
TSX : WLT.WT
TSX : WLT.DB

Welton Energy Corporation

July 18, 2007 13:15 ET

Welton Energy Corporation Provides Chime Area Drilling Update

CALGARY, ALBERTA--(Marketwire - July 18, 2007) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Welton Energy Corporation (TSX:WLT) (TSX:WLT.DB) (TSX:WLT.WT) ("Welton", "the Company") is pleased to advise that the 09-36-60-06W6M Cutpick well in the Company's Chime area, in which it has a 19 percent working interest, has been drilled to a total depth of 3,334 metres. The operator has cased the well to total depth to evaluate potential gas reservoirs in several zones. This evaluation will be undertaken as soon as a service rig is available and surface conditions permit.

The Chime area is characterized by potential high impact, multi-zone, deep-basin tight gas. The Company has interests in 5,760 gross (1,254 net) acres of undeveloped land and has 3D seismic coverage over these lands. The 09-36-60-06W6M exploration location offsets a competitor's significant gas discovery, which commenced production in June 2006 from the Falher B zone, and has been producing at rates of 24 to 30 mmcf per day, as per publicly available information. There is no assurance that the 9-36 well will produce at rates experienced by the offsetting producing well. Follow-up drilling locations on the Company's Chime lands have been identified and will be further evaluated based on the results of the well that was recently drilled.

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
    or
    Welton Energy Corporation
    Shyla M. Stinson
    Vice President, Finance
    (403) 215-4750
    Website: www.weltonenergy.com