Welton Energy Corporation
TSX : WLT
TSX : WLT.DB

Welton Energy Corporation

September 06, 2007 13:52 ET

Welton Energy Corporation Provides Update on Summer Drilling Program

CALGARY, ALBERTA--(Marketwire - Sept. 6, 2007) -

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

Welton Energy Corporation ("Welton", "the Company") (TSX:WLT) (TSX:WLT.DB) is pleased to provide an update on the summer drilling program where to date, four wells have been drilled and completed, and an additional five wells are to be drilled this fall.

At Chime, completion operations have been undertaken and extended flow tests indicate the well could produce at 1.5 mmcf per day. Welton intends to produce its 19% interest immediately following tie-in of the well which is scheduled for the end of September.

Two (.63 net) wells have been drilled by Welton at Mantario and are now on production. The 8-19 well (Welton 25%) is producing at 160 bbls/d (net 40 bbls/d to Welton). The 5-20 well (Welton 100%) is currently producing at just over 120 bbls/d and this rate is slowly being increased over the next few days. Two more wells are to be commenced in the next two weeks. One is a development location (Welton 25%) and the other is an exploration location (Welton 100%).

At Ricinus, completion of a non-operated oil well in which the Company has a 16% W.I. is underway. Estimated production rates have yet to be determined.

Further to our announcement June 11, 2007, the Company is finalizing lease construction prior to the drilling of three wells in the Trutch area of northeastern B.C. Subject to weather constraints, drilling of the first well is imminent. These wells have multi-zone potential and if successful could be placed on production in Q4. Further seismic and drilling activity is contemplated based on the success of this initial program. Welton is paying 75% of all costs to drill, case or abandon these wells to earn 45%, and will operate the drilling of the earning wells.

Welton is continuing to review possible corporate opportunities to complement its active drilling program.

On August 28, 2007 Giles Twogood commenced as Acting Vice President Finance in place of Shyla Stinson who is taking a year's maternity leave from Welton.

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
    Giles Twogood
    Acting Vice President, Finance & Chief Financial Officer
    (403) 215-4750
    Website: www.weltonenergy.com