White Fire Energy Ltd.

White Fire Energy Ltd.

July 11, 2005 09:00 ET

White Fire Energy Ltd. Announces Drilling Plans & Joint Venture In The Pembina Area

CALGARY, ALBERTA--(CCNMatthews - July 11, 2005) - White Fire Energy Ltd. ("White Fire") (TSX:WF) is pleased to announce that we have commenced drilling operations.

White Fire has initiated drilling operations at Ferrier North where the first of four wells has spud. The Company has contracted a drilling rig for 3 successive operated wells with drilling operations taking approximately 2 weeks per well. The fourth well is non-operated and is expected to spud in the next 10 days. The wells are targeting liquids-rich natural gas within multiple zones in the Jurassic and Cretaceous formations. The Company has working interests ranging from 30% to 60% in the four wells. Given success the company plans on drilling 3 to 4 additional wells prior to year-end.

At Pembina, White Fire has entered into a Joint Venture Agreement ("JV") along the prolific Pembina Nisku bank oil trend with private and publicly traded exploration and production companies. The JV will expand existing land and drilling inventory in the area. White Fire's gross undeveloped land grows to 8,160 acres from 4,480 acres and drilling inventory expands to 16 gross wells from 8 gross wells. The majority of drilling locations have been identified on 3D seismic and in many instances are further defined by off-set drilling control. These drilling locations are targeting high quality light oil and natural gas with associated liquids in the Nisku formation. The Company anticipates drilling operations to commence in the third quarter of 2005 with the drilling of up to four (4) wells prior to year-end. Current tested behind pipe production capacity of 265 boe/d is awaiting production facility completion. Approximately 50% of this volume is scheduled to come on-stream in August with the balance coming on line in October.

At Wilson Creek, the Company will participate in the drilling of 4 gross wells during the third quarter of 2005. The first well is expected to spud early in July with remainder being drilled over the balance of the quarter. White Fire will participate at a 50% working interest level in the drilling, completion and tie-in operations. The wells are targeting medium grade crude oil and natural gas with associated liquids contained within multiple horizons in the Cretaceous stratigraphic column. The drilling locations have been targeted by our proprietary 3D seismic. Assuming success, the wells will be connected to our existing production facilities.

White Fire Energy Ltd. is a Calgary, Alberta based, independent public company actively engaged in the exploration, development and production of natural gas, natural gas liquids and crude oil in the Western Canadian Sedimentary Basin. The Corporation's common shares are listed and traded on The Toronto Stock Exchange under the symbol "WF".

Statements in this press release may contain forward-looking statements including expectations with respect to future events and the actions of third parties. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: the underlying risks of the oil and gas industry (i.e. operational risks in development, exploration and production; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserves estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental factors), commodity price and exchange rate fluctuation and uncertainties.

Contact Information

  • White Fire Energy Ltd.
    Bob Rosine
    President & CEO
    (403) 232-4850
    White Fire Energy Ltd.
    Stuart Symon
    (403) 232-4851