Iteration Energy Provides Operational Update and Management Update
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In the fourth quarter of 2009 the Company completed an 11 (10.5 net) well program for Sunburst oil at Manyberries in southern Alberta. Ten (9.5 net) wells were successful, and though the program was focused on improving the secondary recovery in existing pools, one new pool was discovered. Other activities in Manyberries completed during the fourth quarter included a number of facility upgrades, and the conversion of wells to water injection in order to improve waterflood recovery. Production in this area has increased by approximately 175 bbls/d and is currently estimated to be 450 bbls/d of light oil. Production for the area is expected to increase in the future as the waterflood recovery improves.
Iteration is currently conducting a winter drilling program aimed almost entirely at light oil prospects. We are currently on the third of a planned six (6.0 net) well program for Keg River reefs in the Rainbow area in northwestern Alberta. The first of these wells has flowed light oil at an average of 360 bbls/d since
Production for the 2009 year is expected to average approximately 15,950 boed, which is toward the upper end of our most recently issued guidance of 15,600 to 16,100 boed. Exit production for 2009 is estimated to be 13,000 boed, which matches our guidance. In total, we drilled 16 (13.5 net) wells in the fourth quarter of 2009 with a 93% success rate bringing total drilling for 2009 to 31 (23.7 net) wells with a 89% success rate. Financial results for 2009 are expected to be released in mid
Consistent with our hedging philosophy, Iteration added to its gas and oil 2010 hedge positions in the fourth quarter of 2009. On the gas side 15,000 mcf/d has been hedged against AECO for each of the first three quarters of 2010 at prices of
------------------------------------------------------------------------- AECO Gas Cdn$ WTI Oil ------------------------------------------------------------------------- Volume (mcf/d) Price ($/mcf) Volume (bbl/d) Price ($/bbl) ------------------------------------------------------------------------- Q1/10 18,300 $5.44 400 (collar) $70.00- $94.00 800 (swap) $85.25 ------------------------------------------------------------------------- Q2/10 18,300 $5.44 400 (collar) $70.00- $94.00 800 (swap) $87.75 ------------------------------------------------------------------------- Q3/10 18,300 $5.74 400 (collar) $70.00- $94.00 800 (swap) $85.10 ------------------------------------------------------------------------- Q4/10 2,400 $5.82 400 (collar) $70.00- $94.00 ------------------------------------------------------------------------- Q1/11 1,900 $6.33 - - ------------------------------------------------------------------------- Q2/11 1,900 $6.33 - - ------------------------------------------------------------------------- Q3/11 1,900 $6.33 - - ------------------------------------------------------------------------- Q4/11 600 $6.33 - - -------------------------------------------------------------------------
We regret to announce that
Additional Information:
Iteration is an Alberta based corporation engaged in the business of exploring for and developing oil and natural gas reserves in Western
The TSX has not reviewed this press release and does not accept responsibility for the accuracy of any of the data presented here-in.
Advisory:
Natural gas is converted to crude oil equivalent at a ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent ("boe"). Boe's may be misleading, particularly if used in isolation. A boe conversion ratio 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.
This press release contains forward-looking statements, including in particular statements in respect of planned drilling as part of Iteration's drilling program and estimated production levels. Although Iteration believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Iteration can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The forward-looking statements contained in this press release are based on the Company's current beliefs as well as assumptions made by, and information currently available to, the Company including estimated production levels which are based assumptions for commodity prices, capital expenditures and funds from operations. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks that forward-looking statements will not be achieved. Information regarding these factors may be found under the heading "Risk Factors" in Iteration's Annual Information Form for the year ended
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For further information: Mr. Brian Illing, President and CEO at (403) 261-6883
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