Sure Energy Announces Year End 2011 Financial and Operating Results

CALGARY, March 7, 2012 /CNW/ - Sure Energy Inc. ("Sure Energy" or the "Company") is pleased to announce results for the year ended December 31, 2011.

The Company's MD&A, Financial Statements and Notes, and AIF can be viewed or downloaded at www.sureenergyinc.com or www.sedar.com.

During 2011, Sure Energy accomplished the following:

• Corporate production for the year averaged 1,220 BOE/d up from 944 BOE/d for a year over year increase of 29 percent.
• Funds flow from operations doubled in 2011 to $13.4 million ($0.28/share) up from $6.4 million ($0.13/share) in 2010.
• Corporate reserves increased for the year to 5.9 million BOE's proved plus probable from 4.5 million BOE's proved plus probable in 2010 for a 33 percent growth year over year.

For the fourth quarter 2011 compared to the third quarter of 2011 Sure Energy accomplished the following:

• Corporate production increased to 1,495 BOE/d in the fourth quarter up from 1,057 BOE/d in the third quarter of 2011 and oil and liquids increased to 61 percent of overall production.
• Funds flow from operations more than doubled to $4.7 million ($0.10/share) from $2.8 million ($0.06/share) in the previous quarter.
• On December 29, 2011 Sure Energy closed an $18 million equity financing at $1.50 per share and also during the fourth quarter expanded its bank credit facility to $33 million up from $25 million.
  

HIGHLIGHTS							Three Months Ended December 31,								Year Ended December 31,
							2011				2010				2011				2010
($000 except share and per share amounts)
Financial
Petroleum and Natural Gas Revenues							8,907				5,813				25,364				13,063
Funds Flow from Operations ^(1)							4,672				3,669				13,381				6,407
	Per Share, Basic  and Diluted						0.10				0.08				0.28				0.13
Income (loss)							(1,381)				115				(694)				(532)
	Per Share, Basic and Diluted						(0.03)				0.00				(0.01)				(0.01)
Capital Expenditures							8,146				9,797				38,308				18,041
Total Assets															81,048				53,685
Net Debt^(1)															22,668				14,700
Shareholders' Equity															50,165				33,230
Common Shares Outstanding
	Basic														60,548,630				48,431,130
	Diluted														64,884,464				52,224,464
	Fully Diluted with Performance Rights and Warrants														70,214,464				57,609,464
Weighted Average Common Shares Outstanding
	Basic and Diluted						48,809,500				47,278,477				48,604,089				46,958,260
Share Trading
	High						1.69				2.00				1.99				2.00
	Low						1.10				1.32				1.10				0.57
	Close						1.44				1.75				1.44				1.75
Trading Volume							1,936,968				7,435,277				11,848,550				19,703,686

							Three Months Ended December 31,								Year Ended December 31,
HIGHLIGHTS							2011				2010				2011				2010
Operations
Production
	Natural Gas (Mcf/d)						3,479				4,071				3,653				4,248
	Oil (bbls/d)						843				578				557				196
	Heavy Oil (bbls/d)						31				-				.8				-
	NGLs (bbls/d)						41				41				46				40
	BOE/d						1,495				1,297				1,220				944
Average Selling Price
	Natural Gas ($/Mcf)						3.47				3.82				3.91				4.26
	Oil ($/bbl)						94.14				78.34				92.33				78.11
	Heavy Oil ($/bbl)						79.32				-				79.32				-
	NGLs ($/bbl)						70.92				57.38				68.89				59.01
	BOE ($/BOE)						64.76				48.70				56.98				37.90
Operating Netback ($/BOE)^(1)							39.05				34.36				35.86				22.86
Funds Flow Netback ($/BOE) ^(1)							33.97				30.75				30.06				18.60

(1) Please refer to Management's Discussion and Analysis for a definition of Non-GAAP measures.

RESERVES

The following presentation should be read in conjunction with reserves information contained in Sure Energy's Annual Information Form ("AIF") which has been released concurrently.  The AIF presents the Company's reserves according to Canadian Securities Administrators National Instrument 51-101 ("NI 51-101") along with the related Forms and per the NI 51-101 Companion Policy.

Sure Energy engaged independent petroleum consultants Sproule Associates Limited ("Sproule") to evaluate reserves for all of Sure Energy's properties effective December 31, 2011.  The Sproule report has been prepared in accordance with the standards contained in the COGE Handbook and the reserve definitions contained in NI 51-101 by Qualified Reserve Evaluators. Sproule has reviewed and consented to the information contained herein.

All evaluations and future net cash flows are stated prior to any provisions for interest costs or general and administrative costs and after the deduction of estimated future capital expenditures and abandonment costs for wells to which reserves have been assigned. Values of future net revenues do not represent the fair market value of the reserves.

Reserves and future net revenue have been made assuming that development of each property in respect of which the estimate is made will occur, without regard to the likely availability to Sure Energy of funding required for that development.

The Company's total proved plus probable reserves increased by 33% in 2011 to 5.9 MMboe and proved reserves increased by 20% to 3.9 MMboe.  These increases were largely the result of reserves attributed to Sure Energy's 2011 drilling program and additional increased reserves from undeveloped locations acquisitions during 2011, and positive revisions to previous reserves. The Company's focus on oil prospects resulted in an increase in light and medium oil reserves of 0.5 MMbbl proved and 1.1 MMbbl proved plus probable which increased the Company's oil and liquids weighting to 73%.

Summary Of Oil And Gas Reserves
Forecast Prices and Costs

					Light and Medium Oil			Heavy Oil			Gas			NGLs
					(Mbbl)			(Mbbl)			(MMcf)			(Mbbl)
					Gross	Net		Gross	Net		Gross	Net		Gross	Net
Proved
	Developed producing				786.9	659.8		22.7	22.1		5,926	4,882		82.6	53.5
	Developed non-producing				10.2	9.5		-	-		630	540		33.6	23.6
	Undeveloped				1,793.8	1,599.1		-	-		658	592		5.0	4.3
Total Proved					2,591.0	2,268.3		22.7	22.1		7,214	6,015		121.2	81.4
Probable					1,461.5	1,146.1		52.4	42.1		2,502	2,129		56.6	40.9
Proved plus probable^(1)					4,052.5	3,414.4		75.2	64.2		9,716	8,144		177.8	122.3

(1)  Columns may not add due to rounding

					2011 Total Reserves ^(1)
					(MBOE)
					Gross	Net
Proved
	Developed producing				1,879.9	1,549.1
	Developed non-producing				148.8	123.1
	Undeveloped				1,908.5	1,702.0
Total Proved					3,937.1	3,374.2
Probable					1,987.5	1,584.0
Proved plus probable^(1)					5,924.7	4,958.2

(1)  Columns may not add due to rounding

Summary of Net Present Values of Future Net Revenue
Forecast Prices and Costs ($000s)
Before Income Taxes, Discounted at (% per year) ⁽¹⁾

							0%			5%			8%			10%			15%			20%
Proved
	Developed producing						51,206			42,620			38,984			36,971			32,947			29,925
	Developed non-producing						1,902			1,314			1,055			912			629			426
	Undeveloped						64,804			45,536			37,120			32,451			23,231			16,531
Total Proved							117,911			89,470			77,159			70,333			56,808			46,882
Probable							69,403			47,951			39,742			35,437			27,374			21,808
Proved plus probable							187,314			137,422			116,901			105,770			84,182			68,689

(1)  Columns may not add due to rounding

Reserve Life Index

The reserve life index is calculated by dividing gross company reserves as at the effective date of the reports (December 31, 2011) by Sproule's estimate of average production for the following year.  The reserve life index represents a measure of the amount of time production could be sustained at the assumed production rates based on the reserves at the applicable point in time.

																	2011
																	Proved		Proved plus Probable
2012 Forecast Production (BOE/d)																	1,358		1,715
Reserve Life Index (years)																	7.9		9.4

UNDEVELOPED LAND

For the year ended December 31, 2011 Sure Energy's total non-reserve landholdings were 78,111 net acres as determined by Seaton-Jordan & Associates Ltd.  The majority of Sure Energy's undeveloped land is located in the Plains area of Alberta.  The Company's land acquisition strategy focuses primarily on acquiring lands to expand existing project areas and prospect inventory.

   

2011						Reserves							Non-Reserve							Total
						Gross			Net				Gross			Net				Gross			Net
Alberta						73,998			35,942				95,312			71,127				169,310			107,069
Saskatchewan						746			746				6,984			6,984				7,730			7,730
						74,744			36,688				102,296			78,111				177,040			114,799

NET ASSET VALUE

The following table represents the net asset value ("NAV") of Sure Energy as at December 31, 2011 based on proved and probable reserves using forecast pricing as evaluated by Sproule, undeveloped land value as determined by Seaton Jordan & Associates Ltd., seismic value as determined by internal estimates, and internal estimates of value for tax pools.

											Discounted at
($000s)											8%				10%
Present value of reserves (before tax)											116,901				105,770
Undeveloped lands											14,411				14,411
Seismic											1,072				1,072
Proceeds from in-the-money stock options											6,502				6,502
Net debt											(22,668)				(22,668)
Tax pools (no value assigned)											-				-
											116,218				105,087
NAV per share											1.73				1.57
Number of diluted shares outstanding as of December 31, 2011											67,024,464				67,024,464

OPERATIONAL REVIEW

Capital expenditures for the period were as follows:

						Three Months Ended December 31,							Year Ended December 31,
Capital Program Summary						2011			2010				2011			2010
($000s)
Land						893			108				2,328			837
Geological and geophysical						51			99				146			467
Drilling						827			6,851				7,235			11,063
Completions						(561)			1,151				4,002			2,007
Recompletions and workovers						4,013			(440)				4,947			376
Production equipment and facilities						1,893			1,377				6,182			2,681
Capitalized exploration G&A						265			39				821			200
Drilling credits						-			-				60			(451)
Asset acquisition (disposition)						138			-				11,276			155
Other assets						19			9				50			9
						7,538			9,194				37,047			17,344
Non-cash items
Decommissioning obligations						608			185				1,852			279
Undeveloped land						-			418				(591)			418
						8,146			9,797				38,308			18,041

Drilling activity for the three months and year is summarized as follows:

Three Months Ended December 31, 2011

						Gas					Oil					Dry and Abandoned					Total
						Gross		Net			Gross		Net			Gross		Net			Gross		Net
Exploration						-		-			-		-			-		-			-		-
Development						-		-			1		1.0			-		-			1		1.0
Total						-		-			1		1.0			-		-			1		1.0

Year Ended December 31, 2011

						Gas					Oil					Dry and Abandoned					Total
						Gross		Net			Gross		Net			Gross		Net			Gross		Net
Exploration						-		-			1		1.0			-		-			1		1.0
Development						-		-			10		8.6			-		-			10		8.6
Total						-		-			11		9.6			-		-			11		9.6

Areas of Activity

Plains (Redwater)

The Company owns 16,855 net acres of land on the Lower Viking light oil trend at Redwater, just north of Edmonton.  The Viking in the area has recently been exploited by horizontal drilling.  Thirty day initial production rates typically vary from 60 - 125 barrels of oil per day, although some wells have averaged over 300 barrels of oil per day in the first 30 days.  All of Sure Energy's horizontal wells are subject to the New Well Royalty Rate which reduces royalties to 5 percent for a defined period or production volume dependant on the length of the well.  This royalty incentive leads to high operating netbacks.  The Company realized net operating income of $63.80 for 2011 and $68.48 for the fourth quarter of 2011 from the Redwater area.  This leads to very robust economics; two wells that came on production in late September and early October, 2011 respectively had generated an estimated $1 million net operating income by the end of January 2012 (4 months on stream).

In the fourth quarter of 2011 the Company produced 534 BOE/d from the Redwater (Plains) area of which 478 BOE/d was oil (89 percent).  This is an increase from 305 BOE/d in the third quarter of 2011 because of two wells that were drilled in the third quarter and came on production early in the period.  The Company also has two 40 percent working interest wells on the south end of the productive trend which were awaiting tie-in at year end.  The Company plans to drill 11 wells here in 2012 which will add another significant wedge of growth to the area.

Sure Energy has identified 82 gross (72 net) low risk development locations surrounded by or adjacent to production on the trend.  In addition to this low risk drilling inventory the Company has 16.5 sections of land still to evaluate on the productive oil trend.  Wells cost $1.5 to $1.75 million to put on stream.

SE Saskatchewan

In the Queensdale area in southeast Saskatchewan Sure Energy produced 225 barrels of oil per day (100% oil) up from 64 barrels of oil in the third quarter of 2011.  The Company has drilled four horizontal wells on the property to date, but during 2011 only two of these wells were on production consistently.  The other two wells are waiting on the drilling of a salt water disposal well before they can be pumped at optimal rates.  This well has been drilled in the first quarter of 2012 and should become operable in March.  The drilling of the salt water disposal well extended the pool to the north and the Company is currently evaluating the economics of exploiting the extension with either a vertical well or a horizontal well.

Sure Energy owns 5,170 net acres in the area and owns proprietary 3D seismic over much of the acreage.  The Mississippian Alida member is the main geological target and the wells produce light crude oil.  The Company's first well in the area came on production at approximately 240 BOE/d and paid out in three months.  Wells are simple, non-frac'ed horizontals and cost about $1.3 million to put on stream.

Virginia Hills

In April of 2011 Sure Energy closed the second of two acquisitions in the Virginia Hills area thereby creating a new core area.  The Company acquired 69 sections of land (average 64 percent working interest) of various mineral rights and 160 BOE/d of associated production (72 barrels of oil per day) for $11.3 million.

The initial motivation for establishing a position in the Virginia Hills area was to gain exposure to a Viking resource play, similar to Redwater.  The Viking section at Virginia Hills is approximately twice as thick as that at Redwater.  The Viking produces oil in the area from coarse grained sands but the resource upside of the play exists in lower permeability sediments above and below the primary pay.  Two vertical wells drilled by others demonstrate that the lower permeability sediments will produce oil when frac'ed, albeit at marginally economic rates.  These two vertical producing wells produce at steady rates of 6 and 10 barrels of oil per day which compares to rates of two to five barrels of oil per day from mature vertical producing wells at Redwater.  No horizontal wells have been drilled in the Viking in the Virginia Hills area to date.  The Company owns 9.5 sections with approximately a 50 percent working interest and 3 sections with a 100 percent working interest in the core area of the play.  Sure Energy plans to drill a horizontal well on its 50 percent working interest lands in the second quarter of 2012, and has budgeted a follow up well should it be successful.

Through the acquisitions the Company also acquired 1,705 net acres (2.7 net sections) of land with Beaverhill Lake rights.  Horizontal wells drilled into the Beaverhill Lake and frac'ed multiple times with large volumes of acid have exhibited high production rates.  Included in Sure Energy's acquisition at Virginia Hills were two horizontal Beaverhill Lake producing wells which were completed open hole but were never frac'ed.  Both wells produce clean oil, but at low rates (15- 22 barrels per day) consistent with production from a low permeability reservoir.  The Company recompleted one of these wells in the fourth quarter of 2011 using the multi-frac acid technique.  Because the recompletion involved re-entering a pre-existing wellbore the liner and packer system used was of smaller diameter than is optimal for the operation, which lead to lower acid injectivity rates than is normal.  As well the wellbore is approximately half the length of offsetting producing wells.  The well originally came on stream at a strong rate, testing for two days at over 1,100 barrels of oil per day, and producing initially at rates from 200 to 350 barrels of oil per day but it has since declined to less than 100 barrels of oil per day indicating that the recompletion did not achieve the fracture height to successfully open up the reservoir.  Sure Energy attempted the recompletion because it was budgeted at a third of the cost of drilling a new well.  The Company's lands are highly prospective and continue to be offset by competitor wells.  The Company will continue to monitor offsetting activity and production rates.  It has one new horizontal well budgeted for the play type for 2012.

Hatton (SW Saskatchewan)

In September 2011 Sure Energy drilled its first well into a heavy oil prospect at Hatton in southwest Saskatchewan.  The Company's vertical appraisal well encountered 6.5 meters of heavy oil pay.  The well came on production on Nov 7, 2011 and averaged 75 barrels of oil per day for the first 30 days on production.  It is currently producing at 77 barrels of oil per day.  Although the oil is 12° API the Company realized net operating income of approximately $50 per BOE from the property in 2011.

Sure Energy owns 2,560 net acres on the play (four 100 percent working interest sections), as well as proprietary 2D seismic data.  Depending on the extent of the play the Company has 9 to 23 drilling locations on its lands based on one well per legal sub-division.  It intends to drill two immediate offset vertical locations and one step-out vertical location in 2012.  Wells are budgeted at $0.8 million to put on stream.

Other Properties

The Company produced 443 BOE/d from the Peace River Arch, Southern Plains (Chinook), Tweedie and a series of minor properties in the West Central area of Alberta.  Most of this production is gas. Due to the current depressed state of the gas markets the Company spent very little capital in 2011 on these properties.  Furthermore, the Company has no immediate plans to spend significant capital in these areas in 2012.

Production

Production for the period by major property is as follows:

						Three Months Ended December 31, 2011
						Gas			Oil			Heavy Oil			NGLs			Total
						Mcf/d			Bbls/d			Bbls/d			Bbls/d			BOE/d
Hatton						-			-			31			-			31
Peace River						839			8			-			14			162
Plains						338			478			-			-			534
Saskatchewan						-			225			-			-			225
Southern Plains						659			-			-			2			112
Tweedie						722			-			-			-			120
Virginia Hills						535			127			-			10			227
West Central						386			5			-			15			84
Total						3,479			843			31			41			1,495

						Year Ended December 31, 2011
						Gas			Oil			Heavy Oil			NGLs			Total
						Mcf/d			Bbls/d			Bbls/d			Bbls/d			BOE/d
Hatton						-			-			8			-			8
Peace River						978			10			-			16			189
Plains						308			365			-			-			416
Saskatchewan						-			105			-			-			105
Southern Plains						768			-			-			4			132
Tweedie						763			-			-			-			127
Virginia Hills						408			65			-			9			142
West Central						428			12			-			17			101
Total						3,653			557			8			46			1,220

OUTLOOK

As the industry becomes more dependent on resource plays that require horizontal drilling and multi-stage frac'ing it is very important that companies manage costs prudently.  This is the industry's biggest challenge at present.  For a small company like Sure Energy this is particularly tough; larger companies are able to tie-up rigs and services for long periods allowing them to negotiate favourable rates.  Sure Energy tries to organize its wells into programs; this allows for economies of scale and for more efficient organization of frac operations and follow-up work.  This year the Company secured a rig for late in the first quarter and plans to drill partially into breakup thereby avoiding high first quarter drilling and completion rates.

The other challenge for companies exploiting resource plays is the initial decline rates associated with the multi-frac wells.  Bigger companies are able to manage these declines by continually drilling.  Smaller companies like Sure Energy do not have the capital to drill constantly so our production profile is more erratic.  However, through the first half of 2011 when the Company was not actively drilling, production remained relatively stable which is a testament to the quality of the assets.

As the Company's oil weighting increases another challenge that has arisen is operating costs, especially costs associated with trucking emulsion and water.  Sure Energy's experienced production group, both in the office and the field, are actively addressing this issue.  At Queensdale, for instance, the construction of a battery has allowed for more efficient separation of the oil on site and the drilling of a salt water disposal well will eliminate water trucking fees, saving close to $80,000 per month.

In December the Company raised $18 million by issuing equity and this along with an increase to the bank line to $33 million has cleaned up the balance sheet, allowing Sure Energy to plan a $38 million capital program for 2012.  With gas prices being depressed and with no relief in sight, the Company will deploy its capital on oil projects.  The capital program is balanced to allow for low risk production growth at Redwater and Hatton as well as exploration and step out activities at Virginia Hills and on the peripheral lands at Redwater which will expand the reserve and opportunity base.  As with all small companies capital has to be wisely employed and flexibility of the capital budget is very important to allow for maximum economic impact of the program.

Recognizing the operating challenges ahead the Company has hired a Vice President of Production and a Drilling and Completions Manager as well as increasing its field staff.  Going forward the Company has a diverse asset base which allows for steady growth with occasional "big hit" upside.  2011 was Sure Energy's first year as a Company producing more oil than gas and that transformation to oil will continue in 2012 and beyond.

STATEMENTS OF FINANCIAL POSITION
(in thousands of Canadian dollars)
		December 31,			December 31,			January 1,
				2011			2010			2010
Assets
	Trade and other receivables		$	3,080		$	3,110		$	1,829
	Deposits and prepaid expenses			1,399			853			457
Total current assets				4,479			3,963			2,286
Property, plant and equipment				69,502			46,062			33,723
Exploration and evaluation assets				5,604			1,481			1,899
Deferred financing costs				1,463			2,179			-
Total assets			$	81,048		$	53,685		$	37,908
Liabilities
	Bank debt		$	7,981		$	440		$	3,046
	Trade and other payables			9,166			8,223			3,777
Total current liabilities				17,147			8,663			6,823
Note facility				10,000			10,000			-
Decommissioning obligations				3,736			1,792			1,450
Total liabilities				30,883			20,455			8,273
Equity
	Share capital			54,404			37,282			35,399
	Warrants			2,065			2,065			-
	Contributed surplus			3,838			3,331			3,152
	Deficit			(10,142)			(9,448)			(8,916)
Total equity				50,165			33,230			29,635
Total equity and liabilities			$	81,048		$	53,685		$	37,908

STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
For the years ended December 31
(in thousands of Canadian dollars, except per share amounts)
			2011			2010
Petroleum and natural gas revenues		$	25,364		$	13,063
Royalties			(2,837)			(1,108)
			22,527			11,955
Production and operating			5,243			3,432
Transportation			1,322			645
Exploration and evaluation			732			602
General and administrative			2,581			1,471
Interest and financing charges			2,045			344
Depletion, depreciation and amortization			8,963			4,860
Impairment			1,782			423
Stock based compensation			553			710
			23,221			12,487
Loss and comprehensive loss for the year		$	(694)		$	(532)
Earnings per share:
	Basic and diluted	$	(0.01)		$	(0.01)

STATEMENTS OF CHANGES IN EQUITY
(in thousands of Canadian dollars)
	Years ended December 31,
	2011			2010
	Number		$		Number		$
Share capital
Balance, beginning of year	48,431,130		37,282		46,873,962		35,399
Issue of common shares	12,000,000		18,000		-		-
Share issue costs	-		(1,059)		-		-
Exercise of stock options and Performance Incentive Rights	117,500		181		1,588,666		1,912
Cancelled	-		-		(31,498)		(29)
Share capital, end of year	60,548,630		54,404		48,431,130		37,282
Warrants
Balance, beginning of year	2,800,000		2,065		-		-
Issued for Note Facility	-		-		2,800,000		2,065
Warrants, end of year	2,800,000		2,065		2,800,000		2,065
Contributed surplus
Balance, beginning of year			3,331				3,152
Cancellation of common shares			-				29
Exercise of stock options and Performance Incentive Rights			(46)				(560)
Stock-based compensation expense			553				710
Contributed surplus, end of year			3,838				3,331
Deficit
Balance, beginning of year			(9,448)				(8,916)
Loss for the year			(694)				(532)
Deficit, end of year			(10,142)				(9,448)

STATEMENTS OF CASH FLOWS
For the years ended December 31
(in thousands of Canadian dollars)
			2011				2010
Cash flows from operating activities:-
Loss		$	(694)			$	(532)
Adjustments for:
	Exploration and evaluation		732				602
	Interest and financing charges		2,045				344
	Depletion, depreciation and amortization		8,963				4,860
	Impairment		1,782				423
	Stock based compensation		553				710
Change in non-cash working capital			(1,595)				594
Net cash from (used in) operating activities			11,786				7,001
Cash flows from investing activities:
Exploration and evaluation			(139)				(184)
Property, plant and equipment and exploration and evaluation assets			(25,771)				(17,189)
Acquisition of property, plant and equipment			(11,276)				(155)
Change in non-cash working capital			2,022				2,174
Net cash from (used in) investing activities			(35,164)				(15,354)
Cash flows from financing activities:
	Proceeds from issue of common shares		17,076				1,353
	Proceeds from loans and borrowings		7,541				(2,606)
	Proceeds from note facility		-				10,000
	Interest paid		(1,239)				(250)
	Deferred financing costs		-				(144)
Net cash from financing activities			23,378				8,353
Change in cash and cash equivalents			-				-
Cash and cash equivalents beginning of year			-				-
Cash and cash equivalents end of year		$	-			$	-

 

ADVISORIES

Forward-looking Information

Certain statements contained in this release constitute forward-looking information. These statements relate to future events or Sure Energy's future performance. The use of any of the words "could", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on Sure Energy's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, Sure Energy's stated exploration and development intentions for its principal oil and natural gas properties, land acquisition strategy and statements under "Outlook" contain forward looking information. Sure Energy's Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR website www.sedar.com) describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference. Sure disclaims any intention or obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.

Use of BOEs

In this press release the calculation of barrels of oil equivalent (BOE) is calculated at a conversion rate of 6,000 cubic feet (Mcf) of natural gas for one barrel (bbl) of oil based on an energy equivalency conversion method. BOEs may be misleading particularly if used in isolation.  A BOE conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

 

please visit our website at www.sureenergyinc.com or contact:

Mr. Jeff Boyce, Chairman and CEO
Mr. Chris Baker, President and COO
Mr. Lance Wirth, Vice President, Finance and CFO
Phone: [phone] 
Fax: [phone]
Email: [email protected]