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Press release from Marketwire

Crew Energy Inc. -Reports Significant 2010 Reserves Growth

Wednesday, February 23, 2011

Crew Energy Inc. -Reports Significant 2010 Reserves Growth08:19 EST Wednesday, February 23, 2011CALGARY, ALBERTA--(Marketwire - Feb. 23, 2011) -NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.Crew Energy Inc. (TSX:CR) of Calgary, Alberta ("Crew" or the "Company") is pleased to announce the results of its independent reserve evaluation for the year ended December 31, 2010 as prepared by GLJ Petroleum Consultants Ltd. ("GLJ").2010 HIGHLIGHTS-- Achieved all in finding, development and acquisition costs of $11.40 per boe on proved plus probable reserves and $11.03 per boe on proved reserves (including future development costs and revisions). -- Proved plus probable reserves at December 31, 2010 increased by 14% to 74.7 million boe after 2010 production of 5.0 million boe and 2010 dispositions of 7.1 million boe of proved plus probable reserves. -- Proved reserves per share increased by 12% and proved plus probable reserves per share increased 11% over 2009. -- Reserve replacement was 279% (420% including replacement of the 2010 dispositions) on proved plus probable reserves and 218% (308% including replacement of the 2010 dispositions) on proved reserves. -- The proved plus probable reserve life index (RLI) at December 31, 2010, based on annualized fourth quarter 2010 average production of 14,654 boe per day, increased by 12% to 14.0 years from 12.5 years at December 31, 2009. -- 2010 reserve additions resulted in a 32% increase in the Company's oil and natural gas liquids proved plus probable reserves which are now 39% of Crew's total proved plus probable reserves. -- At Princess, Alberta the 2010 drilling program resulted in a 59% increase in proved plus probable reserves to 24.1 million boe including 73 net undeveloped horizontal Pekisko locations. Reserves per well increased significantly to 162,000 boe per well (90% oil) on average. -- At Septimus, British Columbia proved plus probable reserves increased 19% to 25.7 million boe including 31 net undeveloped horizontal Montney locations. Average per well bookings increased to 2.9 bcf per well. -- Crew's net asset value per share at December 31, 2010 is estimated at $13.15 per diluted share based on the proved plus probable reserve value discounted at 10% ($17.04 per share at 5% discount). This amount was bolstered by a 28% increase in forecasted oil and natural gas liquids revenues (disc. at 10%) which offset an 18% decline in forecasted natural gas revenues (disc. at 10%) due to a significant decline in forecasted natural gas prices from 2009 to 2010. UPDATEIn early February, the Company successfully completed the expansion of the Septimus gas processing facility doubling its capacity from its previous limit of approximately 25 mmcf per day. Upon completion of the expansion the Company completed a previously arranged transaction with Aux Sable Canada Inc. ("ASC") recovering the $16.9 million cost of the expansion from ASC which now owns 100% of the expanded facility. Under the arrangement Crew will remain operator of the facility and has retained the option to re-purchase a 50% interest in the facility, at Crew's option, on or before January 1, 2014.Also in February, Crew's banking syndicate increased the Company's credit facility to $240 million, an increase of $30 million over the previous $210 million facility. This additional lending capacity combined with cash flow and the proceeds from the Company's recently announced $100 million bought deal equity financing will provide the Company with adequate available capital to finance an increased 2011 capital program and provide capital for additional resource capture.The Company continues to engage in an active hedging program to ensure a base level of cash flow to fund capital expenditures. For 2011, the Company has 16.4 mmcf per day of natural gas hedged at an average price of $5.30 per mcf and 3,250 bbl per day of WTI oil hedged at an average minimum floor price of CDN$86.40 per bbl. For 2012, the Company has added 1,000 bbl per day of WTI oil swapped at an average price of CDN$100.74 per bbl and has sold calls on 1,750 bbl per day of WTI oil at a price of approximately CDN $89.00 per bbl.2011 GUIDANCESubject to the completion of the equity financing, Crew's Board of Directors has approved a revised $260 million, 2011 capital expenditure budget which is expected to incorporate the drilling of a minimum of 132 wells of which the majority will be wells targeting oil at Princess, Alberta. This capital program is forecasted to yield average production of between 18,300 to 19,300 boe per day in 2011 with forecasted 2011 exit production between 21,000 and 22,000 boe per day.LAND HOLDINGSThe Company has completed an internal evaluation of the fair market value of the Company's undeveloped land holdings as at December 31, 2010. This evaluation was completed principally using industry activity levels, third party transactions and land acquisitions that occurred in proximity to Crew's undeveloped lands during the past year. The Company has estimated the value of its net undeveloped acreage at $270 million.A summary of the Company's land holdings at December 31, 2010 is outlined below:--------------------------------------------------------------------------------------------------------------------------------------------------------(acres) Developed Undeveloped Total Gross Net Gross Net Gross Net----------------------------------------------------------------------------Alberta 332,517 192,413 462,880 395,084 795,397 587,497British Columbia 114,638 52,044 268,351 179,134 382,989 231,178Other 1,440 403 377,321 37,785 378,761 38,188----------------------------------------------------------------------------Total 448,595 244,860 1,108,552 612,003 1,557,147 856,863--------------------------------------------------------------------------------------------------------------------------------------------------------RESERVESThe reserves data set forth below is based upon an independent reserves assessment and evaluation prepared by GLJ with an effective date of December 31, 2010 (the "GLJ Report"). The following presentation summarizes the Company's crude oil, natural gas liquids and natural gas reserves and the net present values before income tax of future net revenue for the Company's reserves using forecast prices and costs based on the GLJ Report. The GLJ Report has been prepared in accordance with the standards contained in the COGE Handbook and the reserve definitions contained in NI 51-101.All evaluations and reviews of 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 for wells to which reserves have been assigned. It should not be assumed that the estimates of future net revenues presented in the tables below represent the fair market value of the reserves. There is no assurance that the forecast prices and cost assumptions will be attained and variances could be material. The recovery and reserve estimates of our crude oil, natural gas liquids and natural gas reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual crude oil, natural gas and natural gas liquids reserves may be greater than or less than the estimates provided herein.See "Information Regarding Disclosure on Oil and Gas Reserves and Operational Information" for additional cautionary language, explanations and discussions and "Forward Looking Information and Statements" for a statement of principal assumptions and risks that may apply.Reserves SummaryThe Company's total proved plus probable reserves increased by 14% in 2010 to 74.7 MMboe and proved reserves increased by 15% to 45.6 MMboe. These increases were realized despite the Company having produced 5.0 MMboe during 2010 and having sold 7.1 MMboe of proved plus probable reserves and 4.6 MMboe of proved reserves in 2010 comprised mainly of the Edson disposition completed in April.The following table provides summary reserve information based upon the GLJ Report and using the published GLJ (2011-01) price forecast.-------------------------------------------------------------------------------------------------------------------------------------------------------- Oil(1) Natural gas liquids---------------------------------------------------------------------------- Comp. Comp. Int.(3) Gross(4) Net(5) Int.(3) Gross(4) Net(5) (Mbbl) (Mbbl) (Mbbl) (Mbbl) (Mbbl) (Mbbl)----------------------------------------------------------------------------Proved Producing 6,484 6,483 4,909 2,307 2,291 1,791 Non-producing 574 574 437 538 538 432 Undeveloped 4,736 4,736 3,476 1,495 1,495 1,243----------------------------------------------------------------------------Total proved 11,794 11,793 8,822 4,340 4,324 3,466Probable 10,391 10,391 7,830 2,384 2,381 1,915----------------------------------------------------------------------------Total proved plus probable 22,186 22,184 16,652 6,724 6,705 5,380---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Natural gas(2) Barrels of oil equivalent(6)---------------------------------------------------------------------------- Comp. Comp. Int.(3) Gross(4) Net(5) Int.(3) Gross(4) Net(5) (Mmcf) (Mmcf) (Mmcf) (Mboe) (Mboe) (Mboe)----------------------------------------------------------------------------Proved Producing 83,848 83,409 67,392 22,766 22,675 17,932 Non-producing 27,746 27,746 22,630 5,737 5,737 4,640 Undeveloped 65,045 64,949 52,464 17,071 17,055 13,463----------------------------------------------------------------------------Total proved 176,639 176,104 142,485 45,574 45,467 36,035Probable 98,046 97,924 79,130 29,117 29,092 22,933----------------------------------------------------------------------------Total proved plus probable 274,685 274,028 221,615 74,691 74,560 58,968--------------------------------------------------------------------------------------------------------------------------------------------------------Notes:1. Reflects light and medium oil, other than 19 mbbl of proved and 23 mbbl of proved plus probable company interest heavy oil reserves. For the purpose of the press release the Company has determined that these amounts are not material for separate disclosure. 2. Includes 10.4 bcf of proved and 18.7 bcf of proved plus probable company interest coal bed methane natural gas reserves. For the purpose of the press release the Company has determined that these amounts are not material for separate disclosure. 3. "Comp. Int." reserves means Crew's working interest (operating and non- operating) share before deduction of royalties and including any royalty interest of the Company. 4. "Gross" reserves means Crew's working interest (operating and non- operating) share before deduction of royalties and without including any royalty interest of the Company. 5. "Net" reserves means Crew's working interest (operated and non-operated) share after deduction of royalty obligations, plus Crew's royalty interest in reserves. 6. Oil equivalent amounts have been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil. 7. May not add due to rounding. Reserves ValuesThe estimated before tax future net revenues associated with Crew's reserves effective December 31, 2010 and based on the published GLJ (2011 - 01) future price forecast are summarized in the following table:--------------------------------------------------------------------------------------------------------------------------------------------------------(MM$) 0% 5% 10% 15% 20%----------------------------------------------------------------------------Proved Producing 596,324 469,363 394,457 344,397 308,160 Non-producing 134,211 101,585 81,186 67,326 57,345 Undeveloped 363,509 237,217 165,402 120,271 89,820Total proved 1,094,044 808,165 641,045 531,994 455,325Probable 848,080 504,029 338,099 244,578 186,087Total proved plus probable 1,942,124 1,312,194 979,144 776,572 641,412--------------------------------------------------------------------------------------------------------------------------------------------------------Notes:1. The estimated future net revenues are stated before deducting future estimated site restoration costs and are reduced for estimated future abandonment costs and estimated capital for future development associated with the reserves. 2. May not add due to rounding. Price ForecastThe GLJ (2011-01) price forecast is summarized as follows:-------------------------------------------------------------------------------------------------------------------------------------------------------- Bow River Edmonton med. Natural $US/$Cdn light crude gas at Exchange WTI @ crude oil at AECO/NIT WestcoastYear Rate Cushing oil Hardisty spot Station 2---------------------------------------------------------------------------- (US$/bbl) (C$/bbl) (C$/bbl) (C$/MMbtu) (C$/MMbtu)2011 0.98 88.00 86.22 75.87 4.16 3.962012 0.98 89.00 89.29 75.89 4.74 4.542013 0.98 90.00 90.92 75.10 5.31 5.112014 0.98 92.00 92.96 76.23 5.77 5.572015 0.98 95.17 96.19 78.88 6.22 6.022016 0.98 97.55 98.62 80.87 6.53 6.332017 0.98 100.26 101.39 83.14 6.76 6.562018 0.98 102.74 103.92 85.21 6.90 6.702019 0.98 105.45 106.68 87.48 7.06 6.862020 0.98 107.56 108.84 89.25 7.21 7.01--------------------------------------------------------------------------------------------------------------------------------------------------------2021 + 0.98 +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr--------------------------------------------------------------------------------------------------------------------------------------------------------Notes:1. Inflation is accounted for at 2.0% per year. Reserves ReconciliationThe following summary reconciliation of Crew's Company Interest reserves compares changes in the Company's reserves as at December 31, 2010 to the reserves as at December 31, 2009 based on the GLJ (2011-01) future price forecast.-------------------------------------------------------------------------------------------------------------------------------------------------------- Company Interest (1) Gross(2)---------------------------------------------------------------------------- Total Total Proved Total Total Proved Proved plus Probable Proved plus Probable (Mboe) (Mboe) (Mboe) (Mboe)----------------------------------------------------------------------------Balance December 31, 2009 39,682 65,741 39,610 65,648 Technical revisions 2,031 1,154 2,050 1,189 Economic factors (403) (505) (471) (592) Exploration Discoveries 2,803 3,635 2,803 3,635 Extensions and improved recoveries 10,944 16,703 10,937 16,696 Acquisitions 72 90 72 90 Dispositions (4,558) (7,130) (4,558) (7,130) Production (4,996) (4,996) (4,976) (4,976)----------------------------------------------------------------------------Balance December 31, 2010 45,574 74,691 45,467 74,560--------------------------------------------------------------------------------------------------------------------------------------------------------Notes:(1) "Company Interest" reserves means, Crew's working interest (operating and non-operating) share before deduction of royalties and including any royalty interest of the Company.(2) "Gross" reserves means Crew's working interest (operating and non-operating) share before deduction of royalties and without including any royalty interest of the Company.(3) May not add due to roundingCapital Program EfficiencyDuring 2010 Crew's capital expenditures (unaudited), net of dispositions, resulted in proved plus probable reserve additions of 13.9 MMboe at a net finding, development and acquisition ("FD&A") cost of $11.40 per boe. Proved reserve additions in 2010 were 10.9 MMboe which were added at a net FD&A cost of $11.03 per boe.The Company's 2010 exploration and development expenditures of $249 million (unaudited) included $39 million of land acquisitions. The majority of this amount was incurred acquiring 57.8 sections of Crown land in the Company's Princess AB area. GLJ has only assigned 6 undeveloped locations to these lands as at December 31, 2010. Based on 3D seismic and well control, the Company believes the majority of these sections to be prospective for Pekisko oil discoveries.The efficiency of the Company's capital program for the year ended December 31, 2009 is summarized below.-------------------------------------------------------------------------------------------------------------------------------------------------------- 2010 2009---------------------------------------------------------------------------- Proved Proved plus plus Proved Probable Proved Probable----------------------------------------------------------------------------Exploration and Development expenditures(1) ($ thousands) 248,869 248,869 109,511 109,511--------------------------------------------------------------------------------------------------------------------------------------------------------Acquisitions/(Dispositions) (1 & 2) ($ thousands) (132,020) (132,020) (59,637) (59,637)--------------------------------------------------------------------------------------------------------------------------------------------------------Change in future development capital(3) ($ thousands) - Exploration and Development 7,835 52,710 66,341 67,800 - Acquisitions/Dispositions (4,601) (10,565) (600) (4,170)--------------------------------------------------------------------------------------------------------------------------------------------------------Reserves additions with revisions and economic factors (Mboe) - Exploration and Development 15,375 20,987 11,663 15,953 - Acquisitions/Dispositions (4,486) (7,041) (2,769) (4,226)---------------------------------------------------------------------------- 10,889 13,946 8,894 11,727--------------------------------------------------------------------------------------------------------------------------------------------------------Finding & Development Costs (4 & 5) ($/boe) - without revisions and economic factors 18.67 14.83 16.55 10.58 - with revisions and economic factors 16.70 14.37 15.08 11.11Finding, Development & Acquisition Costs(5 & 6) ($/boe) - without revisions and economic factors 12.97 11.96 14.71 9.06 - with revisions and economic factors 11.03 11.40 13.00 9.68Recycle Ratio(7) 2.1x 2.0x 1.7x 2.2xReserves Replacement 218% 279% 174% 229%Reserve Life Index based on annualized 2010 fourth quarter production (years) 8.5 14.0 7.5 12.5---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Three Year Average 2008-2010---------------------------------------------------------------------------- Proved plus Proved Probable----------------------------------------------------------------------------Exploration and Development expenditures(1) ($ thousands) 550,057 550,057--------------------------------------------------------------------------------------------------------------------------------------------------------Acquisitions/(Dispositions) (1 & 2) ($ thousands) 120,789 120,789--------------------------------------------------------------------------------------------------------------------------------------------------------Change in future development capital(3) ($ thousands) - Exploration and Development 130,479 223,123 - Acquisitions/Dispositions 15,697 13,054--------------------------------------------------------------------------------------------------------------------------------------------------------Reserves additions with revisions and economic factors (Mboe) - Exploration and Development 35,455 53,714 - Acquisitions/Dispositions 1,847 1,837---------------------------------------------------------------------------- 37,302 55,551--------------------------------------------------------------------------------------------------------------------------------------------------------Finding & Development Costs (4 & 5) ($/boe) - without revisions and economic factors 20.53 13.83 - with revisions and economic factors 19.19 14.39Finding, Development & Acquisition Costs(5 & 6) ($/boe) - without revisions and economic factors 23.34 15.71 - with revisions and economic factors 21.90 16.33--------------------------------------------------------------------------------------------------------------------------------------------------------Notes:(1) 2010 figures include information based on estimated unaudited financial results that may change on the completion of the audited financial statements.(2) Acquisition costs related to a 2008 corporate acquisition reflects the consideration paid for the shares acquired plus the net debt assumed, both valued at closing and does not reflect the fair market value allocated to the acquired oil and gas assets under Generally Accepted Accounting Principles.(3) Change in future development capital includes Alberta Drilling Credits to be earned on future drilling totalling $0.3 million for proved reserves and $0.6 million for proved plus probable reserves.(4) The aggregate of the exploration and development costs incurred in the most recent financial year and the change during that year in estimated future development costs generally will not reflect total finding and development costs related to reserve additions for that year.(5) Calculation includes changes in future development costs.(6) Crew calculates finding, development and acquisition ("FD&A") costs which incorporate both the costs and associated reserve additions related to acquisitions net of any dispositions during the year. Since acquisitions and divestitures have had a significant impact on Crew's annual reserve replacement costs, the Company believes that FD&A costs provide a meaningful portrayal of Crew's cost structure.(7) The 2010 recycle ratio is calculated using the Company's 2010 operating net back of $22.86 per boe (unaudited) which includes commodity related hedging gains for the year.Net Asset ValueThe following table provides a calculation of Crew's estimated net asset value at December 31, 2010 based on the estimated future net revenues associated with Crew's proved plus probable reserves before income tax and discounted at 10% as presented in the GLJ Report and including Crew's internal assessment of undeveloped land values.-------------------------------------------------------------------------------------------------------------------------------------------------------- 5% 10% Discount Discount----------------------------------------------------------------------------($ thousands)Proved plus probable reserves 1,312,194 979,144Undeveloped Land (note 1) 269,630 269,630Bank debt as at December 31, 2010 (note 2) (138,694) (138,694)Estimated working capital deficiency as at December 31, 2010 (notes 2&3) (40,707) (40,707)Proceeds from dilutive stock options 57,502 57,502----------------------------------------------------------------------------Net asset value 1,459,925 1,126,875Diluted Common shares outstanding (thousands) 85,698 85,698----------------------------------------------------------------------------Net asset value per share $17.04 $13.15--------------------------------------------------------------------------------------------------------------------------------------------------------Notes:(1) Internally estimated value (see "Land Holdings")(2) Figures include information based on unaudited financial results that may change.(3) Working capital deficiency includes an estimate of the Company's accounts receivable less accounts payable and accrued liabilities as at December 31, 2010.OUTLOOKCrew has had an active first quarter to date with plans to drill a total of 27 (26.33 net) wells including 24 (24 net) at Princess and 3 (2.33 net) at Septimus. The Company is currently at various stages of completing and tying in these wells and looks forward to providing additional details on the results of these projects in March 2011 as part of our year-end financial results press release.The Company is currently in the process of completing its previously announced $100 million bought deal equity financing through a syndicate of underwriters led by Macquarie Capital Markets Canada Ltd. The financing is scheduled to close on or about March 2, 2011.On behalf of the Board of Directors, Management and staff, I would like to thank our shareholders for their support. We strongly believe Crew is in a unique position to capture significant value in its portfolio of oil and natural gas resource plays in 2011 and beyond.CAUTIONARY STATEMENTSUnaudited financial informationCertain financial and operating information included in this press release for the quarter and year ended December 31, 2010, such as finding and development costs, production information and net asset value, are based on estimated unaudited financial results for the quarter and year then ended, and are subject to the same limitations as discussed under Forward Looking Information set out below. These estimated amounts may change upon the completion of audited financial statements for the year ended December 31, 2010 and changes could be material.Information Regarding Disclosure on Oil and Gas Reserves and Operational InformationIn accordance with Canadian practice, production volumes are reported on a gross basis, before deduction of Crown and other royalties, unless otherwise stated. Unless otherwise specified, all reserve volumes in this news release and all information derived therefrom are based on "company interest reserves" using forecast prices and costs. "Company interest reserves" consist of "company gross reserves" (as defined in National Instrument 51-101 adopted by the Canadian Securities Regulators ("NI 51-101")) plus Crew's royalty interests in reserves. "Company interest reserves" are not a measure defined in NI 51-101 and does not have a standardized meaning under NI 51-101. Accordingly our Company interest reserves may not be comparable to reserves presented or disclosed by other issuers. Our oil and gas reserves statement for the year ended December 31, 2010, which will include complete disclosure of our oil and gas reserves and other oil and gas information in accordance with NI 51-101, will be contained within our Annual Information Form which will be available on our SEDAR profile at In relation to the disclosure of estimates for individual properties, such estimates may not reflect the same confidence level as estimates of reserves for all properties, due to the effects of aggregation.In relation to the disclosure of net asset value ("NAV"), the NAV table shows what is normally referred to as a "produce-out" NAV calculation under which the current value of the Company's reserves would be produced at forecast future prices and costs and do not necessarily represent a "going concern" value of the Company. The value is a snapshot in time and is based on various assumptions including commodity price forecasts and foreign exchange rates that vary over time. It should not be assumed that the future net revenues estimated by GLJ represent the fair market value of the reserves, nor should it be assumed that Crew's internally estimated value of its undeveloped land holdings represent the fair market value of the lands.Forward-looking information and statementsThis news release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the forgoing, this news release contains forward-looking information and statements pertaining to the following: the recognition of significant additional reserves under the heading "Reserves", the volumes and estimated value of Crew's oil and gas reserves; the life of Crew's reserves; the volume and product mix of Crew's oil and gas production; future oil and natural gas prices and Crew's commodity risk management programs; future liquidity and financial capacity; completion of the $100 million equity financing, and the timing thereof and corresponding increase in the 2011 capital program; future results from operations and operating metrics; 2011 budget assumptions; future costs, expenses and royalty rates; future interest costs; the exchange rate between the $US and $Cdn; future hedging activities; future development, exploration, acquisition and development activities and related capital expenditures; the number of wells to be drilled and completed and related production expectations; the amount and timing of capital projects; the completion of the Septimus pipeline and takeaway capacity; operating costs; the total future capital associated with development of reserves and resources; and forecast reductions in operating expenses.The recovery and reserve estimates of Crew's reserves and resources provided herein are estimates only and there is no guarantee that the estimated reserves or resources with be recovered. In addition, forward-looking statements or information are based on a number of material factors, expectations or assumptions of Crew which have been used to develop such statements and information but which may prove to be incorrect. Although Crew believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because Crew can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding, among other things: that Crew will continue to conduct its operations in a manner consistent with past operations; results from drilling and development activities consistent with past operations; the continued and timely development of infrastructure in areas of new production; the accuracy of the estimates of Crew's reserve volumes; continued availability of debt and equity financing and cash flow to fund Crew's current and future plans and expenditures; the impact of increasing competition; the general stability of the economic and political environment in which Crew operates; the general continuance of current industry conditions; the timely receipt of any required regulatory approvals; the ability of Crew to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects in which Crew has an interest in to operate the field in a safe, efficient and effective manner; the ability of Crew to obtain financing on acceptable terms; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development and exploration; the timing and cost of pipeline, storage and facility construction and expansion and the ability of Crew to secure adequate product transportation; future commodity prices; currency, exchange and interest rates; regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Crew operates; and the ability of Crew to successfully market its oil and natural gas products.The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such information and statement, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors that may cause actual results or events to defer materially from those anticipated in such forward-looking information or statements including, without limitation: changes in commodity prices; changes in the demand for or supply of Crew's products; unanticipated operating results or production declines; changes in tax or environmental laws, royalty rates or other regulatory matters; changes in development plans of Crew or by third party operators of Crew's properties, increased debt levels or debt service requirements; inaccurate estimation of Crew's oil and gas reserve and resource volumes; limited, unfavourable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; and certain other risks detailed from time-to-time in Crew's public disclosure documents, (including, without limitation, those risks identified in this news release and Crew's Annual Information Form).The forward-looking information and statements contained in this news release speak only as of the date of this news release, and Crew does not assume any obligation to publicly update or revise any of the included forward-looking statements or information, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.The securities offered under Crew's financing have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.BOE equivalentBarrel of oil equivalents or 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.Crew is a Calgary, Alberta based oil and gas exploration, development and production company whose shares are traded on The Toronto Stock Exchange under the trading symbol "CR".FOR FURTHER INFORMATION PLEASE CONTACT: Dale ShwedCrew Energy Inc.President and C.E.O.(403) 231-8850ORJohn LeachCrew Energy Inc.Senior Vice President and C.F.O.(403)