Press release from Marketwire
Crocotta Energy Announces Operational Update and Revised Guidance
Wednesday, October 19, 2011
CALGARY, ALBERTA--(Marketwire - Oct. 19, 2011) - Crocotta Energy Inc. ("Crocotta" or the "Company") (TSX:CTA) is pleased to announce drilling success at Edson and increased guidance.
Since mid-June, Crocotta has successfully drilled and completed an additional 4 (3.2 net) Bluesky horizontal wells at Edson resulting in 1.0 net Bluesky oil well and 3 (2.2 net) Bluesky liquids-rich gas wells. In addition, Crocotta has drilled an additional 2 (1.6 net) Bluesky horizontals and 2 (2.0 net) vertical step-out Bluesky wells that have not been completed as of the date hereof.
Current production is estimated at over 5,000 boepd with an additional 1,000 boepd restricted due to infrastructure constraints. Crocotta is currently constructing additional pipelines and facilities to accommodate the additional production with a projected completion date of mid-December.
Due to the successful capital program, Crocotta is increasing 2011 exit guidance from 4,500 boepd to a range of 5,500 -6,100 boepd and net capital expenditures from $51 million to $79 million. Net debt as of the end of Q311 is estimated at $34 million compared to a bank credit facility of $80 million.
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "should", "believe", "intends", "forecast", "plans", "guidance" and similar expressions are intended to identify forward-looking statements or information.
More particularly and without limitation, this document contains forward looking statements and information relating to the Company's oil, NGLs and natural gas production and capital programs. The forward-looking statements and information are based on certain key expectations and assumptions made by the Company, including expectations and assumptions relating to prevailing commodity prices and exchange rates, applicable royalty rates and tax laws, future well production rates, the performance of existing wells, the success of drilling new wells, the availability of capital to undertake planned activities and the availability and cost of labour and services.
Although the Company believes that the expectations reflected in such forward-looking statements and information are reasonable, it can give no assurance that such expectations will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production, delays or changes in plans with respect to exploration or development projects or capital expenditures, the uncertainty of estimates and projections relating to production rates, costs and expenses, commodity price and exchange rate fluctuations, marketing and transportation, environmental risks, competition, the ability to access sufficient capital from internal and external sources and changes in tax, royalty and environmental legislation. The forward-looking statements and information contained in this document are made as of the date hereof for the purpose of providing the readers with the Company's expectations for the coming year. The forward-looking statements and information may not be appropriate for other purposes. The Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Barrels of oil equivalent ("BOE's") 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.
Information Regarding Reserves and Reserves Values
This press release contains information on oil and natural gas reserves and reserve values which are estimates only. Present value refers to the estimated future net revenues calculated at the disclosed discount rate. These estimated disclosed do not represent fair value.
FOR FURTHER INFORMATION PLEASE CONTACT:
Robert Zakresky Crocotta Energy Inc. President and Chief Executive Officer (403) 538-3736
Nolan Chicoine Crocotta Energy Inc. Vice President, Finance and Chief Financial Officer (403) 538-3738
700, 639 -5th Ave SW Crocotta Energy Inc. Calgary, Alberta T2P 0M9 (403) 538-3737 (403) 538-3735 (FAX) www.crocotta.ca