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Shoreline Energy Corp. Increases Holdings in Prolific Niobrara and Codell Oil Project, Wattenberg Field, Colorado
By: Marketwire .
Dec. 24, 2012 08:36 AM
CALGARY, ALBERTA -- (Marketwire) -- 12/24/12 -- Shoreline Energy Corp. (the "Company" or "Shoreline") (TSX:SEQ) is pleased to announce that it has acquired non-operating working interest in over 5,000 acres located in the prolific Wattenberg Field, in the Denver-Julesburg Basin ("DJ Basin") for approximately $4.0 million in cash and stock. The acquisition closed on December 21, 2012, increasing Shoreline's acreage in the prolific DJ Basin by over 500 net acres.
Shoreline has acquired an average net revenue interest of 5.3% in a block of land within the same township where area operators including Anadarko Petroleum and Encana Corporation are drilling high impact horizontal wells targeting light oil within the Niobrara and the Codell at vertical depths of between 6800 and 7200 feet. Horizontal wells drilled in this area are completed using multiple stage hydraulic fracturing and have exhibited initial production rates of between 400 and 900 barrels oil equivalent per day. Existing production from historical vertical wells is estimated to be between 25 and 45 barrels oil equivalent per day to Shoreline's interest. Shoreline forecasts that horizontal wells on its newly acquired acreage will be drilled beginning in the late second quarter of 2013.
"We continue to take advantage of attractive opportunities to further increase our asset base in the Wattenberg field." stated Trevor Folk, Chief Executive Officer of Shoreline Energy Corp. "The most recent acquisition immediately adds to our production base while providing significant development potential through the application of proven horizontal drilling and completion techniques. Based on our internal due diligence and data published by area operators for nearby properties, we forecast that during the next year our production and cash flow will expand substantially."
On the land package acquired, there are between 60 and 80 horizontal drilling locations identified. The $4.0 million acquisition price comprises $3.5 million of cash and 129,000 of Shoreline's common shares.
About Shoreline Energy
Shoreline is a Calgary, Alberta based corporation engaged in the exploration, development and production of petroleum and natural gas. Shoreline offers investors a combination of value growth via lower risk development of additional oil reserves and production on its current lands and pays a quarterly dividend. Shoreline has 5,644,315 common shares outstanding and 170,000 convertible debentures outstanding. The Company's common shares are currently listed on the TSX under the trading symbol "SEQ" and its debentures under the trading symbol "SEQ.DB". Additional information regarding Shoreline is available under the Company's profile at www.sedar.com or at the Corporation's website, www.shorelineenergy.ca.
Forward Looking and Cautionary Statements
This news release contains forward-looking statements relating to the Corporation's plans and other aspects of the Corporation's anticipated future operations, strategies, financial and operating results and business opportunities. These forward-looking statements may include opinions, assumptions, estimates, management's assessment of value, reserves, future plans and operations.
Forward-looking statements typically use words such as "will," "anticipate," "believe," "estimate," "expect," "intend," "may," "project," "should," "plan," and similar expressions suggesting future outcomes, and include statements that actions, events or conditions "may," "would," "could," or "will" be taken or occur in the future. The forward-looking statements are based on various assumptions including expectations regarding the success of current or future drill wells; the outlook for petroleum and natural gas prices; estimated amounts and timing of capital expenditures; estimates of future production; assumptions concerning the timing of regulatory approvals; the state of the economy and the exploration and production business; results of operations; business prospects and opportunities; future exchange and interest rates; the Corporation's ability to obtain equipment in a timely manner to carry out development activities; and the ability of the Corporation to access capital and credit. While the Corporation considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
Forward-looking statements are subject to a wide range of assumptions, known and unknown risks and uncertainties and other factors that contribute to the possibility that the predicted outcome will not occur, including, without limitation: risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation; loss of markets; volatility of commodities prices; currency fluctuations; imprecision of reserves estimates; environmental risks; competition from other producers; inability to retain drilling rigs and other services; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions; general economic conditions; delays resulting from or inability to obtain required regulatory approvals and to satisfy various closing conditions; and ability to access sufficient capital from internal and external sources. Readers are cautioned that the foregoing list of factors is not exhaustive.
Although Shoreline believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements and you should not rely unduly on forward-looking statements. The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by applicable law, Shoreline does not undertake any obligation to publicly update or revise any forward-looking statements.
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