Board Committees
TSX VENTURE SYMBOL: ONR - | View Quote | View Chart | View Financials |
CALGARY, ALBERTA--(CCNMatthews - Dec. 13, 2005) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Open Range Energy Corp. (TSX:ONR) (TSX:ONR.WT) is pleased to announce its 2006 capital investment program as approved by its Board of Directors. Approximately $20 million will be invested in 2006 on exploration and development opportunities. The capital program contemplates drilling 15 wells targeted primarily towards Open Range's west central high growth property at Ansell/Sundance and includes $5 million for land and seismic and $500,000 for facilities.
Open Range's production is expected to average 900 barrels of oil equivalent per day (boe/d) in 2006, with natural gas estimated to average over 90% at 5.0 million cubic feet per day (mmcf/d). This is a substantial increase from initial production of 400 boe/d from the Tempest/Daylight arrangement that closed on November 30, 2005. Initial production has commenced at the Company's Ansell/Sundance property and 3 (1.4 net) additional wells are awaiting tie-in. These wells are expected to add net average production in Q1, 2006 of approximately 200 boe/d of natural gas and natural gas liquids.
Open Range has a strong balance sheet to execute on its exploration based strategy at Ansell/Sundance while moving forward on multiple exploitation opportunities and identifying complementary acquisitions. At year-end 2005 the Company expects to have no debt, an unutilized bank line of $8 million and cash of approximately $5 million, assuming full exercise of the arrangement warrants which expire December 30, 2005.
To date, following its creation on November 30, 2005 out of the Tempest/Daylight arrangement, Open Range has:
- Commenced trading on the TSX on December 2, 2005 under the symbols ONR and ONR.WT,
- Initiated its first production at its Ansell/Sundance property,
- Approved a $20 million capital budget for 2006,
- Finalized the additions to its staff of 16, complimented by an experienced Board of Directors,
- Added 2 (0.6 net) natural gas infill locations at Ferrier and 2 (0.8 net) light oil exploration locations at Pembina, and
- Commenced detailed review of seismic data over option lands from Daylight.
Reader Advisory
This disclosure contains certain forward looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond Open Range's control, including: the impact of general economic conditions in Canada and the United States, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. Open Range's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that Open Range will derive there from. All amounts are denominated in Canadian funds unless otherwise specified.
The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.
Open Range Energy Corp.
A. Scott Dawson, P.Eng.
President and Chief Executive Officer
(403) 205-3704
Website: www.openrangeenergy.com
