CALGARY, April 11, 2013 /CNW/ - Winstar Resources Ltd. ("Winstar" or "the Company") (TSX: WIX) is pleased to update its Tunisian production.
The Company's daily production is within its range of expectations, as reported on March 13, 2013. During that past week, Winstar's daily production has ranged from 1,350 to 2,050 net barrels of oil equivalent per day ("boepd"). Variability in daily production is reflective of workover logistics and variations in natural gas nominations, at the Chouech Essaida Concession, from STEG (the Tunisian National Utilities Company). The Company estimates its current stabilized production at 1,600 to 1,700 boepd.
This rate does not include incremental production expected from Chouech Essaida Triassic Well # 11 ("CS #11") which is now expected to be completed before the end of April 2013. The successful recompletion of CS #11 is anticipated to increase daily production to 1,800 to 1,900 boepd. Current production also does not include, approximately 80 boepd from the Sanrhar Concession, which remains shut-in due to its location and related logistical issues. There continues to be no estimated date, for the resumption of production at the Sanrhar Concession.
The installation of a surface pump at Chouech Essaida Silurian Well # 10 ('CS Sil #10 ") was completed in early April 2013. To date, pumping actives have generated what is interpreted to be formation water which invaded the Triassic reservoir, with some traces of gas, which is consistent with the Company's expectations. Pumping is expected to continue for several weeks, if not more, to hopefully establish oil production from the virgin, or the not invaded, portion of the Triassic TAGI Formation.
As reported originally on July 3, 2012, the Company has retained FirstEnergy Capital LLP to explore and evaluate potential strategic alternatives with a view to enhancing shareholder value. This process is ongoing.
Winstar's 2012 Annual General Meeting
Shareholders are cordially invited to attend Winstar's General Annual Meeting on June 20, 2013 at 3pm (MDT), which will be held in the Centennial Place Conference Center, located at the third floor 250- 5th Street SW Calgary, Alberta, Canada. This event has been rescheduled from May 9, 2013 to accommodate management schedules.
Reference herein to "boe" mean barrels of oil equivalent and is derived by converting gas to oil in the ratio of six thousand cubic feet (Mcf) of gas to one barrel (bbl) of oil. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf to 1 bbl is based upon an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. References herein to "boepd" means barrels of oil equivalent per day.
This press release contains certain forward-looking statements. These statements relate to future events or future performance of the Company. When used in this press release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "predict", "seek", "propose", "expect", "potential", "continue", and similar expressions, are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect the Company's current views with respect to certain events, and are subject to certain risks, uncertainties and assumptions. Many factors could cause Winstar's actual results, performance, or achievements to materially differ from those described in this press release. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this press release as intended, planned, anticipated, believed, estimated, or expected. Specific forward-looking statements in this press release include, among others, statements pertaining to the following: factors upon which Winstar will decide whether or not to undertake a specific course of action; and estimated volumes and timing of future production; business plans for drilling, exploration and development; and other expectations, beliefs, plans, goal, objectives, assumptions, information and statements about possible future events, conditions, results of operations or performance. The risks to which the Company is subject include those of the oil and gas industry in general including operational risks in exploring for, developing and producing crude oil and natural gas; risks and uncertainties involving geology of oil and gas deposits; volatility in global market prices for oil and natural gas; general economic conditions; competition; risks related to employment and labour relations; liabilities and risks, including environmental liability and risks, inherent in oil and gas operations; uncertainties as to the availability and cost of financing and changes in capital markets; alternatives to and changing demand for petroleum products; and changes in legislation and the regulatory environment, including uncertainties with respect to the Kyoto Protocol. Furthermore, statements relating to "reserves" or "resources" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions to the effect that the resources and reserves described can be produced profitably in the future. The forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. These statements speak only as of the date of this press release. The Company does not intend and does not assume any obligation, to update these forward-looking statements to reflect new information, subsequent events or otherwise, except as required by law.
Winstar Resources Ltd. is a Calgary based junior oil and gas company, which explores for, develops, produces, and sells crude oil, natural gas liquids and natural gas in Tunisia and Romania. Winstar's common shares trade on the Toronto Stock Exchange under the symbol WIX.
SOURCE Winstar Resources Ltd.