/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR
DISSEMINATION IN THE UNITED
STATES/
TSXV Trading Symbol: SWE
CALGARY,
Dec. 19, 2013 /CNW/ - SilverWillow
Energy Corporation ("SilverWillow" or the "Corporation") (TSXV:
SWE) has submitted an integrated application with the Alberta
Energy Regulator and Alberta
Environment and Sustainable Resource Development for approval of
the Corporation's proposed 12,000 barrel per day Steam Assisted
Gravity Drainage ("SAGD") project on its Audet oil sands leases located approximately
75 km northeast of Fort McKay, Alberta. Subject to receipt of all
necessary approvals, it is expected that construction on the
Audet project will commence in
late 2015 with commercial production being achieved in 2017. The
project facilities have been designed to allow operations at a
steam-oil ratio ("SOR") of 2.5, with the expected average SOR over
the life of the project at 2.0. The project is currently expected
to operate for 28 years and produce an estimated 103 million
barrels of bitumen.
The estimated capital cost of the project is
approximately $550 million which
equates to a capital intensity of approximately $46,000 per barrel per day. This estimate
includes site access, construction, drilling, commissioning and
start-up, as well as other capital and operating costs until first
steam is achieved. It excludes capital costs for items that
are expected to be provided by third parties such as co-generation
facilities, fuel gas supply pipeline, diluent and product
pipelines, and operations camp, all of which are anticipated to be
captured in operating costs.
About SilverWillow Energy
SilverWillow Energy Corporation is a
Calgary, Alberta based
pre-production oil sands company with a portfolio of exploration
leases in Canada's Athabasca oil sands. To learn more,
please visit www.swenergy.ca.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS
REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE
POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR
THE ADEQUACY OR ACCURACY OF THIS RELEASE
Cautionary Statements Regarding Forward-Looking
Information
This news release contains "forward-looking
information" within the meaning of applicable securities
laws. Forward-looking information is frequently characterized
by words such as "plan", "expect", "project", "intend", "believe",
"anticipate", "estimate" and other similar words, or statements
that certain events or conditions "may" or "will" occur. The
forward-looking information in this news release relates, but is
not limited to, statements with respect to the development of a
proposed 12,000 barrel per day SAGD project including expectations
respecting the timing of construction and commercial production,
SOR ratios, operating life and estimated capital costs and the
composition thereof. In addition information relating to
total production is forward-looking information, as it involves the
implied assessment, based on estimates and assumptions, that the
resources underlying such production estimates exist in the
quantities predicated or estimated, and can and will be profitably
produced in the future.
The forward-looking information set out in
this news release, is based on certain expectations and assumptions
regarding, among other things, geological interpretations and
modelling including caprock integrity and recoverable resources,
the planned development schedule, environmental factors, socio- and
project economics including capital, operating and third party cost
estimates, and stakeholder engagement. These expectations and
assumptions are based on certain factors and events that are not
within the control of SilverWillow and there is no assurance they
will prove to be correct.
Forward-looking information is subject to
known and unknown risks and uncertainties and other factors which
may cause actual results, levels of activity and achievements to
differ materially from those expressed or implied in such
forward-looking information. Such risks, uncertainties and
factors include, among others, the risk that the regulatory
approvals in respect of the Audet
project will not be received in the timeframe or on the terms
expected or at all; risks relating to the early stage of
development of SilverWillow and the Audet project; and the general risks
associated with exploring for, developing and producing bitumen,
including many factors beyond the Corporation's control, and no
assurance can be given that the indicated level of bitumen or the
recovery thereof will be realized. In general, estimates
relating to bitumen production are based upon a number of factors
and assumptions made as of the date on which the resource estimates
for the Audet project were
determined, such as geological and engineering estimates, which
have inherent uncertainties. Additional risks relating to the
business and operations of SilverWillow and to the resource
estimates in respect of the Audet
lands are set forth in the Corporation's Annual Information Form
and in its most recent Management's Discussion and Analysis, which
are filed under the Corporation's profile on SEDAR at
www.sedar.com.
SilverWillow undertakes no obligation to
update forward-looking information if circumstances or management's
estimates or opinions should change except as required by
law. The reader is cautioned not to place undue reliance on
forward looking information.
SOURCE SilverWillow Energy Corporation