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TSXV Trading Symbol: SWE
CALGARY,
Jan. 28, 2014 /CNW/ - SilverWillow
Energy Corporation ("SilverWillow" or the
"Corporation") (TSXV:SWE) has been advised by the Alberta
Energy Regulator ("AER") that the AER is undertaking a
technical review of the factors that affect reservoir containment
of Steam Assisted Gravity Drainage ("SAGD") projects with a view to
developing formal regulatory requirements in 2014. Until such
requirements are issued, the AER will defer decisions on
applications for thermal oil sands projects in a designated shallow
thermal area of the Wabiskaw-McMurray Deposit in the Athabasca Oil
Sands Area that address reservoir containment differently from how
the AER currently assesses it. The AER considers the 12,000
barrel per day Audet Project application to fit into this
category. Therefore, the AER states that it will make no
decision on the Audet Project
application until formal regulatory requirements are developed and
formally adopted, and notes that the final requirements may be less
or more stringent or utilize different approaches than the current
practice. SilverWillow will be expected to meet those requirements,
which the AER advises may include acquiring 3-D seismic over the
entire development area, prior to any decision on the Audet Project
application. The AER expects to issue a formal bulletin
regarding this deferral for affected applications within the
shallow thermal area in early 2014.
SilverWillow expects that the effect of this
deferral on its Audet Project
application is to delay the potential approval.
Accordingly, SilverWillow now anticipates that, if regulatory
approval is received, construction of the Audet Project will also
be delayed. SilverWillow's estimates of such timeframes are
subject to further regulatory decisions by the AER and other
regulators in Alberta as well as
other industry and business factors. Until the AER develops and
implements its new regulatory requirements, SilverWillow can
provide no guarantee that it will be able to meet them or issue a
revised project schedule.
SilverWillow is disappointed with the delay that
will be caused by the process to develop and formally adopt new
regulatory requirements but is confident that the use of low
pressure SAGD technology at the Audet Project continues to be a technically
safe, responsible and economically viable process for the
development of this large bitumen resource. The Corporation
plans to participate in the formal AER consultation process and
make use of the extensive technical work that has been completed on
the Audet Project to address caprock integrity. In the
meantime, SilverWillow intends to review its business plans
relating to the Audet Project and its other business prospects in
light of this deferral.
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 Corporation's
understanding of the AER's proposed development of new regulatory
requirements, the anticipated timing of adopting such regulatory
requirements, the effect of the new regulatory requirements on the
timing for approving and developing the Corporation's proposed
Audet Project, the technical
viability of the Audet Project, the Corporation's plans to
participate in the regulatory review process, and the Corporation's
plans to review its business plan in light of these regulatory
developments.
The forward-looking information set out in this
news release, is based on certain expectations and assumptions
regarding, among other things, the exploration and development of
the Audet Lands; the submission of the regulatory application for
the Audet Lands; the AER's process for developing new regulatory
requirements and considering the application; the substance of such
new regulations; the ability of the Corporation to participate in
the regulatory review process; the ability of the Corporation to
obtain required regulatory approval for the development of the
Audet project; and technical
assumptions regarding the feasibility of the Audet Project and the
designed production level for the Audet SAGD project.
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 achieved in the timeframe or on the terms
expected or at all; risks that the Corporation will not be
permitted to participate in the regulatory review process; risks
that the AER's new regulations may prevent the Audet Project from
being approved; risks that the AER may take additional time to
develop new regulations or to process the Corporation's application
beyond the time frames stated in this news release; risks relating
to the early stage of development of SilverWillow and the
Audet lands; 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 of bitumen
are based upon a number of factors and assumptions made as of the
date on which the resource estimates were determined, such as
geological and engineering estimates, which have inherent
uncertainties.
Additional risks relating to the business and
operations of SilverWillow 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