Terrex Energy Inc. Provides Enhanced Oil Recovery Operations Update
04 August 2011 - 11:00PM
PR Newswire (Canada)
CALGARY, Aug. 4, 2011 /CNW/ -- CALGARY, Aug. 4, 2011 /CNW/ - Terrex
Energy Inc. ("Terrex" or "Company") (TSX-V: TER) announces
updates on its enhanced oil recovery (EOR) projects at Strathmore
and Two Creek in Alberta. The Strathmore Chemical Enhanced Oil
Recovery program is proceeding on schedule. The EOR facilities are
being built in Wyoming and are over 90% complete, with certain
metering equipment still to be delivered. Pending final
testing, the facilities will be shipped to the site for set up,
likely in October, with chemical injection and the restart of the
water flood beginning near 2011 year end. The Strathmore pool
has the potential for an estimated additional gross 3 million
barrels at an approximate 15% recovery with a chemical flood. At
Two Creek, an application for an EOR program on the A Pool has been
submitted to the Energy Resources Conservation Board.
Specialized technical EOR analysis work has begun and cores have
been delivered for laboratory testing as a first step in
determining the optimum EOR plan. The specific EOR design is
expected to be determined by 2011 year end. In addition, we
are preparing to drill one and possibly two wells to better develop
the pool and add additional production prior to implementing the
EOR program. The Two Creek pools have the potential for an
estimated additional gross 3 million barrels at 15% recovery with
chemical floods and optimizations. The Strathmore and Two Creek
properties are characterized by large original oil-in-place
reservoirs with relatively low recoveries to date. We believe that
optimization and enhanced oil recovery programs, consistent with
our overall business plan, can significantly increase production
and recoverable reserves. We continue to search for and assess
potential property acquisitions that are appropriate for enhanced
oil recovery programs, taking advantage of high impact and large
original oil-in-place reservoirs and existing infrastructure. About
Terrex Energy Inc. Terrex Energy Inc. is a Calgary-based junior oil
company that specializes in the application of proven Enhanced Oil
Recovery (EOR) methods to improve oil production from mature pools.
We target underexploited and undercapitalized light-to-medium oil
reservoirs in Western Canada. Our shares are listed on the TSX
Venture Exchange under the symbol "TER". Neither the TSV Venture
Exchange nor its Regulation Service Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements This news release contains certain
forward-looking statements and forward-looking information
(collectively referred to herein as "forward-looking statements")
within the meaning of Canadian securities laws. All statements
other than statements of historical fact are forward-looking
statements. In particular, this press release contains
forward-looking statements pertaining to expectations of management
regarding the proposed acquisition, including; the closing date of
the acquisition; financing activities to be conducted by Terrex to
finance the acquisition, including the assumption of debt and the
use of proceeds thereof; the characteristics of the property,
including the expectation that the property will be a good
candidate for Improved and Enhanced Oil Recovery programs; the
expected timing of the planning, evaluation and development of the
programs, and the success of such programs. In addition, statements
relating to "reserves" are deemed to be forward-looking statements
as they involve the implied assessment, based on certain estimates
and assumptions, that the reserves described exist in the
quantities predicted or estimated and can be profitably produced in
the future. Undue reliance should not be placed on
forward-looking statements, which are inherently uncertain, are
based on estimates and assumptions, and are subject to known and
unknown risks and uncertainties (both general and specific) that
contribute to the possibility that the future events or
circumstances contemplated by the forward-looking statements will
not occur. Assumptions include, among other things: future capital
expenditure levels; the ability to secure regulatory approval, the
ability to obtain financing on acceptable terms to finance the
acquisition; future oil and natural gas prices; future oil and
natural gas production levels; the success of IOR and EOR programs;
the ability to obtain equipment in a timely manner to carry out
development activities; the ability to market oil and natural gas
successfully; and the impact of increasing competition.
Although Terrex believes that the expectations reflected in the
forward looking statements contained in this press release, and the
assumptions on which such forward-looking statements are made, are
reasonable, there can be no assurance that such expectations will
prove to be correct. Readers are cautioned not to place undue
reliance on forward-looking statements included in this document,
as there can be no assurance that the plans, intentions or
expectations upon which the forward-looking statements are based
will occur. By their nature, forward-looking statements involve
numerous assumptions, known and unknown risks and uncertainties
that contribute to the possibility that the predictions, forecasts,
projections and other forward-looking statements will not occur,
which may cause Terrex's actual performance and results in future
periods to differ materially from any estimates or projections of
future performance or results expressed or implied by such
forward-looking statements. These risks and uncertainties include,
among other things, the following: that the acquisition may not
close when planned or at all or on the terms and conditions set
forth herein; the failure of Terrex to obtain the necessary
regulatory approval required in order to proceed with the
acquisition; volatility in market prices for oil and natural gas;
failure to complete planned financing activities; incorrect
assessment of the value of the acquisition; failure to realize the
anticipated benefits of the acquisition; general economic
conditions in Canada; and the other factors. Readers are
cautioned that this list of risk factors should not be construed as
exhaustive. The forward-looking statements contained in this news
release are made as of the date hereof and Terrex does not
undertake any obligation to update publicly or to revise any of the
included forward-looking statements, except as required by
applicable law. The forward-looking statements contained herein are
expressly qualified by this cautionary statement. To view this news
release in HTML formatting, please use the following URL:
http://www.newswire.ca/en/releases/archive/August2011/04/c9375.html
p please contact Kim Davies, President & CEO, or Norm Knecht,
VP Finance & CFO, at (403) 264-4430, or visit Terrex's website
at a href="http://www.terrexenergy.ca"www.terrexenergy.ca/a /p
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