CALGARY, ALBERTA — (Marketwire) — 09/16/11 — On April 28, 2011 Shoreline Energy Corp. (“Shoreline”) (TSX: SEQ) closed the acquisition of producing assets in the Progress Worsley areas located in the Peace River Arch region of Alberta. At the time of closing the acquired assets were producing 737 BOED (barrels oil equivalent per day) with an additional 70 BOED as royalty production income.
Current production from these same assets has increased by 9% to 800 BOED (Field Estimate) with an additional 65 BOED as royalty production income.
This estimated production increase has been accomplished through the reactivation of 5 wells (3.3 net) and 2 oil well workovers (0.62 net) resulting in a field estimated initial production rate of 115 BOED brought on stream.
For the remainder of the year Shoreline expects to reactivate an additional 3 wells (3 net), recomplete 3 wells (3 net) and work over 1 well (1 net).
Shoreline–s first horizontal oil well (50% WI) is expected to spud September 19th. The well will target light oil in the Doig formation. For the remainder of the year Shoreline expects to drill 2 (1.44 net) horizontal oil wells targeting Charlie Lake Formation (Braeburn Member) light oil and 1 (0.82 net) vertical well targeting Charlie Lake Formation (Boundary Member) light oil. Shoreline is currently licensing 9 locations targeting a variety of reservoirs and anticipates an active winter drilling season.
The proposed acquisition of three non arms length private companies announced July 5, 2011 is proceeding with an anticipated closing Mid to Late October 2011. Upon closing Shoreline–s production levels are expected to rise to between 1550 and 1650 BOED.
Following the close of these acquisitions– Shoreline will announce revised production and financial guidance for 2011.
Appointment of Executive
Mr. Trevor Folk, Chief Executive Officer of Shoreline is pleased to announce the strengthening of its executive team through the appointment Janet Boydol to position of VP Land.
Ms. Boydol has over 29 years of experience in land asset management, as well as significant acquisition and divestiture expertise, in of Alberta, British Columbia, Saskatchewan.
Prior to joining Shoreline, Ms Boydol was Land Manager of Lakeridge Energy Corp. and Shoreline Capital group of companies. Prior to Lakeridge, from 2000 – 2010, Ms. Boydol successfully developed and managed the land departments and assets of several private oil and gas companies.
Ms. Boydol is a member of Canadian Association of Petroleum Landmen (CAPL) & Petroleum Joint Venture Association (PJVA).
About Shoreline Energy Corp.
Shoreline Energy Corp., is an emerging junior oil and gas company based in Calgary Alberta. Shoreline provides shareholders a combination of value growth through development of oil and gas reserves and production with a specific focus in the Peace River Arch of northwest Alberta. In addition to asset value growth through development of oil focused projects in the short to medium term, the Company pays investors a fixed quarterly cash dividend of $0.20 per share beginning September 30, 2011.
The Company is publicly traded on the TSX under the trading symbol “SEQ”. Further information is available on SEDAR at .
BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
This press release contains forward-looking statements. More particularly, this press release contains forward-looking statements concerning the completion of the Offering, the success of the Offering, timing of the Offering, the use of proceeds of the Offering and the listing of the Common Shares on the TSX. These statements are based on current expectations and assumptions regarding, among other things, general economic and industry conditions and the regulatory approval process. The forward looking statements involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated. Such risks include, but are not limited to, those listed under the heading “Risk Factors” in the Company–s preliminary prospectus. Such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
The TSX has neither approved nor disapproved of the information contained herein.
Contacts:
Shoreline Energy Corp.
Mr. Trevor Folk
Chief Executive Officer
(403) 398-4070
Shoreline Energy Corp.
Mr. J. Kevin Stromquist
President & Chief Operating Officer
(403) 398-4075