CALGARY, Canada--(BUSINESS WIRE)-- CEC North Star Energy Ltd or “CEC North Star” (“the Corporation”), A Calgary based private Heavy Oil Company, with major resources in the Peace River area of northern Alberta has just released the findings of its laboratory analysis substantially de risking the project. This technical report, with other reviews and presentations can be found on the following company website link: http://www.cecnorthstar.com
The recent analysis of cuttings from wells drilled through the zones has shown the presence of oil which in combination with the other geological/geophysical work done to date has gone to substantially de risked the projects. This work has shown favorable comparisons to similar projects of PennWest, Baytex and other majors to the south of the North Star lands which have both primary production and enhanced recoveries such as CSS and SAGD production on the Bluesky formation. Upon completing the coring program for the winter of 2012 – the results will be used for the applications for the next stage of development which the Corporation will apply the appropriate technologies(s) which may include the CSS/SAGD 2-4 well pilot type of development typically of the 1200 to 5000 bbl/d size and/or immediately move to the primary production models.
This work is being conducted in conjunction with its Joint Venture Partner Tamm Oil and Gas Corporation (TAMO) who has entered into an agreement to vend into the Corporation substantial additional oil sand leases adjacent to North Star’s core leases.
The Corporation has accelerated both its development plans based on the recent technical studies and will pursue its intention to create a publicly traded vehicle in 2013.
About CEC North Star
CEC North Star Energy Ltd is a non-public Calgary based Energy Corporation with a substantial oilsands lease holding in the Peace River block of north western Alberta Canada.
CEC North Star has acquired sixty-one (61) sections respectively 39,040 acres of leaseholds with a prospective resource of 873 MM bbl (Best Estimate) PIIP in the Elkton Debolt formations based on a 25 section independent analysis. The same independent petroleum engineering firm conducted a feasibility study 139 Mil (NPV @ 10% fully risked) based on a typical four sections development of the Elkton/Debolt. In addition the property is prospective for Bluesky/Gething oil sands formations which may lead to early primary production development similar to other projects in the Peace River Block offering significant production potential.
CEC North Star has entered into joint venture on adjoining properties consisting of 23 sections or 14,720 acres which may increase PIIP (Petroleum Initially in Place) to in excess of three (3) billion barrels.
CEC North Star goals of ultimately 100,000 bbl/d of bitumen from these lands and objectives are to create value by developing these oilsands properties using scalable project development targeting multiple 5-10,000 bbl/d facilities with stakeholder involvement at every stage – Environment, Occupational Health and Safety are of paramount concern. Use of known technologies while remaining flexible to adopt new processes to maximize recovery of oil in place while reducing operating costs and a relatively quick schedule and lower capital costs compared to other oilsand projects resulting in maximum return on capital invested and quicker shareholder returns
This press release contains forward-looking statements concerning future events and the Company's growth and business strategy. Words such as "expects," "will," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations on such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Forward looking statements in this press release include statements about our drilling development program. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the timing and results of our 2012 drilling and development plan. Additional factors include increased expenses or unanticipated difficulties in drilling wells, actual production being less than our development tests, changes in the Company's business; competitive factors in the market(s) in which the Company operates; risks associated with oil and gas operations in the United States; and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission including the Company's Annual Report on Form 10-K for the year ended December 31, 2011 and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2012. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
Cautionary Note to U.S. Investors -- The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this press release, such as "probable," "possible," "recoverable" or "potential" reserves among others, that the SEC's guidelines strictly prohibit us from including in filings with the SEC. Investors are urged to consider closely the disclosure in our filings with the SEC.
CEC North Star Contact
CEC North Star Energy Ltd
15th St SW
Calgary, Alberta T2T 5X3
+1 587 353 5550
Helvetic Prime Baldi
Helvetic Prime Baldi
+41 (0)79 914 6451
Source: CEC North Star Energy Ltd