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Crew Energy Inc. - Announces 2013 Year End Reserves

Crew Energy Inc. - Announces 2013 Year End Reserves 
CALGARY, ALBERTA -- (Marketwired) -- 02/18/14 --   Crew Energy Inc.
(TSX: CR) of Calgary, Alberta ("Crew" or the "Company") is pleased to
announce the results of its independent reserve evaluation for the
year ended December 31, 2013 as prepared by Sproule Associates Ltd.
("Sproule"). 
2013 HIGHLIGHTS 


 
 
--  Achieved finding and development ("F&D") costs of $9.05 per boe on
    proved plus probable reserves, including changes in future development
    capital, resulting in a recycle ratio of 2.4 times; 
 
--  Achieved all-in finding, development and acquisition ("FD&A") costs of
    $9.65 per boe on proved plus probable reserves, including changes in
    future development capital, resulting in a recycle ratio of 2.3 times; 
 
--  Proved reserves increased 35% to 115.2 mmboe after production of 10.0
    mmboe and net acquisitions of 2.4 mmboe. Proved reserves per share also
    increased 35%; 
 
--  Proved plus probable reserves increased 29% to 197.3 mmboe after
    production of 10.0 mmboe and net acquisitions of 6.2 mmboe. Proved plus
    probable reserves per share increased 28%; 
 
--  Generated a proved plus probable reserve replacement ratio on production
    of 543% and a proved reserve replacement ratio on production of 401%; 
 
--  Crew's Septimus Montney program achieved F&D costs of $6.38 per boe on
    proved plus probable reserves, including changes in future development
    capital resulting in a recycle ratio of 3.1 times; 
 
--  Proved plus probable reserves at Crew's Septimus Montney property
    increased 82% year over year. Average proved plus probable undeveloped
    Montney natural gas reserves increased to 4.3 bcf per well from 3.2 bcf
    per well in 2012 and 2.6 bcf per well in 2011; 
 
--  Proved plus probable reserves at Crew's Lloydminster property increased
    18% over 2012 as a result of a successful 2013 drilling and recompletion
    program; 
 
--  Crew's net asset value increased 17% over 2012 to $13.99 per share
    (reserves net present value discounted at 10%).
 
--  Crew achieved its targeted exit production range with December 2013
    production averaging 29,300 boe per day while fourth quarter production
    averaged 28,682 boe per day.

RESERVES 
The reserves data set forth below is based upon an independent reserves
assessment and evaluation prepared by Sproule with an effective date
of December 31, 2013 (the "Sproule Report"). The following
presentation summarizes the Company's crude oil, natural gas liquids
and natural gas reserves and the net present values before income tax
of future net revenue for the Company's reserves using forecast
prices and costs based on the Sproule Report. The Sproule Report has
been prepared in accordance with definitions, standards, and
procedures contained in the COGE Handbook and NI 51-101. The reserves
evaluation was based on Sproule forecast escalated pricing and
foreign exchange rates at December 31, 2013 as outlined in the table
herein entitled "Price Forecast".  
All evaluations and summaries of future net revenue are stated prior
to any provisions for interest costs or general and administrative
costs and after the deduction of estimated future capital
expenditures for wells to which reserves have been assigned. It
should not be assumed that the estimates of future net revenues
presented in the tables below represent the fair market value of the
reserves. There is no assurance that the forecast prices and cost
assumptions will be attained and variances could be material. The
recovery and reserve estimates of our crude oil, natural gas liquids
and natural gas reserves provided herein are estimates only and there
is no guarantee that the estimated reserves will be recovered. Actual
crude oil, natural gas and natural gas liquids reserves may be
greater than or less than the estimates provided herein. Reserves
included herein are stated on a company gross basis (working interest
before deduction of royalties without including any royalty
interests) unless noted otherwise. In addition to the detailed
information disclosed in this news release, more detailed information
will be included in the Company's Annual Information Form (the "AIF")
which will be filed on the Company's profile at www.sedar.com in
March 2014.  
See "Information Regarding Disclosure on Oil and Gas Reserves and
Operational Information" for additional cautionary language,
explanations and discussions and "Forward Looking Information and
Statements" for a statement of principal assumptions and risks that
may apply.  
Reserves Summary 
In 2013, the Company's total proved plus probable reserves increased
to 197.3 mmboe while proved reserves increased to 115.2 mmboe. The
year over year growth in proved plus probable reserves of 29% was
achieved after 10.0 mmboe of 2013 production. Of the increase in
proved plus probable reserves, pool extensions and improved
recoveries accounted for 25.6 mmboe which was concentrated at Crew's
Septimus Montney property in northeast British Columbia. In the
Sproule Report, approximately 298 undeveloped locations are booked in
Crew's four core areas out of an inventory of over 2,500 potential
drilling locations. 
Northeast British Columbia Montney 
At Crew's Septimus Montney property, proved plus probable reserves
increased 82% to 84.7 mmboe. The majority of this increase occurred
in the proved producing category recognizing better type well
performance as a result of improved completion techniques and
infrastructure enhancements. At Septimus, average proved plus
probable undeveloped Montney reserves increased to 4.3 bcf per well
from 3.2 bcf per well in 2012 and 2.6 bcf per well in 2011. Crew
currently has 69 undeveloped locations booked at Septimus at an
average proved plus probable reserve booking of 772 mboe per location
(15% ngls), with 52 of those locations booked in the proved
undeveloped category. The Company plans on drilling 14 net wells
targeting liquids rich natural gas in northeast British Columbia in
2014. 
At Tower, Crew drilled one well in 2013 and has booked proved plus
probable reserves per well of 155 mboe (60% liquids) from six (4.6
net) locations. Evolving drilling and completion practices continue
to improve the estimated ultimate recoveries of this play.  The
Company has over 130 sections of land that are prospective for
Montney oil production.  
Deep Basin, Alberta 
Proved plus probable reserves are unchanged after accounting for
production. Crew plans to drill one Falher well in 2014 while the
well drilled in 2012 continues to produce at over 10 mmcf per day
surpassing the previously booked type curve. The Company has 98
undeveloped Cardium locations booked in this area. 
Princess, Alberta 
Proved plus probable reserves decreased 5% to 22.7 mmboe after
accounting for production. The Company's limited 2013 capital
spending at Princess was focused on waterflood optimization in the
Pekisko and drilling on Crew's developing Mannville play. Crew
currently has 40 undeveloped locations booked at Princess with 22 of
those locations booked in the Mannville. The average undeveloped
proved plus probable reserve booking in the Mannville oil play is 95
mboe per well. Crew plans to drill 16 net wells targeting Mannville
oil in 2014. 
Lloydminster, Alberta/Saskatchewan 
Proved plus probable reserves increased 18% to 12,452 mboe,
reflecting the successful 2013 drilling and recompletion program.
Crew currently has 62 undeveloped locations booked at Lloydminster
with 22 of those locations horizontal. The average undeveloped proved
plus probable horizontal booking is 61 mbbls per location with
vertical undeveloped proved plus probable reserve booking at 42 mbbls
per location.  Crew plans to drill 14 net horizontal and 11 net
vertical wells at Lloydminster in 2014. 
The following table provides summary reserve information based upon
the Sproule Report and using the published Sproule (2013-12-31) price
forecast.  


 
 
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                                        Natural Gas   Natural Barrels of oil
                             Oil (3)        Liquids       gas  equivalent(2)
----------------------------------------------------------------------------
                            Gross(1)       Gross(1)  Gross(1)       Gross(1)
 
                              (mbbl)         (mbbl)    (mmcf)         (mboe)
----------------------------------------------------------------------------
Proved                                                                      
 Producing                    10,015          6,185   165,775         43,829
 Non-producing                 2,410            181     4,733          3,379
 Undeveloped                   7,566         11,790   291,966         68,017
----------------------------------------------------------------------------
Total proved                  19,990         18,155   462,474        115,224
Probable                      14,430         13,195   326,722         82,078
----------------------------------------------------------------------------
Total proved plus probable    34,420         31,350   789,198        197,302
----------------------------------------------------------------------------
----------------------------------------------------------------------------
 
Notes:                                                                      
(1) "Gross" reserves means Crew's working interest (operating and non-      
    operating) share before deduction of royalties and without including any
    royalty interest of the Company.                                        
(2) Oil equivalent amounts have been calculated using a conversion rate of  
    six thousand cubic feet of natural gas to one barrel of oil.            
(3) Includes light, medium, and heavy oil. See the Company's AIF for        
    detailed product type categorization.                                   
(4) May not add due to rounding.                                            

Reserves Values 
The estimated before tax future net revenues associated with Crew's
reserves effective December 31, 2013 and based on the Sproule Report
and the published Sproule (2013-12-31) future price forecast are
summarized in the following table: 


 
 
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-----------
(MM$)                         0%         5%        10%        15%        20%
----------------------------------------------------------------------------
 
Proved                                                                      
  Producing              932,722    749,116    633,020    553,488    495,649
  Non-producing          102,317     80,409     65,937     55,769     48,281
  Undeveloped          1,095,908    647,576    406,710    264,723    174,885
                     -------------------------------------------------------
Total proved           2,130,947  1,477,102  1,105,668    873,980    718,816
Probable               2,064,605  1,116,771    712,425    500,738    373,551
                     -------------------------------------------------------
Total proved plus                                                           
 probable              4,195,552  2,593,873  1,818,094  1,374,718  1,092,367
----------------------------------------------------------------------------
----------------------------------------------------------------------------
 
Notes:                                                                      
(1) The estimated future net revenues are stated before deducting future    
    estimated site restoration costs and are reduced for estimated future   
    abandonment costs and estimated capital for future development          
    associated with the reserves.                                           
(2) See the Company's AIF for the after-tax present values of future net    
    revenue attributed to Crew's reserves.                                  
(3) May not add due to rounding.                                            

Price Forecast 
The Sproule (2013-12-31) price forecast is summarized as
follows: 


 
 
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            $US/$Cdn              Edmonton   Western Natural gas            
Year        Exchange       WTI @     light    Canada    AECO/NIT   Westcoast
                Rate     Cushing crude oil    Select        spot   Station 2
----------------------------------------------------------------------------
                       (US$/bbl)  (C$/bbl)  (C$/bbl)  (C$/mmbtu)  (C$/mmbtu)
2014           0.940       94.65     92.64     77.81        4.00        3.95
2015           0.940       88.37     89.31     75.02        3.99        3.94
2016           0.940       84.25     89.63     75.29        4.00        3.95
2017           0.940       95.52    101.62     85.36        4.93        4.88
2018           0.940       96.96    103.14     86.64        5.01        4.96
2019           0.940       98.41    104.69     87.94        5.09        5.04
2020           0.940       99.89    106.26     89.26        5.18        5.13
2021           0.940      101.38    107.86     90.60        5.26        5.21
2022           0.940      102.91    109.47     91.96        5.35        5.30
2023           0.940      104.45    111.12     93.34        5.43        5.38
2024           0.940      106.02    112.78     94.74        5.52        5.47
2025 +         0.940     1.5%/yr   1.5%/yr   1.5%/yr     1.5%/yr     1.5%/yr
----------------------------------------------------------------------------
----------------------------------------------------------------------------
 
Notes:                                                                      
(1) Inflation is accounted for at 1.5% per year.                            

Reserves Reconciliation 
The following summary reconciliation of Crew's gross reserves
compares changes in the Company's reserves as at December 31, 2013 to
the reserves as at December 31, 2012 based on the Sproule
(2013-12-31) future price forecast.  


 
 
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                                                                        Oil 
                                 Oil       NGL's    Natural Gas  Equivalent 
TOTAL PROVED             (mbbls) (1)     (mbbls)         (mmcf)      (mboe) 
----------------------------------------------------------------------------
Opening Balance               20,617      14,483        299,922      85,087 
Extensions & Improved                                                       
 Recovery                      2,601         841         47,372      11,337 
Infill Drilling                1,008       1,388         84,175      16,425 
Technical Revisions             (441)      2,074         52,366      10,361 
Acquisitions                       0         556         14,785       3,020 
Dispositions                     (68)       (102)        (2,625)       (608)
Economic Factors                  78          (1)        (2,790)       (387)
Production                    (3,805)     (1,084)       (30,731)    (10,011)
----------------------------------------------------------------------------
Closing Balance               19,990      18,155        462,474     115,224 
----------------------------------------------------------------------------
 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                        Oil 
                                 Oil       NGL's    Natural Gas  Equivalent 
PROVED PLUS PROBABLE     (mbbls) (1)     (mbbls)         (mmcf)      (mboe) 
----------------------------------------------------------------------------
Opening Balance               34,691      25,794        554,945     152,976 
Extensions & Improved                                                       
 Recovery                      4,519       2,462        111,933      25,636 
Infill Drilling                1,849       2,027        123,148      24,401 
Technical Revisions           (2,800)        939         (1,631)     (2,132)
Acquisitions                       0       1,393         37,003       7,560 
Dispositions                    (166)       (202)        (5,872)     (1,347)
Economic Factors                 132          20            403         219 
Production                    (3,805)     (1,084)       (30,731)    (10,011)
----------------------------------------------------------------------------
Closing Balance               34,420      31,349        789,198     197,302 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
 
Notes:                                                                      
(1) Includes light, medium, and heavy oil. See the Company's AIF for        
    detailed product type categorization.                                   
(2) May not add due to rounding                                             

Capital Program Efficiency  
During 2013, Crew's capital expenditures (unaudited), net of
acquisitions and dispositions, resulted in proved plus probable
reserve additions of 54.3 mmboe at a net FD&A cost of $9.65 per boe
including changes in future development capital ("FDC"). Proved
reserve additions in 2013 were 40.1 mmboe which were added at a net
FD&A cost of $12.28 per boe including changes in FDC.  
The efficiency of the Company's capital program for the year ended
December 31, 2013 and historical comparatives are summarized below. 


 
 
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-----------
                                                              Three Year    
                              2013              2012           2013-2011    
----------------------------------------------------------------------------
                                  Proved            Proved            Proved
                                    plus              plus              plus
                         Proved Probable   Proved Probable   Proved Probable
----------------------------------------------------------------------------
 
Exploration and                                                             
 Development                                                                
 expenditures(2)                                                            
($ thousands)           220,034  220,034  258,791  258,791  854,699  854,699
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Acquisitions/                                                               
 (Dispositions) (1)                                                         
($ thousands)            40,218   40,218  (96,557) (96,557) 485,988  485,988
----------------------------------------------------------------------------
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Change in future                                                            
 development capital                                                        
(2) ($ thousands)                                                           
 - Exploration and                                                          
  Development           211,741  215,403  167,932  168,815  421,667  561,083
 - Acquisitions/                                                            
  Dispositions           21,101   48,815  (34,940)(119,180)  94,177  136,760
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Reserves additions with                                                     
 revisions and economic                                                     
 factors (Mboe)                                                             
 - Exploration and                                                          
  Development            37,736   48,124   22,777   36,504   77,902  115,534
 - Acquisitions/                                                            
  Dispositions            2,412    6,213   (3,090) (10,579)  20,272   35,624
----------------------------------------------------------------------------
                         40,148   54,337   19,687   25,925   98,174  151,158
----------------------------------------------------------------------------
----------------------------------------------------------------------------
 
Finding & Development                                                       
 Costs(2 & 3)($/boe)                                                        
 
 - with revisions and                                                       
  economic factors        11.44     9.05    18.73    11.71    16.27    12.25
 
Finding, Development &                                                      
 Acquisition Costs (3 &                                                     
 4) ($/boe)                                                                 
 
 - with revisions and                                                       
  economic factors        12.28     9.65    15.00     8.17    18.82    13.49
 
Recycle Ratio(5)                                                            
 (F,D,&A)                   1.8      2.3      1.5      2.7                  
 
Reserves Replacement        401%     543%     193%     254%                 
 
Reserve Life Index                                                          
 based on annualized                                                        
 2013 fourth quarter                                                        
 production (years)        11.0     18.9      8.6     15.5                  
----------------------------------------------------------------------------
----------------------------------------------------------------------------
 
(1) Acquisition costs related to the 2011 corporate acquisition of Caltex   
    reflects the consideration paid for the shares acquired plus the net    
    debt assumed, both valued at closing and does not reflect the fair      
    market value allocated to the acquired oil and gas assets under         
    International Financial Reporting Standards ("IFRS"). Acquisition costs 
    in 2013 related to the announced Montney acreage acquisition referenced 
    in the July 9, 2013 press release.                                      
(2) The aggregate of the exploration and development costs incurred in the  
    most recent financial year and the change during that year in estimated 
    future development costs generally will not reflect total finding and   
    development costs related to reserve additions for that year.           
(3) Calculation includes changes in future development costs.               
(4) Crew calculates FD&A costs which incorporate both the costs and         
    associated reserve additions related to acquisitions net of any         
    dispositions during the year. Since acquisitions and divestitures have  
    had a significant impact on Crew's annual reserve replacement costs, the
    Company believes that FD&A costs provide a meaningful portrayal of      
    Crew's cost structure.                                                  
(5) The 2013 recycle ratio is calculated using the Company's Q4 2013        
    operating net back of $22.12 per boe (unaudited) which includes         
    commodity related hedging gains and losses for the quarter.             

Future Development Capital 
The following table provides a summary of future development capital
based upon the Sproule Report. 


 
 
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-----------
                                                        Total   Total Proved
Future Development Capital ($thousands)                Proved     + Probable
----------------------------------------------------------------------------
2014                                                  141,312        183,702
2015                                                  118,176        233,412
2016                                                  155,716        228,795
2017                                                  136,566        178,547
2018                                                   33,910         33,979
Remainder                                             100,926        136,865
----------------------------------------------------------------------------
Total undiscounted                                    686,606        995,300
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Net Asset Value 
The following table provides a calculation of Crew's estimated net
asset value at December 31, 2013 based on the estimated future net
revenues associated with Crew's proved plus probable reserves before
income tax as presented in the Sproule Report and including Crew's
internal assessment of undeveloped land values. 


 
 
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-----------
                                                               5%       10% 
                                                         Discount  Discount 
----------------------------------------------------------------------------
($ thousands)                                                               
Proved plus probable reserves                           2,593,873 1,818,094 
Undeveloped Land (1)                                      297,330   297,330 
Long-term debt as at December 31, 2013 (2)               (343,311) (343,311)
Estimated working capital deficiency as at December 31,                     
 2013 (2&3)                                               (40,103)  (40,103)
Proceeds from dilutive stock options                       15,035    15,035 
----------------------------------------------------------------------------
Net asset value                                         2,522,824 1,747,045 
 
Diluted Common shares outstanding (thousands)             124,891   124,891 
----------------------------------------------------------------------------
Net asset value per share                                  $20.20    $13.99 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
 
Notes:                                                                      
(1) Based upon an internal evaluation of the fair market value of the       
    Company's undeveloped land holdings as at December 31, 2013, which      
    evaluation was completed principally using industry activity levels,    
    third party transactions and land acquisitions that occurred in         
    proximity to the Company's undeveloped lands during the past year.      
(2) Figures include estimated information based on unaudited financial      
    results that may change.                                                
(3) Working capital deficiency includes an estimate of the Company's        
    accounts receivable less accounts payable and accrued liabilities as at 
    December 31, 2013.                                                      

2014 Guidance 
In December, Crew provided details of the Company's 2014 budget
including forecast average production of 29,500 to 30,500 boe per day
and exit production of 31,500 to 32,500 boe per day based upon
planned exploration and development capital expenditures of $246
million to facilitate the initial phases of the Company's five year
Montney development plan. Crew achieved its exit guidance with
December 2013 average production of 29,300 boe per day and average
fourth quarter 2013 production of 28,682 boe per day.  Exploration
and development capital expenditures of $220 million were on budget
in 2013. For detailed information regarding our 2014 capital program,
please see our press release dated December 16, 2013. 
CAUTIONARY STATEMENTS 
Unaudited financial information 
Certain financial and operating information included in this press
release for the quarter and year ended December 31, 2013, including
finding and development costs and net asset value, are based on
estimated unaudited financial results for the quarter and year then
ended, and are subject to the same limitations as discussed under
Forward Looking Information set out below. These estimated amounts
may change upon the completion of audited financial statements for
the year ended December 31, 2013 and changes could be material. 
Information Regarding Disclosure on Oil and Gas Reserves and
Operational Information 
Our oil and gas reserves statement for the year ended December 31,
2013, which will include complete disclosure of our oil and gas
reserves and other oil and gas information in accordance with NI
51-101, will be contained within our Annual Information Form which
will be available on our SEDAR profile at www.sedar.com. The recovery
and reserve estimates contained herein are estimates only and there
is no guarantee that the estimated reserves will be recovered. In
relation to the disclosure of estimates for individual properties,
such estimates may not reflect the same confidence level as estimates
of reserves and future net revenue for all properties, due to the
effects of aggregation. The Company's belief that it will establish
additional reserves over time with conversion of probable undeveloped
reserves into proved reserves is a forward-looking statement and is
based on certain assumptions and is subject to certain risks, as
discussed below under the heading "Forward-Looking Information and
Statements". 
In relation to the disclosure of net asset value ("NAV"), the NAV
table shows what is normally referred to as a "produce-out" NAV
calculation under which the current value of the Company's reserves
would be produced at forecast future prices and costs and do not
necessarily represent a "going concern" value of the Company. The
value is a snapshot in time and is based on various assumptions
including commodity price forecasts and foreign exchange rates that
vary over time. It should not be assumed that the future net revenues
estimated by Sproule represent the fair market value of the reserves,
nor should it be assumed that Crew's internally estimated value of
its undeveloped land holdings represent the fair market value of the
lands. 
Resource Estimates 
This news release contains references to estimates of oil and gas
classified as Total Petroleum Initially In Place ("TPIIP") in the
Septimus area of Crew's operations in northeastern British Columbia
which are not, and should not be confused with, oil and gas reserves.
Such estimates are based upon independent resource evaluations
effective as at April 30, 2013 and May 31, 2013, respectively,
prepared in accordance with the Canadian Oil and Gas Evaluation
Handbook. Such estimates are subject to a number of cautionary
statements, assumptions, risks, positive and negative factors
relevant to the estimates and contingencies, the details of which
were set forth in Crew's previously disseminated press release dated
July 9, 2013. Accordingly, readers are referred to and encouraged to
review the sections entitled "Montney Resource Evaluation",
"Definitions of Oil and Gas Resources and Reserves" and "Information
Regarding Disclosure on Oil and Gas Reserves, Resources and
Operational Information" in the July 9, 2013 press release for
applicable definitions, cautionary language, explanations and
discussion of resources estimated herein, all of which is
incorporated herein by reference.  
Forward-looking information and statements 
This news release contains certain forward-looking information and
statements within the meaning of applicable securities laws. The use
of any of the words "expect", "anticipate", "continue", "estimate",
"may", "will", "project", "should", "believe", "plans", "intends" and
similar expressions are intended to identify forward-looking
information or statements.  In particular, but without limiting the
foregoing, this news release contains forward-looking information and
statements pertaining to the following: the recognition of
significant additional reserves under the heading "Reserves", the
volumes and estimated value of Crew's oil and gas reserves; the life
of Crew's reserves; the volume and product mix of Crew's oil and gas
production; future oil and natural gas prices and Crew's commodity
risk management program; future results from operations and operating
metrics, future development, exploration, acquisition and development
activities (including drilling plans) and related production
including 2014 average and exit production forecasts and reserves
expectations. 
The recovery and reserve estimates of Crew's reserves and resources
provided herein are estimates only and there is no guarantee that the
estimated reserves or resources with be recovered. In addition,
forward-looking statements or information are based on a number of
material factors, expectations or assumptions of Crew which have been
used to develop such statements and information but which may prove
to be incorrect. Although Crew believes that the expectations
reflected in such forward-looking statements or information are
reasonable, undue reliance should not be placed on forward-looking
statements because Crew can give no assurance that such expectations
will prove to be correct. In addition to other factors and
assumptions which may be identified herein, assumptions have been
made regarding, among other things: that Crew will continue to
conduct its operations in a manner consistent with past operations;
results from drilling and development activities consistent with past
operations; the quality of the reservoirs in which Crew operates and
continued performance from existing wells; the continued and timely
development of infrastructure in areas of new production; the
accuracy of the estimates of Crew's reserve volumes; continued
availability of debt and equity financing and cash flow to fund
Crew's current and future plans and expenditures; the impact of
increasing competition; the general stability of the economic and
political environment in which Crew operates; the general continuance
of current industry conditions; the timely receipt of any required
regulatory approvals; the ability of Crew to obtain qualified staff,
equipment and services in a timely and cost efficient manner;
drilling results; the ability of the operator of the projects in
which Crew has an interest in to operate the field in a safe,
efficient and effective manner; the ability of Crew to obtain
financing on acceptable terms; field production rates and decline
rates; the ability to replace and expand oil and natural gas reserves
through acquisition, development and exploration; the timing and cost
of pipeline, storage and facility construction and expansion and the
ability of Crew to secure adequate product transportation; future
commodity prices; currency, exchange and interest rates; regulatory
framework regarding royalties, taxes and environmental matters in the
jurisdictions in which Crew operates; and the ability of Crew to
successfully market its oil and natural gas products. 
The forward-looking information and statements included in this news
release are not guarantees of future performance and should not be
unduly relied upon. Such information and statement, including the
assumptions made in respect thereof, involve known and unknown risks,
uncertainties and other factors that may cause actual results or
events to defer materially from those anticipated in such
forward-looking information or statements including, without
limitation: changes in commodity prices; changes in the demand for or
supply of Crew's products, the early stage of development of some of
the evaluated areas; the potential for variation in the quality of
the Montney formation; unanticipated operating results or production
declines; changes in tax or environmental laws, royalty rates or
other regulatory matters; changes in development plans of Crew or by
third party operators of Crew's properties, increased debt levels or
debt service requirements; inaccurate estimation of Crew's oil and
gas reserve and resource volumes; limited, unfavourable or a lack of
access to capital markets; increased costs; a lack of adequate
insurance coverage; the impact of competitors; and certain other
risks detailed from time-to-time in Crew's public disclosure
documents, (including, without limitation, those risks identified in
this news release and Crew's Annual Information Form). 
The forward-looking information and statements contained in this news
release speak only as of the date of this news release, and Crew does
not assume any obligation to publicly update or revise any of the
included forward-looking statements or information, whether as a
result of new information, future events or otherwise, except as may
be required by applicable securities laws. 
BOE equivalent 
Barrel of oil equivalents or 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. Given that the value ration based on the current price of
crude oil as compared to natural gas is significantly different than
the energy equivalency of the 6:1 conversion ratio, utilizing the 6:1
ratio may be misleading as an indication of value. 
Crew is a Calgary, Alberta based oil and gas exploration, development
and production company whose shares are traded on The Toronto Stock
Exchange under the trading symbol "CR". 
Contacts:
Crew Energy Inc.
Dale Shwed
President and C.E.O.
(403) 231-8850 
Crew Energy Inc.
John Leach
Senior Vice President and C.F.O.
(403) 231-8859 
Crew Energy Inc.
Rob Morgan
Senior Vice President and C.O.O.
(403) 513-9628
www.crewenergy.com
 
 
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