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TSXV Trading Symbol: SWE
CALGARY, Nov. 18, 2013 /CNW/ – SilverWillow Energy Corporation (“SilverWillow” or the “Corporation”) (TSXV: SWE) has filed its third quarter financial statements and management’s discussion and analysis (“MD&A”) for the quarter ended September 30, 2013.
During the third quarter, SilverWillow’s engineering consultants completed the preliminary engineering and cost estimate for Phase 1 of the proposed Audet steam assisted gravity drainage (“SAGD”) project. The facility is being designed to produce an annual average of 12,000 barrels per calendar day of bitumen at a steam to oil ratio (“SOR”) of up to 2.5:1. The preliminary Class 4 capital cost estimate for the project totals $550 million, implying a capital intensity of just under $46,000 per calendar day of bitumen production.
The stated accuracy of this cost estimate is within a range of plus or minus 30%. This estimate includes site access, construction, drilling, commissioning, start-up, as well as other capital and operating costs until first steam is achieved. It excludes capital costs for items that are expected to be provided by third parties such as co-generation facilities, fuel gas supply pipeline, diluent and product pipelines, and operations camp, all of which will be captured in operating costs following first steam injection.
The commercial facility is designed to produce approximately 104 million barrels of bitumen over its life. Currently, the Corporation is in the process of completing the required environmental studies and plans to submit a regulatory application for Phase 1 of the Audet SAGD project in the fourth quarter of 2013.
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.
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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 development of a proposed 12,000 barrel per day SAGD project. In addition information relating to “resources” is forward-looking information, as it involves the implied assessment, based on estimates and assumptions, that the resources described exist in the quantities predicated or estimated, and can be profitably produced in the future.
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 and the ability of Corporation to obtain required regulatory approval for the development of the Audet Lands; the designed production level and SOR for the Audet SAGD project; and the capital costs for the Audet SAGD project. These expectations and assumptions are based on certain factors and events that are not within the control of SilverWillow and there is no assurance they will prove to be correct.
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 submitted in the timeframe or on the terms expected or at all; 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 and to the resource estimates in respect of the Audet Lands 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
For further information:
please contact Howard J. Lutley, President and Chief Executive Officer, at (403) 538-7030.