CALGARY, ALBERTA–(Marketwired – Sept. 16, 2014) – Mapan Energy Ltd. (TSX VENTURE:MPG) (“Mapan” or the “Corporation“) reports that natural gas production from its Deep Basin North properties at Chinook Ridge, Alberta and Hiding, British Columbia will be on restricted rates due to repairs and maintenance to be conducted by Trans Canada Pipelines Limited on both the 24 inch and the 36 inch NGTL Systems downstream (east) of the Elmworth gas plant. Mapan’s current production of 28MMCF/d processed at Elmworth will be curtailed to approximately 14MMCF/d and it is anticipated that this production will be restricted for a period of at least 14 days.
Mapan confirms that production from the Deep Basin, West Central Area of Alberta at the Cecilia Gas Plant is unaffected by this outage.
Mapan owns production, lands and P&NG rights in two areas of the Alberta and British Columbia Deep Basin comprised of 197,000 gross acres (155,000 net acres) of which approximately 115,000 net acres are undeveloped lands. Prior to any impact of the production disruption disclosed herein, average production for the full year of 2014 is expected to be 6,500 BOED of which 90 per cent is natural gas production. The Corporation’s management expects that Mapan has considerable upside for future production and reserve growth and will reassess the effect of the production disruption on annual guidance in the coming weeks.
Barrels of Oil Equivalent: Disclosure provided herein in respect of barrels of oil equivalent (BOE) 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 ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1; utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
Neither the TSX 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.
Mapan Energy Ltd.
Richard A. Walls
President & CEO
Mapan Energy Ltd.
Chief Financial Officer