VANCOUVER, BRITISH COLUMBIA–(Marketwired – June 20, 2017) – The Oil & Gas Appeal Tribunal of British Columbia (the “Tribunal“) has revised the timeline for Canada Energy Partners Inc.’s (TSX VENTURE:CE) (the “Company“) appeal of the order issued by the British Columbia Oil & Gas Commission (“OGC“) suspending all disposal activities at the Company’s water disposal well in northeast British Columbia. All submissions related to the appeal must now be delivered by July 20th, after which the Tribunal will deliberate and render a decision. This delayed schedule was issued in response to the request of BC Hydro, the owner of the Peace Canyon Dam (“PCD“). The PCD is located 3.3 km away from the Company’s water disposal well, which is a focal point of the appeal.
The Company also received a letter from the OGC which stated, “I write to advise that the Commission is considering taking action under Section 26(1)(c) of the Oil and Gas Activity Act to cancel the above noted well permit.” The Company has until June 26th, 2017 to rebut the OGC’s consideration and will be doing so.
The OGC also concluded and released the results of its Technical Review of the Company’s water disposal well and the potential of induced seismicity related thereto. The OGC engaged an outside consultant to evaluate the risk of damage to the PCD from induced seismic event related to the Company’s water disposal operations, which concluded in part, “A pulse type motion, as is expected from a low to moderate induced seismic event, is considered to have a reduced probability of causing failure or damage to the PCD….We have not identified any compelling reason for induced seismicity to result in significant damage to, or an outright failure, of the PCD. Based on the recorded history of fracking and injection well induced seismic events in northeast BC, and provided that reinjection conditions remain similar to the practice to date, the probability of significant damage or a failure occurring is within expected norms for life safety, based on the British Columbia Building Code and our present understanding of the stability of the PCD structure.” The Company believes that this study supports the preservation of its disposal well permit and the reinstatement of its water disposal rights.
The Company will provide further updates of significant benchmarks to the appeal process as they emerge.
The OGC’s General Order, letter of June 16, 2017, and consultant’s “Induced Seismicity” study and the Company’s Notice of Appeal, Appeal, and Stay application can be viewed on the Company’s website: www.canadaenergypartners.com.
On behalf of the Board of Directors of
Canada Energy Partners Inc.
Benjamin Jones, President & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release contains forward-looking statements within the meaning of applicable securities laws. Forward-looking statements are 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, including, without limitation, estimated revenues.
Forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include, without limitation, regulatory approvals, mechanical integrity of the water disposal well, receptivity of the disposal zone, variability of operating costs, risks associated with oil and gas production and exploration, retention of and ability to attract company personnel, volatility of commodity prices, currency and interest rate fluctuations, environmental risk, inability to access sufficient capital from internal and external sources and changes in legislation, including income tax, environmental and regulatory matters.
This press release, in particular the information in respect of estimated revenues, may contain future-oriented financial information or financial outlook within the meaning of applicable securities laws. Such future-oriented financial information or financial outlook has been prepared for the purpose of providing information about management’s reasonable expectations as to the anticipated results of its proposed business activities. Readers are cautioned that reliance on such information may not be appropriate for other purposes.
The forward-looking statements contained in this press release are made as of the date hereof, and the Company undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless so required by law.
Canada Energy Partners Inc.
Main Phone: (778) 725-1489
(604) 428-1124 (FAX)
President and CEO
Direct Phone: +1 225.388.9900 ext. 101