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Gold/Mining/Energy : Canadian Oil & Gas Companies -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (16804)	7/7/2011 2:16:36 PM
From: Cal Gary	Read Replies (1) \| Respond to of 24916

WestFire to spend $85-million in capital for H2 2011 2011-07-06 18:13 ET - News Release Mr. Lowell Jackson reports WESTFIRE ENERGY LTD. ANNOUNCES SECOND HALF 2011 CAPITAL BUDGET AND GUIDANCE WestFire Energy Ltd. has budgeted for second half 2011 $85-million in capital, resulting in a full year capital program of $133-million and updated production guidance. As a result of the continued success of WestFire's Viking light oil resource play and the closing of the Orion Oil & Gas transaction, WestFire is planning for a second half 2011 exploration and development capital budget of $85-million. WestFire expects to drill 59 gross (48.2 net) wells, including 53 gross (42.5 net) Viking horizontal light oil wells in the second half of 2011. This capital program will be financed by a combination of cash flow generated from its expanded asset base and its recently increased credit facility. Upon closing of the Orion merger, WestFire's credit facility has been increased to $200-million from $42-million, with only $53-million currently drawn. WestFire's current production, based on field estimates, is approximately 9,000 barrels of oil equivalent per day (65 per cent oil and liquids). With the Orion merger and second half capital program, the company's production guidance for the second half is 9,750 boe per day (65 per cent oil and liquids) yielding 6,450 boe per day for the year and a 2011 exit rate of 10,500 boe per day (70 per cent oil and liquids). This exit rate represents a per share increase in production of 72 per cent over that of one year ago. Year-end closing net debt is expected to be approximately $92-million, based on this production guidance and current commodity price strips, with a debt to second half 2011 annualized cash flow ratio of 0.7. WestFire's go-forward operational model is to finance its exploration and development capital spending through cash flow from operations beginning in 2012. "The transaction with Orion was transformational," said Lowell Jackson, president and chief executive officer of WestFire. "The company is now uniquely positioned as an intermediate oil-resource-focused company with the free funds flow from operations and expanded credit facilities that allow us to accelerate our large Viking drilling inventory at Redwater and Provost in Alberta and at Dodsland and Plato in west-central Saskatchewan." We seek Safe Harbor.