CALGARY, ALBERTA--(Marketwire - Sept. 8, 2008) - Crew Energy Inc. ("Crew") (TSX:CR) is pleased to provide the following operational update and announces a new appointment to the Company's Board of Directors.
Operational Update
Crew is engaged in the most active capital program in its history with five drilling rigs currently operating and up to 50 wells planned for the last half of the year. With the acquisition of Gentry Resources Ltd. ("Gentry") closing on August 22, 2008 current production, based on field estimates, is approximately 16,000 boe per day. At this level of production Crew is well positioned to achieve its previously announced 2008 exit guidance of between 17,000 to 18,000 boe per day.
At Inga in northeast British Columbia, Crew (WI - 100%) now has its first quarter natural gas discovery on production at approximately three mmcf per day. The Company (WI - 100%) has drilled a second well on this structure that awaits completion and is currently drilling a third well (WI - 100%) of an eight well program. Crew recently completed the expansion of a natural gas facility in this area with a capacity of up to 15 mmcf per day.
In the greater Edson area of west central Alberta, Crew (WI - 100%) has drilled one horizontal well at Pine Creek targeting the Cadomin formation. This well is currently awaiting completion and the Company is expected to spud a vertical test (WI - 100%) within the next five days in the same area. At Edson proper, Crew (WI - 100%) has drilled one horizontal well that is currently being completed and is also drilling a second (WI - 100%) horizontal well targeting the Rock Creek formation. At Carrot Creek, Crew (WI - 100%) has drilled three wells that are expected to add approximately 350 boe per day in the fourth quarter when they are tied into the Company's operated facility in the area. Crew (WI - 100%) expects to drill two additional wells at Carrot Creek in the fourth quarter.
At Princess, in southern Alberta, Crew (WI - 100%) has 24 wells to work-over or complete, seven wells to tie-in and one drilling rig active in the area. The Company is completing the first horizontal well drilled in the area and at the time of writing was flowing at a rate of 633 bbls of oil per day prior to stimulation. This result is consistent with the expectation of achieving production rates three to four times a vertical well with stabilized production rates expected to be 100 to 150 bbls of oil per day. Crew has identified over 100 drilling locations on this property.
On the Company's Triassic Montney play in northeast British Columbia Crew has now amassed ownership or control of 168 net sections of land on this emerging natural gas resource play. The first well at Septimus (WI - 100%) was drilled to a horizontal length of 867 meters and was completed with five fracture stimulations.