Nov. 4, 2009 (Filing Services Canada) -- Western Plains Petroleum Ltd. (WPP - TSX Venture), ("Western Plains" or the "Company") announces that it has reactivated one of the two shut-in wells located on oil and gas interests recently purchased by the Company in the Lloydminster area of eastern Alberta (lsds 11, 12 and 13 of 12-05-03 W4M). The reactivated well (located on 13-12) is currently producing approximately 25 barrels of heavy oil per day, increasing the Company's overall production to approximately 130 barrels of heavy oil per day. The Company previously announced the purchase of a 100% working interest in these oil and gas assets on October 2, 2009.
The Company is planning re-entry and reactivation activities on the 2nd shut-in well (also located on 13-12) in November 2009, and on an abandoned well (located on 11-12) in December 2009. Based on production data from adjacent producing properties, the Company is anticipating that heavy oil production from reactivating these two wells to be similar to that of the recently re-activated 13-12 well.
The Company also confirms it is not proceeding with the previously announced private placement of up to 9,375,000 common shares at a price of $0.08 per share for gross proceeds of up to $750,000. The Company was proposing to use a portion of the net proceeds from such private placement in connection with an offer to acquire certain oil and gas interests located in the Lloydminster area of eastern Alberta. The opportunity to make a bid for these interests did not materialize as anticipated, and the Company determined not to proceed with the private placement offering. The Company has been funding its acquisition of addition heavy oil interests from cash flow. Depending on market conditions, and the opportunities to acquire low risk, heavy oil assets in Alberta and Saskatchewan, it may consider raising additional capital through private placement offerings in the future, subject to the policies and procedures of the TSX Venture Exchange.
About Western Plains Petroleum Ltd.
Western Plains is a Lloydminster, Alberta, based junior heavy oil producer with interests located in the Lloydminster area in both Saskatchewan and Alberta. The common shares of the Company trade on the TSX Venture Exchange under the symbol WPP.
For more information, please contact:
David Forrest
President and Chief Executive Officer
Western Plains Petroleum Ltd.
#202, 5004 - 18 Street
Lloydminster, AB T9V 1V4
Telephone: (780) 205-4468
Fax : (780) 808-8038
E-mail: brahmadf@gmail.com
www.westernplainspetroleum.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the Policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Reader Advisory
This news release includes management's assessment of future plans and operations, capital raising activities, wells to be drilled, timing of drilling of wells, re-activation activities, production estimates and planned capital expenditures, which may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas development, production, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals, and the inability to fund required capital expenditures. Actual future results may differ materially from those assumed or described in such forward-looking statements as a result of the impact of issues, risks and uncertainties whether described herein or not, which Western Plains may not be able to control. The reader is therefore cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements contained in this news release are made as of the date hereof and Western Plains undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement. This news release shall not constitute an offer to sell or the solicitation of any offer to buy securities in any jurisdiction.
Source: Western Plains Petroleum Ltd. (TSX-V WPP) www.westernplainspetroleum.com
Maximum News Dissemination by Filing Services Canada Inc. *
www.usetdas.com
