/NOT FOR DISSEMINATION IN THE
UNITED STATES OR FOR DISTRIBUTION TO U.S. WIRE
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TSXV:BEN
CALGARY, May 13, 2013 /CNW/ - Butte Energy Inc. (the
"Company") is pleased to provide an operational update. The
Chigwell Viking 4-35-42-26 W4 well was shut-in effective
January 2012 pending a hearing and
ruling on a Special Well Holding Application filed on December 21, 2011 with the Energy Resources
Conservation Board (the "ERCB"). Such hearing was necessitated as a
result of an objection by Glencoe
Resources Ltd., operator of the immediately adjacent CO2 enhanced
oil recovery ("EOR") scheme. The Company has received notification
from the ERCB that its Special Well Holding Application has been
denied. The 4-35 well will continue to be shut-in until the Company
applies for and obtains approval from the ERCB for its independent
EOR scheme.
While denying the Company's Holding
Application, the ERCB's ruling confirmed key elements of the
Company's Holding Application that are worthy of note. The Company
has always contended that its Section 35 lands are being influenced
and inequitably drained by Glencoe's EOR scheme, to which the ERCB noted
in its ruling, "…the examiners accept that C02 injection at
Glencoe's 14-26 well has swept
some oil from Section 35 to Glencoe's 8-34 well."
The Company, in response to this significant
drainage, is reviewing and weighing all options, including an
independent EOR scheme and any civil actions required to
aggressively protect its reserves and to recover the reserves,
swept to date, from its Section 35 lands.
In addition, approval from the ERCB to place the
PEOC HZ Plain 3-4-55-12 W4 well on production has been obtained.
The well is awaiting tie-in prior to being placed on
production.
Forward looking information
This news release may contain certain
forward-looking information as defined under applicable Canadian
securities legislation, that are not based on historical fact,
including without limitation statements containing the words
"believes", "anticipates", "plans", "intends", "will", "should",
"expects", "continue", "estimate", "forecasts" and other similar
expressions. In particular, this news release includes forward
looking information relating to the potential options in respect of
the Company's Section 35 lands and approval of the Company's PEOC
HX Plain 3-4-55-12 W4 well. Our actual results, events or
developments could be materially different from those expressed or
implied by these forward-looking statements. We can give no
assurance that any of the events or expectations will occur or be
realized. By their nature, forward-looking statements are subject
to numerous assumptions and risk factors including but not limited
to those assumptions and risk factors discussed in our most recent
MD&A which is incorporated herein by reference and other
documents we file from time to time with securities regulatory
authorities, which are available through SEDAR at www.sedar.com The
forward-looking statements contained in this news release are
expressly qualified by this cautionary statement and are made as of
the date hereof. We disclaim any intention and have no obligation
or responsibility, except as required by law, to update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise.
SOURCE Butte Energy Inc.