/NOT FOR DISTRIBUTION IN THE UNITED
STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
CALGARY, June 10, 2013 /CNW/ - Palliser Oil & Gas
Corporation ("Palliser" or the "Company") (TSX
VENTURE:PXL) is pleased to provide an operations update.
Production has continued to progress favorably through the second
quarter, with May average production of approximately 2,950 boe/d
based on field estimates. Second quarter to date production is
estimated at approximately 2,800 boe/d, compared to first quarter
production of 2,215 boe/d.
The second quarter has seen an improvement in
heavy oil pricing compared to the first quarter, which is forecast
to result in a significant improvement in funds flow in the second
quarter. Production, operating and transportation costs are
expected to average approximately $23/boe for the second quarter. The Company
remains on track to achieve its 2013 annual average production
guidance of 2,700 - 2,800 boe/d, with a budgeted capital
expenditure program of $24 million
and budgeted funds flow of $20
million. Palliser is preparing for an active late
second quarter and third quarter capital program, which includes
capital spending in excess of $12
million, out of its 2013 capital budget of $24 million, in the second and third quarter.
Palliser will be presenting at the annual EPAC
Oil & Gas Investor Showcase on June 12,
2013 at 2:20pm MDT at the
Metropolitan Conference Centre in Calgary. An updated version of the Company's
corporate presentation may be viewed on the website at
www.palliser.com.
Palliser is a Calgary-based emerging junior oil and gas
company currently focused on high netback heavy oil production in
the greater Lloydminster area of
both Alberta and Saskatchewan. For further information
regarding Palliser Oil & Gas Corporation, the reader is invited
to visit the Company's website at www.palliserogc.com.
Forward-Looking Statements
Certain statements contained herein
constitute forward-looking statements or information (collectively
"forward-looking statements") within the meaning of
applicable securities legislation, including, but not limited to
management's assessment of future plans and operations, including:
commodity focus; drilling plans and potential locations; expected
production levels; development plans; reserves growth; production
and operating sales and expenses; reservoir characteristics; the
results of applying certain operational development techniques;
certain economic factors; and capital expenditures.
Forward-looking statements are typically identified by words such
as "anticipate", "estimate", "expect", "forecast", "may", "will",
"project" and similar words suggesting future events or performance
or may be identified by reference to a future date. In addition,
statements relating to oil and gas reserves and resources are
deemed to be forward-looking statements as they involve the implied
assessment, based on certain estimates and assumptions, that the
reserves or resources described, as the case may be, exist in the
quantities predicted or estimated and can be profitably produced in
the future. With respect to forward-looking statements
herein, Palliser has made assumptions regarding, among other
things; future capital expenditure levels; future oil and natural
gas prices; "differentials" between West Texas Intermediate and
Western Canadian Select benchmark pricing; future oil and natural
gas production levels; future water disposal capacity; future
exchange rates and interest rates; ability to obtain equipment and
services in a timely manner to carry out development activities;
ability to market oil and natural gas successfully to current and
new customers; the impact of increasing competition; the ability to
obtain financing on acceptable terms; and the ability to add
production and reserves through development and exploitation
activities. Although Palliser believes that the expectations
reflected in the forward-looking statements contained herein, and
the assumptions on which such forward-looking statements are made,
are reasonable, there can be no assurance that such expectations
will prove to be correct. Readers are cautioned not to place undue
reliance on forward-looking statements included herein, as there
can be no assurance that the plans, intentions or expectations upon
which the forward-looking statements are based will occur. By their
nature, forward-looking statements involve numerous risks and
uncertainties that contribute to the possibility that the
forward-looking statements will not occur, which may cause
Palliser's actual performance and financial results in future
periods to differ materially from any estimates or
projections. Additional information on these and other
factors that could affect Palliser's results are included in
reports on file with Canadian securities regulatory authorities,
including the Company's Annual Information Form, and may be
accessed through the SEDAR website at www.sedar.com.
The forward-looking statements contained
herein speak only as of the date hereof. Except as expressly
required by applicable securities laws, Palliser does not undertake
any obligation to, nor does it intend to, publicly update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise. The forward-looking
statements contained herein are expressly qualified by this
cautionary statement. In addition, readers are cautioned that
historical results are not necessarily indicative of future
performance.
Production volumes are commonly expressed on
a barrel of equivalent ("BOE") basis whereby natural gas volumes
are converted at a ratio of six thousand cubic feet to one barrel
of oil. The intention is to convert oil and natural gas
measurement units into one basis for improved analysis of results
and comparisons with other industry participants. The term BOE may
be misleading, particularly if used in isolation. The
conversion ratio is based on an energy equivalent method and does
not represent an economic value equivalency at the
wellhead.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this Press release.
SOURCE Palliser Oil & Gas Corporation