/NOT FOR DISTRIBUTION IN THE UNITED
STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
CALGARY, Oct. 7, 2013 /CNW/ - Palliser Oil & Gas
Corporation ("Palliser" or the "Company") (TSX
VENTURE:PXL) is pleased to provide an operations update.
The Company continues to focus its abilities on
expanding production shipped by rail. The Company completed the
construction of a clean oil treating facility in the third quarter
which is estimated to increase the Company's capacity to ship
approximately 75% of corporate production by rail, up from its
previous capacity of approximately 50%. Commissioning of the
cleaning facility required a build in production inventory during
the third quarter, which negatively affected third quarter 2013
sales volumes, but the Company commenced shipping clean oil at the
start of the fourth quarter. This facility will have a positive
impact on fourth quarter and future realized heavy oil pricing.
The third quarter of 2013 saw lower average
production compared to the record production achieved in the second
quarter of 2013. A prolonged spring breakup that extended well into
the third quarter contributed to significant downtime on several
wells, and delayed the majority of budgeted third quarter capital
projects until late in the quarter, which allowed production
declines to outpace additions.
As a result of these factors, third quarter 2013
production is estimated to average 2,350 boe/d, down from 2,773
boe/d in the second quarter. The Company is currently forecasting
2013 average production of 2,500 - 2,550 boe/d, down from the
original guidance of 2,700 - 2,800 boe/d. The Company estimates
current production, based on field data, is approximately 2,500
boe/d and is forecasting exit production to be 2,800 - 2,900
boe/d.
Capital expenditures for the third quarter are
estimated to be $6 million with
approximately $6 million remaining in
the 2013 capital budget to be spent in the fourth quarter.
For further information regarding Palliser Oil
& Gas Corporation, the reader is invited to visit the Company's
website at www.palliserogc.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.
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;
expected transportation methods; development and acquisition plans;
certain economic factors; and capital expenditures. 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 ability to ship volumes by rail; 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