CALGARY, Dec. 5 /PRNewswire-FirstCall/ -- Highpine Oil & Gas Limited (TSX: HPX) ("Highpine") would like to clarify certain information disclosed in a news release issued by Highpine on November 17, 2008. Pursuant to the news release, Highpine announced that it had recently acquired 46.25 sections (100% working interest) or 29,600 net acres of deep rights, including Montney rights, in the Deep Basin of Alberta for $19.1 million ($645 /acre) and provided certain resource estimates with respect to the acquired lands.
Highpine provided disclosure indicating estimated resources of 3 billion cubic feet ("Bcf") of targeted prospective reserves per horizontal well in the Montney and that the total estimated resources for the acquired lands were 300 Bcf of potential reserves. As "targeted prospective reserves" and "potential reserves" are not categories of resources set out in the Canadian Oil and Gas Evaluation Handbook (the "COGE Handbook") Highpine would like to clarify that the estimates set out in the news release represent the best estimate of prospective resources. Prospective resources, as defined by the COGE Handbook, are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects.
There is no certainty that any portion of the prospective resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the prospective resources. The resource estimates have been internally prepared by Highpine with an effective date of November 17, 2008 and have not been evaluated by an independent qualified reserves evaluator. The Montney gas is a recognized resource play that is economic, contains marketable gas and has adjacent facilities for production; however, Highpine's prospective resources are at an early stage of evaluation. Although Highpine has a license to produce, certain regulatory hurdles will need to be overcome.
Reader Advisory ---------------
Certain information in this news release contains forward-looking statements including management's assessment of future plans and operations of Highpine, expectations of future production, and plans for and results of exploration and development activities and other operational developments. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Highpine's control including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, risks associated with sour hydrocarbons, changes to the proposed royalty regime prior to implementation and thereafter, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, capital expenditure costs, including drilling, completion and facilities costs, unexpected decline rates in wells, delays in projects and/or operations resulting from surface conditions, wells not performing as expected, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the forgoing list of factors is not exhaustive. Additional information on these and other factors that could effect Highpine's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (http://www.sedar.com/) and at Highpine's website (http://www.highpineog.com/). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Highpine does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
The Toronto Stock Exchange has neither approved nor disapproved
the information contained herein.
