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UNITED STATES/
TSXV Trading Symbol: SWE
CALGARY, Dec. 19, 2013 /CNW/ - SilverWillow Energy Corporation
("SilverWillow" or the "Corporation") (TSXV: SWE) has submitted an
integrated application with the Alberta Energy Regulator and Alberta
Environment and Sustainable Resource Development for approval of the
Corporation's proposed 12,000 barrel per day Steam Assisted Gravity
Drainage ("SAGD") project on its Audet oil sands leases located
approximately 75 km northeast of Fort McKay, Alberta. Subject to
receipt of all necessary approvals, it is expected that construction on
the Audet project will commence in late 2015 with commercial production
being achieved in 2017. The project facilities have been designed to
allow operations at a steam-oil ratio ("SOR") of 2.5, with the expected
average SOR over the life of the project at 2.0. The project is
currently expected to operate for 28 years and produce an estimated 103
million barrels of bitumen.
The estimated capital cost of the project is approximately $550 million
which equates to a capital intensity of approximately $46,000 per
barrel per day. This estimate includes site access, construction,
drilling, commissioning and start-up, as well as other capital and
operating costs until first steam is achieved. It excludes capital
costs for items that are expected to be provided by third parties such
as co-generation facilities, fuel gas supply pipeline, diluent and
product pipelines, and operations camp, all of which are anticipated to
be captured in operating costs.
About SilverWillow Energy
SilverWillow Energy Corporation is a Calgary, Alberta based
pre-production oil sands company with a portfolio of exploration leases
in Canada's Athabasca oil sands. To learn more, please visit www.swenergy.ca.
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ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
Cautionary Statements Regarding Forward-Looking Information
This news release contains "forward-looking information" within the
meaning of applicable securities laws. Forward-looking information is
frequently characterized by words such as "plan", "expect", "project",
"intend", "believe", "anticipate", "estimate" and other similar words,
or statements that certain events or conditions "may" or "will" occur.
The forward-looking information in this news release relates, but is
not limited to, statements with respect to the development of a
proposed 12,000 barrel per day SAGD project including expectations
respecting the timing of construction and commercial production, SOR
ratios, operating life and estimated capital costs and the composition
thereof. In addition information relating to total production is
forward-looking information, as it involves the implied assessment,
based on estimates and assumptions, that the resources underlying such
production estimates exist in the quantities predicated or estimated,
and can and will be profitably produced in the future.
The forward-looking information set out in this news release, is based
on certain expectations and assumptions regarding, among other things,
geological interpretations and modelling including caprock integrity
and recoverable resources, the planned development schedule,
environmental factors, socio- and project economics including capital,
operating and third party cost estimates, and stakeholder engagement.
These expectations and assumptions are based on certain factors and
events that are not within the control of SilverWillow and there is no
assurance they will prove to be correct.
Forward-looking information is subject to known and unknown risks and
uncertainties and other factors which may cause actual results, levels
of activity and achievements to differ materially from those expressed
or implied in such forward-looking information. Such risks,
uncertainties and factors include, among others, the risk that the
regulatory approvals in respect of the Audet project will not be
received in the timeframe or on the terms expected or at all; risks
relating to the early stage of development of SilverWillow and the
Audet project; and the general risks associated with exploring for,
developing and producing bitumen, including many factors beyond the
Corporation's control, and no assurance can be given that the indicated
level of bitumen or the recovery thereof will be realized. In general,
estimates relating to bitumen production are based upon a number of
factors and assumptions made as of the date on which the resource
estimates for the Audet project were determined, such as geological and
engineering estimates, which have inherent uncertainties. Additional
risks relating to the business and operations of SilverWillow and to
the resource estimates in respect of the Audet lands are set forth in
the Corporation's Annual Information Form and in its most recent
Management's Discussion and Analysis, which are filed under the
Corporation's profile on SEDAR at www.sedar.com.
SilverWillow undertakes no obligation to update forward-looking
information if circumstances or management's estimates or opinions
should change except as required by law. The reader is cautioned not
to place undue reliance on forward looking information.
SOURCE SilverWillow Energy Corporation
Howard J. Lutley, President and Chief Executive Officer, at (403) 538-7030.