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TSXV Trading Symbol: SWE
CALGARY, Jan. 28, 2014 /CNW/ - SilverWillow Energy Corporation ("SilverWillow" or the "Corporation") (TSXV:SWE) has been advised by the Alberta Energy Regulator ("AER") that the AER is undertaking a technical review of the factors that
affect reservoir containment of Steam Assisted Gravity Drainage
("SAGD") projects with a view to developing formal regulatory
requirements in 2014. Until such requirements are issued, the AER will
defer decisions on applications for thermal oil sands projects in a
designated shallow thermal area of the Wabiskaw-McMurray Deposit in the
Athabasca Oil Sands Area that address reservoir containment differently
from how the AER currently assesses it. The AER considers the 12,000
barrel per day Audet Project application to fit into this category.
Therefore, the AER states that it will make no decision on the Audet
Project application until formal regulatory requirements are developed
and formally adopted, and notes that the final requirements may be less
or more stringent or utilize different approaches than the current
practice. SilverWillow will be expected to meet those requirements,
which the AER advises may include acquiring 3-D seismic over the entire
development area, prior to any decision on the Audet Project
application. The AER expects to issue a formal bulletin regarding this
deferral for affected applications within the shallow thermal area in
early 2014.
SilverWillow expects that the effect of this deferral on its Audet
Project application is to delay the potential approval. Accordingly, SilverWillow now anticipates that, if regulatory approval
is received, construction of the Audet Project will also be delayed.
SilverWillow's estimates of such timeframes are subject to further
regulatory decisions by the AER and other regulators in Alberta as well
as other industry and business factors. Until the AER develops and
implements its new regulatory requirements, SilverWillow can provide no
guarantee that it will be able to meet them or issue a revised project
schedule.
SilverWillow is disappointed with the delay that will be caused by the
process to develop and formally adopt new regulatory requirements but
is confident that the use of low pressure SAGD technology at the Audet
Project continues to be a technically safe, responsible and
economically viable process for the development of this large bitumen
resource. The Corporation plans to participate in the formal AER
consultation process and make use of the extensive technical work that
has been completed on the Audet Project to address caprock integrity.
In the meantime, SilverWillow intends to review its business plans
relating to the Audet Project and its other business prospects in light
of this deferral.
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.
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 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 Corporation's
understanding of the AER's proposed development of new regulatory
requirements, the anticipated timing of adopting such regulatory
requirements, the effect of the new regulatory requirements on the
timing for approving and developing the Corporation's proposed Audet
Project, the technical viability of the Audet Project, the
Corporation's plans to participate in the regulatory review process,
and the Corporation's plans to review its business plan in light of
these regulatory developments.
The forward-looking information set out in this news release, is based
on certain expectations and assumptions regarding, among other things,
the exploration and development of the Audet Lands; the submission of
the regulatory application for the Audet Lands; the AER's process for
developing new regulatory requirements and considering the application;
the substance of such new regulations; the ability of the Corporation
to participate in the regulatory review process; the ability of the
Corporation to obtain required regulatory approval for the development
of the Audet project; and technical assumptions regarding the
feasibility of the Audet Project and the designed production level for
the Audet SAGD project.
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
achieved in the timeframe or on the terms expected or at all; risks
that the Corporation will not be permitted to participate in the
regulatory review process; risks that the AER's new regulations may
prevent the Audet Project from being approved; risks that the AER may
take additional time to develop new regulations or to process the
Corporation's application beyond the time frames stated in this news
release; risks relating to the early stage of development of
SilverWillow and the Audet lands; 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 of bitumen are based upon a number of
factors and assumptions made as of the date on which the resource
estimates were determined, such as geological and engineering
estimates, which have inherent uncertainties.
Additional risks relating to the business and operations of SilverWillow
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
please contact Howard J. Lutley, President and Chief Executive Officer, at (403) 538-7030.