CARPINTERIA, CALIFORNIA--(Marketwire - Sept. 20, 2010) - NiMin Energy Corp. (TSX:NNN)(OTCQX:NEYYF) ("NiMin" or the "Company") today announced an update to the production response associated with the Combined Miscible Drive ("CMD") process at the Pleito Creek Field in Kern County, California, as well as an operations update for the Ferguson Ranch and Willow Draw Fields located in Park County, Wyoming.
Pleito Creek CMD
Production of the H-2 well at the Pleito Creek Field in Kern County, California continues to increase and is now at a rate of 160 barrels of oil per day ("bopd"). The current rate of 160 bopd is 20 bopd above the initial production rate and is 107 bopd above the natural decline rate that would have been expected without response from the CMD process. Production from the H-3 well is increasing, and higher carbon dioxide concentrations indicate the initial stages of response from the H-1 and H-4 wells.
Wyoming Update
NiMin has drilled five new wells at the Ferguson Ranch Field in Wyoming since July. The State #12, #13, #14, #15 and #16 wells are at various stages of completion. The delay in completions is due to the limited availability of fracture stimulation equipment in the area. The wells are being drilled at or below estimated cost, and electric log results are consistent with the Company's expectations. In addition, NiMin has commenced a polymer treatment program at the Willow Draw Field. The first well treated, the #30-2, has seen oil production increase from 20 bopd to 96 bopd and water production decrease from 6,500 barrels per day to 1,176 barrels per day. NiMin's technical staff has identified four additional wells for polymer treatment at Willow Draw and is evaluating additional wells at the Company's three other Wyoming fields.
Management Comments
Clancy Cottman, Chairman and CEO of NiMin, said, "The results at Pleito Creek are better than expected at this point in the project, and we look forward to continued production increases in the field. The effectiveness of the CMD process is clearly demonstrated by current production rates that exceed the initial production two years ago." Mr. Cottman added, "The Company's development program in Wyoming is proceeding as planned, and is consistent with our expectations. The result of the Willow Draw #30-2 polymer treatment is very exciting and incremental to the Company's reserves." The Company expects to polymer treat four additional wells at Willow Draw in addition to our development drilling program.
For more detailed information about the Wyoming assets, please see the presentation available on NiMin's website at www.niminenergy.com.
About NiMin Energy Corp.
NiMin is an Alberta, Canada-incorporated, California-based independent oil and gas exploitation and production company. Principal operations are located in the Bighorn Basin of Wyoming, the San Joaquin Basin in California and onshore South Louisiana. The Company has over 27 million barrels of oil equivalent ("boe") of proved and probable reserves, 97% of which are oil in California and Wyoming.
Forward-Looking Statement
A boe conversion ratio of six thousand cubic feet per barrel (6mcf/bbl) of natural gas to barrels of oil equivalence is based upon an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency for the individual products at the wellhead. Such disclosure of boe's may be misleading, particularly if used in isolation.
This news release contains forward-looking statements and information ("forward-looking statements") within the meaning of applicable securities laws, including the drilling program to be commenced by NiMin on the acquired fields, production estimates and expectations, and the viability of NiMin's drilling program. Although NiMin believes that the expectations reflected in its forward-looking statements are reasonable, such statements have been based upon currently available information to NiMin. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in forward-looking statements. Risks include, but are not limited to: the risks associated with the oil and gas industry (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price, price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. The risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in more detail in our Annual Information Form and other documents available at www.sedar.com. Readers are cautioned to not place undue reliance on forward-looking statements. The statements in this press release are made as of the date of this release, and, except as required by applicable law, NiMin does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement. NiMin undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of the NiMin, Legacy or their respective financial or operating results or, as applicable, their securities. The net present value of future net revenue attributable to NiMin's reserves does not represent fair market value.
