ABOUT US

Culane Energy Corp. is an oil and gas exploration and production company, with operations in the Killam, Nelson and Redwater areas of Central Alberta, and an extensive, recently-acquired land base in Southwest Saskatchewan.  Culane is dedicated to building its reserve and production base by developing internally-generated exploration plays, maintaining high working interests and operating all of its projects.  Average production for Q4 2009 was 1,073 BOPD, 72% oil and 28% natural gas.

Culane has focused its development activities in the Killam area of Central Alberta, where over 95% of its production base is.  To December 30, 2009, Culane has spent approximately $78 million on land, 3D seismic, drilling and infrastructure, waterflood and tertiary enhanced oil recovery studies developing the Killam area.  Culane has also expended approximately $31 million on strategic acquisitions over the past three years which, in addition to strategic farm-ins, has resulted in the 100% capture of a potential 42 million barrel oil resource play at Killam.  Two main Lloydminster oil pools have been discovered and are estimated to contain 42.3 million barrels of ‘Discovered Petroleum Initially-in-place’.  At December 30, 2009, the Company had 32 (32.0 net) multi-leg horizontal oil wells and 12 (9.8 net) natural gas wells on production at Killam.  The combined production was approximately 1,020 BOE/d from these wells with 70% oil and 30% natural gas.

In 2008, Culane completed a waterflood reservoir simulation study for Killam lands and a pilot program began injecting water into two wells in January 2009.  Culane then applied for full-field waterflood approval.  Following regulatory approval in late 2009, Culane implemented secondary recovery (waterflood) in this property by commencing injection into this pool.  This involved construction of central water injection facilities and pipelines to coincide with that approval.  Culane is presently injecting approximately 4,200 bbls/d of water into 13 wells in the project area. 

Culane has also recognized that the Killam lands are very conducive to tertiary recovery through Surfactant-Polymer (SP) flooding.  Extensive laboratory work and additional reservoir simulation work was conducted to evaluate this potential.  Culane’s independent reserve evaluation firm has reviewed the tertiary recovery project and assigned Possible (3P) reserves.  At present, Culane is proceeding with a view to conducting an SP flood at Killam North.  Analogous oil pool case histories have established that waterflooding similar oil reservoirs has the potential to recover over 20% of the original oil resource and SP flooding has the potential to recover over 40% of the original oil resource.  With the commencement of the waterflood, horizontal wells that have been declining are expected to gradually increase.  The Killam project is a recoverable oil reserve-based play rather than a daily production growth play.  Culane has 24 sections of land at Killam.

The oil and gas revenues generated from the Killam assets have allowed the Company to expand into other exciting oil-prone areas though its ongoing exploration program.  Culane will continue to exploit in-house-developed, high working interest oil opportunities, and grow the company mainly through the drill bit as it has done since its inception.     

In January 2009, Culane commenced an active full-cycle oil exploration initiative in S.W. Saskatchewan.  Over the course of 2009, Culane’s oil exploration initiative included the acquisition, processing and interpretation of 2D seismic as well as the participation in Crown land sales and acquisition of freehold land.  Culane currently owns a 100% working interest in approximately 63.0 sections (40,000 acres) of land in S.W. Saskatchewan.  Total land acquisition costs to date in Saskatchewan are approximately $4.1 million.

Culane’s reserve base as of December 31, 2009 is 2,582 MBOE (Proved), 3,970 MBOE (Proved plus Probable), and 7,748 MBOE (Proved plus Probable plus Possible).

Culane is headquartered in Calgary, Alberta and is listed on the TSX Venture Exchange under the stock symbol “CLN”.  Culane currently has 24.5 million common shares outstanding.

Please feel free to browse our website for more information about us, or contact us directly.

Donald D. Staus, P. Geol.

President and CEO

Culane Energy Corp.