May 07 Businessexcellence 55 areas where geological surveys indicate a very high possibility of striking paydirt. Vero’s drilling properties are centered around Alberta towns Edson (2850 BOE per day), Wilson Creek (700 BOE per day), Whitecourt (550 BOE per day), Corbett (500 BOE per day), and Ricinus. A total of 35 wells were drilled in 2006, with 40 more planned for 2007. The company has 68,000 acres of undeveloped land and another 16,500 acres of farm-in (joint venture) land with well commitments. Breaking it down into specific areas, at Edson, well production as of February 2007 increased more than tenfold over November 2005; 13 wells were drilled in 2006, and 15 to 20 more are planned for 2007. In Edson’s Rock Creek area, a reservoir saturated with natural gas liquids extends to a depth of 2500 meters. At Wilson Creek, four wells were drilled in 2006, and there exists the potential to more than double the current reserves and production from the Belly River Oil Pool. At Whitecourt, six wells were drilled in 2006 with plans for 12 to 14 more in 2007. At Corbett, six wells were drilled in 2006 with plans for another four to six in 2007. At Ricinus, there’s a high impact exploration potential in the Devonian Leduc area that offsets the Tay River discovery in 2004. This area is structurally complex due Vero Energy Inc.
Businessexcellence May 07 56 to a ‘fold and thrust belt’ (a belt of deformed sedimentary rock in which the layers are folded and duplicated by thrust faults) in proximity to the Rocky Mountains; secondary targets include the Cardium, Viking and Mannville zones. With its land acquisition and drilling & recovery program foundation now established, the future indeed looks promising for Vero Energy. The company plans to continue its upward momentum, begun in 2005, to increase production. The groundwork has been laid to maintain a large supply of projects, with a drilling inventory in excess of two years, exploitation projects including waterfl oods and infi ll drilling, and exploration projects with a potential for high reward. Its focused properties yield a profi table cost structure in controllable categories, and its liquids rich natural gas and light oil result in high netbacks for investors. Doug Bartole, president & CEO of Vero recently told investors, “We had our most active quarter to date and our staff executed the program exceptionally well. The direct result is exceeding our production forecast and increasing our 2007 exit production guidance. We have continued our trend of signifi cant quarter over quarter growth since inception. Based on our outstanding last two quarters we are excited about our future. With the completion of our recent equity fi nancing we are in a position to potentially increase our capital budget with internally generated projects, farm-in (joint venture) opportunities on other operators’ lands, and generally opportunities that we believe will increase our long term project inventories.”