Emerge Provides Operational Update and Guidance

Emerge Oil & Gas Inc. (TSX:EME) provided operational update including drilling results and updated guidance.

As quoted in the press release:

Based on the Company’s production results to date in 2011, capital plans for the remainder of 2011 and recent Viking well production performance, Emerge anticipates its production to average 5,600-5,700 boe/d for 2011, representing a 14%-16% increase from 2010. The reduction from previous guidance is the result of various factors including: weather-related production downtime; slightly higher than budgeted decline rates in certain heavy oil fields; and most notably, the mid-year reallocation of capital toward evaluating the Viking potential on our owned and farm-in lands, resulting in the drilling of fewer heavy oil wells than originally budgeted. Emerge now expects to drill 40-43 heavy oil wells during 2011 as compared to a planned 65-70 wells per original production guidance and prior to the reallocation of capital toward Viking prospects.

Click here to read the Emerge Oil & Gas Inc. (TSX:EME) press release