CALGARY, ALBERTA — (Marketwire) — 01/23/12 — Maple Leaf 2011 Energy Income Limited Partnership (the “Partnership”) is pleased to report commencement of the initial stream of revenue from the first two of five producing wells for the Partnership.
As a result, the Partnership has declared its first cash distribution of $0.50 per limited partnership unit. With five wells now on production as of the end of December 2011, future cash distributions are expected to increase significantly.
This cash distribution is approximately five months ahead of the original target date of June 30, 2012. The payment date of this distribution is January 31st, 2012 to all unitholders of record on January 23, 2012. This cash distribution will be deposited directly into unitholder accounts (i.e. the account at the Investment Dealers where investors hold their partnership units).
UPDATE SUMMARY
The Partnership had an initial closing on August 25, 2011, a second closing on September 28, 2011 and a third and final closing on October 27, 2011. A total of 177,136 units were issued for gross proceeds of $17,713,600.
To date, the Partnership has invested $9,716,714, being 61.44% of available funds, into a Joint Venture targeting oil and liquids rich gas from seven horizontal wells in West Central Alberta (the “First Program”). The majority of the investment to ok place in November and December 2011.
Six of the seven wells in the First Program targeted light oil in the Cardium formation and one well for liquids rich gas in the Notikewin formation.
To date, six of the seven wells in the First Program have been successfully drilled. The seventh well is currently drilling.
Five of the six drilled wells in the First Program are now tied-in and are currently meeting or exceeding production expectations.
Revenue from the first two producing wells for the months of October and November 2011 was received by the Partnership in January 2012, and revenues from the balance of the wells are expected to commence over the next few months.
The balance of the available funds have been committed to a second program, under similar joint venture terms and conditions, and, like the First Program, will also be targeting pools of oil and liquids rich natural gas. Full investment of the remaining capital is anticipated to be complete in the first quarter of 2012 subject to completion of due diligence and finalization of joint venture terms on a well by well basis.
Currently, the Partnership owns royalties on seven wells which are all in their early stages of their production profile (or soon to be) and as a result, production volumes, revenues and consequently the amount of cash distributed monthly may vary.
OIL & GAS PRICE VOLATILITY
Commodity (oil & gas) price volatility can have a significant impact on the amount of revenues realized by the Partnership from the sale of its oil & gas, and correspondingly, the amount of distributions the Partnership is able to pay to investors.
Along with the aforementioned cash distribution, investors in the Partnership also benefit from tax deductions of up to 95% of the amount of capital invested.
Subsequent updates will be provided once the balance of the capital has been invested.
This press release contains forward-looking information within the meaning of Canadian securities laws. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Partnership expects or anticipates will or may occur in the future, including such things as, the commencement of expected revenues, the plan for the Second Program, the investment of the Partnership–s remaining available funds, and other such matters is forward-looking information. When used in this press release, the words “indicate”, “expect”, “intend”, “hopes”, “believe”, “may”, “will”, “if”, “anticipate”, and similar expressions are intended to identify forward-looking information. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Partnership to be materially different from any future results, performance or achievements expressed or implied by such statements. Such factors include, among others, uncertainties including that the Partnership may not hold or discover commercial quantities of resources and will be subject to fluctuations in commodity prices, exchange rates, and regulatory and policy risk; fees and expenses payable by the Partnership may decrease the assets available for investment by the Partnership; there can be no assurance that oil and gas companies will honour their obligations under investment agreements; there may be defects in title to or other ownership disputes with respect to properties subject to investments; oil and natural gas production and exploration are high risk activities; the Partnership competes with other entities in the oil and gas industry, many of whom are larger, which may decrease the investment opportunities available to the Partnership; there can be no assurance that expectations based on past experience will be indicative of future results; as well as those factors discussed under the headings “Cautionary Statement Regarding Forward Looking Information” and “Risk Factors” in the Partnership–s prospectus dated August 16, 2011 and other documents filed with Canadian securities regulatory authorities. Although the Partnership has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Except as required by law, the Partnership assumes no obligation to publicly update any forward-looking information; whether as a result of new information, future events or otherwise.
Contacts:
Maple Leaf 2011 Energy Income Limited Partnership
Shane Doyle
President
604.684.5750 or Toll Free: 866.688.5750
604.684.5748 (FAX)