NiMin Energy Corp. today announced the following operations update, including:

• Commencement of the 2011 drilling program in Wyoming; • Completion of Phase 1 and 2 of the Willow Draw facilities expansion this quarter, ahead of schedule; and • Drilling of the first of two wells in California's Pleito Creek Field where the Company is applying its patented Combined Miscible Drive ("CMD") technology.

Wyoming Update The Company commenced its 2011 drilling program in Wyoming at the Hunt field, which began in late April and will continue through the end of 2011. The program includes a total of 18 wells at all four of the Company's fields.

Phases 1 and 2 of the facility expansion at the Willow Draw field in Wyoming will be completed in the second quarter, one quarter ahead of previous estimates. This expansion of the facilities will increase the capacity from 465 barrels of oil per day ("BOPD") and 35,000 barrels of water per day ("BWPD") to 1,100 BOPD and 47,000 BWPD. Phase 3, to be completed in the fourth quarter, will increase capacity to handle all production from the 2011 program.

Pleito Creek Update NiMin will also begin the drilling of two consecutive wells in California at the Pleito Creek field this week. These wells will be drilled vertically and completed with fracture stimulation in the Santa Margarita formation where the Company is applying its patented CMD technology.

Mr. Clancy Cottman, Chairman and CEO, said, "The accelerated completion of Phases 1 and 2 of the Willow Draw facilities expansion will allow us to put all of our existing wells and workovers online, maximizing production throughout the year. Phase 3 will create capacity for all new wells that we drill in 2011, giving the Company flexibility to drill more wells at the Willow Draw field.

"The progress of our drilling program in California underscores our commitment to exploiting the heavy oil resource in the Pleito Creek field. In addition, through the application of NiMin's innovative CMD technology, we expect to improve production rates and ultimate recovery within this acreage. In Wyoming, we will drill in all four fields to maximize the utilization of our facilities and minimize production downtime.

"Our staff continues to make significant progress on or ahead of schedule. We are very pleased with the team effort to improve operations and implement this exciting drilling program, which we believe will create value for shareholders."

Tags: NiMin Energy Corp