Second Wave Petroleum Inc. provides an update on its Judy Creek operations in Canada.

The Company has successfully located and purchased a new refrigeration system to replace the unit that was damaged in the previously announced fire at its Judy Creek 08-24-063-10W5 gas plant. The new refrigeration unit was purchased on December 20, 2010, and was delivered to the field on January 5, 2011, where it is positioned at the plant site. The new system has a licensed capacity for 10 mmcf/d of natural gas with a capability to produce stabilized natural gas liquids at a ratio of 30 bbls per mmcf, which is an increase from the damaged system's capacity of 6 mmcf/d of natural gas with a capability to produce 10 bbls of natural gas liquids per mmcf. Currently, the system is undergoing well connections and testing with the expected online date to occur during the last week of January 2011.

Prior to the outage, Judy Creek production had reached a daily net rate of approximately 1,300 boe/d with approximately 1,050 boe/d being produced from the Company's Judy Creek Pekisko oil battery. As solution gas from the Company's Pekisko oil battery is processed exclusively at the damaged 08-24-063-10W5 gas plant, production of approximately 1,050 boe/d was shut in on December 10, 2010, as the Company could no longer meet its hydrocarbon dew point requirements on its sales gas stream.

Since the outage at Judy Creek, the Company has completed the tie-ins of its 100% working interest 03-14 Gilwood gas well and its 05-14 Pekisko horizontal oil well. Additionally two Pekisko horizontal oil wells and one vertical oil well have been drilled and are currently awaiting completion and tie-in. Currently, the Company has 1,650 boe/d of production awaiting start-up of the Judy Creek gas plant, with the two Pekisko horizontal oil wells and one vertical oil well to be brought on later in the first quarter.

As a result of the shut-in volumes at Judy Creek the Company's current production, by area, is approximately 400 boe/d at Provost, 250 boe/d at Battle Creek, 250 boe/d at south Judy Creek and 100 boe/d from other minor areas for a total of approximately 1,000 boe/d.

Tags: Second Wave Petroleum Ltd.