Sabre Gold Mines Corp. press release
Result Energy Inc. announces expansion of bank credit facilities, operational update, and sedar filing of NI 51-101 reports
TSX - Toronto Stock Exchange · Gold · Silver · Copper · Zinc · Lead · Canada
TSX Venture: RTE
CALGARY, April 27 /CNW/ - Result Energy Inc. is pleased to announce that it achieved 72% year-over-year growth in total proven oil and natural gas reserves, and 67% growth in total proved plus probable ("P + PA") reserves at December 31, 2005. Factoring in 2005 production, the net increases were 101% for proven and 83% for P + PA reserves. A summary of Result reserve volumes and net present values under NI 51-101 are as follows:
<< Summary of oil and natural gas reserves (gross, Forecast prices case) % As at December 31 2005 2004 change Mmcfe Mmcfe
Proved developed producing 4,987.1 4,024.2 23.9% Proved developed non-producing ("PDNP") 2,696.0 309.2 771.9% Proved undeveloped 767.0 568.0 35.0% Total Proved 8,450.1 4,901.4 72.4% Probable additional reserves 4,650.6 2,968.1 56.7% Proved plus probable additional reserves ("P + PA") 13,100.7 7,869.5 66.5%
Mstb Mstb P + PA reserves, on a boe basis 2,183.5 1,311.6 66.5%
Net Present Values (pre tax) based on Forecast prices and Costs
Dec 31, 2005 Before tax present values discounted at ($ millions) 0% 5% 10% 15% 20% Proved Developed producing 24.9 21.5 19.0 17.2 15.8 Developed non-producing 14.6 12.0 10.3 9.1 8.2 Undeveloped 3.2 2.3 1.7 1.3 1.0 Total proved 42.7 35.8 31.0 27.6 25.0 Probable additional 25.1 15.5 11.4 9.1 7.7 Total P + PA 67.8 51.3 42.4 36.7 32.7
Net Present Values (pre tax) based on Constant prices and Costs
Dec 31, 2005 Before tax present values discounted at ($ millions) 0% 5% 10% 15% 20% Proved Developed producing 30.1 24.2 20.4 17.9 16.0 Developed non-producing 16.2 12.9 10.8 9.3 8.2 Undeveloped 4.3 2.9 2.1 1.5 1.2 Total proved 50.6 39.9 33.3 28.7 25.4 Probable additional 29.4 17.8 12.8 10.1 8.3 Total P + PA 80.0 57.7 46.1 38.8 33.7
The above tables represent estimated NPVs for the Company's oil & gas reserves only, and do not include the value of undeveloped land, and income tax pools. As at the current date, Result has 47,658,138 common shares outstanding.
Result also is pleased to announce the following updates:
based on Result's December 31, 2005 year-end reserve reports, the Company's existing bank revolving credit facility is in process of being expanded from $6.5 million to between $10 and $12 million. The facility has an initial limit of $9 million, which is expected to increase as wells which are currently shut-in are brought on stream. This expanded bank facility will give Result flexibility in expanding exploration and development activities, and pursuing potential property acquisitions.
in the Worsley area, one additional Leduc gas well (36.4% WI) was drilled in Q1-06, and is planned to be completed and tested by the end of June following break-up. A drilling rig is on site at an additional location (50% WI), and awaiting road ban conditions to be removed prior to commencing drilling operations. Two additional (0.8 net) Worsley area locations will potentially be drilled in the Q2 through Q3 period.
Result currently has an inventory of 20 development and exploration locations to be drilled in the south-west Saskatchewan core area. Subject to satisfactory weather conditions and rig availability, at least 8 (5.0 net) of these locations are anticipated to be drilled in the Q2 through Q3 period. This includes a 2 section pilot project which is being undertaken at Dodsland North to increase existing Viking gas infill wells from 2 to 4 per section.
Result constructed a 6 inch natural gas gathering pipeline system prior to spring break-up at Clearhills Alberta. This pipeline will initially service Result's 3 operated natural gas wells which have been tied-in, and which have an estimated behind pipe capacity of 1,500 mcfd (250 boe/d) net. The pipeline is to flow to a third party owned facility which is anticipated to be constructed commencing in the Q2-06 period, with an in-service date prior to August 31.
in the Pembina area Result awaits a regulatory ruling which will allow a third party compression facility to be commissioned, through which the Company's gas volume can flow. Result has a 50% (BPO) interest in two behind pipe Viking natural gas wells which should produce at an estimated total of 1,800 mcfd net, or 300 boe/d net (BPO) once on stream.
Result's current field estimated production volume is approximately 625 boe/d. As noted above, additional estimated production capacity from two projects of approximately 550 boe/d continues to be shut-in, or "behind pipe", and is anticipated to come on stream in the next 1 to 4 months.
Result has completed SEDAR filing of its December 31, 2005 year end reports related to oil and gas reserves prepared in accordance with Canadian Securities Regulators National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). These reports, which can be accessed electronically from the SEDAR website at www.sedar.com, include Form 51-101F1 - Statement of Reserves Data and Other Oil and Gas Information, Form 51-101F2 - Report on Reserves Data by Independent Qualified Reserves Evaluator, and Form 51-101F3 - Report of Management and Directors on Oil and Gas Disclosure.
Bill Matheson, President & CEO, will be presenting at the upcoming SEPAC Oil & Gas Investor conference in Calgary (Westin Hotel) on Monday May 8, 2006.
"Gross" totals represent the Company's working interest share of reserves, before deduction of royalty interests. Estimated Net Present Values ("NPV") are prepared under NI 51-101 for both a Forecast prices and costs and a Constant prices and costs scenario, and such values are prior to the provision for income taxes, interest, debt service charges, and general and administrative expenses. Actual oil and natural gas reserves and future production of the disclosed oil and natural gas reserves does not represent the fair market value of these reserves. Result has applied the industry standard of converting natural gas volumes at six thousand cubic feet per barrel (6 mcf/bbl) of natural gas to barrels of oil equivalence ("boe"). Boe units may be misleading, particularly if used in isolation. "Mmcfe" is defined as a million cubic feet equivalent (and is used herein to convert reserves of oil, natural gas, and natural gas liquids to a common measure). Investors are cautioned that this news release contains forward looking information. Such information is subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, as no assurances can be given as to future results, levels of activity or achievements.
Result Energy Inc. is a publicly traded Canadian energy company involved in the exploration and development of oil and gas properties in western Canada. Result trades on the TSX Venture Exchange under the symbol "RTE".
The TSX Venture Exchange does not accept responsibility for the adequacy and accuracy of this release.
%SEDAR: 00012334E