Sabre Gold Mines Corp. press release
Result Energy Inc. boosts production and reserves
TSX - Toronto Stock Exchange · Gold · Silver · Copper · Zinc · Lead · Canada
TSX Venture: RTE
CALGARY, Nov. 7 /CNW/ - Result Energy Inc. is pleased to announce substantial increases to natural gas reserves and daily production volumes. The Corporation's recent reserve update indicates a 55% increase to proven plus probable (P+PA) reserves from 2.2 million boe at December 31, 2005 to 3.4 million boe at September 30, 2006. Based on forecast pricing the net present value of Result's P+PA reserves discounted at 5% is estimated at $62.5 million and the Company's reserve life index (R.L.I.) is 7.3 years. Reserve volumes and NPVs noted are the estimates provided by third party reserve engineering firms. The estimated NPVs for the Company's oil & gas reserves do not include the value of undeveloped land, seismic data, or income tax pools. Result's year-to-date finding and development costs were $9.75/boe on a P+PA basis. Key additions have been booked at Worsley/Eureka in the Peace River Arch project area and in the Greater Dodsland project area. At Eureka Alberta, Result participated for a 50% working interest in two new Devonian gas discoveries. Both discoveries were completion tested at rates exceeding 1,000 mcfd gross - the first has been tied in and is on production and the second is expected to be tied-in and producing early in 2007. In the Dodsland project area, Result successfully drilled and tested a 4-well-per-section pilot down spacing program for Viking shallow gas. The Company was also successful in drilling additional Viking gas prospects at Druid and East Dodsland. Average daily production increased 69% from 560 boed in December 2005 to 945 boed in September 2006. As of November 1st, Result's corporate production was 1,253 boed with a further 1,450 mcfd (240 boed) tested and "behind pipe". These behind pipe volumes are expected to be brought on over the next 2 to 3 months. In commenting on the program success enjoyed to date, Mr. Bill Matheson, President and CEO of Result Energy noted; "We are especially pleased with our 2006 FD&A costs, especially in light of the escalating costs for oilfield supplies and services. This represents top performance and it validates our ongoing strategy of growth via the drillbit. We have continued to generate high quality prospects and because of the relationships we've developed throughout the industry we have managed to procure all necessary services in an on-time and cost effective manner." Result will continue its aggressive exploration and development program for the balance of 2006 and into 2007. In recent months, new 3D seismic has been acquired on the Company's impact project at Kakwa, Alberta, where plans are proceeding to drill a 3,400 meter deep basin gas test commencing in Q1-2007. At Modeste Creek, Alberta, field acquisition of additional 3-D seismic is currently underway and the Company is negotiating a 5-section farm in agreement with a senior energy trust to continue its Viking gas exploration program. At least two wells are expected to be drilled on this play in 2007. At Windfall, Alberta, the Company has committed to participate in a new liquids-rich Devonian gas project. Seismic evaluation is currently being completed, with at least two exploratory wells scheduled over the next six months. In aggregate, the Company has more than 70 drilling prospects in inventory, including 45 development locations and 25 exploratory prospects. Result is currently finalizing its full 2007 capital budget, details of which will be released along with its third quarter financial statements in early December.
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". Result currently has 47,658,138 common shares outstanding.
In the discussion of estimated oil and natural gas reserves, "Gross" totals represent the Company's working interest share of reserves, before deduction of royalty interests. Estimated Net Present Values ("NPV") 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
The TSX Venture Exchange does not accept responsibility for the adequacy and accuracy of this release.
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