Calvalley Petroleum Inc., (TSX: CVI.A) provides 2013 reserves update
CALGARY, March 3, 2014 /CNW/ - Calvalley Petroleum Inc. ("Calvalley" or the "Company") announces the results of its December 31, 2013 reserves evaluation.
The reserve evaluation was conducted by McDaniel & Associates Consultants Ltd. who prepared an independent engineering evaluation of the reserves attributable to the Company's 50% working interest in Block 9 in a report dated February 26, 2013 with an effective date of December 31, 2013 (the "McDaniel Report") in accordance with National Instrument 51 101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101") and the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook").
Drilling activity in 2013 included the drilling of four new prospects, Ras Nowmah South, Ras Nowmah North, Sueda and Al Hedba plateau. Ras Nowmah South was completed and put on production during the year. The level of drilling activity was restricted by security and local issues during 2013.
The following information is derived from the McDaniel Report.
Company interest proved reserves of crude oil of 11.5 million barrels declined from 12.5 million barrels in 2012. Similarly company interest proved plus probable reserves of crude oil of 22.9 million barrels declined from 25.2 million barrels in 2012.
The following information is derived from the McDaniel Report:
Summary of Oil and Gas Reserves-Company Interest
| Light and Medium Oil | Heavy Oil | Total Crude Oil | |||||
| Reserves Category | (Mbbl) | (Mbbl) | (Mbbl) | ||||
| Proved(1) | |||||||
| Developed Producing | 3,752 | 584 | 4,335 | ||||
| Undeveloped | 4,250 | 2,877 | 7,128 | ||||
| Total Proved | 8,002 | 3,461 | 11,463 | ||||
| Probable(2) | 9,463 | 1,998 | 11,461 | ||||
| Total Proved plus Probable | 17,465 | 5,459 | 22,924 | ||||
| Possible(3) | 6,897 | 1,391 | 8,288 | ||||
| Total | 24,362 | 6,850 | 31,212 | ||||
Notes:
| (1) | "Proved" reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves. |
| (2) | "Probable" reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves. |
| (3) | "Possible" reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a ten per cent probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves. It is unlikely that the actual remaining quantities recovered will exceed the sum of the estimated proved plus probable plus possible reserves. |
Summary of Net Present Value of Future Net Revenue
| Before Future Income Tax Expenses Discounted at (%/year) | ||||||||
| Reserves Category | 0 (M$US) | 5 (M$US) | 10 (M$US) | 15 (M$US) | ||||
| Proved | ||||||||
| Developed Producing | 98,011 | 84,814 | 74,849 | 67,117 | ||||
| Undeveloped | 195,207 | 143,443 | 108,850 | 84,949 | ||||
| Total Proved | 293,218 | 228,257 | 183,699 | 152,066 | ||||
| Probable | 356,116 | 226,677 | 152,915 | 108,424 | ||||
| Total Proved plus Probable | 649,334 | 454,934 | 336,614 | 260,490 | ||||
| Possible | 320,141 | 202,776 | 135,159 | 94,091 | ||||
| Total | 969,474 | 657,710 | 471,773 | 354,581 | ||||
| After Future Income Tax Expenses Discounted at (%/year) | ||||||||
| Reserves Category | 0 (M$US) | 5 (M$US) | 10 (M$US) | 15 (M$US) | ||||
| Proved | ||||||||
| Developed Producing | 63,953 | 56,063 | 49,993 | 45,209 | ||||
| Undeveloped | 127,729 | 93,320 | 70,327 | 54,450 | ||||
| Total Proved | 191,681 | 149,383 | 120,320 | 99,659 | ||||
| Probable | 231,728 | 147,278 | 99,114 | 70,044 | ||||
| Total Proved plus Probable | 423,409 | 296,661 | 219,434 | 169,703 | ||||
| Possible | 208,092 | 131,363 | 87,132 | 60,624 | ||||
| Total | 631,501 | 428,024 | 306,566 | 229,967 | ||||
| Notes: | |
| (1) | The McDaniel Report employed the following pricing assumptions for Brent Crude Oil as of January 1, 2014 in estimating the reserves data using forecast prices and costs: 2014 US$ 105.00; 2015 US$ 102.50; 2016 US$ 100.20; 2017 US$ 97.70; 2018 US$ 98.00; 2019 US$ 99.40 2020 US$ 101.30 |
| (2) | The weighted average realized sales price for Block 9 crude oil for the year ended December 31, 2013 was US$109.41 per barrel. |
About Calvalley
Calvalley is an international oil and gas company, with offices in Calgary, Alberta, Canada, that operates Block 9 of the Masila Basin, in The Republic of Yemen.
Forward Looking Information
Certain information included in this press release constitutes forward-looking information under applicable securities legislation. Statements relating to "reserves" are by their nature forward-looking information, as they involve the implied assessment, based on certain estimates and assumptions that the reserves described can be profitably produced in the future. The recovery and reserve estimates provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. As a consequence, actual results may differ materially from those anticipated in the forward looking information.
Forward-looking information involves significant risk and uncertainties. Although the forward-looking information contained herein is based upon what management believes to be reasonable assumptions, management cannot assure that actual results will be consistent with the forward-looking information. Investors should not place undue reliance on forward-looking information.
The material assumptions and risk factors that could influence the forward looking information are contained in the Company's annual information form for the year ended December 31, 2012 dated March 26, 2013 and Management's Discussion and Analysis which are available under the Company's issuer profile on SEDAR at www.sedar.com and which are incorporated herein by reference.
The forward-looking information contained in this press release is made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward looking information contained in this press release is expressly qualified by this cautionary statement.
SOURCE Calvalley Petroleum Inc.
Contact
investorrelations@calvalleypetroleum.com or +1 (403) 297-0490
Edmund Shimoon, Chairman and CEO
Gerry Elms, CFO
