Canada Energy Partners Interim Reserve Update Reports 142% Increase in Proved Plus Probable Reserves
March 15 2011 - 8:30AM
Marketwired
Canada Energy Partners Inc. ("Canada Energy" or the "Company") (TSX
VENTURE: CE) is pleased to report the results of an interim reserve
study of the Company's Montney lands, performed by GLJ Petroleum
Consultants Ltd. ("GLJ"), effective December 31st, 2010. Recent
successful drilling by the Company and its JV Partner at Peace
River and by Shell adjacent to the Monias property has resulted in
the attribution of significant reserves. The GLJ reserve update
coupled with the coal bed methane reserve report by Netherland
Sewell (April, 2010) show dramatic reserve growth over the previous
year.
GLJ ascribed Company interest reserves of 7.65 billion cubic
feet equivalent ("BCFe") of proved reserves and proved plus
probable reserves ("2P") of 22.01 BCFe on its Montney lands.
Company Interest reserves means the Company's working interest
share before deduction of royalties and including any royalty
interest of the Company. The undiscounted projected net cash flow
is estimated to be $17.19 million from the proved reserves and
$64.28 million from the 2P reserves. The present value discounted
at 10% ("PV10") of the proved reserves is $4.91 million and $19.07
million for the 2P reserves. 77.5% of these 2P reserves were
attributable to the Monias property and 22.5% to the Peace River
property. The Company interest reserves as reported by Netherland
Sewell at fiscal year-end April 30, 2010 were 0.27 BCF proved and
15.50 BCF 2P from the Peace River CBM Project.
The combined total of the Montney and CBM proved reserves is 7.9
BCF and 2P is 37.5 BCF representing a 142% increase in
year-over-year 2P reserves. CIBC has reported that the average
sales price for 2P gas reserves in Western Canada in 2010 was $1.95
per thousand cubic feet ("mcf").
There have been three transactions in the Montney play in the
last 90 days representing $7.5 billion of financial commitments
from international energy companies. Most recently, on March 8th,
Talisman and Sasol announced a second Joint Venture in the Montney
on Talisman's Cypress A Project. Sasol will pay $1.05 billion for a
50% interest in the Cypress A Project. CIBC estimates the
transaction metrics at $0.19 per thousand cubic feet equivalent
("mcfe") of contingent resource and $36,000 per acre. Canada Energy
Partners owns 27,239 net acres (42 net sections) of Montney
rights.
Canada Energy is an active oil and gas exploration and
development company. The Company possesses a large concentrated
land position in a high-impact, multi-zone, natural gas-bearing
area in northeast British Columbia.
BCFe may be misleading, particularly if used in isolation. A
BCFe conversion ratio of 1 bbl: 6 mcf is based on an energy
equivalency conversion method primarily applicable at the burner
tip and does not represent a value equivalency at the wellhead. The
estimated values disclosed do not represent fair market value.
On behalf of the Board of Directors of Canada Energy Partners
Inc.
John Proust, Chairman
Forward Looking Statements: This news release contains forward
looking statements relating to expected or anticipated flow rates,
timing for drilling and completion operations, future events and
operations, number of wells to be drilled, timing of projects and
anticipated results that are forward looking in nature and, as a
result, are subject to certain risks and uncertainties, such as
general economic, market and business conditions, the regulatory
process and actions, technical issues, new legislation, competitive
and general economic factors and conditions, the uncertainties
resulting from potential delays or changes in plans, the occurrence
of unexpected events, and the company's capability to execute and
implement future plans. Actual results achieved may vary from the
information provided herein as a result of numerous known and
unknown risks and uncertainties and other factors. There is no
representation by the company that actual results achieved during
the forecast period will be the same in whole or in part as that
forecast.
The TSX Venture Exchange has neither approved or disapproved of
the contents of this press release. Neither the TSX Venture
Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this press
release.
Contacts: Canada Energy Partners Inc. John Proust Chairman (604)
696-9020 info@canadaenergypartners.com Canada Energy Partners Inc.
Ben Jones President and CEO (225) 388-9900
info@canadaenergypartners.com www.canadaenergypartners.com Canada
Energy Partners Inc. 1500 885 West Georgia St. Vancouver, BC V6C
3E8 (604) 909-1154 (604) 488-0319 (FAX)
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