CALGARY, June 5, 2017 /CNW/ - Ikkuma Resources
Corp. ("Ikkuma" or the "Corporation") (TSXV:
IKM) announces that it has completed a resource study of its
interest in the Cardium and Badheart formations contained within
its land holdings in the Narraway and Lynx areas of the northern
Alberta Foothills (the "Study Area"), audited by Deloitte
LLP ("Deloitte"), independent qualified reserves evaluators
of Calgary, Alberta.
Ikkuma's Cardium and Badheart holdings within the northern
Alberta Foothills occur within a fairway that is 72 km long by 14
km wide in a NW-SE orientation, parallel to the regional strike of
the foothills belt. The fairway is compartmentalized into multiple
oil-charged thrust sheets with proven production defining an oil
column of at least 385 m in height. Average total vertical depths
within the oil fairway range from 1350-1950 m, a relatively shallow
depth containing good to excellent reservoir. The total
resource, as outlined in this press release, provides a backdrop
for a substantial multiyear drilling program for shallow light oil
within Alberta's foothills belt.
Petroleum Initially in Place ("PIIP") estimates are large
and represent a significant new conventional oil discovery in
western Canada.
- P50 working interest discovered PIIP on Ikkuma's lands of 224.1
MMboe, P50 working interest undiscovered PIIP on Ikkuma's lands of
261.4 MMboe. P50 working interest total PIIP is 485.5 MMboe.
- P50 NPV10% (before income tax) for the Cardium Contingent -
Development Pending volumes of $269
million, which represents development of approximately half
of total identified resource.
- Confirmed multiyear drilling inventory in a predictable,
repeatable play system.
Ikkuma engaged Deloitte to audit an internal resource evaluation
of light oil and gas attributable to Ikkuma's interest in the
Cardium and Badheart formations of the northern Alberta Foothills
effective May 1, 2017 (the
"Resource Assessment"). The Resource Assessment was prepared
in accordance with the Canadian Oil and Gas Evaluation Handbook
(the "COGE Handbook") and National Instrument 51-101 -
Standards of Disclosure for Oil and Gas Activities ("NI
51-101"). The audit of the Resource Assessment by Deloitte
included a review of all technical data, operational summaries and
production data relevant to the oil fairway so that reservoir
parameters for probabilistic determinations could be mutually
agreed upon by Ikkuma and Deloitte. Cumulative production and
previously booked proved and proved plus probable reserves were
subtracted from the estimated volumes of recoverable petroleum to
determine the remaining contingent and prospective resources with
an effective date of May 1, 2017.
Contingent volumes were deemed "Development Pending", and
prospective volumes have been assigned to the "Prospect" maturity
subclass. Due to the booking category definitions, economic
forecasts resulting in net present values were conducted on
Contingent – Development Pending volumes only. Deloitte's
examination included such tests and procedures as considered
necessary under the circumstances to render an expert opinion.
The detailed reserves data outlined in the tables below are
based on an evaluation of the petroleum and natural gas reserves of
Ikkuma prepared by Sproule Associated Limited ("Sproule"),
independent qualified reserves evaluators of Calgary, Alberta, dated March 15, 2017 and effective December 31, 2016 (the "Sproule
Report"). The Sproule Report was also prepared in
accordance with definitions, standards, and procedures contained in
the COGE Handbook and NI 51-101. The Sproule Report
incorporated a Consensus Price forecast of three independent
reserve evaluators, namely Sproule, GLJ Petroleum Consultants Ltd.
and McDaniel & Associates Consultants Ltd., as set forth in the
Corporation's annual information form dated April 19, 2017 (the "AIF"). In both the
Resource Assessment and the Sproule Report, there can be no
assurances that the forecast prices and cost assumptions will be
attained and variances could be material. The recovery and
reserve and resource estimates of Ikkuma's crude oil, natural gas
liquids and natural gas reserves provided herein are estimates only
and there is no guarantee that the estimated reserves or resources
will be recovered. Actual crude oil, natural gas and natural
gas liquids reserves and resources may be greater or less than the
estimates provided herein. In addition to the detailed
information disclosed in this press release, the Corporation's
statement of reserves and other oil and gas information for the
year ended December 31, 2016, is
included in AIF, a copy of which has been filed on the
Corporation's profile at www.sedar.com.
Resource estimates herein are extracted from the Resource
Assessment and reflect Cardium and Badheart resources on only a
portion of Ikkuma's northern Alberta foothills land base. The Resource
Assessment did not include gas or liquids in any of the gas
properties outside of Narraway (the area containing Ikkuma's oil
charged Cardium and Badheart formations). Ikkuma utilized
probabilistic methods to generate high, best, and low estimates of
resources volumes. Due to Ikkuma's 100% exploration success rate at
intersecting this regional oil-charged reservoir, the reservoir
subsurface extent is now reasonably well understood, based on four
new well results, two producing horizontal wells, pre-existing well
logs, and a trade 3D seismic survey.
The following table sets forth Ikkuma's gross and working
interest volumes for all PIIP, both discovered (contingent)
and undiscovered (prospective) PIIP, as at May 1, 2017.
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|
|
|
|
Formation
|
Classification(2)
|
P90
(MBoe)
|
P50
(MBoe)(1)
|
P10
(MBoe)
|
|
|
Gross
|
WI
|
Gross
|
WI
|
Gross
|
WI
|
Cardium
|
Discovered
|
140,978
|
124,949
|
252,880
|
224,127
|
453,602
|
402,028
|
Cardium
|
Undiscovered
|
136,282
|
94,035
|
275,573
|
190,146
|
557,229
|
384,488
|
Badheart
|
Undiscovered
|
47,330
|
39,985
|
84,295
|
71,212
|
150,127
|
126,828
|
|
PIIP
|
324,590
|
258,969
|
612,748
|
485,485
|
1,160,958
|
913,344
|
(1)
|
P50 is considered to
be "best estimate" of the quantity that will actually be recovered.
It is equally likely that the actual remaining quantities recovered
will be greater or less than the best estimate. Since probabilistic
methods were used for this assessment, there should be at least a
50% probability (P50) that the quantities actually recovered will
equal or exceed the best estimate.
|
(2)
|
A probabilistic
estimate of PIIP was calculated and separated into contingent and
prospective resource categories. The Cardium Formation, due to the
more advanced stages of development, has been assigned contingent
and prospective resources, whereas the Badheart Formation is
classified as prospective. Estimates for low (P90), best
(P50), mean, and high cases (P10) were prepared with an effective
date of May 1, 2017. Due to the proximity of resources from
existing oil discoveries, a large portion of Ikkuma's land base has
been allocated to prospective resources. These prospective
resources represent the remainder of the calculated
PIIP.
|
The following table sets forth Ikkuma's resource and reserve
volumes pursuant to the Resource Assessment (with an effective date
of May 1, 2017) and the Sproule
Report (with an effective date of December
31, 2016).
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|
|
|
Gross
(MBoe)
|
Working Interest
(MBoe)
|
Resource class
(unrisked)
|
P90
|
P50
|
Mean
|
P10
|
P90
|
P50
|
Mean
|
P10
|
|
|
Cumulative oil
production(1)(2)
|
14.3
|
14.9
|
14.9
|
14.9
|
14.3
|
14.9
|
14.9
|
14.9
|
|
|
Cumulative sales
solution gas production(1)(2)
|
6.5
|
6.7
|
6.7
|
6.7
|
6.5
|
6.7
|
6.7
|
6.7
|
|
|
Cumulative NGL
production(1)(2)
|
0.8
|
0.8
|
0.8
|
0.8
|
0.8
|
0.8
|
0.8
|
0.8
|
|
|
Remaining oil
reserves(1)(3)(4)
|
117
|
251
|
251
|
251
|
117
|
251
|
251
|
251
|
|
|
Remaining sales
solution gas (1)(3)(4)
|
62.5
|
129.0
|
129.0
|
129.0
|
62.5
|
129.0
|
129.0
|
129.0
|
|
|
Remaining NGL
reserves(1)(3)(4)
|
7
|
15
|
15
|
15
|
7
|
15
|
15
|
15
|
|
|
Total Cardium
commercial
|
209
|
418
|
418
|
418
|
209
|
418
|
418
|
418
|
|
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Contingent Cardium
oil resources
|
11,766
|
24,511
|
28,960
|
51,600
|
10,545
|
21,960
|
25,667
|
45,733
|
|
|
Contingent Cardium
sales soln gas resources
|
1,045
|
2,133
|
2,629
|
4,623
|
987
|
2,011
|
2,330
|
4,097
|
|
|
Contingent Cardium
NGL resources
|
449
|
1,010
|
1,239
|
2,303
|
406
|
910
|
1,098
|
2,041
|
|
|
Total Cardium
contingent resources
|
13,260
|
27,654
|
32,409
|
58,107
|
11,728
|
24,462
|
28,676
|
51,453
|
|
Total Cardium
discovered OOIP
|
140,978
|
252,880
|
279,526
|
453,602
|
124,949
|
224,127
|
247,744
|
402,028
|
|
Total Cardium
discovered OGIP(5)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Total Cardium
discovered PIIP(4)
|
140,978
|
252,880
|
279,526
|
453,602
|
124,949
|
224,127
|
247,744
|
402,028
|
|
|
Prospective Cardium
oil resources
|
11,622
|
27,001
|
33,106
|
62,730
|
8,019
|
18,630
|
22,843
|
43,284
|
|
|
Prospective Cardium
solution gas resources
|
1,104
|
2,473
|
2,982
|
5,538
|
762
|
1,706
|
2,057
|
3,821
|
|
|
Prospective Cardium
NGL resources
|
456
|
1,119
|
1,407
|
2,744
|
315
|
772
|
971
|
1,893
|
|
|
Total Cardium
prospective resources
|
13,182
|
30,592
|
37,495
|
71,012
|
9,095
|
21,108
|
25,871
|
48,998
|
|
|
Prospective Badheart
oil resources
|
3,992
|
8,259
|
9,628
|
17,089
|
3,372
|
6,977
|
8,134
|
14,436
|
|
|
Prospective Badheart
solution gas resources
|
1,830
|
3,964
|
4,711
|
8,588
|
1,546
|
3,349
|
3,980
|
7,255
|
|
|
Prospective Badheart
NGL resources
|
130
|
313
|
391
|
757
|
110
|
265
|
331
|
639
|
|
|
Total Badheart
prospective resources
|
5,952
|
12,537
|
14,730
|
26,434
|
5,028
|
10,591
|
12,444
|
22,331
|
|
|
Total prospective
resources
|
19,133
|
43,129
|
52,225
|
97,446
|
14,123
|
31,700
|
38,316
|
71,329
|
|
Total Cardium
undiscovered OOIP
|
136,282
|
275,573
|
318,283
|
557,229
|
94,035
|
190,146
|
219,615
|
384,488
|
|
Total Badheart
undiscovered OOIP
|
47,330
|
84,295
|
92,955
|
150,127
|
39,985
|
71,212
|
78,529
|
126,828
|
|
Total undiscovered
OGIP(5)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Total undiscovered
PIIP
|
183,613
|
359,868
|
411,238
|
707,357
|
134,020
|
261,358
|
298,144
|
511,316
|
Total unrisked
PIIP(4)
|
324,591
|
612,748
|
690,764
|
1,160,959
|
258,969
|
485,485
|
545,888
|
913,344
|
(1)
|
Effective May 1,
2017. The volumes in this table, other than cumulative production
and reserves, have been presented on an unrisked basis, meaning
that they have not been adjusted for the chance of commerciality.
The unrisked PIIP includes several oil pools which may or may not
been in geological communication. At present, five separate oil
pools have been identified, but overtime, these may, in fact, prove
to be in communication. The in place hydrocarbon volumes thus
represent an arithmetic addition of all identified accumulations.
Volumes include reserves assigned to existing horizontal wells by
Sproule effective December 31, 2016. Reserves are included in the
above table for completeness; however, reserves were not the focus
of the Resource Assessment.
|
(2)
|
Boe equivalent
(includes oil and gas production from the Study Area).
|
(3)
|
Remaining volumes
from Sproule Report less produced volumes from January 1, 2017 to
May 1, 2017.
|
(4)
|
Low case reflects
proved reserves, best and high cases reflect proved plus probable
reserves contained in the Sproule Report.
|
(5)
|
Volume reflects free
gas only (none in evaluated reservoir or Study Area).
|
The following table sets forth working interest risked resources
within the Cardium and Badheart formations, as at May 1, 2017.
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Categorization
|
Project Maturity
Subclass
|
P90
(MBoe)
|
P50
(MBoe)
|
P10
(MBoe)
|
Cardium -
Contingent
|
Development
Pending
|
10,556
|
22,016
|
46,308
|
Cardium -
Prospective
|
Prospect
|
7,367
|
17,098
|
39,689
|
Badheart -
Prospective
|
Prospect
|
3,258
|
6,863
|
14,471
|
Total -
Prospective
|
|
10,625
|
23,961
|
54,160
|
(1)
|
Contingent resources
are discovered volumes and only carry a "chance of development"
risk. The chance of development associated with Ikkuma's contingent
resource volumes has been estimated to be 90%. The chance of
commerciality for prospective resources is equal to the product of
the chance of discovery and the chance of development. "Chance of
discovery" is the estimated probability that exploration activities
will confirm the existence of a significant accumulation of
potentially recoverable petroleum. "Chance of development" is the
estimated probability that, once discovered, a known accumulation
will be commercially developed. The chance of commerciality for
prospective resources was estimated to be 81% for the Cardium and
65% for the Badheart based on a Chance of development of 90% and a
Chance of discovery of 90% for the Cardium and 72% for the
Badheart. The above numbers also take into account Ikkuma's high
working interest and operatorship of its assets as Ikkuma is not
subject to the priorities of working interest partners for such
assets.
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The following table sets forth the net present value of future
net revenue of Ikkuma's best estimate (P50) risked contingent
resources in the development pending project maturity sub‐class at
May 1, 2017, using Sproule's
March 31, 2017 (Q2 2017) price deck
(https://www.sproule.com/insights/sproule-price-forecasts).
|
|
Resources
Project
Maturity Sub-Class(1,2,3)
|
Risked Net Present
Value of Future Net Value, Before Income Taxes
Discounted at (%/year)
|
0% ($MM)
|
5% ($MM)
|
10% ($MM)
|
15% ($MM)
|
Cardium – Development
Pending
|
$674.2
|
$419.1
|
$269.7
|
$178.6
|
(1)
|
The net present value
of future net revenue attributable to Ikkuma's development pending
contingent resources is based on Sproule's Q2 2017 price deck and
is determined before provision for interest, debt servicing and
general and administrative expense and after the deduction of
royalties, operating costs, development costs and abandonment and
reclamation. An estimate of risked net present value of future net
revenue of contingent resources is preliminary in nature and is
provided to assist the reader in reaching an opinion on the merit
and likelihood of Ikkuma proceeding with the required investment.
It includes contingent resources that are considered too uncertain
with respect to the Chance of development to be classified as
reserves. There is no certainty that the estimate or risked net
present value of future net revenue will be realized.
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(2)
|
The NPV calculations
include provisions for royalty reductions under Alberta's
Modernized Royalty Framework. Under these incentives, a 5%
minimum royalty is applied until the well revenue stream (before
deductions) is greater than the calculated capital allocation of
the well based on several variables, such as depth, lateral length,
and frack volume tonnage. These calculations are outlined by the
Alberta Government and are applied to new wells on crown lands.
Once the revenue stream, added over a certain time, surpasses
capital for drilling and completion, a sliding scale royalty is
applied, based on price and volume, which is also outlined in
Alberta's Modernized Royalty Framework.
|
The results of Ikkuma's initial 2 well program, proven and
probable reserves bookings were listed in the Sproule Report.
Initial production rates in this report exceed economic hurdles;
thus, there is 100% chance of occurrence for 2017-2018 development.
With present day price forecasts that extend beyond the 8 year
development period, availability of drilling and completion
technology and a review of the current regulatory and environmental
landscape, Ikkuma believes there is little to no risk on
development for the next 1 to 5 year period. Should any of the
above mentioned assumptions change into the future and effect the
chance of occurrence, the Resource Assessment will be revised. The
Chance of development is considered to be 90% for the contingent
resources in the Cardium based on the high likelihood of internal
approval. As such, the economic analysis has incorporated the
Chance of development in the financial results of the development
plan discussed below. Economics are not estimated for the
prospective Cardium or Badheart resource.
The primary contingencies that prevent the contingent resources
from being classified as reserves are internal approvals and timing
for development. Upcoming development in the area could
result in an ongoing movement of contingent resources to reserves
or prospective resources to contingent. Ikkuma is focused on
delineating this fairway and, as such, the prospective resources
will be tested in the near term in an effort to classify these
resources as contingent. Ikkuma has modeled a reasonable
expectation for the development of the Development Pending
contingent resources. Current and future drilling results in the
Cardium play could change expected future hydrocarbon recovery and
have a material impact on resource volumes, classifications and
economic values presented in the Resource Assessment.
Significant positive factors relevant to the estimate of the
Corporation's resources include: existing exploration success rate
at intersecting the reservoir; refinement of the geological model
within and outside of the Study Area by the Corporation and nearby
industry competitors; and the same drilling and completion
techniques are intended to be used by the Corporation to develop
these resources. Significant negative factors relevant to the
estimate of the Corporation's resources include: the limited number
of wells on the Corporation's acreage; the possibility of
inter-well communication from infill drilling; in respect of the
Badheart reservoir, there being no proven oil pools in the
immediate vicinity and lack of naturally occurring mobile water in
the reservoir makes the calculation of water saturation uncertain;
limitations in take-away/midstream capacity to deliver the
resources to market; and uncertainty in assumptions about the
geometry of hydraulic facture stimulations and associated recovery
factors.
Development Plans
Ikkuma plans to develop the remaining resources in the Cardium
and Badheart formations utilizing horizontal drilling techniques,
multi-well pads, and multi-stage fracture stimulations. A
horizontal drilling program for the Cardium Formation in the
Narraway area has commenced with four horizontal wells drilled to
date. Based on the production performance of Ikkuma's initial
horizontal wells and the proved plus probable reserves as set forth
in the Sproule Report, a production type curve has been created.
This type curve has been used to model the economics of a
development plan that encompasses Ikkuma's contingent land base
(i.e., all resource volumes that classify as Development
Pending).
Based on 39 contingent resource sections and a well density of 4
wells per section, the development plan consists of 156 wells over
an 8 year period beginning with the first wells to be drilled in
2017 and the last wells to be drilled in 2024. The total estimated
cost required to achieve commercial production in respect of the
156 well drilling inventory for the contingent resources
(Development Pending) is approximately $421.2 million.
OUTLOOK
Under the appropriate financial conditions, and depending on the
results of the first 4 – 8 wells, the Corporation may continue with
a multiyear Cardium oil well program within the Narraway asset that
would include the drilling of at least 8 oil wells in 2018 and 16
oil wells in 2019. Under a success case, the project becomes
near self-funding within the latter part of 2019. However,
the project is still in its early phases of development and more
specific guidance regarding capital spending will be released
following future well results.
CHANGE OF OFFICER
The Corporation also reports that Kavanagh Mannas will no longer
be serving as the Vice President, Operations of the Corporation and
is focusing on other opportunities. The Corporation wishes
Mr. Mannas all the best in his future endeavors. Yvonne Mcleod, Senior Vice President
Engineering, will assume the responsibilities for this
position.
PRESENTATION OF OIL AND GAS RESOURCES
Estimates of future net revenue, whether calculated without
discount or using a discount rate, do not represent fair market
value. With respect to the discovered resources (including
contingent resources) disclosed in this press release, there is
uncertainty that it will be commercially viable to produce any
portion of the resources. With respect to the undiscovered
resources (including prospective resources) disclosed in this press
release, there is no certainty that any portion of the resources
will be discovered. If discovered, there is no certainty that it
will be commercially viable to produce any portion of the
resources.
Certain resource estimate volumes disclosed herein are
arithmetic sums of multiple estimates of contingent or prospective
resources and reserves, which statistical principles indicate may
be misleading as to volumes that may actually be recovered. Readers
should give attention to the estimates of individual classes of
resources or reserves and appreciate the differing probabilities of
recovery associated with each class as explained below or in the
AIF.
Resources and Production
Resources encompass all petroleum quantities that originally
existed on or within the earth's crust in naturally occurring
accumulations, including discovered and undiscovered (recoverable
and unrecoverable) plus quantities already produced. Resources are
classified as follows:
(1)
|
Total PIIP is that
quantity of petroleum that is estimated to exist originally in
naturally occurring accumulations. It includes that quantity of
petroleum that is estimated, as of a given date, to be contained in
known accumulations, prior to production, plus those estimated
quantities in accumulations yet to be discovered. "Total resources"
is equivalent to "total PIIP".
|
|
|
(2)
|
Discovered PIIP is
that quantity of petroleum that is estimated, as of a given date,
to be contained in known accumulations prior to production. The
recoverable portion of discovered PIIP includes production,
reserves and contingent resources; the remainder is
unrecoverable.
|
|
|
(3)
|
Contingent resources
are those quantities of petroleum estimated, as of a given date, to
be potentially recoverable from known accumulations using
established technology or technology under development, but which
are not currently considered to be commercially recoverable due to
one or more contingencies.
|
|
|
(4)
|
Undiscovered PIIP is
that quantity of petroleum that is estimated, on a given date, to
be contained in accumulations yet to be discovered. The recoverable
portion of undiscovered PIIP is referred to as prospective
resources; the remainder is unrecoverable.
|
|
|
(5)
|
Prospective resources
are those quantities of petroleum estimated, as of a given date, to
be potentially recoverable from undiscovered accumulations by
application of future development projects
|
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|
(6)
|
Unrecoverable is that
portion of discovered and undiscovered PIIP quantities which is
estimated, as of a given date, not to be recoverable by future
development projects. A portion of these quantities may become
recoverable in the future as commercial circumstances change or
technological developments occur; the remaining portion may never
be recovered due to the physical/chemical constraints represented
by subsurface interaction of fluids and reservoir rocks.
|
|
|
(7)
|
Production is the
cumulative quantity of petroleum that has been recovered at a given
date.
|
Uncertainty Ranges for Resources
Estimates of resource volumes can be categorized according to
the range of uncertainty associated with the estimates. Uncertainty
ranges are described in the COGE Handbook as low, best and high
estimates as follows:
(1)
|
A "low estimate" is
considered to be a conservative estimate of the quantity that will
actually be recovered. It is likely that the actual remaining
quantities recovered will exceed the low estimate. If probabilistic
methods are used, there should be at least a 90% probability (P90)
that the quantities actually recovered will equal or exceed the low
estimate.
|
|
|
(2)
|
A "best estimate" is
considered to be the best estimate of the quantity that will
actually be recovered. It is equally likely that the actual
remaining quantities recovered will be greater or less than the
best estimate. If probabilistic methods are used, there should be
at least a 50% probability (P50) that the quantities actually
recovered will equal or exceed the best estimate.
|
|
|
(3)
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A "high estimate" is
considered to be an optimistic estimate of the quantity that will
actually be recovered. It is unlikely that the actual remaining
quantities recovered will exceed the high estimate. If
probabilistic methods are used, there should be at least a 10%
probability (P10) that the quantities actually recovered will equal
or exceed the high estimate.
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Project Maturity Sub‐classes for
Resources
The project maturity sub‐classes for contingent resources are
"development pending", "development on hold", "development
unclarified" or "development not viable", all as defined in the
COGE Handbook. "Development pending" is when resolution of the
final conditions for development is being actively pursued (high
chance of development). "Development on hold" is when there is a
reasonable chance of development, but there are major non‐technical
contingencies to be resolved that are usually beyond the control of
the operator. "Development unclarified" is when the evaluation is
incomplete and there is ongoing activity to resolve any risks or
uncertainties. "Development not viable" is when no further data
acquisition or evaluation is currently planned and hence there is a
low chance of development.
The project maturity sub‐classes for prospective resources are
"prospect", "lead" and "play", all as defined in the COGE Handbook.
A "prospect" is defined as a potential accumulation within a play
that is sufficiently well defined to represent a viable drilling
target. A "lead" is defined as a potential accumulation within a
play that requires more data acquisition and/or evaluation in order
to be classified as a prospect. A "play" is defined as a family of
geologically similar fields, discoveries, prospects and leads.
Interest in Reserves, Resources, Production, Wells and
Properties
"Gross" means 100% working interest in production,
reserves or resources prior to deduction of royalty
obligations.
"Working interest" means in relation to Ikkuma's interest
in production, reserves or resources, Ikkuma's working interest
(operating or non‐operating) share prior deduction of royalty
obligations, plus Ikkuma's royalty interests in production or
reserves.
About Ikkuma Resources Corp.
Ikkuma Resources Corp. is a diversified junior public oil and
gas company listed on the TSX Venture Exchange under the symbol
"IKM", with holdings in both conventional and unconventional
projects in Western Canada. The technical team has worked
together for over a decade in the Foothills Region of Western Canada, through two successful,
publicly traded companies. The unique skills and repeat
success at exploiting a complex, potentially prolific play type are
fundamental ingredients for a successful growth-oriented company in
Western Canada. Corporate information can be found at:
www.ikkumarescorp.com.
Forward-Looking Statements and Information and Cautionary
Statements
This press release contains forward‑looking statements and
forward‑looking information within the meaning of applicable
securities laws. The use of any of the words "expect",
"anticipate", "continue", "estimate", "objective", "ongoing",
"may", "will", "project", "should", "believe", "plans", "intends"
and similar expressions are intended to identify forward‑looking
statements or information. In particular the press release
contains forward-looking statements and information relating its
anticipated future operations, including the multiyear Cardium oil
well program and estimated costs related thereto, future
self-funding ability of the project and estimates of reserves,
resources and the net present value of future net revenue
associated with the best estimate of the Corporation's development
pending contingent resources. Although Ikkuma believes that the
expectations and assumptions on which the forward‑looking
statements and information are based are reasonable, undue reliance
should not be placed on the forward‑looking statements and
information because Ikkuma cannot give any assurance that they will
prove to be correct. Since forward‑looking statements and
information address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Actual
results could differ materially from those currently anticipated
due to a number of factors, assumptions and risk. These
include but are not limited to the risks associated with the oil
and gas industry in general (e.g., operational risks in
development, exploration and production; delays or changes in plans
with respect to exploration or development projects or capital
expenditures; the uncertainty of reserve and resource estimates;
the uncertainty of estimates and projections relating to
production, costs and expenses; failure to obtain necessary
regulatory approvals for planned operations; health, safety and
environmental risks; uncertainties resulting from potential delays
or changes in plans with respect to exploration or development
projects or capital expenditures; volatility of commodity prices,
currency exchange rate fluctuations; imprecision of reserve
estimates; and competition from other explorers) as well as general
economic conditions, stock market volatility, and the ability to
access sufficient capital and the validity of the data used by the
qualified reserves evaluators in their evaluations, which includes
technical information and forecast commodity prices. We
caution that the foregoing list of risks and uncertainties is not
exhaustive. The recovery and reserve and resource estimates
contained in this press release are estimates only and there is no
guarantee that the estimated reserves and resources will be
recovered.
In addition, the reader is cautioned that historical results
are not necessarily indicative of future performance. The
forward-looking statements and information contained in this press
release are made as of the date hereof and Ikkuma undertakes no
obligation to update publicly or revise any forward‑looking
statement or information, whether as a result of new information,
future events or otherwise, unless so required by applicable
securities laws.
Oil and Gas Advisory
In this press release, the abbreviation boe means a barrel of
oil equivalent derived by converting gas to oil in the ratio of 6
Mcf of gas to 1 bbl of oil (6 Mcf:1 bbl). Boes may be
misleading, particularly if used in isolation. A boe
conversion ratio of 6 Mcf:1 bbl is based on an energy equivalency
conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead. Given that
the value ratio based on the current price of crude oil as compared
to natural gas is significantly different from the energy
equivalency of 6 Mcf:1 bbl, utilizing a conversion ratio on a 6 Mcf
of gas to 1 bbl of oil basis may be misleading as an indication of
value.
Neither 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 release.
SOURCE Ikkuma Resources Corp.