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Mystique Energy Almost Triples P+P Reserves during 2006
Mystique Energy Almost Triples P+P Reserves during 2006.
About this update from Abrasilver Resource Corp.
[{"type":"text","content":"\n\n\n\nCALGARY, Jan. 31 /CNW/ - Mystique Energy, Inc. (\"Mystique\") (TSXV: MYS)\ntoday announced that, as a result of its successful 2006 exploration drilling\nprogram, its proved plus probable (\"P+P\") reserves have almost tripled during\n2006.\n\n\nP+P reserves have increased 2.8 times (180 per cent) from 905 thousand\nbarrels of oil equivalent (\"Mboe\") to 2,530 Mboe, after having produced\n115 Mboe during 2006. Based on a year-end production rate of 550 barrels of\noil equivalent per day (\"boepd\"), Mystique's P+P reserves life index (\"RLI\")\nis 12.6 years.\n\n\nProved reserves increased by 40 per cent from 595 Mboe to 835 Mboe. The\naddition of proved reserves replaced 2006 production by more than three times.\nProbable reserves increased more than five times from 310 Mboe to 1690 Mboe.\n\n\nAccording to Mystique President Vic Luhowy, \"The increase in our\nproduction from 220 boepd in January, 2006 to 550 boepd during December of\n2006 reflects the increase in our proved reserves during 2006. The significant\nincrease in our probable reserves (445 percent) sets the stage for continued\ngrowth in Mystique's future production that could result from our development\ndrilling program. The higher probability of success associated with the lower\nrisk development drilling program improves our potential for continued\ngrowth.\"\n\n\nMystique's reserves were evaluated by McDaniel & Associates Consultants\nLtd., effective 2006-12-31. Details of the reserves report will be filed on\nSEDAR shortly.\n\n\nOperations Update:\n\n\nMystique curtailed capital expenditures in early November of 2006 as it\nbegan a program to reduce its debt. Production has remained relatively stable\nat approximately 540 boepd, down slightly from a peak of over 550 boepd\nachieved during November, 2006.\n\n\nOne of the steps to reduce debt, the sale of the Garrington assets as\nannounced in Mystique's press release of November 29, 2006, is expected to\nconclude in late February. The sale of Garrington would reduce Mystique's\nproduction by 90 boepd and proved reserves by 175 Mboe. The Garrington assets\nare not material to Mystique's future growth.\n\n\nAs a result of its successful exploration program completed in 2006,\nMystique has developed four development drilling plays on its lands, with\nfurther regional extent and potential. Fifteen devel...