Business
Compton reports year-end 2009 reserves
Compton reports year-end 2009 reserves
About this update from Cullinan Metals Corp
[{"type":"text","content":"\n\n\n\nFeb. 26, 2010 (Canada NewsWire Group) -- CALGARY, Feb. 26 /CNW/ -- Compton Petroleum Corporation (TSX - CMT, NYSE - CMZ) reports estimated reserve volumes together with the net present value of its reserves as at December 31, 2009. Netherland, Sewell & Associates, Inc., Compton's independent reserve evaluators, have completed an evaluation of 100% of the Corporation's petroleum and natural gas reserves as at December 31, 2009 in accordance with the provisions of National Instrument 51-101.Summary Results:Reserves experienced a downward revision mainly due to Compton's investment strategy of managing its capital expenditure program within available cash flow. In addition, some proved undeveloped producing and probable reserves in the Plains Belly River area were moved to the possible category until Management completes a reserve review to determine optimal drainage requirements. These technical revisions had a minor impact on reserve values. Value changes were mainly due to changes in the commodity price deck and the inclusion of a 5% overriding royalty in 2009.- Total proved reserves declined by 21% while reservevalue declined by 31% from 2008:- The reserve reduction was due 52% to performance and 30% to thePlains Belly River reductions;- The value reduction was due 58% to the change in price deckand 30% to the inclusion of the overriding royalty;- Proved plus probable reserves declined by 24% with an associatedvalue reduction of 34%:- Performance accounted for 30% of the reserve reduction with 48%attributed to the Plains Belly River reductions;- 53% of the value reduction was due to the revised price deckwith another 31% due to the inclusion of the overriding royalty;- Proved reserves comprise 59% of total proved plus probable reserves,a slight increase from 2008;- Extensions added 0.7 MMBoe to proved reserves and 2.0 MMBoe to provedplus probable reserves;- Proved reserve life index (\"RLI\") is 13.6 years and proved plusprobable RLI is 22.9 years;- Average production was 20,922 boed for 2009;- Undeveloped land of 595,158 net acres was valued at $63.0 millionby an independent land evaluator; and- Net asset value was $1.91 per basic common share on a provedbasis and $4.07 per basic common share on a proved plus probablebasis, based on the independently estimated reserve value,outstanding debt as of December 31, 2009 and ...