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Sugarloaf Project, Independent reserves report
Sugarloaf Project, Independent reserves report.
About this update from Empyrean Energy Plc
[{"type":"text","content":"\n \n\n\n\n\n\nRNS Number : 5964C Empyrean Energy PLC 09 March 2011 \n \n\n \n9 March 2011\n \nEmpyrean Energy PLC\n(\"Empyrean\" or the \"Company\"; Ticker (EME))\n \nSugarloaf Project, (\"Sugarloaf\"), Block B, Texas USA\n \nIndependent Reserves Report\n \n· Independent reserve assessment received for the Sugarloaf Project\n· Report has NPV (10%) to Empyrean of 3P reserves of US$77.6 million\n· Report shows future net revenue to Empyrean totalling US$179.7 million\n \nEmpyrean is pleased to report that independent petroleum consultants, Netherland Sewell & Associates, Inc. (\"NSAI\"), of Houston, Texas have completed estimates of petroleum reserves and future revenues for Empyrean's interest in the Sugarloaf Project. Their report has an effective date of 31 December 2010.\nThe following reserve allocations have been made by NSAI:\n· Total proved (1P) reserves - 608,050 bbls of crude oil condensate, 2.72 billion cubic feet (\"Bcf\") of natural gas net to Empyrean and Net Present Value of future net revenue, before income taxes, discounted at 10% (\"NPV(10)\") of US$24.6 million\n· Total proved plus probable (2P) reserves - 1,324,014 bbls of crude oil condensate, 5.98 Bcf of natural gas net to Empyrean and NPV(10) of US$46.7million\n· Total proved plus probable plus possible (3P) reserves - 2,612,129 bbls of crude oil condensate, 11.99 Bcf of natural gas net to Empyrean and NPV(10) of US$77.6 million\n \nKey Points\n· The report is based on the field status of 9 producing wells as at 31 December 2010.\n· NSAI have assumed a full field development of 283 wells on 80 acre well spacing. This number may increase if tighter spacing proves to be viable.\n· The economic model generated by NSAI assumes a NYMEX West Texas Intermediate and Henry Hub forward commodity pricing strip curve from 31 December 2010. Oil and Gas prices have then been adjusted for the high calorific value of the gas, transportation and regional price variations.\n· With the planned development program thru 2011, the Empyrean board believes that a large portion of possible reserves will be converted into the 2P category during 2011.\n \n&n...