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Kelt Provides Results of Its Oil & Gas Reserves Evaluation Effective December 31, 2020
Calgary, Alberta--(Newsfile Corp. - February 25, 2021) - Kelt Exploration Ltd. (TSX: KEL) ("Ke...
About this update from Kelt Exploration Ltd.
[{"type":"text","content":"Kelt Provides Results of Its Oil & Gas Reserves Evaluation Effective December 31, 2020Calgary, Alberta--(Newsfile Corp. - February 25, 2021) - Kelt Exploration Ltd. (TSX: KEL) (\"Kelt\" or the \"Company\") is pleased to report on its oil & gas reserves and production for the year ended December 31, 2020. Kelt retained Sproule Associates Limited (\"Sproule\"), an independent qualified reserve evaluator to prepare a report on its oil and gas reserves.The report is effective as of December 31, 2020. The Company has a Reserves Committee which oversees the selection, qualifications and reporting procedures of the independent qualified reserves evaluator. Reserves as at December 31, 2020 and at December 31, 2019 were determined using the guidelines and definitions set out under National Instrument 51-101 (\"NI 51-101\"). Additional reserves disclosure as required under NI 51-101 will be included in Kelt's Annual Information Form which will be filed on SEDAR on or before March 31, 2021.The audit of Kelt's 2020 annual consolidated financial statements has not been completed and accordingly all financial amounts relating to 2020 referred to in this press release are unaudited and represent management's estimates. Readers are advised that these financial estimates are subject to audit and may be subject to change.On August 21, 2020, Kelt completed the sale of its Inga/Fireweed/Stoddart assets (the \"Inga Assets\"), one of the Company's four main divisions. During 2020, primarily during the period subsequent to the sale of the Inga Assets, Kelt was active operationally in its remaining three main divisions, resulting in increases in all categories of reserves compared to the previous year, despite a significant reduction in Sproule's future commodity price forecasts that resulted in negative reserve revisions due to economic factors in the 2020 reserve report. Crude oil prices have moved significantly higher subsequent to December 31, 2020 and based on current prices, a significant portion of reserves that were written down due to economic factors would be reinstated.Superior well performance and an improved cost structure led to significant positive technical revisions in the December 31, 2020 report. Refer to the table under the paragraph entitled \"Reserves Reconciliation\" for detailed information relating to reserve changes, by ca...