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Storm Cat Energy Corporation Announces 2006 Net Proved Reserve Estimates
Storm Cat Energy Corporation Announces 2006 Net Proved Reserve Estimates.
About this update from Sama Resources Inc.
[{"type":"text","content":"\n\n\n\n-- Proven net reserves increase 150% over 2005\n\n\n-- Proved developed net reserves increase 244% over 2005\n\n\n-- Average daily production increases 132% over 2005\n\n\nDENVER & CALGARY, ALBERTA, February 27 /CNW/ - Storm Cat Energy\nCorporation (AMEX: SCU; TSX: SME) today announced 2006 proved reserve\nestimates.\n\n\n2006 Year-end Reserve Estimates\n\n\nAt year-end 2006 Storm Cat had proven net reserves of 25.0 billion cubic\nfeet (Bcf), probable reserves of 5.9 Bcf and possible reserves of 26.4 Bcf.\nApproximately 54% of the proven reserves were classified as proved developed.\nThe 2006 estimated quantities of proven reserves are 150% higher than year-end\n2005 proven reserves of 10.0 Bcf. In addition, Storm Cat increased proved\ndeveloped reserves by 244% at year-end 2006. All of Storm Cat's reserves are\nlocated in the Powder River Basin (PRB).\n\n\nStorm Cat's estimated, pre-tax future net cash flows discounted at 10%\n(commonly known as the SEC PV-10 figure) for proved reserves at year-end was\n$32.04 million The 2006 PV-10 calculation used net year-end Colorado\nInterstate Gas (CIG) commodity prices of $4.46 per thousand British thermal\nunits (Mbtu) of natural gas as compared to year end 2005 SEC CIG price of\n$7.72 per Mbtu of natural gas. The PV-10 calculation does not include Storm\nCat's financial hedges which are substantially higher than year end SEC CIG\nprices. All reserve estimates are based on an evaluation of the reserves\nprepared by independent reservoir engineering consultants, Netherland Sewell\nand Associates. All reserves conform to the definitions as set forth in the\nSEC Regulation S-X Part 210.4-10 (a) as clarified by subsequent SEC Staff\nAccounting bulletins. The proved reserves are also in accordance with\nFinancial Accounting Standards Board Statement No. 69 requirements.\n\n\nIn addition to the SEC proved reserve report, the Company also estimated\nyear end proven, possible and probable reserves using current strip pricing.\nUsing current strip pricing, proven reserves were 28.7 Bcf, probable reserves\nwere 9.0 Bcf and possible reserves were 28.2 Bcf. The PV-10 calculation using\ncurrent strip pricing was $75.299 million for proven reserves.\n\n\n Storm Cat Energy Corp.\n Reserves\n December 31, 2006\n\nSEC CIG Pricing - $4.46 per Mbtu\n\n Net Gas PV 10\nReserve Category (Bcf) (MM...