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WCE Reserves Value Increases to $30.2 Million
WCE Reserves Value Increases to $30.2 Million
About this update from Wescan Energy Corp.
[{"type":"text","content":"WCE Reserves Value Increases to $30.2 Million\n\n\n\nWCE Reserves Value Increases to $30.2 Million\n\nCalgary, Alberta CANADA, August 20, 2008 /FSC/ - Western Canada Energy Inc. (WCE - TSX Venture), \n\nThe value of oil and natural gas reserves for Western Canada Energy Ltd. (\"WCE\" or the \"Company\") increased by more than 40% to $30.2 million discounted at 10% in a reserve update prepared by Fekete & Associates using their July 1, 2008 pricing forecast. Net of production over the first six months of 2008 and two minor property dispositions, proved producing reserves are 202,700 barrels of oil, 1.017 bcf of natural gas, and 13,200 barrels of natural gas liquids. Proved non-producing plus probable reserves are 238,300 barrels of oil, 1.569 bcf of natural gas, and 11,100 barrels of natural gas liquids. With total debt of $7.3 million and 27,968,476 shares outstanding, the Company's asset value computes to $1.08 per share while net asset value computes to $0.82 per share**. On a weighted average basis, shares of WCE have traded at $0.11 on the TSX Venture Exchange over the last month. \n\nWCE was formed by the amalgamation of Blackpool Exploration Ltd. and Westbow Energy Inc. at March 31, 2008. At year-end 2007, Fekete & Associates evaluated Blackpool's total reserves with a value of $12,785,000 using a 10% discount factor and based on proved producing reserves of 168,800 barrels of oil, 465 mmcf of natural gas, and 3,600 barrels of natural gas liquids, and proved non-producing plus probable reserves of 139,000 barrels of oil, 1.149 bcf of natural gas, and 2,700 barrels of natural gas liquids. At year-end 2007, Fekete also evaluated Westbow reserves with a value of $9,554,900 discounted at 10% comprised of proved producing reserves of 52,900 barrels of oil, 556 mmcf of natural gas, and 9,300 barrels of natural gas liquids, and proved non-producing plus probable reserves of 101,400 barrels of oil, 1.008 bcf of natural gas, and 11,900 barrels of natural gas liquids.\n\nWestern Canada Energy Ltd. explores for oil and natural gas within the province of Alberta. Current total production is approximately 250 barrels of oil equivalent per day*. The Company's land inventory of more than 20,000 net acres in the Peace River Arch a...