NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
CALGARY, Aug. 6 /CNW/ - DualEx Energy International Inc. (DXE, TSX-V), through its wholly owned subsidiary, Winslow Resources Inc., ("Winslow") is pleased to announce that it has settled and finalized its outstanding legal claim with regard to a producing gas property in southwest Saskatchewan.
Pursuant to the Settlement Agreement, varying working interests in rights below the base of the Milk River formation in approximately 40 sections of contiguous land in the Leader area reverted back to Winslow. Included in the property is an 18.75% non-operated working interest in a recently discovered Viking natural gas pool, with three wells currently producing at a restricted rate of 1.77 MMcf/day (55 BOE/day net to Winslow). As part of the settlement terms, Winslow agreed to fund approximately $500,000 of infrastructure and facility costs.
Martin & Brusset Associates has undertaken an independent reserve evaluation of the property and has provided a NI 51-101 compliant reserve report, effective June 30, 2009, outlining Company interest proved developed producing ("PDP") reserves of 372 MMcf and Company interest proved plus probable ("P+P") reserves of 780 MMcf, and a corresponding estimated net present value of $2.6MM, discounted at 10% (such estimated value does not represent fair market value).
DualEx will be reviewing this property's role in the context of its predominantly internationally focused portfolio, which may include further development and/or exploration drilling, or divestiture.
Garry Hides, DualEx's President and CEO, commented, "We are very pleased with the settlement of this outstanding claim. Notwithstanding this asset is outside our primary focus area, it is certainly accretive to our shareholders. Acquisition metrics are very attractive at approximately $9,100 per flowing BOE/day and $8.06 per PDP BOE reserves ($3.84 per P+P BOE reserves)."
DualEx Energy International Inc. is an oil and gas exploration company with operations in the greater Mediterranean area. DualEx's common shares trade on the TSX Venture Exchange under the symbol "DXE".
Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this news release contains forward looking statements and information concerning DualEx's future operations and prospects. The forward-looking statements and information are based on certain key expectations and assumptions made by DualEx, including expectations and assumptions concerning equipment and crew availability, and joint venture partner financial capability. Although DualEx believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because DualEx can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause DualEx's actual results and experience to differ materially from the anticipated results or expectations expressed. These risks and uncertainties include, but are not limited to, reservoir performance, labour, equipment and material costs, access to capital markets, interest and currency exchange rates, and political and economic conditions. Additional information on these and other factors is available in continuous disclosure materials filed by DualEx with Canadian securities regulators. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this news release or otherwise, and to not use future-oriented information or financial outlooks for anything other than their intended purpose. DualEx undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
Glossary: "MMcf": million cubic feet. "Mcf": thousand cubic feet. "BOE": barrels of oil equivalent, calculated at six Mcf to one barrel, based on energy equivalency. BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf:1 barrel is based on a energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
%SEDAR: 00023802E