CALGARY, April 20 /CNW/ - Result Energy Inc. ("Result", TSX Venture: RTE) is pleased to announce that it achieved 45% year-over-year growth in total proven oil and natural gas reserves, and 57% growth in total proved plus probable ("P + PA") reserves at December 31, 2006. Factoring in 2006 production volumes, the net increases were 66% for proven and 71% for P+PA reserves.
A summary of Result reserve volumes and net present values under NI 51-101
are as follows:
Reserve volumes (gross, Forecast prices case)
%
As at December 31 2006 2005 change
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Mmcfe Mmcfe
Total Proved 12,210.3 8,450.1 44.5%
Probable additional reserves 8,377.3 4,650.6 80.1%
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Proved plus probable additional
reserves ("P + PA") 20,587.6 13,100.7 57.1%
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Mstb Mstb
P + PA reserves, on a boe basis 3,431.3 2,183.5 57.1%
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Dec 31, 2006 Net Present Values ("NPV", pre tax)
Forecast prices and Costs
case ($ millions) 0% 5% 10%
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Total proved 48.3 38.3 32.0
Probable additional 39.2 23.0 15.7
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Total P + PA 87.5 61.3 47.7
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The above table represents estimated NPVs for the Company's oil & gas
reserves only, and do not include the value of undeveloped land, seismic data,
and income tax pools. The Company's full NI 51-101 F1 report on oil and
natural gas reserves will be available for review on SEDAR.
Finding & Development ("F&D") costs - based on the total reserve
additions, Result continued to deliver exceptionally low F&D costs in 2006.
2006 3-Year Average
Proved plus Probable reserves
-----------------------------
including future capital $ 13.42/boe $ 13.14/boe
excluding future capital $ 10.59/boe $ 11.78/boe
Proved reserves
---------------
including future development capital $ 20.87/boe $ 19.85/boe
excluding future capital $ 17.84/boe $ 18.39/boe
Financial highlights 2006 2005 2004
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Total assets $41,116,693 $30,645,344 $14,931,859
Revenue, before royalties 11,287,611 8,019,864 3,409,213
Net income (loss) for the period (2,487,940) (744,009) (107,290)
Net income (loss)
per share - basic (0.05) (0.02) (0.00)
Cash flow from operations 4,057,170 2,667,371 1,379,720
Cash flow per share - basic $0.09 $0.08 $0.06
Shares outstanding for the year -
weighted average, basic 47,162,684 34,535,639 22,147,950
Total shares outstanding
as at year-end 47,658,138 36,021,650 31,970,637
Result also is pleased to announce the following updates:
- Result's current field estimated production volume is
approximately 1,425 boed, including approximately 115 boed of new
gas volumes which were recently added in the Company's Clearhills,
Alberta project area. Approximately 50 boed has been shut-in in
the greater Peace River Arch area due to wet surface conditions.
- Result carries an inventory of approximately 70 development and
exploration locations. Subject to access conditions and rig
availability, at least 15 of these locations are expected to be
drilled during the balance of 2007.
- Result's existing bank revolving credit facility is in process of
an annual review, and based on expanded reserve volumes, it is
anticipated that the facility will be expanded from its current
limit of $12.5 million to at least $14 million. The bank facility,
plus increasing cash flow from operations, gives Result
flexibility in expanding exploration and development activities,
and pursuing potential property acquisitions.
- Bill Matheson, President & CEO, will be presenting at the upcoming
SEPAC Oil & Gas Investor conference in Calgary (Westin Hotel) on
May 30, 2007.
- Result's Annual General Meeting will be held at the Calgary
Petroleum Club on May 29, 2007 at 3:00 PM
"Gross" totals represent the Company's working interest share of reserves, before deduction of royalty interests. Estimated Net Present Values ("NPV") are prepared under NI 51-101 for both a Forecast prices and costs and a Constant prices and costs scenario, and such values are prior to the provision for income taxes, interest, debt service charges, and general and administrative expenses. Actual oil and natural gas reserves and future production of the disclosed oil and natural gas reserves does not represent the fair market value of these reserves. Result has applied the industry standard of converting natural gas volumes at six thousand cubic feet per barrel (6 mcf/bbl) of natural gas to barrels of oil equivalence ("boe"). Boe units may be misleading, particularly if used in isolation. "Mmcfe" is defined as a million cubic feet equivalent (and is used herein to convert reserves of oil, natural gas, and natural gas liquids to a common measure).
Investors are cautioned that this news release contains forward looking information. Such information is subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, as no assurances can be given as to future results, levels of activity or achievements.
Result Energy Inc. is a publicly traded Canadian energy company involved in the exploration and development of oil and gas properties in western Canada. Result trades on the TSX Venture Exchange under the symbol "RTE".
The TSX Venture Exchange does not accept responsibility for the adequacy
and accuracy of this release.
%SEDAR: 00012334E