TSX Venture: RTE
CALGARY, April 27 /CNW/ - Result Energy Inc. is pleased to announce that
it achieved 72% year-over-year growth in total proven oil and natural gas
reserves, and 67% growth in total proved plus probable ("P + PA") reserves at
December 31, 2005. Factoring in 2005 production, the net increases were 101%
for proven and 83% for P + PA reserves. A summary of Result reserve volumes
and net present values under NI 51-101 are as follows:
<<
Summary of oil and natural gas reserves (gross, Forecast prices case)
%
As at December 31 2005 2004 change
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Mmcfe Mmcfe
Proved developed producing 4,987.1 4,024.2 23.9%
Proved developed non-producing ("PDNP") 2,696.0 309.2 771.9%
Proved undeveloped 767.0 568.0 35.0%
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Total Proved 8,450.1 4,901.4 72.4%
Probable additional reserves 4,650.6 2,968.1 56.7%
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Proved plus probable additional reserves
("P + PA") 13,100.7 7,869.5 66.5%
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Mstb Mstb
P + PA reserves, on a boe basis 2,183.5 1,311.6 66.5%
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Net Present Values (pre tax) based on Forecast prices and Costs
Dec 31, 2005 Before tax present values discounted at
($ millions) 0% 5% 10% 15% 20%
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Proved
Developed producing 24.9 21.5 19.0 17.2 15.8
Developed non-producing 14.6 12.0 10.3 9.1 8.2
Undeveloped 3.2 2.3 1.7 1.3 1.0
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Total proved 42.7 35.8 31.0 27.6 25.0
Probable additional 25.1 15.5 11.4 9.1 7.7
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Total P + PA 67.8 51.3 42.4 36.7 32.7
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Net Present Values (pre tax) based on Constant prices and Costs
Dec 31, 2005 Before tax present values discounted at
($ millions) 0% 5% 10% 15% 20%
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Proved
Developed producing 30.1 24.2 20.4 17.9 16.0
Developed non-producing 16.2 12.9 10.8 9.3 8.2
Undeveloped 4.3 2.9 2.1 1.5 1.2
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Total proved 50.6 39.9 33.3 28.7 25.4
Probable additional 29.4 17.8 12.8 10.1 8.3
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Total P + PA 80.0 57.7 46.1 38.8 33.7
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The above tables represent estimated NPVs for the Company's oil & gas
reserves only, and do not include the value of undeveloped land, and income
tax pools.
As at the current date, Result has 47,658,138 common shares outstanding.
Result also is pleased to announce the following updates:
- based on Result's December 31, 2005 year-end reserve reports, the
Company's existing bank revolving credit facility is in process of
being expanded from $6.5 million to between $10 and $12 million. The
facility has an initial limit of $9 million, which is expected to
increase as wells which are currently shut-in are brought on stream.
This expanded bank facility will give Result flexibility in expanding
exploration and development activities, and pursuing potential
property acquisitions.
- in the Worsley area, one additional Leduc gas well (36.4% WI) was
drilled in Q1-06, and is planned to be completed and tested by the end
of June following break-up. A drilling rig is on site at an additional
location (50% WI), and awaiting road ban conditions to be removed
prior to commencing drilling operations. Two additional (0.8 net)
Worsley area locations will potentially be drilled in the Q2 through
Q3 period.
- Result currently has an inventory of 20 development and exploration
locations to be drilled in the south-west Saskatchewan core area.
Subject to satisfactory weather conditions and rig availability, at
least 8 (5.0 net) of these locations are anticipated to be drilled in
the Q2 through Q3 period. This includes a 2 section pilot project
which is being undertaken at Dodsland North to increase existing
Viking gas infill wells from 2 to 4 per section.
- Result constructed a 6 inch natural gas gathering pipeline system
prior to spring break-up at Clearhills Alberta. This pipeline will
initially service Result's 3 operated natural gas wells which have
been tied-in, and which have an estimated behind pipe capacity of
1,500 mcfd (250 boe/d) net. The pipeline is to flow to a third party
owned facility which is anticipated to be constructed commencing in
the Q2-06 period, with an in-service date prior to August 31.
- in the Pembina area Result awaits a regulatory ruling which will allow
a third party compression facility to be commissioned, through which
the Company's gas volume can flow. Result has a 50% (BPO) interest in
two behind pipe Viking natural gas wells which should produce at an
estimated total of 1,800 mcfd net, or 300 boe/d net (BPO) once on
stream.
- Result's current field estimated production volume is approximately
625 boe/d. As noted above, additional estimated production capacity
from two projects of approximately 550 boe/d continues to be shut-in,
or "behind pipe", and is anticipated to come on stream in the next 1
to 4 months.
- Result has completed SEDAR filing of its December 31, 2005 year end
reports related to oil and gas reserves prepared in accordance with
Canadian Securities Regulators National Instrument 51-101 Standards of
Disclosure for Oil and Gas Activities ("NI 51-101"). These reports,
which can be accessed electronically from the SEDAR website at
www.sedar.com, include Form 51-101F1 - Statement of Reserves Data and
Other Oil and Gas Information, Form 51-101F2 - Report on Reserves Data
by Independent Qualified Reserves Evaluator, and Form 51-101F3 -
Report of Management and Directors on Oil and Gas Disclosure.
- Bill Matheson, President & CEO, will be presenting at the upcoming
SEPAC Oil & Gas Investor conference in Calgary (Westin Hotel) on
Monday May 8, 2006.
"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.
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%SEDAR: 00012334E
