TSX VENTURE STOCK SYMBOL: RIP
CALGARY, June 12 /CNW/ - RIPPER OIL AND GAS INC. ("TSXV - RIP") (Ripper or the Corporation) hereby reports on the results of its independent reserve evaluations conducted by GLJ Petroleum Consultants Ltd. ("GLJ"). The report was prepared in accordance with National Instrument 51-101 (NI 51-101) for the year ended March 31, 2008. GLJ has evaluated 100% of the Corporation's reserves.
Ripper's Statement of Reserves Data and Other Oil and Gas Information Form NI 51-101 F1; Report on Reserves Data by Independent Evaluator Form 51-101 F2 and Report of Management and Directors on Reserves Data and Other Information Form 51-101 F3 are now accessible on www.sedar.com or by contacting the president and chief executive officer at Ripper as outlined below.
Overview
The Corporation's gross proved plus probable working interest reserves increased 44% to 2,326 thousand barrels of oil equivalent ("mboe") from 1,621 mboe last year, while net present value discounted at 10% increased 55% to $36,308,000 from $23,505,000.
The Corporation's reserve life index is 8.1 years on a proved basis and 11.3 years on a proved plus probable basis.
Reserves
The year end reserves presented herein include the Corporation's interest before deductions for royalties and use forecast and cost assumptions. Where volumes are expressed on a barrel of oil equivalent ("boe") basis, gas volumes have been converted to boe at 6,000 cubic feet per barrel (6 mcf/bbl). BOE's may be misleading, particularly if used in isolation. The BOE conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalent conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
The reserve data provided in this release only represents a portion of the disclosure required under NI 51-101.
Ripper's board members review the qualifications and appointment of the independent reserve evaluators and the processes and technical data used to determine the reserves booked.
Gross Reserves Summary Table - Forecast Prices and Costs
Note: Due to rounding, some columns may not add precisely.
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As at March 31 2008 2007
Oil & Oil Oil
NGL Gas Equiv. Equiv.
(mbbls) (mmcf) (mboe) (mboe)
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Proved
Producing 236 3,298 786 568
Developed Non-producing 5 197 38 92
Undeveloped 79 4,013 748 375
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Total Proved 320 7,509 1,572 1,035
Probable 106 3,892 755 585
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Proved plus Probable 426 11,400 2,326 1,621
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Approximately 20% of Ripper's proved reserves are crude oil and natural gas liquids and 80% are natural gas. On a proved plus probable basis Ripper's reserves are 18% crude oil and liquids and 82% natural gas.
Net Present Value of Reserves - Forecast Prices and Costs
Ripper's reserves were evaluated using GLJ's Price Forecast effective April 1, 2008 for all properties and are prior to provisions for income taxes, interest, debt service charges and general and administrative expenses. It should not be assumed that the discounted future net production revenues estimated herein represent the fair market value of the reserves.
Net Present Value of Reserves - Forecast Prices and Costs
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As of March 31, Before Tax Unit Value
2008(1) Discounted at Before
Income Tax
Discounted
at 10% per
0% 5% 10% 15% 20% year $/boe
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Proved Producing 26,249 21,614 18,533 16,336 14,686 26.11
Proved Developed
Non-Producing 1,238 941 748 615 519 16.39
Proved
Undeveloped 14,611 10,759 8,105 6,211 4,816 12.50
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Total Proved 42,099 33,313 27,386 23,161 20,020 19.50
Probable 20,813 13,100 8,922 6,442 4,857 12.89
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Proved and
Probable 62,912 46,413 36,308 29,603 24,877 17.32
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1. As required by NI 51-101, undiscounted well abandonment costs of
$1.63 million for proved reserves and $2.06 million for proved plus
probable reserves are included in the net present value
determination.
At a 10% discount, the proved producing reserves make up 68% of the total proved value while total proved reserves account for 75% of the proved plus probable reserve value.
FORECAST PRICES
The product price forecasts used by GLJ in the Corporation's March 31, 2008 Evaluation are summarized below:
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Historical and Forecast Prices
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Lloyd Natural Gas Liquids
Edmonton Blend ---------------------
WTI Light Stream Natural Currency
Crude Crude Quality Gas at Exchange
Oil Oil at AECO-C Rate Infla-
($US ($CDN Hardisty ($CDN/ Edm Edm Edm $US/ tion
Year /bbl) /bbl) (CDN/bbl) mmbtu) Propane Butane C(5+) $CDN Rate
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2008 97.41 96.93 69.17 8.11 60.41 78.42 98.65 0.998 2.0%
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2009 90.00 89.10 62.37 8.20 56.13 71.28 90.88 1.000 2.0%
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2010 86.00 85.10 59.57 8.10 53.61 68.08 86.80 1.000 2.0%
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2011 85.00 84.10 58.87 7.95 52.98 67.28 85.78 1.000 2.0%
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2012 85.00 84.10 58.87 8.01 52.98 67.28 85.78 1.000 2.0%
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2013 85.00 84.10 59.71 8.18 52.98 67.28 85.78 1.000 2.0%
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2014 85.00 84.10 60.55 8.36 52.98 67.28 85.78 1.000 2.0%
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2015 86.15 85.25 62.23 8.54 53.71 68.20 86.96 1.000 2.0%
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2016 87.87 86.97 64.36 8.72 54.79 69.58 88.71 1.000 2.0%
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2017 89.63 88.73 65.66 8.91 55.90 70.98 90.51 1.000 2.0%
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thereafter Escalated at 2.0% per year
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Forward-looking statements: This press release may contain forward-looking statements including expectations of future production, cash flow and earnings. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses and health, safety and environmental risks), commodity price and exchange fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Ripper assumes no obligation to publicly update or revise any forward-looking information except as required by law. Additional information on these and other factors that could affect Ripper's operations or financial results are included in Ripper's reports on file with Canadian securities regulatory authorities.
The TSX Venture Exchange has neither approved nor disapproved of the
information contained herein.
%SEDAR: 00015775E