WCE Reserves Value Increases to $30.2 Million
Calgary, Alberta CANADA, August 20, 2008 /FSC/ - Western Canada Energy Inc. (WCE - TSX Venture),
The 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.
WCE 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.
Western 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 area of northwestern Alberta is supported by an extensive inventory of seismic data. The Company also has an inventory of more than 10 prospects on this land base which will be pursued over the balance of 2008 and into early 2009.
For further information please contact: Daniel P. O'Neill, Chief Executive Officer, or R. W. Shepherd, President, Chief Financial Officer and Corporate Secretary, Western Canada Energy Ltd. , Telephone (403) 266-0955, email: info@wcenergy.ca.
*BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
**The estimated values disclosed do not represent fair market value.
Certain statements contained herein constitute forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe", and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Corporation believes the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this report should not be unduly relied upon. These statements speak only as of the date of this presentation. The Corporation does not undertake any obligation to publicly update or revise any forward-looking statements.
THE TSX VENTURE EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED THE INFORMATION CONTAINED HEREIN AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Source: Western Canada Energy Ltd. (WCE - TSX-V) http://www.wcenergy.ca
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