CALGARY, May 9 /CNW/ - Blackpool Exploration Ltd. ("Blackpool") and Westbow Energy Inc. ("Westbow") amalgamated to form Western Canada Energy Ltd. (the "Company"), effective March 31, 2008. The Company has filed respective 2007 annual oil and gas disclosures for Blackpool and Westbow on the System for Electronic Document Analysis and Retrieval (SEDAR). These documents can be viewed at www.sedar.com referencing "Statement of Reserves Data and Other Oil and Gas Information" for each company.
The reserves of Blackpool and Westbow were evaluated in accordance with National Instrument 51-101 (NI 51-101) by Fekete Associates Inc., ("Fekete"), an independent qualified reserves evaluator.
At December 31, 2007, Fekete valued the total proved plus probable reserves of Blackpool at C$12,785,000 before tax using Fekete forecasted prices and a discount factor of 10%. Proved reserves were valued at $7,544,000. Total proved plus probable reserves value decreased 6% and the proved reserves value decreased 27% respectively over the corresponding reserve values at December 31, 2006. Blackpool's total proved plus probable reserves volume at December 31, 2007 was 583 thousand barrels of oil equivalent (mboe), a decrease of 10% over the previous year. Proved reserves totalled 314 mboe, a decrease of 20% over the previous year. At December 31, 2007, working interest proven reserves totalled 172 thousand barrels (mbbls) of oil and natural gas liquids plus 851 million cubic feet (mmcf) of natural gas. Proven oil and liquids reserves decreased by 49 mbbls from Dec. 31, 2006 as a result of technical revisions and production. Proven natural gas reserves decreased by 115 mmcf due to technical revisions and production, only partially offset by discoveries.
Also, at December 31, 2007, Fekete valued the total proved plus probable reserves of Westbow at C$9,555,000 before tax using Fekete forecasted prices and a discount factor of 10%. Proved reserves were valued at $5,676,000. Total proved plus probable reserves value increased 23% and proved reserves value increased 1% respectively over the corresponding reserve values at December 31, 2006. Westbow's total proved plus probable reserves volume at December 31, 2007 was 437 mboe, an increase of 2% over the previous year. Proved reserves totalled 241 mboe, a decrease of 15% over the previous year. At December 31, 2007, working interest proven reserves totalled 80 thousand barrels (mbbls) of oil and natural gas liquids plus 967 million cubic feet (mmcf) of natural gas. Proven oil and liquids reserves increased by 22 mbbls from Dec. 31, 2006, as discoveries and technical revisions greatly exceeded production. Proven natural gas reserves decreased by 393 mmcf due to technical revisions reflecting the performance of new wells in the Peace River Arch area, dispositions and production.
In this news release, the abbreviations set forth below have the following meanings:
"bbls": barrels - "boe": barrels of oil equivalent - "mcf": 1,000 cubic
feet - "mbbls": 1,000 barrels
"mboe": 1,000 barrels of oil equivalent - "mmcf" 1,000,000 cubic feet
Note: For boe purposes, one (1) boe equals six (6) mcf of natural gas. The term boe may be misleading particularly if used in isolation. A boe conversion rate of 1 boe for 6 mcf is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Western Canada Energy Ltd. is a junior oil and natural gas exploration company focused primarily on production and exploration prospects throughout the Alberta and British Columbia portions of the Western Canadian Sedimentary Basin. The Company is listed on the TSX Venture Exchange and trades under the symbol "WCE".
Western Canada Energy Ltd. web site: www.wcenergy.ca.
Certain statements contained in this news release may 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 Company 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.
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