Lexaria announced a significant increase in proved oil reserves at the Belmont Lake oil field located in Mississippi.
Lexaria has filed a Form 8K with the Securities and Exchange Commission detailing the increased proved reserves.
"The value of our proved reserves alone is now significantly greater than our entire market cap," said Chris Bunka, President. "Lexaria's strategy of concentrating on those assets that are most likely to deliver a meaningful increase to our balance sheet is paying off. And, this of course completely discounts the value of our 130,000 acre land package. I am confident that our focus on creating value with the drill-bit will lead to an increase in shareholder value."
Lexaria achieved a year over year increase of 81% in proved reserves, cash flows discounted at 10%. The Company also shifted its proved reserves to 100% oil, from a 2009 mix of 21% natural gas and 79% oil. This shift in strategy has allowed the Company to enjoy stronger cash flows as a result of the high oil prices as compared to lower natural gas prices.
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