Aztec announced results of an extensive reserve analysis for wells in its corporate account and that of its sponsored drilling partnerships. Mr. Waylan Johnson, President of Aztec Oil & Gas Inc., stated, "While our annual, audited financials are due to be filed in December, 2011, we have just received the, approximately, 250 page reserve report for the producing wells which Aztec and/or our partnerships own, or in which we participated. Due to the extensive diversity of Aztec's wells, we felt that even though it was costly and very time consuming, a very detailed reserve analysis was necessary to fully document the company's reserves for its shareholders. This step was also important because some due diligence parties seem not to understand how complex and time demanding it is to analyze a well portfolio as extensive and geographically diverse as that of Aztec and its partnerships."
The final reserve report indicates an Escalated, 10% Discounted Value of Aztec's well interests at $74,857,020, and an Escalated, Non-discounted Value of the well interests at $240,104,740. The Non-escalated Value, with 10% discount, was $43,022,330 and the Non-escalated Value with no discount was $80,758,590. Barclay's oil price projections were used for escalation calculations by the analysts, and calculations were performed on PHDWIN, an industry accepted software. "Also, a fair number of wells were not included due to the fact that they are quite new and do not yet have enough established production history to analyze. Obviously, not included, are quite a few wells under contract which are either drilled but not completed yet, or not yet drilled," continued Johnson.
Mr. Johnson further commented, "Aztec switched from a natural gas focus to an oil focus in 2008 for its own corporate activities, as well as for that of all of its sponsored drilling programs. With oil presently at, or near, $100 per barrel and natural gas dropping to $3.02 per Mcf, we definitely feel we read the market correctly, and did the right thing for Aztec and our sponsored drilling partnerships. Our assets continue to grow as planned and we are extremely proud of all of our dedicated, talented people and partners who have made Aztec's achievements possible."
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