Over the past year, the value of Proved reserves rose from $4.6 million to $10.9 million and the value of the Company's Proved and Probable reserves has increased five-fold from $8.3 million in May 2003 to $41.3 million in May 2004. These values were determined using 50% of Probable reserves, forecast prices and costs, after tax cash flows and a discount rate of 10%.
"We are both pleased and proud of our growth in reserves and asset value over last year," said PTE President and CEO Michael Cvetanovic. "The Company's recent horizontal drilling program and the subsequent Gaffney Cline audit has confirmed the company is underpinned by a solid asset value. Our Proved reserves alone are valued at about $0.22 per share and the value of Proved and Probable reserves brings the per share value to $0.83 on a fully diluted basis.
Mr. Cvetanovic reported that 20% of Possible reserves are from new zones not included in previous reserve audits. In addition, the audit assigns 11.76 million barrels of Possible reserves in the Company's L33 concession. "It is noteworthy that in addition to the L33 Possible reserves, considerable resource potential exists in adjacent structures that already have been identified."
The reserve report conforms to the requirements of National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities.
In ongoing operational news, Cvetanovic reports that the Company will commence a solvent-wash clean-up operation on the recently drilled horizontal well WB N7 on Wednesday, May 5.
Most Popular Articles