FCP Supplements Algeria Year End Reserves Estimates

First Calgary Petroleums Ltd. announces supplemental information relating to its estimated reserves and values as at December 31, 2003. On May 19, 2004, the Company announced gross proved, probable and possible recoverable reserves estimates of its Ledjmet Block 405b to be approximately 7 trillion cubic feet equivalent (TCFe) of natural gas. DeGolyer and MacNaughton, FCP's independent engineers, have now estimated the Company's net proved, probable and possible reserves to be 986 billion cubic feet equivalent (BCFe) of natural gas having an estimated future net revenue of US$1.3 billion discounted at 10 percent per annum.

The reserve estimates were prepared in accordance with National Instrument 51-101 - Standards of Disclosure for Oil & Gas Activities and are based on work completed and information available to December 31, 2003. Data not included in the reserve estimates are the results from the production testing of the MLE-4 and the drilling and production testing of the MLE-5 appraisal wells obtained during 2004.

The gross sales gas, condensate and natural gas liquids reserves estimates are summarized as follows:


    -------------------------------------------------------------------------
                                              Gross Recoverable Reserves
    -------------------------------------------------------------------------
                                                         Condensate
                                            Sales Gas       and LPG    Total
    -------------------------------------------------------------------------
                                                  BCF         MBBLS     BCFe
    -------------------------------------------------------------------------
    Proved Undeveloped                            441        52,016      753
    -------------------------------------------------------------------------
    Probable                                    1,192       148,036    2,080
    -------------------------------------------------------------------------
    Proved plus Probable                        1,633       200,052    2,833
    -------------------------------------------------------------------------
    Possible                                    2,218       326,498    4,177
    -------------------------------------------------------------------------
    Proved, Probable and Possible               3,851       526,550    7,010
    -------------------------------------------------------------------------

    FCP's estimated net proved, probable and possible reserves and the
related future net revenue and present values are as follows:

    -------------------------------------------------------------------------
                             FCP Net Reserves
    -------------------------------------------------     Future Net Revenue
                                Condensate                 and Present Value
                      Sales Gas   and LPG    Total           (U.S. $ 000)
    -------------------------------------------------------------------------
                         BCF       MBBLS      BCFe       PV (0%)     PV (10%)
    -------------------------------------------------------------------------
    Proved Undeveloped   103      12,149       176      $521,440    $174,750
    -------------------------------------------------------------------------
    Probable             151      18,992       265    $1,006,314    $363,198
    -------------------------------------------------------------------------
    Proved plus
     Probable            254      31,141       441    $1,527,754    $537,948
    -------------------------------------------------------------------------
    Possible             288      42,933       545    $2,056,749    $764,935
    -------------------------------------------------------------------------
    Proved plus
     Probable plus
     Possible            542      74,074       986    $3,584,503   1,302,883
    -------------------------------------------------------------------------
Notes: (1) Gas equivalence is calculated at 1 barrel (BBL) = 6 thousand cubic feet of natural gas equivalent.

(2) FCP's net reserves allocation is calculated annually based upon a sliding scale formula that considers capital investment, production levels and product prices. Accordingly, the net allocation can vary annually and will be dependent upon the actual costs, production levels and product prices realized.

(3) Based on forecast price assumptions.

(4) To December 31, 2003, five wells have been drilled on Ledjmet Block 405b that include MLE-1, MLE-2, MLE-3, MLE-4 and MZL-1. The MLE-4 well had been drilled and logged to that date, but the production testing was not completed until the first quarter of 2004. Therefore, the MLE-4 logging results were included in the reserve estimates, however the test results were not. Drilling and production testing of the MLE-5 well was completed in 2004 and therefore no results from MLE-5 have been included in the reserve estimates.

Block 405b covers approximately 273,000 acres and provides the Company with resource exploration potential in excess of the DeGolyer and MacNaughton reserves estimates. Based upon its internal interpretation of seismic data, geological mapping and exploration reservoir modelling, FCP has identified a number of additional exploratory drilling prospects that in the Company's view have gross recoverable gas and condensate potential of 11 TCFe. In estimating the resource exploration potential, the Company has made a number of assumptions and as a result, the estimate is subject to material revision. The Company's net share of the potential reserves has not been estimated at this time as it is dependent upon a number of factors including capital investment, production volumes and product prices.
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE


Most Popular Articles
Related Articles


Brent Crude Oil : $53.87/BBL 0.48%
Light Crude Oil : $50.73/BBL 0.79%
Natural Gas : $3.33/MMBtu 2.14%
Updated in last 24 hours