FCP Updates Algerian Reserves Estimates


First Calgary Rourde Yacoub Block
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Lejmet Block, Berkine Basin, AlgeriaLejm
(Click to Enlarge)
First Calgary Petroleums Ltd. has received a summary of its reserves and values as of October 31, 2004 as estimated by the independent engineering company, DeGolyer and MacNaughton. The gross proved, probable and possible recoverable reserves estimated by DeGolyer & MacNaughton have increased to 13.5 trillion cubic feet of natural gas equivalent (TCFe), consisting of 8.4 trillion cubic feet of natural gas and 860 million barrels (MMBBLS) of oil, condensate and LPG. The reserves are attributed to the Ledjmet 405b and Rhourde Yacoub 406a blocks located in Algeria's Berkine Basin. The reserves estimates were prepared in accordance with Canadian Securities National Instrument 51-101 Standards of Disclosure for Oil & Gas Activities and are based on work completed and information available to October 31, 2004. The specific conditions under which the results reported herein were estimated are contained in the final report of DeGolyer and MacNaughton.

The gross and FCP net recoverable gas, oil, condensate and LPG (natural gas liquids) reserves estimated by DeGolyer and MacNaughton are as follows:

	    -------------------------------------------------------------------------
	                    Gross Recoverable Reserves   FCP Net Recoverable Reserves
	    -------------------------------------------------------------------------
	                     Gas     Oil,    Total Gas     Gas     Oil,    Total Gas
	                         Condensate  Equivalent        Condensate  Equivalent
	                          and LPG      Volume           and LPG      Volume
	    -------------------------------------------------------------------------
	                     BCF   MMBBLS       BCFe       BCF   MMBBLS       BCFe
	    -------------------------------------------------------------------------
	    Proved
	     Undeveloped     615      65       1,008       121      15         214
	    -------------------------------------------------------------------------
	    Probable       2,164     229       3,535       285      46         556
	    -------------------------------------------------------------------------
	    Proved and
	     Probable      2,779     294       4,543       406      61         770
	    -------------------------------------------------------------------------
	    Possible       5,631     566       9,025       640     112       1,313
	    -------------------------------------------------------------------------
	    Proved,
	     Probable and
	     Possible      8,410     860      13,568     1,046     173       2,083
	    -------------------------------------------------------------------------


	    FCP's estimated future net revenue and present values relating to the
reserves are as follows:

	    -------------------------------------------------------------------------
	                     Future Net Revenue and          Future Net Revenue and
	                   Present Values (after tax)      Present Values (after tax)
	                     using Forecast Prices           using Constant Prices
	                         (US $Million)                   (US $Million)
	    -------------------------------------------------------------------------
	                                PV       PV                     PV       PV
	                 Undiscounted  (8%)     (10%)    Undiscounted  (8%)     (10%)
	    -------------------------------------------------------------------------
	    Proved
	     Undeveloped      $799     $383     $316          $875     $447     $377
	    -------------------------------------------------------------------------
	    Probable        $2,211   $1,194   $1,029        $2,409   $1,351   $1,177
	    -------------------------------------------------------------------------
	    Proved and
	     Probable       $3,010   $1,577   $1,345        $3,284   $1,798   $1,554
	    -------------------------------------------------------------------------
	    Possible        $5,752   $2,923   $2,516        $5,784   $3,104   $2,702
	    -------------------------------------------------------------------------
	    Proved,
	     Probable and
	     Possible       $8,762   $4,500   $3,861        $9,068   $4,902   $4,256
	    -------------------------------------------------------------------------


	    (1) The gross and net recoverable reserves volumes are estimated under
	        the constant price case.

	    (2) The reserves estimates relate to Ledjmet Block 405b and Rhourde
	        Yacoub Block 406a and reflect only the drilling and production test
	        results obtained to October 31, 2004. Excluded from these figures
	        are the test results from LEW-1 and the drilling and production test
	        results from LES-2 and MLE-6.

	    (3) FCP's net reserves allocations are based upon the terms of the
	        contracts relating to each block. The Ledjmet Block 405b 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 costs, production levels and product prices
	        realised. For Rhourde Yacoub Block 406a, FCP is allocated the
	        equivalent of 49% of the gross production on an equivalent-barrel
	        basis.

	    (4) Future net revenues are after Algerian royalties and taxes. The
	        Company believes there will be no Canadian income taxes payable on
	        the production of these reserves.

	    (5) Gas equivalent units have been calculated by the Company at 1 barrel
	        (BBL) for 6 thousand cubic feet of natural gas equivalent.

	    (6) BCF means billion cubic feet of natural gas and BCFe means billion
	        cubic feet of natural gas equivalent.


Richard G. Anderson, FCP's President and CEO, commented, "The reserves estimate of 13.5 trillion cubic feet equivalent of natural gas by DeGolyer & MacNaughton is nearly double that of last year. During this ten month period the Company drilled seven wells, of which six were exploration and one appraisal, realising a 100% success rate. To have a reserves base increase of this magnitude from the drilling of seven wells, together with a large undrilled acreage position, positions FCP for continued growth and development."
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