Bow Valley Releases 2006 Reserves Evaluation

Valley Energy Ltd. announced the results of its 2006 oil and natural gas reserves evaluation by GLJ Petroleum Consultants Ltd. ("GLJ"). All volumes referred to herein are to the Company's working interest share and all volume and value comparisons are to the Company's prior reserve report effective December 31, 2005.

	    Highlights
	    ----------

	    -  Corporate total proved reserves increased 7% to 7.4 mmboe, total
	       proved plus probable reserves remained flat at 17.2 mmboe.
	    -  The present value of the Corporate total proved plus probable reserves
	       was up 35% to $415.4 million (NPVBT(10) based on GLJ forecast pricing
	       effective January 1, 2007); the present value of the U.K. total proved
	       plus probable reserves increased 60% to $351.3 million (NPVBT(10) (at)
	       forecast pricing). The present value of the Canadian total proved plus
	       probable reserves decreased 27% to $64.1 million (NPVBT(10) (at)
	       forecast pricing).
	    -  U.K. total proved reserves increased 24% year-over-year to 4.9 mmboe.
	       U.K. total proved plus probable reserves increased 3% to 13.3 mmboe.
	    -  Canadian total proved reserves decreased 15% to 2.5 mmboe, Canadian
	       total proved plus probable reserves decreased 11% year-over-year to
	       3.8 mmboe.
	    -  The strong improvement in the U.K. reserves evaluation is mostly the
	       result of positive revisions and the ongoing development of the
	       Company's interest in the Blane, Enoch, Chestnut and Ettrick fields.
	    -  In Canada, the net decrease is mostly the result of production volumes
	       and negative revisions to prior year bookings that were not offset by
	       drilling additions during the current year.
	    -  The Company has completed a comprehensive review of all its operating
	       jurisdictions and has engaged Tristone Capital to assist in evaluating
	       strategic alternatives for its Canadian assets and operations.


	    Canadian Reserves Summary (Effective December 31, 2006) (1)
	    -------------------------------------------------------

	    -------------------------------------------------------------------------
	                                       COMPANY WORKING INTEREST
	    -------------------------------------------------------------------------
	                                                        Forecast (Forecast
	                                   Reserves             Pricing and Costs)
	    Reserves Category    ---------------------------   NPVBT (Cdn$ million)
	    --------------------- Oil     Gas   NGL    BOE  -------------------------
	                          Mbbl    mmcf  mbbl   mboe    0%    5%    8%    10%
	    -------------------------------------------------------------------------

	    -------------------------------------------------------------------------
	    Proved
	    -------------------------------------------------------------------------
	      Producing            209   9,175   207  1,945   51.3  42.6  39.0  37.0
	    -------------------------------------------------------------------------
	      Developed
	       Non-Producing       108   2,492    38    561   14.0  10.2   8.8   8.0
	    -------------------------------------------------------------------------
	      Undeveloped            0       0     0      0
	    -------------------------------------------------------------------------
	      Total Proved         317  11,667   245  2,506   65.3  52.8  47.8  45.0
	    -------------------------------------------------------------------------

	    -------------------------------------------------------------------------
	    Probable               189   6,141   115  1,327   35.9  25.0  21.0  19.0
	    -------------------------------------------------------------------------

	    -------------------------------------------------------------------------
	    Proved Plus Probable   507  17,808   359  3,834  101.2  77.8  68.8  64.1
	    -------------------------------------------------------------------------

	    -------------------------------------------------------------------------
	    (1)  Totals may not add due to rounding.
	    

Canadian Reserves

-----------------

Total proved plus probable reserves decreased 11% year-over-year to 3.8 mmboe and total proved reserves decreased 15% to 2.5 mmboe as a result of reserves additions being more that offset by production volumes produced during the year and downward revisions to prior year bookings. Reserve revisions were due mainly to poor production performance at two non-operated properties (Hamelin Creek and Boucher) one operated property (Balsam) and only partially offset by positive revisions at the Company's Mikwan, Highvale and Snowfall properties.

Total proved plus probable additions of 0.69 mmboe replaced production of 0.66 mmboe on capital spending of $30.8 million.

Due to the decrease in Bow Valley's Canadian proved plus probable reserve volumes and a decrease in commodity prices, the net present value of those reserves decreased 27% to $64.1 million (NPVBT(10) (at) forecast pricing).

	    U.K. Reserves Summary (Effective December 31, 2006) (1)
	    ---------------------------------------------------

	    -------------------------------------------------------------------------
	                                     COMPANY WORKING INTEREST
	    -------------------------------------------------------------------------
	                                                       Forecast (Forecast
	                                Reserves               Pricing and Costs)
	    Reserves Category ----------------------------    NPVBT (Cdn$ million)
	    ----------------- Oil     Gas   NGL     BOE   ---------------------------
	                      Mbbl    mmcf  mbbl    mboe    0%     5%     8%    10%
	    -------------------------------------------------------------------------

	    -------------------------------------------------------------------------
	    Proved
	    -------------------------------------------------------------------------
	      Producing        644     789     0     776   33.5   30.7   29.2   28.3
	    -------------------------------------------------------------------------
	      Undeveloped    3,590   3,426     0   4,162  177.4  156.5  146.2  140.0
	    -------------------------------------------------------------------------
	      Total Proved   4,235   4,215     0   4,937  210.9  187.2  175.4  168.3
	    -------------------------------------------------------------------------

	    -------------------------------------------------------------------------
	    Probable         6,280  11,777   149   8,392  278.0  222.2  197.2  183.0
	    -------------------------------------------------------------------------

	    -------------------------------------------------------------------------
	    Proved Plus
	     Probable       10,514  15,992   149  13,329  488.8  409.5  372.6  351.3
	    -------------------------------------------------------------------------

	    -------------------------------------------------------------------------

	    -------------------------------------------------------------------------
	    (1)  Totals may not add due to rounding.
	    

U.K. Reserves

-------------

The Company's U.K. total proved reserves increased by 24% to 4.9 mmboe, due to the reclassification of reserves from the probable to proven category at Chestnut and positive revisions at Blane, Enoch and Kyle. The Company's U.K. proved plus probable reserves increased by 0.45 mmboe, after production of 0.24 mmboe. There were positive revisions at Kyle due to better than expected reservoir performance and the anticipated use of gas lift. Further positive revisions at Blane and Enoch followed the better than expected completion results from field development wells. Capital spending in the U.K. was $88.8 million.

Overall, the net present value of Bow Valley's U.K. proved plus probable reserves increased 60% to $351.3 million (NPVBT(10) (at) forecast pricing) due to the increased volume of reserves, incurred capital outlays on the field developments at Blane, Enoch, Chestnut and Ettrick, and increased commodity prices.

Robert G. Moffat, President and Chief Executive Officer said: "The Company had an excellent year in the U.K., where successful development drilling resulted in positive reserve revisions to each of the Company's U.K. properties. Three field developments in the U.K. offshore are expected to come on stream within the next 3-6 months. The development of these projects, combined with increased commodity prices have resulted in the net present value of the Company's U.K. reserves to increase by 60%. Meanwhile, the disappointing results from the Canadian operations continue to reflect the high cost environment and competitive nature of the western Canadian sedimentary basin. The Company has completed a strategic review of all its assets and concluded that the best investment opportunities are outside of its Canadian operations. Accordingly, the Company has made the difficult decision to seek strategic alternatives for its Canadian asset base. The Company remains committed and optimistic about its ongoing investment strategy of developing its U.K. properties and re-investing cash flow into an expanding exploration program. The Company also committed to a multi-well, multi-year, joint venture program on the North Slope of Alaska providing an expanded portfolio of international exploration. Overall, I am extremely pleased on how the Company is emerging as an international, full cycle, oil and gas company with a solid production base and expanding exploration portfolio providing tremendous growth opportunities."

Bow Valley intends to file its 2006 year-end financial statements and related management discussion and analysis and Annual Information Form on or about March 6, 2007. A press release summarizing the financial results and other operational information will be issued at that time. More in depth information regarding the Company's reserves may be found in the Company's Annual Information Form which will be filed and available concurrently with the year-end financial statements. Bow Valley's financial statements and other filings can be found on the Sedar website at www.sedar.com.

Bow Valley Energy Ltd. is an oil and natural gas exploration, development and production company with operations in western Canada, Alaska and the U.K. sector of the North Sea.

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