Pacific Energy: Proved Reserves Increase by 383%

Pacific Energy Resources Ltd. reported that its 2007 year end net oil & gas reserves under "Forecast Price" case are 53.4 Million barrels of oil equivalent (MMBoe), up by 383% as compared to last year. The "Proved & Probable Reserves" (2P Reserves) are 99.1 MMBoe, up by 423% as compared to last year. The "Proved, Probable and Possible Reserves" (3P Reserves) are 140.8 MMBoe, up by 505% as compared to last year. These reserves were estimated by DeGolyer & MacNaughton for the Corporation's Los Angeles Basin and Alaska assets and by Netherland, Sewell & Associated for offshore California (Beta Unit) and San Joaquin Basin assets. Out of the total reserves, 98.4% of the Proved reserves, 96% of the 2 P reserves and 95.1% of 3 P reserves are oil, the balance is gas. The estimates comply with various guidelines of the Canadian Oil and Gas Evaluation Handbook and are in accordance with Canadian National Instrument 51-101.

Under "Constant Price" case, the Proved reserves are 55.1 Million barrels of oil equivalent (MMBoe), up by 395% as compared to last year. The "Proved & Probable Reserves" (2P Reserves) are 101.5 MMBoe, up by 435% as compared to last year. The "Proved, Probable and Possible Reserves" (3P Reserves) are 143.3 MMBoe, up by 514% as compared to last year. Out of the total reserves, 98.3% of the Proved reserves, 95.4% of the 2 P reserves and 94.3% of 3 P reserves are gas. These reserves were estimated by DeGolyer & MacNaughton for the Corporation's Los Angeles Basin and Alaska assets and by Netherland, Sewell & Associated for offshore California (Beta Unit) and San Joaquin Basin assets. The estimates comply with various guidelines of the Canadian Oil and Gas Evaluation Handbook and are in accordance with Canadian National Instrument 51-101.

The reserve increase is due to two major acquisitions completed by the Corporation since the year-end 2006 reserves were published. These are: (1) Acquisition of Beta Unit, 10 miles offshore California in outer continental shelf, and (2) Acquisition of Forest Energy's Alaska assets in Cook Inlet area. These acquisitions have been described in previous press releases in detail. Further information on these acquisitions can be viewed on the Company web site located at: www.pacenergy.com.

The independent consultants mentioned above estimated PV10% value of US$1.05 Billion for the Corporation's Proved reserves, US$2.01 Billion for the 2P reserves, and US$2.41 Billion for the 3P reserves under the "Forecast Price" case. Under the "Constant Price" case, the PV10% values for Proved, 2P and 3P reserves are $US1.4 Billion, US$2.53 Billion and US$2.96 Billion, respectively.

In describing the results, Mr. Darren Katic the company's president said," We are please with the growth we have achieved this past year. We look forward to exploiting this large North American resource base as we convert these reserves into cash flow in the months and years ahead."

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