Keeper Resources Inc. announced the results of its 2007 year-end reserves evaluation (effective December 31, 2007) prepared by Fekete Associates Inc., and provide an operational update.
The Company's focus is in Vietnam where it has a 5% gross overriding royalty on an offshore production sharing contract (Block 124), and anticipates signing an onshore coal bed methane production sharing contract. The 2007 year-end Fekete reserve report deals solely with the Company's Canadian oil and gas properties.
Keeper's average sales volume for 2007 was 147 BOE per day for the year ended December 31, 2007. Production was 87% natural gas and natural gas liquids with the balance being light oil. The Company sales volume averaged 77 BOE per day for the month of December 2007 and 94 BOE per day for the month of January 2008.
Fekete's 2008 production forecast for proven reserves is 82 BOE per day and for proven plus probable reserves is 84 BOE per day. At year-end the Company had two cased potential oil wells and two cased potential gas wells. There were no reserves assigned to these wells in the Fekete report.
During 2007, total proved and probable reserves decreased by 47% to 253,900 BOE from 476,100 BOE at December 31, 2006, based on forecast prices and costs. The composition of reserves at December 31, 2007 consists of 79% natural gas and natural gas liquids and 21% light oil. At December 31, 2006, reserves were 86% natural gas and natural gas liquids and 14% light oil.
At December 31, 2007, Keeper's total proved gross interest reserves were 169,900 BOE, a decrease of 49% compared with 334,300 BOE at December 31, 2006.
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