Marc Dame, President and Chief Executive Officer of Goldnev Resources Inc., announced the results of the Evaluation Report prepared by Chapman Petroleum Engineering Ltd. on the Contingent Resources in its Pasquia Hills oil shale project in east central Saskatchewan. The Contingent Resource Evaluation Report, effective April 1, 2008 (the "Report"), was prepared in accordance with National Instrument 51-101, Section 5.9 standards for a review and assessment of the discovered contingent resources on the Corporation's oil shale permits.
Chapman Petroleum Engineering Ltd., who are Qualified Reserves Evaluators and Auditors, but whom are not independent of the Corporation, prepared the Report based upon data obtained from the results of the Corporation's core hole drilling program, water well log data, plus the results of thirteen Sun Oil (now "Suncor Energy") core holes located within the mapped area and published Saskatchewan Government information in order to determine the resource volumes on the Corporation's permitted lands.
Chapman Petroleum Engineering Ltd. has reported to management the following estimates of gross Contingent Resources for the Corporation's Pasquia Hills oil shale permits:
- Best Estimate: 2.194 billion barrels oil (distillate product)
- Low Estimate: 1.874 billion barrels oil (distillate product)
- High Estimate: 2.514 billion barrels oil (distillate product)
The reported area of Contingent Resources underlying the Corporation's oil shale permits is estimated to be approximately 71 sections (45,670 acres or 18,482 hectares) which results in an average oil shale thickness of 22.76 meters (75 feet) and covers the southeast portion of the Corporation's permitted lands. Upon completion of the full exploration program, the Corporation will have earned a 50% working interest on these permits.
Contingent Resources are defined, under the Canadian Oil and Gas Evaluation Handbook (COGE Handbook), as those quantities of oil and gas estimated on a given date to be potentially recoverable from known accumulations but are not currently economic. Contingent Resources include, for example, accumulations for which there is currently no viable market. There is no certainty that it will be commercially viable to produce any portion of the resources.
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