Contact Exploration Inc. announced the results from the year-end evaluation of its Stoney Creek, New Brunswick and Stoughton, Saskatchewan oil and gas reserves by the independent firm of Martin & Brusset Associates of Calgary.
As stated in the reserves report, which was conducted in accordance with National Instrument 51-101 of the Canadian Securities Administrators, Contact's reserves, which include the 100% working interest Stoney Creek field and Stoughton wells are estimated to contain proved and probable reserves of 1,207,000 barrels of oil and 7.182 billion cubic feet of natural gas. These ultimate estimated reserves, when discounted at 10% using forecast pricing, give a net present value of $45,157,000. The estimates are net values before tax and after royalties.
"We are pleased to have a significant increase in the monetary estimation of our reserves over last year," commented Darcy Spady, President of Contact Exploration Inc. The majority of the reserve report was for the Stoney Creek Field in New Brunswick, which represents a small portion (5,500 acres) of the Company's portfolio of properties, and overlies the significant Beech Hill shale gas prospect. This report provides no value to any of Contact's shale gas prospects, which are the subject of our current exploration activities.
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