Fortress Reports 51% Increase in Reserves for 2007
Fortress Energy Inc. has released the results of its independent reserve evaluation effective December 31, 2007, as evaluated by Sproule Associates Ltd. in accordance with the disclosure requirements provided by National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities.
Proved plus probable reserves increased 51% to 6,456 mboe resulting in: a 25% increase in reserves per share; proved plus probable finding, development and acquisition costs of $15.02/boe (excluding an estimate of future capital); and replacement of production of 6.1 times.
The net present value of Fortress' estimated future net revenue based on forecast prices and costs and discounted at 10% before income tax is $78.1 million, a 21% increase over December 31, 2006, which was accomplished despite a 12.5% decrease in the forecast AECO natural gas price used for the first two years of the evaluation; proved reserves represent 64% of total proved plus probable reserves; proved and probable reserve life index (RLI) of 13.7 years based on Fortress' current production rates; and undeveloped land holdings of 95,542 net acres at December 31, 2007, an increase of 327%. The undeveloped land holdings were valued at $19,484,000 by Independent Land Evaluations Inc.