Porto Energy Corp. Announces Updated Resource Estimates
THE WOODLANDS,
TX, Jan. 31, 2013 /CNW/ -
Porto Energy Corp., ("Porto" or the "Company") (TSXV:
PEC), a company focused on oil and gas exploration, appraisal and
development in Portugal, today
announced that it has received an updated independent resource
evaluation (the "Updated Report") from Dallas, Texas-based Netherland, Sewell &
Associates, Inc. ("NSAI"). This report was completed on each of the
seven concessions in which the Company maintains an interest. The
Updated Report is dated January 10,
2013 with an effective date of December 31, 2012.
"We are pleased to announce that we have
significantly increased our prospective resources in the Lower
Jurassic Lias unconventional resource play as a result of the
ongoing technical evaluation program with our joint venture
partners," said Joseph Ash,
President and CEO of Porto Energy Corp. "Despite reducing the
prospective resources associated with the number of conventional
Jurassic reef exploration targets, the reduction was more than
offset by the increased the geologic chance of success of finding
hydrocarbon-bearing reservoirs in the Silves which was confirmed by
the ALC-1 well. Our ongoing joint venture initiatives will
benefit from the Updated Report that augments the extensive
technical analysis our team has performed to continually high-grade
our exploration portfolio and narrow our focus to the Lias
unconventional resource and Presalt conventional plays. In
turn, this narrowed focus will help concentrate our farm-out
efforts."
Comparing the Updated Report to the original
NSAI report dated August 31, 2012,
prospective resources for the Lias increased from 95.4 mmboe (best
estimate) to 366.8 mmboe (best estimate), an increase of 271.4
mmboe or 284%. Similarly, the low case increased from 2.2
mmboe to 22.6 mmboe and the high case increased from 572.6 mmboe to
1,399.4 mmboe, or 927% and 144%, respectively.
Phase I work to characterize the Jurassic Lias
resource play included finalized aeromagnetic data over the blocks,
the drilling and analysis of 23 shallow wells and the development
of a Lias deposition model that greatly increased the Company's
understanding of the Lias marls in the central and northern
blocks. This work underpinned the Updated Report by NSAI and
points to a very prospective unconventional resource play that
merits additional technical evaluation.
The AlcobaƧa #1 ("ALC-1") Presalt
exploration well in the Aljubarrota-3 concession, onshore
Portugal (as announced
November 1, 2012) helped to confirm
gas-bearing reservoirs, despite being a sub-commercial gas
discovery. In turn, this well has significantly de-risked
other Presalt prospects due to a confirmation of source rock,
reservoir-bearing sands and trapping mechanism in the Silves
interval.
Comparing the Updated Report to the original
NSAI report dated August 31, 2012,
P50 risked recoverable contingent resources remained relatively
unchanged. Resources associated with the Company's Jurassic
reef and other exploration prospects P50 risked resources decreased
by approximately 97.3 mmboe, however, this was offset by an
increase in the Lias potential of approximately 271.4 mmboe and the
Presalt Silves reservoir potential of approximately 23.9 mmboe of
P50 risked prospective resources.
Compared to the original NSAI report, P50 net
risked recoverable prospective resources increased 198 mmboe, or
45%, from 439 mmboe to 637 mmboe. In total, the Updated
Report has a combined (contingent plus prospective) resource base
comprised of 47% oil and 53% natural gas.
The Updated Report provides the following data
with respect to risked contingent and prospective resources:
TOTAL CONTINGENT AND PROSPECTIVE
RESOURCES
(Company's Net Interest - Mmboe) (1)(2)
|
|
UPDATED
ESTIMATES |
|
ORIGINAL ESTIMATES |
|
NET
INCREASE/(DECREASE) |
|
|
|
Low |
|
Best |
|
High |
|
Low |
|
Best |
|
High |
|
Low |
|
Best |
|
High |
|
|
|
Estimate |
|
Estimate |
|
Estimate |
|
Estimate |
|
Estimate |
|
Estimate |
|
Estimate |
|
Estimate |
|
Estimate |
|
Contingent |
|
15.6 |
|
43.8 |
|
76.5 |
|
15.6 |
|
43.8 |
|
77.0 |
|
(28.2) |
|
(32.7) |
|
60.9 |
|
Prospective |
91.0 |
|
636.9 |
|
2,285.9 |
|
142.4 |
|
439.3 |
|
1,541.8 |
|
(545.9) |
|
(1,649.0) |
|
2,143.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED DATA FROM UPDATED RESOURCE
(Company's Net Interest - Mmboe) (1)(2)
RESOURCE CATEGORY |
|
UPDATED ESTIMATES |
LAST ESTIMATES 8/31/2012 |
NET INCREASE/(DECREASE) |
UPDATED |
|
Concession |
|
Low |
Best |
High |
Low |
Best |
High |
Low |
Best |
High |
Prospect |
|
Prospect |
|
Estimate |
Estimate |
Estimate |
Estimate |
Estimate |
Estimate |
Estimate |
Estimate |
Estimate |
P(g) |
|
CONTINGENT |
|
|
|
|
|
|
|
|
|
|
|
|
Aljubarrota |
|
15.6 |
43.8 |
77.0 |
15.6 |
43.7 |
76.5 |
- |
- |
- |
100.0% |
|
Torres Vedras (Lapaducos) |
|
- |
- |
- |
- |
- |
0.5 |
- |
- |
(0.5) |
|
|
Total
Contingent |
|
15.6 |
43.8 |
76.5 |
15.6 |
43.8 |
77.0 |
- |
(0.1) |
(0.5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROSPECTIVE |
|
|
|
|
|
|
|
|
|
|
|
|
Aljubarrota Concession |
|
|
|
|
|
|
|
|
|
|
|
|
Aljubarrota Brenha
and Lias |
|
- |
- |
- |
17.1 |
31.5 |
49.1 |
(17.1) |
(31.5) |
(49.1) |
|
|
Lias (formerly
Basal Brenha) |
|
12.7 |
110.1 |
382.0 |
0.7 |
12.0 |
86.3 |
12.0 |
98.1 |
295.7 |
20.0% |
|
Alcobaca
(Silves) |
|
- |
- |
- |
11.7 |
34.1 |
91.7 |
(11.7) |
(34.1) |
(91.7) |
|
|
Cinnabar (Silves
and Jurassic) |
|
5.9 |
25.5 |
127.3 |
5.9 |
25.5 |
127.3 |
- |
- |
- |
27.0% |
|
Citrine
(Silves) |
|
0.7 |
2.7 |
10.1 |
0.7 |
2.7 |
10.1 |
- |
- |
- |
18.0% |
|
Jasper
(Jurassic) |
|
- |
- |
- |
1.2 |
4.6 |
16.9 |
(1.2) |
(4.6) |
(16.9) |
|
|
Onyx
(Jurassic) |
|
2.1 |
6.0 |
16.4 |
2.1 |
6.0 |
16.4 |
- |
- |
- |
15.1% |
|
Pyrope (Silves and
Jurassic) |
|
6.6 |
19.3 |
66.4 |
6.6 |
19.3 |
66.4 |
- |
- |
- |
17.0% |
|
Sphene (Silves and
Jurassic) |
|
6.5 |
14.2 |
32.0 |
6.5 |
14.2 |
32.0 |
- |
- |
- |
12.6% |
|
Tiger Eye (Silves
and Jurassic) |
|
7.2 |
17.4 |
44.5 |
7.2 |
17.4 |
44.5 |
- |
- |
- |
12.6% |
|
Zircon
(Jurassic) |
|
2.7 |
8.4 |
30.9 |
2.7 |
8.4 |
30.9 |
- |
- |
- |
11.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cabo Mondego Concession |
|
|
|
|
|
|
|
|
|
|
|
|
Lias (formerly
Basal Brenha) |
|
0.2 |
47.2 |
201.7 |
0.1 |
21.9 |
116.7 |
0.1 |
25.3 |
85.0 |
20.0% |
|
Moreia (Silves and
Jurassic) |
|
3.2 |
16.2 |
47.1 |
1.1 |
2.9 |
7.0 |
2.1 |
13.3 |
40.1 |
20.5% |
|
Pargo
Silves |
|
2.5 |
13.9 |
43.1 |
- |
- |
- |
2.5 |
13.9 |
43.1 |
25.2% |
|
Sapphire
(Jurassic) |
|
0.8 |
3.5 |
10.8 |
0.8 |
3.5 |
10.8 |
- |
- |
- |
19.4% |
|
Sargo Silves
(formerly Topaz) |
|
2.8 |
17.3 |
55.8 |
4.7 |
11.4 |
26.6 |
(1.9) |
5.9 |
29.2 |
25.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peniche Concession |
|
|
|
|
|
|
|
|
|
|
|
|
Lias (formerly
Basal Brenha) |
|
2.3 |
13.5 |
43.3 |
- |
4.4 |
23.7 |
2.3 |
9.1 |
19.6 |
20.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rio Maior Concession |
|
|
|
|
|
|
|
|
|
|
|
|
Lias (formerly
Basal Brenha) |
|
2.3 |
65.5 |
259.2 |
0.9 |
14.8 |
110.3 |
1.4 |
50.7 |
148.9 |
20.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sao Pedro de Muel Concession |
|
|
|
|
|
|
|
|
|
|
|
|
Lias (formerly
Basal Brenha) |
|
1.0 |
59.6 |
238.5 |
0.1 |
15.9 |
84.5 |
0.9 |
43.7 |
154.0 |
20.0% |
|
Amethyst
(Jurassic) |
|
0.4 |
1.9 |
6.3 |
0.4 |
1.9 |
6.3 |
- |
- |
- |
19.4% |
|
Bacalhau Silves (formerly Emerald) |
8.7 |
52.0 |
177.7 |
10.5 |
31.0 |
110.4 |
(1.8) |
21.0 |
67.3 |
26.8% |
|
Besugo Silves
(formerly Azurite) |
|
2.6 |
15.3 |
48.4 |
12.6 |
38.6 |
127.5 |
(10.0) |
(23.3) |
(79.1) |
23.0% |
|
Turquoise
(Jurassic) |
|
- |
- |
- |
7.0 |
14.5 |
28.9 |
(7.0) |
(14.5) |
(28.9) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Torres Vedras Concession |
|
|
|
|
|
|
|
|
|
|
|
|
Lias (formerly
Basal Brenha) |
|
4.0 |
62.8 |
240.7 |
0.3 |
5.2 |
38.4 |
3.7 |
57.6 |
202.3 |
20.0% |
|
Abadia Dome
(Jurassic) |
|
- |
- |
- |
1.9 |
5.5 |
23.0 |
(1.9) |
(5.5) |
(23.0) |
|
|
Arruda
Fan Delta (Jurassic clastic) |
7.3 |
14.5 |
28.7 |
7.3 |
14.5 |
28.7 |
- |
- |
- |
28.0% |
|
Cruz da Pedra
(Jurassic) |
|
- |
- |
- |
2.4 |
5.7 |
17.0 |
(2.4) |
(5.7) |
(17.0) |
|
|
Hematite
(Jurassic) |
|
- |
- |
- |
- |
- |
0.1 |
- |
- |
(0.1) |
|
|
Lapaducos
(Jurassic) |
|
- |
- |
- |
0.1 |
1.1 |
8.4 |
(0.1) |
(1.1) |
(8.4) |
|
|
Limonite
(Jurassic) |
|
- |
- |
- |
0.1 |
0.2 |
0.9 |
(0.1) |
(0.2) |
(0.9) |
|
|
Moinho do Ceu
(Jurassic) |
|
- |
- |
- |
0.1 |
0.6 |
3.1 |
(0.1) |
(0.6) |
(3.1) |
|
|
Montalegre
(Jurassic) |
|
0.1 |
0.2 |
0.5 |
0.1 |
0.2 |
0.5 |
- |
- |
- |
5.7% |
|
Olivine
(Jurassic) |
|
- |
- |
- |
0.1 |
0.6 |
5.8 |
(0.1) |
(0.6) |
(5.8) |
|
|
Eastern 2D
Reefs |
|
- |
- |
- |
22.5 |
32.0 |
44.2 |
(22.5) |
(32.0) |
(44.2) |
|
|
Western 2D
Reefs |
|
- |
- |
- |
2.3 |
4.0 |
6.4 |
(2.3) |
(4.0) |
(6.4) |
|
|
3D
Reefs |
|
- |
- |
- |
1.2 |
2.8 |
5.8 |
(1.2) |
(2.8) |
(5.8) |
|
|
Sao Juliao
(Jurassic) |
|
- |
- |
- |
0.4 |
1.3 |
3.5 |
(0.4) |
(1.3) |
(3.5) |
|
|
Sphalerite
(Jurassic) |
|
- |
- |
- |
- |
0.2 |
1.4 |
- |
(0.2) |
(1.4) |
|
|
Turbidite |
|
- |
- |
- |
1.4 |
4.7 |
12.1 |
(1.4) |
(4.7) |
(12.1) |
|
|
Aldeia
(Jurassic) |
|
0.2 |
1.2 |
5.6 |
- |
- |
- |
0.2 |
1.2 |
5.6 |
90.0% |
|
Folgorosa
(Jurassic) |
|
0.1 |
0.5 |
2.7 |
- |
- |
- |
0.1 |
0.5 |
2.7 |
90.0% |
|
Matacaes
Silves |
|
5.5 |
29.5 |
94.7 |
- |
- |
- |
5.5 |
29.5 |
94.7 |
22.4% |
|
Moinho Velho
(Jurassic) |
|
0.1 |
0.8 |
3.8 |
- |
- |
- |
0.1 |
0.8 |
3.8 |
90.0% |
|
Torres Vedras
Silves |
|
1.5 |
3.0 |
5.5 |
1.5 |
3.0 |
5.5 |
- |
- |
- |
27.6% |
|
Torres Vedras
(Jurassic) |
|
0.1 |
1.2 |
5.6 |
- |
- |
- |
0.1 |
1.2 |
5.6 |
40.0% |
|
Varatojo (Jurassic
reef) |
|
0.5 |
3.5 |
14.5 |
- |
- |
- |
0.5 |
3.5 |
14.5 |
20.0% |
|
Varatojo Norte
(Jurassic reef) |
|
0.3 |
2.0 |
8.4 |
- |
- |
- |
0.3 |
2.0 |
8.4 |
20.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Zambujal Concession |
|
|
|
|
|
|
|
|
|
|
|
|
Lias (formerly
Basal Brenha) |
|
0.1 |
8.1 |
34.1 |
0.1 |
21.2 |
112.7 |
- |
(13.1) |
(78.6) |
20.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Prospective |
|
91.0 |
636.9 |
2,285.9 |
142.4 |
439.3 |
1,541.8 |
(51.4) |
197.6 |
744.1 |
|
|
Notes:
The Company's primary operating activities are
carried out through Mohave which has the principal working
interest in the Aljubarrota-3 (42%), Torres Vedras-3 (100%), Sao
Pedro de Muel-2 (94%), Cabo Mondego-2 (70%), Rio Maior-2 (100%), Zambujal (72%) and Peniche
(50%) oil and gas concessions in Portugal (the "Portugal Assets"). All of the
Company's concessions are located in the Lusitanian Basin of
Portugal.
2Barrels of oil equivalent (BOEs)
include oil, solution gas, associated gas and condensate. BOEs may
be misleading, particularly if used in isolation. A BOE conversion
ratio of 6 Mcf: 1 bbl has been used and is based on an energy
equivalency conversion method primarily applicable at the burner
tip and does not represent a value equivalency at the wellhead.
3Amounts may not total due to
rounding.
The Updated Report was prepared by NSAI in
accordance with the definitions, standards and procedures contained
in the Canadian Oil and Gas Evaluation Handbook (the "COGE
Handbook") and National Instrument 51-101 "Standards of Disclosure
for Oil and Gas Activities" ("NI 51-101"). Investors should also
refer to the Company's most recent NI 51-101F1 filing dated
December 14, 2012 available on SEDAR
at www.sedar.com for additional information including the risks and
uncertainty associated with the recovery of resources.
About Porto Energy Corp.
Porto Energy Corp. is an international oil and
gas company engaged in the exploration of crude oil and natural gas
in Portugal, including the
appraisal of a gas discovery. Through its wholly owned
subsidiary, Mohave Oil And Gas Corporation (a Texas corporation with branch offices in
Portugal), the Company holds
working interests in five concessions in Portugal's Lusitanian Basin totaling 1.3
million net acres or 5,303 km2. Through its
exploration efforts to date, the Company has identified seven major
exploration trends over its concessions including unconventional
oil and gas resource plays as well as conventional oil and gas
targets. Porto Energy's shares trade on the TSX Venture Exchange
under the ticker symbol "PEC". For more information on Porto Energy visit www.portoenergy.com.
Cautionary Statements
No proved, probable or possible reserves have
been assigned by the Company at this time. Undiscovered resources
are those quantities of oil and gas estimated on a given date to be
contained in accumulations yet to be discovered. Estimates of
resources always involve uncertainty, and the degree of uncertainty
can vary widely between accumulations/projects and over the life of
a project. There is no certainty that it will be commercially
viable to produce any portion of the resources.
Estimates with respect to resources that may be
developed and produced in the future are often based upon
volumetric calculations, probabilistic methods and upon analogy to
similar types of resources, rather than upon actual production
history. Estimates based on these methods generally are less
reliable than those based on actual production history. Subsequent
evaluation of the same resources based upon production history will
result in variations, which may be material, in the estimated
resources. Resource estimates may require revision based on actual
production experience.
Contingent resources are those quantities of
petroleum estimated, as of a given date, to be potentially
recoverable from known accumulations using established technology
or technology under development, but which are not currently
considered to be commercially recoverable because of one or more
contingencies. The contingent resources shown are contingent upon
demonstration of the economic viability of the projects. Commercial
flow rate testing and documentation of development plans will
provide further evidence of economic viability of these projects.
If these contingencies are resolved, some portion of the contingent
resources estimated may be reclassified as reserves. There is no
certainty that it will be commercially viable to produce any
portion of the contingent resources.
Low Estimate is considered to be a conservative
estimate of the quantity that will actually be recovered. It is
likely that the actual remaining quantities recovered will exceed
the low estimate. Using probabilistic methods, there should be at
least a 90 percent probability (P90) that the quantities actually
recovered will equal or exceed the low estimate.
Best Estimate is considered to be the best
estimate of the quantity that will actually be recovered. It is
equally likely that the actual remaining quantities recovered will
be greater or less than the best estimate. Using probabilistic
methods, there should be at least a 50 percent probability (P50)
that the quantities actually recovered will equal or exceed the
best estimate.
High Estimate is considered to be an optimistic
estimate of the quantity that will actually be recovered. It is
unlikely that the actual remaining quantities recovered will exceed
the high estimate. Using probabilistic methods, there should be at
least a 10 percent probability (P10) that the quantities actually
recovered will equal or exceed the high estimate.
This press release contains certain
forward-looking statements. These statements relate to future
events or the Company's future performance. All statements
other than statements of historical fact are forward-looking
statements. The use of any of the words "anticipate", "plan",
"continue", "estimate", "expect", "may", "will", "project",
"should", "believe", "predict" and "potential" and similar
expressions are intended to identify forward-looking
statements. These statements involve known and unknown risks,
uncertainties and other factors that may cause actual results or
events to differ materially from those anticipated in such
forward-looking statements. No assurance can be given that these
expectations will prove to be correct and such forward-looking
statements should not be unduly relied upon. These
forward-looking statements are made as of the date of this press
release and the Company does not undertake to update any
forward-looking statements that are contained in this press
release, except in accordance with applicable securities laws.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE Porto Energy Corp.