TORONTO,
April 11, 2012 /PRNewswire/ - Further
to the release of PetroMagdalena Energy Corp's (TSXV: PMD)
financial results yesterday, the Company wishes to provide
additional information on its reserves, which are based on an
independent reserve and resource assessment report prepared by
Petrotech Engineering Ltd. ("Petrotech") following all industry
standard procedures and in conformity to the COGE guidelines, as
reported in the Company's NI 51-101 Form F1, filed on SEDAR at
www.sedar.com and available on the Company's website at
www.petromagdalena.com. The additional information is summarized in
the tables below:
Summary Table 1 - Proved and
Probable Reserves |
Effective Date December
31, 2011 |
Reserve Category
by Block |
L&M Crude Oil |
Non-Associated Gas |
Natural Gas Liquids |
Before Tax Net Present Values (in
$U.S.) |
|
100% |
Gross |
Net |
100% |
Gross |
Net |
100% |
Gross |
Net |
0% |
5% |
10% |
15% |
20% |
(Mbbl) |
(Mbbl) |
(Mbbl) |
(MMcf) |
(MMcf) |
(MMcf) |
(Mbbl) |
(Mbbl) |
(Mbbl) |
(M$) |
(M$) |
(M$) |
(M$) |
(M$) |
Proved Producing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yamu |
1,481 |
148 |
136 |
|
|
|
|
|
|
5,080 |
4,680 |
4,333 |
4,045 |
3,801 |
|
Cubiro |
3,168 |
2,015 |
1,854 |
|
|
|
|
|
|
113,105 |
103,778 |
96,249 |
90,056 |
84,868 |
|
La Punta |
3,494 |
181 |
167 |
|
|
|
|
|
|
9,391 |
8,231 |
7,767 |
7,352 |
6,981 |
Total PDP |
8,144 |
2,344 |
2,157 |
0 |
0 |
0 |
0 |
0 |
0 |
127,576 |
116,689 |
108,349 |
101,453 |
95,650 |
Proved Non-Prod. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cubiro |
260 |
149 |
137 |
|
|
|
|
|
|
6,362 |
5,080 |
4,149 |
3,456 |
2,926 |
|
Mecaya |
440 |
189 |
174 |
|
|
|
|
|
|
11,917 |
10,373 |
9,111 |
8,067 |
7,193 |
|
Rio Magdalena |
243 |
95 |
87 |
5,299 |
2,077 |
1,944 |
313 |
123 |
113 |
13,252 |
10,427 |
8,314 |
6,701 |
5,448 |
Total PDNP |
943 |
433 |
398 |
5,299 |
2,077 |
1,944 |
313 |
123 |
113 |
31,531 |
25,880 |
21,574 |
18,224 |
15,567 |
Proved Undeveloped |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yamu |
957 |
96 |
88 |
|
|
|
|
|
|
2,354 |
1,892 |
1,552 |
1,295 |
1,097 |
|
Cubiro |
5,715 |
3,398 |
3,127 |
|
|
|
|
|
|
163,758 |
140,931 |
123,327 |
109,416 |
98,178 |
|
Mecaya |
880 |
378 |
348 |
|
|
|
|
|
|
19,341 |
16,192 |
13,686 |
11,668 |
10,024 |
|
Rio Magdalena |
243 |
95 |
87 |
7,200 |
2,823 |
2,642 |
426 |
167 |
154 |
-9,171 |
-9,270 |
-9,274 |
-9,215 |
-9,117 |
Total PUD |
7,795 |
3,968 |
3,650 |
7,200 |
2,823 |
2,642 |
426 |
167 |
154 |
176,282 |
149,745 |
129,291 |
113,164 |
100,182 |
Total Proved |
16,882 |
6,745 |
6,205 |
12,499 |
4,900 |
4,586 |
739 |
290 |
266 |
335,389 |
292,314 |
259,214 |
232,841 |
211,399 |
Probable |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carbonera |
|
|
|
22,384.40 |
22,384.40 |
20,951.80 |
369.9 |
369.9 |
340.3 |
65,241 |
45,915 |
33,083 |
24,262 |
18,006 |
|
Cubiro |
9,543.80 |
5,870.10 |
5,402.20 |
|
|
|
|
|
|
248,098 |
194,549 |
158,919 |
133,787 |
115,216 |
|
La Punta |
602.9 |
33 |
30.3 |
|
|
|
|
|
|
1,021 |
606 |
68 |
-346 |
-671 |
|
Mecaya |
882.8 |
379.6 |
349.2 |
|
|
|
|
|
|
18,630 |
15,157 |
12,469 |
10,360 |
8,685 |
|
Rio Magdalena |
651.5 |
255.4 |
234.9 |
63,700.50 |
24,970.60 |
23,372.50 |
5,216.60 |
2,044.90 |
1,881.30 |
192,104 |
116,756 |
75,232 |
50,805 |
35,545 |
Total
Probable |
11,681 |
6,538 |
6,017 |
86,085 |
47,355 |
44,324 |
5,587 |
2,415 |
2,222 |
525,094 |
372,983 |
279,771 |
218,868 |
176,781 |
Total
Proved + Probable |
28,563 |
13,283 |
12,222 |
98,584 |
52,255 |
48,911 |
6,325 |
2,704 |
2,488 |
860,483 |
665,297 |
538,985 |
451,709 |
388,180 |
|
Table 2 - Total
Proved and Probable Reserves by Block |
Effective Date
December 31, 2011 |
Dec 31, 2011 Reserve
Category
By Block
|
L&M Crude Oil |
Non-Associated Gas |
Natural Gas Liquids |
Before Tax Net Present Values (in
$U.S.) |
|
100% |
Gross |
Net |
100% |
Gross |
Net |
100% |
Gross |
Net |
0% |
5% |
10% |
15% |
20% |
(Mbbl) |
(Mbbl) |
(Mbbl) |
(MMcf) |
(MMcf) |
(MMcf) |
(Mbbl) |
(Mbbl) |
(Mbbl) |
(M$) |
(M$) |
(M$) |
(M$) |
(M$) |
Yamu |
2,439 |
244 |
224 |
|
|
|
|
|
|
7,434 |
6,572 |
5,885 |
5,340 |
5,898 |
Cubiro |
18,687 |
11,432 |
10,520 |
|
|
|
|
|
|
531,323 |
444,338 |
382,644 |
336,715 |
301,188 |
La Punta |
4,097 |
214 |
197 |
|
|
|
|
|
|
10,412 |
8,837 |
7,835 |
7,006 |
6,310 |
Mecaya |
2,203 |
947 |
872 |
|
|
|
|
|
|
49,888 |
41,722 |
35,266 |
30,095 |
25,902 |
Rio Mag |
1,137 |
446 |
410 |
76,200 |
29,870 |
27,959 |
5,955 |
2,335 |
2,148 |
196,185 |
117,913 |
74,272 |
48,291 |
31,876 |
Carbonera |
|
|
|
22,384 |
22,384 |
20,952 |
370 |
370 |
340 |
65,241 |
45,915 |
33,083 |
24,262 |
18,006 |
Total 2P |
28,563 |
13,283 |
12,222 |
98,584 |
52,255 |
48,911 |
6,325 |
2,704 |
2,488 |
860,483 |
665,297 |
538,985 |
451,709 |
389,180 |
|
Table 3 - Total
Proved and Probable Oil Equivalent
Reserves |
Effective
Date December 31, 2011 |
Total
Proved and Probable
Reserves By Block and BOE |
L&M Crude Oil |
Non-Associated Gas |
Natural Gas Liquids |
|
100% |
Gross |
Net |
100% |
Gross |
Net |
100% |
Gross |
Net |
(Mbbl) |
(Mbbl) |
(Mbbl) |
(Mboe) |
(Mboe) |
(Mboe) |
(Mboe) |
(Mboe) |
(Mboe) |
Yamu |
2,439 |
244 |
224 |
|
|
|
|
|
|
Cubiro |
18,687 |
11,432 |
10,520 |
|
|
|
|
|
|
La Punta |
4,097 |
214 |
197 |
|
|
|
|
|
|
Mecaya |
2,203 |
947 |
872 |
|
|
|
|
|
|
Rio Mag |
1,137 |
446 |
410 |
12,700 |
4,978 |
4,660 |
5,955 |
2,335 |
2,148 |
Carbonera |
|
|
|
3,731 |
3,731 |
3,492 |
370 |
370 |
340 |
Total 2P (BOE) |
28,563 |
13,283 |
12,222 |
16,431 |
8,709 |
8,152 |
6,325 |
2,704 |
2,488 |
Total
Proved and Probable
Reserves By Block and BOE |
Barrels Oil Equivalent |
|
|
|
100% |
Gross |
Net |
|
|
|
|
|
|
(Mboe) |
(Mboe) |
(Mboe) |
|
|
|
|
|
|
Yamu |
2,439 |
244 |
224 |
|
|
|
|
|
|
Cubiro |
18,687 |
11,432 |
10,520 |
|
|
|
|
|
|
La Punta |
4,097 |
214 |
197 |
|
|
|
|
|
|
Mecaya |
2,203 |
947 |
872 |
|
|
|
|
|
|
Rio Mag |
19,792 |
7,758 |
7,217 |
|
|
|
|
|
|
Carbonera |
4,101 |
4,101 |
3,832 |
|
|
|
|
|
|
Total
2P (BOE) |
51,318 |
24,697 |
22,862 |
|
|
|
|
|
|
Notes to Table 1, Table 2 and Table 3:
(1) |
|
The tables use the definition of reserves category and follows
the guidelines from the Canadian Oil and Gas Evaluation (COGE)
Handbook. The net cash flow is calculated at forecast prices
and escalated cost on the reserves to all future time and after
deduction of the capital costs and royalties but before deduction
of income tax. All cash flow data is in U.S. dollars. |
(2) |
|
Additions may not add up due to computer rounding of the
decimal places. The December 31, 2011 oil price closed at $98.83
per barrel for the West Texas Intermediate crude oil, at $103.11
per barrel for the Vasconia crude oil. The forecast prices
are escalated using the NYMEX futures on the average of the monthly
settlement prices to 2017 and then escalated at 2% per year
thereafter (see Forecast Oil and Gas Prices section, in the filed
Form F1). The gross reserve is the Company's share of
production before royalties and the net reserve in the Company's
share of production after deduction of royalties. The
royalties on the oil are paid in kind and in cash if
applicable. |
(3) |
|
The estimated net present values do not represent a fair market
value. The abandonment costs of the wells have been
incorporated at the end of the economic life. In reviewing
the reserve estimates, it should be understood that there are
inherent uncertainties and limitations with both the database
available for analysis and the interpretation of such engineering
and geological data. The judgments used in assessing the
reserve are considered reasonable given the historical data on well
performances and the knowledge of the property reviewed. |
PetroMagdalena is a Canadian-based oil and
gas exploration and production company, with working interests
in 19 properties in five basins in Colombia. Further information can be obtained
by visiting our website at
www.petromagdalena.com.
All monetary amounts in U.S. dollars unless
otherwise stated. This news release contains certain
"forward-looking statements" and "forward-looking information"
under applicable Canadian securities laws concerning the business,
operations and financial performance and condition of
PetroMagdalena. Forward-looking statements and forward-looking
information include, but are not limited to, statements with
respect to estimated production and reserve life of the various oil
and gas projects of PetroMagdalena; the estimation of oil and gas
reserves; the realization of oil and gas reserve estimates; the
timing and amount of estimated future production; costs of
production; success of exploration activities; and currency
exchange rate fluctuations. Except for statements of historical
fact relating to the company, certain information contained herein
constitutes forward-looking statements. Forward-looking statements
are frequently characterized by words such as "plan," "expect,"
"project," "intend," "believe," "anticipate", "estimate" and other
similar words, or statements that certain events or conditions
"may" or "will" occur. Forward-looking statements are based on the
opinions and estimates of management at the date the statements are
made, and are based on a number of assumptions and subject to a
variety of risks and uncertainties and other factors that could
cause actual events or results to differ materially from those
projected in the forward-looking statements. Many of these
assumptions are based on factors and events that are not within the
control of PetroMagdalena and there is no assurance they will prove
to be correct. Factors that could cause actual results to vary
materially from results anticipated by such forward-looking
statements include changes in market conditions, risks relating to
international operations, fluctuating oil and gas prices and
currency exchange rates, changes in project parameters, the
possibility of project cost overruns or unanticipated costs and
expenses, labour disputes and other risks of the oil and gas
industry, failure of plant, equipment or processes to operate as
anticipated. Although PetroMagdalena has attempted to identify
important factors that could cause actual actions, events or
results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be anticipated, estimated or
intended. There can be no assurance that forward-looking statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
PetroMagdalena undertakes no obligation to update forward-looking
statements if circumstances or management's estimates or opinions
should change except as required by applicable securities laws. The
reader is cautioned not to place undue reliance on forward-looking
statements.
Statements concerning oil and gas reserve
estimates may also be deemed to constitute forward-looking
statements to the extent they involve estimates of the oil and gas
that will be encountered if the property is developed. Boe may be
misleading, particularly if used in isolation. A boe conversion
ratio of 6 mcf:1 bbl is based on an energy equivalency conversion
method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead. Estimated values of
future net revenue disclosed do not represent fair market
value.
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 news release.
Glossary
1P: Proven reserves |
G&A: General and Administrative Expenses |
2P: Proven + Probable reserves |
MMCF: Million Cubic Feet |
3P: Proven + Probable + Possible reserves |
MD: Measured Depth |
ANH: Agencia Nacional de Hidrocarburos |
MMBBLS: Million Barrels of Oil |
API: American Petroleum Institute |
MMBTU: Millions British Thermal Unit |
BOE: Barrels of Oil Equivalent |
|
BOFD: Barrels of Fluid Per Day |
NPV: Net Present Value |
BOPD: Barrels of Oil Per Day |
PSI: Pounds per Square Inch. The unit of
pressure. |
BOEPD: Barrels of Oil Equivalent Per Day |
TD: Total Depth of the well |
BS&W: Basic Sediments and Water |
TVD: True Vertical Depth of the well |
E&PC: Exploration & Production
Contract |
TVDSS: True Vertical Depth Sub Sea |
ESP: Electric Submersible Pump |
WI: Working Interest |
FOB: Freight on Board |
WTI: West Texas Intermediate Oil Price Index |
SOURCE PetroMagdalena Energy Corp.