Triton Energy Corp. (TSX VENTURE:TEZ) ("Triton" or the "Corporation") is pleased
to provide the following summary information from its annual independent reserve
evaluation completed by AJM Petroleum Consultants for all of the Corporation's
properties effective December 31, 2007 (the "AJM Report"). These estimates were
prepared in accordance with National Instrument 51-101 Standards of Disclosure
for Oil and Gas Activities (NI 51-101).
2007 HIGHLIGHTS
- Production totaled an estimated 229 thousand barrels of oil equivalent at an
average daily production rate of approximately 629 barrels of oil equivalent;
- Triton exited 2007 with daily production of approximately 925 barrels of oil
equivalent;
- Proved plus probable reserve additions totaled 1,320 thousand barrels of oil
equivalent;
- Triton replaced estimated production by 576% with proved plus probable reserve
additions;
- Proved plus probable reserves increased by 287% to 1,674 thousand barrels of
oil equivalent;
- The Corporation increased its Reserves Life Index on a proved plus probable
reserves basis to 5.0 years.
- Estimated finding and development costs, including changes in future
development costs, improved to $19.96 per barrel of oil equivalent on a proved
reserves basis and $14.95 per barrel of oil equivalent on a proved plus probable
reserves basis compared to $24.80 and $19.41, respectively, in 2006;
- The net present value (before tax discounted at 10 percent) of total proved
plus probable reserves increased by 224% to $27.9 million.
RESERVES
Triton's 2007 capital expenditures totaled approximately $17.5 million, which
resulted in total proved plus probable reserve additions of 1,320 thousand
barrels of oil equivalent. These additions represent a 576% replacement of the
Corporation's estimated 2007 production of 229 thousand barrels of oil
equivalent.
During 2007, Triton increased total proved plus probable reserves by 287% to
1,674 thousand barrels of oil equivalent at December 31, 2007 compared to 583
thousand barrels of oil equivalent at December 31, 2006. Total proved reserves
were increased by 270% to 1,202 thousand barrels of oil equivalent at December
31, 2007 compared to 446 thousand barrels of oil equivalent at December 31,
2006. Approximately 72% of the Corporation's total proved plus probable reserves
at December 31, 2007 are natural gas while the remaining 28% are comprised of
crude oil and natural gas liquids.
The following table summarizes the Corporation's gross and net interests in
proved and probable reserves at December 31, 2007 as assessed in the AJM Report
using their December 31, 2007 forecasted price and cost assumptions.
RESERVES (1)(2)(3)
-----------------------------------------------
LIGHT AND
MEDIUM OIL HEAVY OIL NATURAL GAS(4)
--------------- --------------- ---------------
RESERVES Gross Net Gross Net Gross Net
CATEGORY (Mbbl) (Mbbl) (Mbbl) (Mbbl) (Mmcf) (Mmcf)
---------------------------- ------- ------- ------- ------- ------- -------
Proved Developed
Producing 24.9 22.4 87.8 77.2 4,180.2 3,243.8
Non-Producing - - 75.2 62.4 380.3 293.7
Proved Undeveloped 61.1 48.7 - - 884.6 595.4
------- ------- ------- ------- ------- --------
TOTAL PROVED 86.0 71.1 163.0 139.6 5,445.2 4,133.0
PROBABLE 64.2 54.5 100.3 86.2 1,802.8 1,424.6
------- ------- ------- ------- ------- --------
TOTAL PROVED PLUS PROBABLE 150.2 125.5 263.3 225.8 7,248.0 5,557.5
------- ------- ------- ------- ------- --------
------- ------- ------- ------- ------- --------
RESERVES (1)(2)(3)
-------------------------------
NATURAL GAS BARRELS OF OIL
LIQUIDS EQUIVALENT(5)
--------------- ---------------
RESERVES Gross Net Gross Net
CATEGORY (Mbbl) (Mbbl) (Mboe) (Mboe)
---------------------------- ------- ------- ------- -------
Proved Developed
Producing 29.5 20.8 838.9 660.9
Non-Producing 5.1 3.7 143.7 115.1
Proved Undeveloped 11.1 6.6 219.6 154.5
------- ------- ------- --------
TOTAL PROVED 45.6 31.1 1,202.1 930.6
PROBABLE 7.2 4.9 472.2 383.0
------- ------- ------- --------
TOTAL PROVED PLUS PROBABLE 52.8 36.0 1,674.3 1,313.6
------- ------- ------- --------
------- ------- ------- --------
(1) Numbers in this table are subject to round off error.
(2) Gross reserves are the Corporation's working interest share prior to the
deduction of royalty obligations and inclusion of royalty interests.
(3) Net reserves are the Corporation's working interest share after the
deduction of royalty obligations and the inclusion of royalty interests.
(4) Natural gas volumes include solution gas volumes associated with the
Corporation's light and medium crude oil reserves.
(5) Natural gas is converted to barrels of oil equivalent ("boe") at a ratio
of six thousand standard cubic feet to one barrel of oil.
NET PRESENT VALUES OF RESERVES
The following table summarizes Triton's share of the net present value of its
reserves before and after tax but prior to the provision for interest and
general and administrative expenses. The forecast prices used in the reserve
report were AJM Petroleum Consultant's price forecast as of December 31, 2007.
NET PRESENT VALUES OF FUTURE REVENUE(1)(2)(3)(4)
--------------------------------------------------
BEFORE INCOME TAXES DISCOUNTED AT (%/year)
--------------------------------------------------
RESERVES 0 5 10 15 20
CATEGORY (M$) (M$) (M$) (M$) (M$)
---------- --------- --------- --------- ---------
Proved Developed
Producing 21,596.7 19,133.4 17,201.1 15,667.2 14,428.0
Non-Producing 3,629.6 2,107.0 1,318.0 881.7 625.8
Proved Undeveloped 3,895.6 3,018.0 2,348.4 1,827.0 1,413.7
--------- -------- -------- -------- ---------
TOTAL PROVED 29,122.0 24,258.4 20,867.6 18,375.9 16,467.4
PROBABLE 14,341.2 9,620.0 7,030.7 5,452.8 4,410.6
--------- -------- -------- -------- ---------
TOTAL PROVED PLUS PROBABLE 43,463.2 33,878.4 27,898.2 23,828.8 20,877.9
--------- -------- -------- -------- ---------
--------- -------- -------- -------- ---------
NET PRESENT VALUES OF FUTURE REVENUE(1)(2)(3)(4)
--------------------------------------------------
AFTER INCOME TAXES DISCOUNTED AT (%/year)
--------------------------------------------------
RESERVES 0 5 10 15 20
CATEGORY (M$) (M$) (M$) (M$) (M$)
---------- --------- --------- --------- ---------
Proved Developed
Producing 15,548.8 13,801.7 12,413.8 11,307.9 10,414.1
Non-Producing 2,811.9 1,615.9 1,003.3 667.7 472.4
Proved Undeveloped 2,830.9 2,097.9 1,546.4 1,121.9 788.8
--------- -------- -------- -------- ---------
TOTAL PROVED 21,191.6 17,515.5 14,963.5 13,097.5 11,675.3
PROBABLE 10,675.8 7,118.7 5,177.7 4,000.3 3,225.5
--------- -------- -------- -------- ---------
TOTAL PROVED PLUS PROBABLE 31,867.4 24,634.2 20,141.2 17,097.8 14,900.8
--------- -------- -------- -------- ---------
--------- -------- -------- -------- ---------
(1) Utilizes AJM Petroleum Consultants price forecast as of December 31,
2007 as detailed below.
(2) Values are net of abandonment liabilities.
(3) Numbers in this table are subject to round off error.
(4) The net present values of future net revenue do not represent fair
market value.
PRICE FORECASTS
The following price forecasts were used to determine future revenues from
the Corporation's reserves.
OIL
-------------------------------
Edmonton Hardisty
Oil Heavy
WTI Price 40 12
Cushing degrees degrees
Oklahoma API API
Year ($US/Bbl) ($Cdn/Bbl) ($Cdn/Bbl)
--------- --------- ---------- ----------
Forecast
2008 $85.00 $85.65 $50.65
2009 $81.60 $84.75 $49.75
2010 $81.15 $87.05 $52.75
2011 $79.60 $87.25 $54.00
2012 $77.95 $85.40 $52.15
2013 $77.30 $84.60 $51.35
2014 $78.85 $86.30 $53.05
2015 $80.40 $88.05 $54.80
2016 $82.00 $89.80 $55.50
2017 $83.65 $91.60 $56.60
2018 $85.35 $93.45 $58.45
2019+ Escalated oil, gas and product prices
at approximately 2% per year thereafter
Alberta
AECO
Average Pentanes Butanes
Gas Plus Price Inflation Exchange
Price Edmonton Edmonton Rates(1) Rate(2)
Year ($Cdn/Mcf) ($Cdn/Bbl) ($Cdn/Bbl) %/Year ($US/$Cdn)
--------- ---------- ---------- ---------- ---------- ----------
Forecast
2008 $ 6.90 $89.95 $68.50 0.0% 0.980
2009 $ 7.75 $89.00 $67.80 2.0% 0.950
2010 $ 8.10 $91.40 $69.65 2.0% 0.920
2011 $ 8.50 $91.60 $69.80 2.0% 0.900
2012 $ 8.65 $89.65 $68.30 2.0% 0.900
2013 $ 9.10 $88.85 $67.70 2.0% 0.900
2014 $ 9.30 $90.60 $69.05 2.0% 0.900
2015 $ 9.50 $92.45 $70.45 2.0% 0.900
2016 $ 9.65 $94.29 $71.85 2.0% 0.900
2017 $ 9.85 $96.20 $73.30 2.0% 0.900
2018 $10.05 $98.10 $74.75 2.0% 0.900
2019+ Escalated oil, gas and product prices
at approximately 2% per year thereafter 2.0% 0.900
(1) Inflation rates for forecasting prices and costs.
(2) Exchange rates used to generate the benchmark reference prices in this
table.
FINDING AND DEVELOPMENT COSTS
The Corporation's finding and development costs (including changes in future
development costs) for 2007 are estimated to be $19.96 per barrel of oil
equivalent on a proved reserves basis and $14.95 on a proved plus probable
reserves basis.
FINDING AND DEVELOPMENT COSTS 2007(1) 2006
----------------------------------------------- -------- --------
Capital Expenditures (millions)(2) $ 17.5 $ 11.4
Proved Reserves Added (mboe) 985 493
Proved Plus Probable Reserves Added (mboe) 1,320 631
Average Cost/boe (proved) $19.96 $24.80
Average Cost/boe (proved plus probable) $14.95 $19.41
(1) Estimated.
(2) Includes exploration and development costs. The aggregate of the
exploration and development costs incurred in the most recent financial
year and the change during that year in estimated future development
costs generally will not reflect total finding and development costs
related to reserve additions for that year.
(3) The Corporation had no petroleum or natural gas reserves in 2005 and
thus the Corporation cannot provide a three-year average. However, the
two-year average cost per boe is $22.38 (proved) and $17.18 (proved plus
probable).
RESERVES COMMITTEE
Triton has a Reserves Committee comprised of a majority of independent board
members, which reviews the qualifications and appointment of the independent
reserve evaluators. The Reserves Committee also reviews the process for
providing information to the evaluators and meets with the independent
evaluators to discuss the procedures used in the independent report, to review
major property assessments and to discuss any areas of risk. The AJM Report was
reviewed by Triton's Reserves Committee and subsequently approved by the
Corporation's Board of Directors on February 1, 2008.
2008 CAPITAL EXPENDITURES BUDGET
The Corporation's Board of Directors has approved a preliminary capital
expenditures budget of $16.1 million for 2008, which includes drilling up to
fourteen (fourteen net) wells. Triton's 2008 drilling program combines lower
risk, medium risk and higher risk drills. On a risk basis, approximately fifty
percent of the drilling budget is expected to be spent on lower risk prospects
at Inland, Sullivan Lake, Lloydminster and Lanaway. Forty percent is budgeted
for medium risk prospects at Newton, Alexander, Giroux Lake and Sullivan Lake,
with the remaining ten percent reserved for one or more higher risk prospects
not as yet determined. Triton expects to fund its 2008 capital expenditures
program primarily with cash flow and credit facilities.
An updated Corporate Presentation is available for viewing at Triton's website,
www.tritonenergy.ca.
Triton is a Calgary, Alberta based corporation engaged in the exploration,
development and production of petroleum and natural gas. The Corporation's
common shares are listed on the TSX Venture Exchange under the trading symbol
"TEZ".
Forward-Looking Statements
This news release may include forward-looking statements including opinions,
assumptions, estimates and management's assessment of future plans and
operations, production, proved and proved plus probable reserves, commodity
prices, estimated finding and development costs, capital expenditures, the
number and location of wells to be drilled and sources of capital. When used in
this document, the words "anticipate," "believe," "estimate," "expect,"
"intent," "may," "project," "plan", "should" and similar expressions are
intended to be among the statements that identify forward-looking statements.
Forward-looking statements are subject to a wide range of risks and
uncertainties, and although the Corporation believes that the expectations
represented by such forward-looking statements are reasonable, there can be no
assurance that such expectations will be realized. Any number of important
factors could cause actual results to differ materially from those in the
forward-looking statements including, but not limited to, risks associated with
oil and gas exploration, development, exploitation, results from testing,
production, marketing and transportation, the volatility of oil and gas prices,
currency fluctuations, the ability to implement corporate strategies, the state
of domestic capital markets, the ability to obtain financing, incorrect
assessment of the value of acquisitions, failure to realize the anticipated
benefits of acquisitions, changes in oil and gas acquisition and drilling
programs, delays resulting from inability to obtain required regulatory
approvals, delays resulting from inability to obtain drilling rigs and other
services, delays in tie-in operations, results from testing, environmental
risks, competition from other producers, imprecision of reserve estimates,
changes in general economic conditions and other factors more fully described
from time to time in the reports and filings made by Triton with securities
regulatory authorities. Readers are cautioned not to place undue reliance on
forward-looking statements, as no assurances can be given as to future results,
levels of activity or achievements. Except as required by applicable securities
laws, the Corporation does not undertake any obligation to publicly update or
revise any forward-looking statements.
Disclosure provided herein in respect of barrels of oil equivalent ("boe") may
be misleading, particularly if used in isolation. A boe conversion ratio of six
thousand standard cubic feet of natural gas to one barrel of oil is based on an
energy equivalency conversion method primarily applicable at the burner tip and
does not represent a value equivalency at the wellhead.
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