VANCOUVER, BRITISH COLUMBIA - Canada Energy Partners (the “Company”) is pleased to announce its year-end reserve and resource update, effective April 30, 2013. GLJ Petroleum Consultants evaluated the Company’s Montney reserves and resources and Netherland Sewell and Associates evaluated the Peace River CBM Project’s reserves and resources. The Company received an increase in its Contingent Resources of 173 BCFe associated with its Monias Property.
The Company’s reserves are summarized below. The year-over-year reserves are essentially unchanged from last year. 7.1% of the Company’s Montney lands have booked reserves.
The Company’s resources are summarized below. Offset drilling adjacent to the Company’s Monias property has resulted in attribution of 173 BCFe of Contingent Resources to the Monias property, with a liquids component of 14 barrels per million cubic feet. The Company had no Contingent Resources on this property last year. Montney Contingent Resources are ascribed to only 10.5% of the Company’s Montney lands and are all attributable to the Monias property.
Netherland Sewell also provided a year-end update on the Peace River CBM Project. Their assessment was essentially unchanged from their prior assessments at 102.5 BCF of proved, probable, possible reserves and 394.1 BCF of Best Estimate Contingent Resources net to CE for the CBM Project. These resources are uneconomic at current gas prices and development of these resources will be contingent on higher realized gas prices or drilling/completion technology advances.
As shown on the map below, Shell is intensively developing the Montney immediately adjacent to the Company’s Monias lands and seeing exceptional results. Shell’s permitting activity indicates they are stacking laterals 3 to 5 deep in the Upper Montney which would imply 12-20 wells per section. GLJ’s analysis indicates an average estimated ultimate recovery per well (“EUR”), on a proved and probable basis, of 4.5 BCFe per well with +/-14 barrels of natural gas liquids per million cubic feet. The Company has 5 net sections at Monias which could yield 60-100 drilling locations.
As momentum builds toward LNG exports out of the west coast of British Columbia, the Montney Trend of northeast British Columbia continues to be a focal point of M&A activity in Western Canada as demonstrated by $15.9 billion of land transactions in the last 44 months, as summarized in the following table.
“Proved reserves” are those quantities of petroleum, which by analysis of geosciences and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under defined economic conditions, operating methods, and government regulations.
“Probable reserves” are those additional Reserves which analysis of geosciences and engineering data indicate are less likely to be recovered than Proved Reserves but more certain to be recovered than Possible Reserves.”
“Possible reserves” are those additional reserves which analysis of geoscience and engineering data indicate are less likely to be recovered than probable reserves.
“Contingent resources” are defined as those quantities of oil and gas estimated on a given date to be potentially recoverable from known accumulations but are not currently economic due to one or more contingencies. There is no certainty that it will be commercially viable to produce any portion of the resources described in the evaluation. The primary contingency which prevents the classification of the Company’s Montney contingent resources at Peace River as reserves is the current early stage of development of the property. Additional drilling, completion, and testing data is generally required before the Company can commit to their future development. The contingencies that result in the classification of the Gething CBM as a contingent resource include, but are not limited to: permeability to gas, gas saturation and/or content, an appropriate and successful field development plan, corporate commitment, and economic factors.
On behalf of the Board of Directors of
Canada Energy Partners Inc.
For more information, please contact:-
CANADA ENERGY PARTNERS INC.
1680-200 Burrard St.
Vancouver, BC V6C 3L6
Main Phone: (604) 909-1154 / Facsimile: (604) 488-0319
Attention: John Proust, Chairman
Email: [email protected]
Direct Phone: (604) 696-9020
Attention: Ben Jones, President and CEO
Email: [email protected]
Direct Phone: (225) 388-9900
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.