Crude Oil ( ) Brent Crude ( ) Natural Gas ( ) S&P 500 ( ) PHLX Oil ( )
 October 8, 2015 - 9:28 AM EDT
Print Email Article Font Down Font Up Charts


WellStar Energy Corp. Announces NI 51-101 Compliant Oil & Gas Reserves Report

Calgary, Alberta--(Newsfile Corp. - October 8, 2015) - WELLSTAR ENERGY CORP. (TSXV: WSE) ("WellStar", or the "Company") announced today that Trimble Engineering Associates Ltd. ("Trimble"), a qualified reserves evaluator, has prepared a National Instrument 51-101 compliant report dated September 28, 2015, effective August 31, 2015 (the "Reserves Report") estimating reserves and future net revenues for the Company's oil and gas properties in Saskatchewan and Alberta (the "Properties").

The Reserves Report is the first reserves report issued by the Company since the acquisition of the Properties was completed and announced on February 19, 2015 (the "Acquisition").

The Reserves Report estimates, as of August 31, 2015, total gross property proved reserves at 160.4 Mbbl (thousands of barrels) oil and 404.0 MMcf (millions of cubic feet) gas, or 228 Mboe (thousands of barrels of oil equivalent). Of note, the vendor to the Acquisition commissioned a reserves report effective July 31, 2014 (the "Vendor Report") that previously indicated total oil and gas proved reserves of 89.9 Mboe. The 154% increase in the proved oil and gas reserves is principally due to the Company's work programs on its McTaggart, Saskatchewan and Leduc, Alberta properties.

In addition, the Reserves Report indicated gross property probable reserves of 252.7 Mbbl and 830.8 MMcf. The Company's gross property possible reserves for the Properties are estimated to be 382.6 Mbbl and 1,102.3 MMcf. In summary, the Report indicates total recoverable proved, probable and possible (3P) gross property reserves of 795.7 Mbbl and 2,337.1 MMcf or 1,185.5 Mboe.

The estimated net reserves of the Properties and future net revenues before income tax using various discount rates is summarized in the table below:

Reserves Future Net Revenue Before Income Taxes (Millions CDN$)
Oil
(Mbbl)
Gas
(MMcf)
Discount Rate
Category Gross Net Gross Net 0% 5% 10% 15% 20%
Proved Developed Producing 65.9 38.2 3.4 1.0 1.774 1.577 1.419 1.289 1.180
Proved NP & Undeveloped 94.5 44.5 400.6 135.5 1.106 0.969 0.858 0.767 0.692
Total Proved 160.4 82.7 404.0 136.5 2.880 2.546 2.277 2.056 1.872
Probable 252.7 104.8 830.8 384.5 4.983 4.067 3.384 2.864 2.457
Proved + Probable 413.1 187.5 1,234.8 521.0 7.863 6.613 5.661 4.920 4.329
Possible 382.6 124.9 1,102.3 567.5 6.175 4.937 4.084 3.457 2.977
Proved + Probable + Possible 795.7 312.4 2,337.1 1,088.5 14.038 11.550 9.745 8.377 7.306

 

WellStar President Andrew H. Rees stated "Management is very pleased with the Reserve Report as it represents a significant increase in reserves by value and volume from what its wholly owned subsidiary Nexxtep Resources had completed to NI 51-101 standards as a private company before its acquisition by WellStar in February, 2015. Additionally, the Reserves Report does not fully account for the recent successful workover program at the Company's McTaggart project in southeast Saskatchewan (see news release dated September 29, 2015) as the program wasn't completed before the August 31, 2015 effective date."

The Company's reported reserves are estimates only and should not be construed as exact quantities. Proved reserves are those reserves which can be estimated with a high degree of certainty to be recoverable; probable reserves are those additional reserves which are less certain to be recovered than proved reserves. Possible reserves are those additional reserves which are less certain to be recovered than probable reserves. There is a 10 percent probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves.

The content of this press release has been reviewed by Trimble, as the Company's independent qualified reserves evaluator.

For further information please contact Andrew H Rees at (403) 919-7100.

ON BEHALF OF THE BOARD

(signed) "Andrew H. Rees"
Andrew H. Rees
President

Neither the 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.

Prospective resources are those quantities of reserves estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. There is no certainty that it will be commercially viable to produce any portion of the prospective resources.

Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Except as required pursuant to applicable securities laws, the Company will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by the Company.

THE FORWARD-LOOKING STATEMENTS CONTAINED IN THIS PRESS RELEASE PRESENT THE EXPECTATIONS OF THE COMAPNY AS OF THE DATE HEREOF AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON FORWARD-LOOKING STATEMENTS.


Source: Newsfile Corp. (October 8, 2015 - 9:28 AM EDT)

News by QuoteMedia
www.quotemedia.com