CALGARY, ALBERTA--(Marketwire - Oct. 11, 2012) - Eaglewood Energy Inc. (the "Corporation") (TSX VENTURE:EWD) is pleased to announce an estimation of resources on the portion of the Stanley Hydrocarbon Pool that encroaches into Eaglewood's Petroleum Prospecting License 259 ("PPL 259") in Papua New Guinea. The bulk of the Stanley field is located within Petroleum Retention Licence 4 ("PRL 4"). The PRL 4 Joint Venture is operated by Horizon Oil Ltd. and includes Talisman Energy Inc. and Mitsubishi Corporation. A portion of the Stanley field lies in graticular block 1622 within PPL 259. The PPL 259 Joint Venture is operated by Eaglewood and includes a subsidiary of Horizon Oil Ltd. and Mega Fortune International.
The Corporation acquired two 2D dip seismic lines over the Stanley West feature in April 2012. Following the interpretation of these lines and a review of publically available data released by the PRL 4 operator in respect of wells drilled in PRL 4, GaffneyCline & Associates ("GCA"), an independent qualified reserves evaluator, prepared the following update for the Corporation dated effective July 31, 2012. The resource estimates from GCA are prepared using the Petroleum Resources Management System published by the Society of Petroleum Engineers / World Petroleum Council / American Association of Petroleum Geologists / Society of Petroleum Evaluation Engineers (SPE/WPC/AAPG/SPEE) in March, 2007 ("SPE PRMS") GCA considers that these resource estimates are equivalent to those that would be assessed under the Canadian Oil and Gas Evaluation Handbook ("COGEH") and National Instrument (NI) 51-101 Standards of Disclosure for Oil and Gas Activities.
The GCA update reports a P50 Estimate of natural gas initially in place of 49.5 Bscf, and a P50 estimate of natural gas liquids initially in place of 2.1 MMBbl. The Corporation has used a 6:1 conversion ratio to convert natural gas liquids to natural gas equivalent, with the estimated P50 natural gas equivalent initially in place of 62.1 BCFE.
A breakdown of the Gas Initially In Place, Condensate Initially In Place and Unrisked Prospective Resources for Stanley West within PPL 259 is outlined in the tables below. Unrisked Prospective Resources are stated on a 100% basis:
||Prospective Resources (Bscf)
||Prospective Resources (MMBbl)
- The Stanley West feature is considered a Prospect by GCA. Prospects are features that have been sufficiently well defined, on the basis of geological and geophysical data, to the point that they are considered viable drilling targets.
- GCoS = Geological Chance of Success
- The GCoS reported here represents an indicative estimate of the probability that drilling this Prospect would result in a discovery that would warrant the re-classification of that volume as a Contingent Resource. These GCoS values have not been arithmetically applied to the designated volumes within this assessment. Thus the volumes are "Unrisked".
- A Tax/Royalty system applies and volumes are before deduction of Royalty
There are also a number of contingencies, which preclude the estimated resources from being classified as reserves. Such contingencies include, but are not limited to, an exploration well being drilled resulting in a discovery, appraisal drilling and additional seismic being performed to confirm the extent of the discovery and a development plan being created and approved by the Corporation. There is no certainty that it will be commercially viable to produce any portion of the Prospective Resources stated herein.
CEO Brad Hurtubise commented "The completion of the GCA work is very important to us as it shows that the encroaching volume represents a sizeable portion of the Stanley hydrocarbon accumulation. We are very pleased to have quantified the size of the Stanley Pool that encroaches into PPL 259 and now have our data to initiate the unitisation negotiations with the PRL 4 JV. The PNG Government requires confirmation that the Stanley unitisation with PRL 4 and PPL 259 has been resolved prior to any review of the Stanley Petroleum Development Licence, recently submitted by the PRL 4 JV to the PNG Government."
"Prospective Resources" are those quantities of petroleum that are estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective Resources have both a chance of discovery and a chance of development. There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that the resources will be commercially viable or the Corporation will be able to produce any portion of the resources.
"Gas Initially In Place" and " Condensate Initially In Place" mean those quantities of natural gas or natural gas liquids that are estimated to exist originally in naturally occurring accumulations. It includes that quantity of natural gas or natural gas liquids that are estimated, as of a given date, to be contained in known accumulations, prior to production.
"P90" means a conservative estimate of the quantity that will actually be recovered from the accumulation. It is likely that the actual remaining quantities discovered will exceed the low estimate. If probabilistic methods are used, there should be at least a 90 percent probability that the quantities actually recovered will equal or exceed the low estimate.
"P50" means the best estimate of the quantity that will actually be recovered from the accumulation. It is equally likely that the actual remaining quantities recovered will be greater or less than the best estimate. If probabilistic methods are used, there should be at least a 50 percent probability that the quantities actually recovered will equal or exceed the best estimate.
"P10" means 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. If probabilistic methods are used, there should be at least a 10 percent probability that the quantities actually recovered will equal or exceed the high estimate.
Certain statements contained in this press release, such as statements relating to resource estimates and efforts to unitise the Stanley Field may constitute forward-looking statements. These statements relate to future events or the Corporation's future performance. All statements, other than statements of historical fact, may be forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause events to differ materially from those anticipated in such forward-looking statements. The Corporation believes that the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon by investors as actual results may vary. These statements speak only as of the date of this press release and are expressly qualified, in their entirety, by this cautionary statement.
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