Press release from Marketwire
Skope Energy Inc. Announces March 31, 2012 Reserve Information
Thursday, May 31, 2012
CALGARY, ALBERTA--(Marketwire - May 31, 2012) - Skope Energy Inc. ("Skope" or the "Company") (TSX:SKL) announced today the results of its independent reserve evaluation prepared by McDaniel & Associates Consultants Ltd. ("McDaniel") as at March 31, 2012. The reserves evaluation was prepared in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook") and complies with National Instrument NI 51-101 Standards of Disclosure for Oil and Gas Activities. Forecast prices used in the calculation of net present value of future net revenue are based on McDaniel's April 1, 2012 price forecast.
All future net revenues are stated prior to provision for interest, general and administrative expenses and after deduction of royalties and estimated future capital expenditures. Future net revenues have been presented on a before tax basis. Estimated values of future net revenue disclosed herein do not represent fair market value.
It should not be assumed that the present worth of estimated future cash flow presented in the tables below represent the fair market value of the reserves. There is no assurance that the forecast prices and costs assumptions will be attained and variances could be material. The recovery and reserve estimates of Skope's crude oil and natural gas reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual crude oil, natural gas reserves may be greater than or less than the estimates provided herein.
Additional information with respect to the Company's reserves will be included in the Company's Annual Information Form which is expected to be filed on SEDAR on or before June 29, 2012.
SUMMARY OF OIL AND NATURAL GAS RESERVES AS AT MARCH 31, 2012
|Light/Medium Crude Oil||Natural Gas||Oil Equivalent|
|Gross (1||)||Net (2||)||Gross (1||)||Net (2||)||Gross (1||)||Net (2||)|
|TOTAL PROVED + PROBABLE||8.9||7.8||63,077.3||55,222.5||10,521.8||9,211.6|
(1) "Gross" reserves means Skope's interest (operated and non-operated) before deduction of royalties and without including any Company royalty interests.
(2) "Net" reserves means Skope's interest (operated and non-operated) after deduction of royalty obligations plus Company royalty interests.
(3) Numbers may not add due to rounding.
SUMMARY OF NET PRESENT VALUES OF FUTURE NET REVENUE AS OF MARCH 31, 2012
Before Income Tax
Discounted at (% per Year
|TOTAL PROVED + PROBABLE||90.6||71.0||56.9|
(1) The forecast prices used in the calculation of the present value of future net revenue are based on the McDaniel April 1, 2012 price forecast and will be included in the Company's Annual Information Form which will be filed on SEDAR at www.sedar.com on or before June 29, 2012.
(2) Includes future development capital (FDC) of $31.2 million undiscounted.
RESERVES RECONCILIATION AS OF MARCH 31, 2012
|Opening Balance (March 31, 2011)||-||56,768||9,461.3|
|Extensions and Improved Recovery||6||689||120.8|
|Closing Balance (March 31, 2012)||5||52,087||8,686.2|
|Proved and Probable||Oil
|Opening balance (March 31, 2011)||-||68,310||11,385.0|
|Extensions and Improved Recovery||10||973||172.2|
|Closing balance (March 31, 2012)||9||63,077||10,521.8|
FORWARD LOOKING STATEMENTS
This news release contains forward looking statements. These statements relate to future events or the Company's future performance. All information and statements contained herein that are not clearly historical in nature constitute forward looking statements, and the words "may", "will", "should", "could", "expect", "plan", "intend", "anticipate", "believe", "estimate", "propose", "predict", "potential", "continue", or the negative of these terms or other comparable terminology are generally intended to identify forward looking statements. These statements involve known or unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward looking statements. Undue reliance should not be placed on these forward looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. In particular, this news release contains forward-looking statements relating, but not limited to: the Company's reserves, reserve values and the timing of the filing of its Annual Information Form.
Management has included forward-looking information in this press release in order to provide security holders with a more complete perspective on the Company's future operations and such information may not be appropriate for other purposes. These forward-looking statements are based on certain assumptions and are subject to a number of risks. Investors are cautioned that such information, although considered reasonable by the Company, may prove to be incorrect.
Skope's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Skope will derive therefrom.
Readers are cautioned that the foregoing lists of factors are not exhaustive. The forward-looking statement disclosure contained in this news release is expressly qualified by this cautionary statement.
These forward-looking statements are made as of the date of this news release and the Company disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
Skope has adopted the standard of 6 Mcf:1 Bbl when converting natural gas to oil Boe's which 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. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
ABOUT SKOPE ENERGY INC.
Skope is in the business of oil and natural gas exploration, development and production in Western Canada with a focus on shallow natural gas. Skope owns an 80% working interest in a package of high quality, long-term, low decline producing shallow gas assets, located in southeast Alberta and southwest Saskatchewan.
Skope's common shares are listed on the Toronto Stock Exchange under the symbol "SKL".
FOR FURTHER INFORMATION PLEASE CONTACT:
Henry Cohen Skope Energy Inc. President and Chief Executive Officer 416 850 0193 firstname.lastname@example.org
Viren Wong Skope Energy Inc. Executive Vice-President and Chief Operating Officer 416 850 0193 email@example.com
Daniel Belot Skope Energy Inc. Vice President, Finance and Chief Financial Officer 403 538 8018 firstname.lastname@example.org