Pyramid Petroleum announces 2007 reserves information
Pyramid Petroleum Inc. (TSXV: PYR) today announced the Company’s proved plus probable (”P+P”) reserves as of December 31, 2007. Pyramid’s reserves for its offshore properties were evaluated by Netherland Sewell & Associates, Inc. (”NSAI”). The Company’s ofshore properties were evaluated by Haas Petroleum Engineering Services, Inc. (”Haas”). Details of the reserve reports will be filed on SEDAR.
As of December 31, 2007, proved plus probable reserves increased to 2.5 million barrels of oil equivalent (boe) from 1.1 million boe at December 31, 2006 representing an increase of 127%. Total proved reserves increased to 2.2 million boe as of December 31, 2007 compared to 1.1 million boe at December 31, 2006. This represents an increase of 100%.
The value of before tax proved and probable reserves (NPV 10%) increased to U$49.5 million from $9.5 million, based on forecast prices resulting in an increase of 400%. The value of before tax proved reserves (NPV 10%) increased to US$40.3 million from $8.5 million, based on forecast prices, resulting in an increase of 375%.
The disproportionate increase in value as compared to volumes is due to three factors:
<< 1. The acquisitions and drilling program during the year added more oil and NGL reserves as compared to gas reserves. Proved and probable oil reserves are 525 thousand barrels of oil and 125 thousand barrels of NGL as of December 31, 2007, as compared to only 71 thousand barrels of oil and no NGL reserves as of December 31, 2006; 2. Prices increased disproportionately for oil as compared to gas. 3. The new reserve additions are in the Gulf of Mexico where production rates are high in early years resulting in a higher net present value. The following tables provide additional information regarding the reserves and applicable net present values. Oil NGL Gas --- --- --- Volumes - by category (Mbbl) (Mbbl) (MMcf) --------------------- Proved Developed Producing 417 118 5,090 Proved Developed Non-producing 52 5 341 Proved Undeveloped 8 0 4,246 ---------------------------- Total Proved 477 122 9,676 ---------------------------- Probable 48 3 1,620 ---------------------------- Grand Total 525 125 11,296 ---------------------------- Note: All numbers are for net revenue interest Future Net Revenue Discounted Discounted Discounted Discounted Before Income Taxes at 0% at 5% at 10% at 15% ----------------------------------------------- (United Stated Dollars) (M$) (M$) (M$) (M$) Proved Developed Producing 33,374 30,087 28,066 26,555 Proved Developed Non-producing 3,950 3,484 3,102 2,786 Proved Undeveloped 14,449 11,201 9,132 7,698 ----------------------------------------------- Total Proved 51,773 44,773 40,301 37,039 ----------------------------------------------- Probable 11,929 10,421 9,206 8,209 ----------------------------------------------- Grand Total 63,702 55,193 49,507 45,248 ----------------------------------------------- Note: All numbers are for net revenue interest. >>
Disclaimers
The TSX Venture Exchange has neither approved nor disapproved of the contents hereof.
BOEs derived by converting gas to oil in the ratio of six thousand cubic feet of gas to one barrel of oil (6 Mcf: 1 bbl). BOEs 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.
Except for statements of historical fact, all statements in this press release, without limitation, regarding new projects and future plans and objectives are forward-looking statements which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements.
Source: Pyramid Petroleum Inc
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