CALGARY, June 18 /CNW/ - (TSXV: PBT, FSE: P5W) Pemberton Energy Ltd. ("Pemberton") wishes to announce that it has received an Evaluation of Prospective Resources in its Gage Area holdings and a report supplement delineating consideration of multiple staged fracture stimulation in horizontal Montney wellbores from Chapman Petroleum Engineering Ltd.
President Richard Saxon states: "With this report in our hands we are not only bringing confidence to our shareholders, but securing a rewarding future as well. These results are much higher then our team's expectations. Using a 25% recovery rate, with 4.4 million barrels in place, has produced an excellent case scenario for all investors. With this most recent report of best average oil in place, we are looking at over $ 53,000,000 in probable net revenue over the next 14 years. We started out looking at developing six vertical wells, then took a look at 2 horizontal wells and projection numbers were significantly higher. Management felt we could enhance the production of the wells dramatically by using stage frac techniques to complete the horizontal wells. As large as the initial assessment is, management believes that even larger multi prospect potential exists on our Peace River Arch holdings."
Pemberton is developing a Montney exploitation plan for this area. Montney oil production in this area began in 2004 with the discovery of the George Montney Oil Pool by Tusk Energy Corp. The ERCB has booked an areal extent of 1164 acres for this pool. In 2007 Pemberton shot a high quality 3D seismic on in this area In early 2008 Pemberton drilled two exploratory wells. The first well, 10-15-82-3W6M ("10-15") was drilled to basement at a total depth of 2395m. The Montney zone show evidence of being hydrocarbon bearing due to light oil staining on the geological samples and significant gas shows on the mud log. The 10-15 well was on the edge of the Montney Gage pool.
The Company is planning a development program for a hydrocarbon bearing zone near the top of the Montney Formation that was penetrated in well 10-15. The Montney Formation is a clastic unit of Middle Triassic Age. It is 200 m. thick in well 10-15 and is unconformable overlain by the organic rich shale of the Nordegg Formation of Jurassic Age. The Montney Formation in this area consists of interbedded shale, siltstones and fine grained sandstones as was illustrated in the lithologic log obtained from well 10-15. The lithologic log of the upper Montney of well 10-15 has a number of hydrocarbon indicators. At the top of the log, the mud gas readings are elevated as the well drills through the organic rich shale of the Nordegg Formation. There is a reduction in mud gas reading to background as the first clean sand of the Montney is drilled. After drilling a barren shale section with very low mud gas readings, the second Montney sand is penetrated with six metres of elevated mud gas reading before returning to background readings for the remainder of the Montney section. The wellsite geologist in his geological report on the chip samples noted that the Montney zone with the elevated mud gas reading was "qaurtzose, very fine grained grading in part of siltstone" with "good intergranular porosity" and "light even brown oil stain throughout". The oil staining is visible in the photo micrograph of these chip samples as the even tan colour of the fine grain sandstone. Another hydrocarbon indicator was the reported "immediate gold cut fluorescene" which will occur as oil is liberated from chip samples by an organic solvent and examined under UV light. A small amount of 33 API oil was recovered during the completion attempt and an oil analysis of this sample from the Montney zone was performed by Core Lab.
Mathew Dodwell, Director and VP of Production states: "After close review of the report on the Montney targets at the Gage properties, Pemberton initiated plans for development. With projected volumes and revenues as high as indicated in the Chapman Engineering report, Pemberton will be moving forward with plans to develop accordingly and with diligence. Development plans are underway to create a production system that will sufficiently accommodate Pemberton's growth in the area for years to come. With existing sales points in the general surrounding area, Pemberton energy feels this will be easy access for uninterrupted , long term production . Applications for development of the Gage properties are underway".
According to the summary of resource estimate and reservoir parameters, Petroleum Initially in place, STB is 4,400,435. Petroleum Initial in Place (PIIP) is that quantity of petroleum that is estimated to exist originally in naturally occurring accumulations. It includes that quantity of petroleum that estimated, as of a given date, to be contained in known accumulations, prior to production, plus those estimated quantities in accumulations yet to be discovered (equivalent to "total resources").
Recent developments in well bore equipment technology have made it possible to fracture horizontal well bores in tight oil and gas sands over multiple intervals. These completions are expensive but create greater production rates and improved ultimate recovery because of improved permeability in the immediate well bore vicinity all along the horizontal leg. These types of completions have been commonly used successfully in the Montney sand in northwest Alberta and northeast British Columbia. The incremental cost of this program to that of an unstimulated horizontal well is approximately $1,000,000 depending on the well bore configuration any number and size of the frac jobs. Reasonable estimates of increased rates and recoveries due to the multistage fracture completion compared to an unstimulated horizontal well were made.
<<
Low Estimate: The rates and recovery were the same
Best Estimate: The rates and recoveries were doubled
High Estimate: The rates were tripled and recoveries increased to 2.5
times
Summary of Company Prospective Resources and Economics
Montney, Gage Field, Alberta
-------------------------------------------------------------------------
Before Risk After Risk
-------------------------------------------------------------------------
Best Low High
Estimate Estimate Estimate Arithmetic Arithmetic
Two Horizontal Average Average
Staged After Risk
Fracture Wells
-------------------------------------------------------------------------
Oil - Thousands
of Barrels
(Gross) 880 440 1,100 807 202
-------------------------------------------------------------------------
Oil - Thousands
of Barrels
(Net) 660 330 825 605 151
-------------------------------------------------------------------------
Gross Resources are the total of the Company's working and /or royalty
interest share before of royalties owned by others.
Net Resources are the total of the Company's working and/or royalty
interest share after deducting the amounts attributable to royalties
owned by others
AVG WI -100.000%
Royalties/Taxes AVG FH 25.00%
M$ - Thousand of Dollars (Add 000 to the numbers in the table)
STB- Stock Tank Barrels of oil
EFF- Effective date, the date for which the present value of the future
cash flows and reserve categories are established.
The estimated values disclosed do not represent fair market value
Evaluation of Gage Alberta- Prospect Best Estimate
EFF March 1, 2009
OIL STB
-------------------------------------------------------------------------
Pool Company Share
-------------------------------------------------------------------------
Year No. of Wells Price $/STB STB/D Vol Gross Net
-------------------------------------------------------------------------
2009 0 59.97 0 0 0 0
-------------------------------------------------------------------------
2010 2 73.05 370.1 135076 135076 101307
-------------------------------------------------------------------------
2011 2 82.39 316.1 115379 115379 86534
-------------------------------------------------------------------------
2012 2 88.24 270.0 98554 98554 73916
-------------------------------------------------------------------------
2013 2 98.76 230.6 84183 84183 63137
-------------------------------------------------------------------------
2014 2 98.76 197.0 71907 71907 53931
-------------------------------------------------------------------------
2015 2 100.87 168.3 61422 61422 46066
-------------------------------------------------------------------------
2016 2 103.02 143.7 52465 52465 39349
-------------------------------------------------------------------------
2017 2 105.21 122.8 44815 44815 33611
-------------------------------------------------------------------------
2018 2 107.44 104.9 38280 38280 28710
-------------------------------------------------------------------------
2019 2 109.72 89.6 32698 32698 24523
-------------------------------------------------------------------------
2020 2 112.04 76.6 27930 27930 20947
-------------------------------------------------------------------------
2021 2 114.41 65.4 23857 23857 178893
-------------------------------------------------------------------------
2022 2 116.83 55.8 20378 20378 15284
-------------------------------------------------------------------------
2023 2 119.30 47.7 17407 17407 13055
-------------------------------------------------------------------------
-------------------------------------------------------------------------
SUB 824351 824351 618264
-------------------------------------------------------------------------
REM 55648 55648 41736
-------------------------------------------------------------------------
TOT 880000 880000 660000
-------------------------------------------------------------------------
Company Share Future Net Revenue based on Two Horizontal Staged Fracture
Wells (Montney)
-----------------------------------------------------------
Future Revenue Royalties
-----------------------------------------------------------
Capital
& Aband
Year Cost M$ Oil M$ Total M$ Other M$ % Fixed M$
-----------------------------------------------------------
2009 4500 0 0 0 25 0
-----------------------------------------------------------
2010 0 9867 9867 2467 25 98
-----------------------------------------------------------
2011 0 9506 9506 2377 25 100
-----------------------------------------------------------
2012 0 8696 8696 2174 25 102
-----------------------------------------------------------
2013 0 8314 8314 2078 25 104
-----------------------------------------------------------
2014 0 7102 7102 1775 25 106
-----------------------------------------------------------
2015 0 6196 6196 1549 25 108
-----------------------------------------------------------
2016 0 5405 5405 1351 25 110
-----------------------------------------------------------
2017 0 4715 4715 1179 25 112
-----------------------------------------------------------
2018 0 4113 4113 1028 25 115
-----------------------------------------------------------
2019 0 3588 3588 897 25 117
-----------------------------------------------------------
2020 0 3129 3129 782 25 119
-----------------------------------------------------------
2021 0 2729 2729 682 25 122
-----------------------------------------------------------
2022 0 2381 2381 595 25 124
-----------------------------------------------------------
2023 0 2077 2077 519 25 127
-----------------------------------------------------------
-----------------------------------------------------------
SUB 4500 77817 77817 19454 25 1564
-----------------------------------------------------------
REM 141 5726 5726 1432 25 647
-----------------------------------------------------------
TOT 4641 83544 83544 20886 25 2211
-----------------------------------------------------------
----------------------------------------------------------------
Operating Costs Future Net Rev
----------------------------------------------------------------
FR After Cap'l
Variable Roy & Net Back Costs Undisc 10.0%
Year M$ $/STB Oper M$ $/STB M$ M$ M$
----------------------------------------------------------------
2009 0 .00 0 .00 4500 -4500 -4324
----------------------------------------------------------------
2010 344 3.27 6958 51.51 0 6958 6125
----------------------------------------------------------------
2011 300 3.47 6730 58.33 0 6730 5385
----------------------------------------------------------------
2012 261 3.69 6159 62.49 0 6159 4480
----------------------------------------------------------------
2013 228 3.94 5904 70.13 0 5904 3904
----------------------------------------------------------------
2014 198 4.23 5022 69.84 0 5022 3019
----------------------------------------------------------------
2015 173 4.58 4366 71.08 0 4366 2386
----------------------------------------------------------------
2016 151 4.97 3793 72.29 0 3793 1885
----------------------------------------------------------------
2017 131 5.44 3292 73.47 0 3292 1487
----------------------------------------------------------------
2018 114 5.98 2855 74.60 0 2855 1173
----------------------------------------------------------------
2019 100 6.63 2474 75.66 0 2474 924
----------------------------------------------------------------
2020 87 7.38 2141 76.65 0 2141 727
----------------------------------------------------------------
2021 76 8.27 1850 77.53 0 1850 571
----------------------------------------------------------------
2022 66 9.33 1596 78.29 0 1596 447
----------------------------------------------------------------
2023 57 10.58 1373 78.90 0 1373 350
----------------------------------------------------------------
----------------------------------------------------------------
SUB 2287 54512 4500 50012 28539
----------------------------------------------------------------
REM 187 3460 0 3319 682
----------------------------------------------------------------
TOT 2474 57972 4500 53331 29221
----------------------------------------------------------------
Net Present Value ($M) -
-------------------------------------------------------------------------
Discount Rate 0% 5.0% 10.% 15.% 20.%
-------------------------------------------------------------------------
FR After Royalty $ Oper 57972 43040 33565 27169 22629
-------------------------------------------------------------------------
Proc & Other Income 0 0 0 0 0
-------------------------------------------------------------------------
Capital Costs 4500 4409 4324 4244 4169
-------------------------------------------------------------------------
Abandonment Costs 141 52 20 8 3
-------------------------------------------------------------------------
Future Net Revenue 53331 38579 29221 22917 18456
-------------------------------------------------------------------------
Profitability
-------------------------------------
Company Share Basis Before Tax
-------------------------------------
Rate of Return (%) 162.1
-------------------------------------
Profit Index (undisc) 11.5
-------------------------------------
(disc. @ 10.0%) 6.7
-------------------------------------
(disc.@5.0%) 8.6
-------------------------------------
First Payout (years) 1.5
-------------------------------------
Total Payout (years) 1.5
-------------------------------------
Cost of Finding ($/BOE) 5.27
-------------------------------------
NPV @ 10.0% ($/STB) 33.21
-------------------------------------
NPV @ 5.0% ($/STB) 43.84
-------------------------------------
>>
Anticipated Capital Expenditure costs to put these two horizontal with stage frac wells into production will be raised through private placements, warrant and option exercise, bank loans or line of credit or selling percentage of the WI to potential joint venture partners.
Evaluation of the prospective resources was performed in order to determine the feasibility of the Company undertaking the exploration and development of this prospect and determine the magnitude of the prospective resources and the economic value before and after the consideration of risk. This evaluation has been conducted in accordance with the requirements of Canadian National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101"), Sec. 5.9 pertaining to disclosure of resources, utilizing forecast prices and costs. Capitalized terms related to resource classification are based on the definitions and guidelines in the Canadian Oil and Gas Evaluation Handbook ("GOGEH"). Analysis has included a review of the available technical data including the geological and geophysical interpretation presented by the Company, the proposed ownership terms, information from relevant nearby wells or analogous reservoirs and the proposed program for each prospect. Prospective Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources are further subdivided in accordance with the level of certainty associated with recoverable estimates assuming their discovery and development and may be subclassified based on project maturity. There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.
Pemberton Energy Ltd's principal business is the acquisition, exploration and development of petroleum properties. The company continues to focus on its primary corporate objective: the creation of value for shareholders by identifying oil and gas accumulations with relatively low geological risk but with substantial reserve potential.
<<
On Behalf of Pemberton Energy Ltd.
"Miroslava Antonuk"
--------------------------
Miroslava Antonuk Director
>>
Disclaimers
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."
This press release contains certain forward-looking statements including estimates as to the unrisked and risk-adjusted prospective oil resource. These estimates involve substantial known and unknown risks and uncertainties, many of which are beyond Pemberton's control.
For further information: please contact the Company at (604) 269-9801 or info@pembertonenergy.ca
© CNW Group
