Porto Energy Corp. Announces Updated Resource Estimates
THE WOODLANDS, TX, Jan. 31, 2013 /CNW/ - Porto Energy Corp., ("Porto" or the "Company") (TSXV: PEC), a company focused on oil and gas exploration, appraisal and development in Portugal, today announced that it has received an updated independent resource evaluation (the "Updated Report") from Dallas, Texas-based Netherland, Sewell & Associates, Inc. ("NSAI"). This report was completed on each of the seven concessions in which the Company maintains an interest. The Updated Report is dated January 10, 2013 with an effective date of December 31, 2012.
"We are pleased to announce that we have significantly increased our prospective resources in the Lower Jurassic Lias unconventional resource play as a result of the ongoing technical evaluation program with our joint venture partners," said Joseph Ash, President and CEO of Porto Energy Corp. "Despite reducing the prospective resources associated with the number of conventional Jurassic reef exploration targets, the reduction was more than offset by the increased the geologic chance of success of finding hydrocarbon-bearing reservoirs in the Silves which was confirmed by the ALC-1 well. Our ongoing joint venture initiatives will benefit from the Updated Report that augments the extensive technical analysis our team has performed to continually high-grade our exploration portfolio and narrow our focus to the Lias unconventional resource and Presalt conventional plays. In turn, this narrowed focus will help concentrate our farm-out efforts."
Comparing the Updated Report to the original NSAI report dated August 31, 2012, prospective resources for the Lias increased from 95.4 mmboe (best estimate) to 366.8 mmboe (best estimate), an increase of 271.4 mmboe or 284%. Similarly, the low case increased from 2.2 mmboe to 22.6 mmboe and the high case increased from 572.6 mmboe to 1,399.4 mmboe, or 927% and 144%, respectively.
Phase I work to characterize the Jurassic Lias resource play included finalized aeromagnetic data over the blocks, the drilling and analysis of 23 shallow wells and the development of a Lias deposition model that greatly increased the Company's understanding of the Lias marls in the central and northern blocks. This work underpinned the Updated Report by NSAI and points to a very prospective unconventional resource play that merits additional technical evaluation.
The Alcobaça #1 ("ALC-1") Presalt exploration well in the Aljubarrota-3 concession, onshore Portugal (as announced November 1, 2012) helped to confirm gas-bearing reservoirs, despite being a sub-commercial gas discovery. In turn, this well has significantly de-risked other Presalt prospects due to a confirmation of source rock, reservoir-bearing sands and trapping mechanism in the Silves interval.
Comparing the Updated Report to the original NSAI report dated August 31, 2012, P50 risked recoverable contingent resources remained relatively unchanged. Resources associated with the Company's Jurassic reef and other exploration prospects P50 risked resources decreased by approximately 97.3 mmboe, however, this was offset by an increase in the Lias potential of approximately 271.4 mmboe and the Presalt Silves reservoir potential of approximately 23.9 mmboe of P50 risked prospective resources.
Compared to the original NSAI report, P50 net risked recoverable prospective resources increased 198 mmboe, or 45%, from 439 mmboe to 637 mmboe. In total, the Updated Report has a combined (contingent plus prospective) resource base comprised of 47% oil and 53% natural gas.
The Updated Report provides the following data with respect to risked contingent and prospective resources:
TOTAL CONTINGENT AND PROSPECTIVE RESOURCES
(Company's Net Interest - Mmboe) (1)(2)
|UPDATED ESTIMATES||ORIGINAL ESTIMATES||NET INCREASE/(DECREASE)|
SELECTED DATA FROM UPDATED RESOURCE
(Company's Net Interest - Mmboe) (1)(2)
|RESOURCE CATEGORY||UPDATED ESTIMATES||LAST ESTIMATES 8/31/2012||NET INCREASE/(DECREASE)||UPDATED|
|Torres Vedras (Lapaducos)||-||-||-||-||-||0.5||-||-||(0.5)|
|Aljubarrota Brenha and Lias||-||-||-||17.1||31.5||49.1||(17.1)||(31.5)||(49.1)|
|Lias (formerly Basal Brenha)||12.7||110.1||382.0||0.7||12.0||86.3||12.0||98.1||295.7||20.0%|
|Cinnabar (Silves and Jurassic)||5.9||25.5||127.3||5.9||25.5||127.3||-||-||-||27.0%|
|Pyrope (Silves and Jurassic)||6.6||19.3||66.4||6.6||19.3||66.4||-||-||-||17.0%|
|Sphene (Silves and Jurassic)||6.5||14.2||32.0||6.5||14.2||32.0||-||-||-||12.6%|
|Tiger Eye (Silves and Jurassic)||7.2||17.4||44.5||7.2||17.4||44.5||-||-||-||12.6%|
|Cabo Mondego Concession|
|Lias (formerly Basal Brenha)||0.2||47.2||201.7||0.1||21.9||116.7||0.1||25.3||85.0||20.0%|
|Moreia (Silves and Jurassic)||3.2||16.2||47.1||1.1||2.9||7.0||2.1||13.3||40.1||20.5%|
|Sargo Silves (formerly Topaz)||2.8||17.3||55.8||4.7||11.4||26.6||(1.9)||5.9||29.2||25.2%|
|Lias (formerly Basal Brenha)||2.3||13.5||43.3||-||4.4||23.7||2.3||9.1||19.6||20.0%|
|Rio Maior Concession|
|Lias (formerly Basal Brenha)||2.3||65.5||259.2||0.9||14.8||110.3||1.4||50.7||148.9||20.0%|
|Sao Pedro de Muel Concession|
|Lias (formerly Basal Brenha)||1.0||59.6||238.5||0.1||15.9||84.5||0.9||43.7||154.0||20.0%|
|Bacalhau Silves (formerly Emerald)||8.7||52.0||177.7||10.5||31.0||110.4||(1.8)||21.0||67.3||26.8%|
|Besugo Silves (formerly Azurite)||2.6||15.3||48.4||12.6||38.6||127.5||(10.0)||(23.3)||(79.1)||23.0%|
|Torres Vedras Concession|
|Lias (formerly Basal Brenha)||4.0||62.8||240.7||0.3||5.2||38.4||3.7||57.6||202.3||20.0%|
|Abadia Dome (Jurassic)||-||-||-||1.9||5.5||23.0||(1.9)||(5.5)||(23.0)|
|Arruda Fan Delta (Jurassic clastic)||7.3||14.5||28.7||7.3||14.5||28.7||-||-||-||28.0%|
|Cruz da Pedra (Jurassic)||-||-||-||2.4||5.7||17.0||(2.4)||(5.7)||(17.0)|
|Moinho do Ceu (Jurassic)||-||-||-||0.1||0.6||3.1||(0.1)||(0.6)||(3.1)|
|Eastern 2D Reefs||-||-||-||22.5||32.0||44.2||(22.5)||(32.0)||(44.2)|
|Western 2D Reefs||-||-||-||2.3||4.0||6.4||(2.3)||(4.0)||(6.4)|
|Sao Juliao (Jurassic)||-||-||-||0.4||1.3||3.5||(0.4)||(1.3)||(3.5)|
|Moinho Velho (Jurassic)||0.1||0.8||3.8||-||-||-||0.1||0.8||3.8||90.0%|
|Torres Vedras Silves||1.5||3.0||5.5||1.5||3.0||5.5||-||-||-||27.6%|
|Torres Vedras (Jurassic)||0.1||1.2||5.6||-||-||-||0.1||1.2||5.6||40.0%|
|Varatojo (Jurassic reef)||0.5||3.5||14.5||-||-||-||0.5||3.5||14.5||20.0%|
|Varatojo Norte (Jurassic reef)||0.3||2.0||8.4||-||-||-||0.3||2.0||8.4||20.0%|
|Lias (formerly Basal Brenha)||0.1||8.1||34.1||0.1||21.2||112.7||-||(13.1)||(78.6)||20.0%|
The Company's primary operating activities are carried out through Mohave which has the principal working interest in the Aljubarrota-3 (42%), Torres Vedras-3 (100%), Sao Pedro de Muel-2 (94%), Cabo Mondego-2 (70%), Rio Maior-2 (100%), Zambujal (72%) and Peniche (50%) oil and gas concessions in Portugal (the "Portugal Assets"). All of the Company's concessions are located in the Lusitanian Basin of Portugal.
2Barrels of oil equivalent (BOEs) include oil, solution gas, associated gas and condensate. BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 bbl has been used and is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
3Amounts may not total due to rounding.
The Updated Report was prepared by NSAI in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook (the "COGE Handbook") and National Instrument 51-101 "Standards of Disclosure for Oil and Gas Activities" ("NI 51-101"). Investors should also refer to the Company's most recent NI 51-101F1 filing dated December 14, 2012 available on SEDAR at www.sedar.com for additional information including the risks and uncertainty associated with the recovery of resources.
About Porto Energy Corp.
Porto Energy Corp. is an international oil and gas company engaged in the exploration of crude oil and natural gas in Portugal, including the appraisal of a gas discovery. Through its wholly owned subsidiary, Mohave Oil And Gas Corporation (a Texas corporation with branch offices in Portugal), the Company holds working interests in five concessions in Portugal's Lusitanian Basin totaling 1.3 million net acres or 5,303 km2. Through its exploration efforts to date, the Company has identified seven major exploration trends over its concessions including unconventional oil and gas resource plays as well as conventional oil and gas targets. Porto Energy's shares trade on the TSX Venture Exchange under the ticker symbol "PEC". For more information on Porto Energy visit www.portoenergy.com.
No proved, probable or possible reserves have been assigned by the Company at this time. Undiscovered resources are those quantities of oil and gas estimated on a given date to be contained in accumulations yet to be discovered. Estimates of resources always involve uncertainty, and the degree of uncertainty can vary widely between accumulations/projects and over the life of a project. There is no certainty that it will be commercially viable to produce any portion of the resources.
Estimates with respect to resources that may be developed and produced in the future are often based upon volumetric calculations, probabilistic methods and upon analogy to similar types of resources, rather than upon actual production history. Estimates based on these methods generally are less reliable than those based on actual production history. Subsequent evaluation of the same resources based upon production history will result in variations, which may be material, in the estimated resources. Resource estimates may require revision based on actual production experience.
Contingent resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable because of one or more contingencies. The contingent resources shown are contingent upon demonstration of the economic viability of the projects. Commercial flow rate testing and documentation of development plans will provide further evidence of economic viability of these projects. If these contingencies are resolved, some portion of the contingent resources estimated may be reclassified as reserves. There is no certainty that it will be commercially viable to produce any portion of the contingent resources.
Low Estimate is considered to be a conservative estimate of the quantity that will actually be recovered. It is likely that the actual remaining quantities recovered will exceed the low estimate. Using probabilistic methods, there should be at least a 90 percent probability (P90) that the quantities actually recovered will equal or exceed the low estimate.
Best Estimate is considered to be the best estimate of the quantity that will actually be recovered. It is equally likely that the actual remaining quantities recovered will be greater or less than the best estimate. Using probabilistic methods, there should be at least a 50 percent probability (P50) that the quantities actually recovered will equal or exceed the best estimate.
High Estimate is considered to be 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. Using probabilistic methods, there should be at least a 10 percent probability (P10) that the quantities actually recovered will equal or exceed the high estimate.
This press release contains certain forward-looking statements. These statements relate to future events or the Company's future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "should", "believe", "predict" and "potential" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. These forward-looking statements are made as of the date of this press release and the Company does not undertake to update any forward-looking statements that are contained in this press release, except in accordance with applicable securities laws.
Neither 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.
SOURCE: Porto Energy Corp.For further information:
Heath Cleaver - Chief Financial Officer