Exile Resources Announces Reserves Estimates for Akepo Property, Offshore Nigeria

TORONTO, April 7 /CNW/ - Exile Resources Inc. (TSXV: ERI) ("Exile" or the "Company"), today announced the reserves estimates for the Company's Akepo property, which is located offshore Nigeria. The reserves estimates are based on Exile's working interest in Akepo and were prepared by DeGolyer and McNaughton Canada Ltd (D&M").

The estimate of reserves ascribed to Exile from the Akepo Property are: 80,786 gross barrels of oil equivalent ("BOE") of total proved reserves; 491,492 gross BOE of total proved plus probable reserves; and 1,734,284 gross BOE of total proved plus probable plus possible reserves. Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves. A summary of the reserves estimates for the Akepo field is as follows:

Table 1. Summary of Reserves Estimates

       
  Crude Oil MarketableNaturalGas1 Barrels of Oil Equivalent4
Reserves Category Gross2
(Mbbls)
 Net3 (Mbbls)  Gross2
MMcf
Net3 MMcf Gross2
(Mbbls)
Net3
(Mbbls)
             
PROVED            
Developed   Producing - - - - - -
Developed Non-Producing 81 39 0 0 81 39
Undeveloped - - - - - -
TOTAL PROVED 81 39 0 0 81 39
Probable 410 200 0 0 410 200
TOTAL PROVED + PROBABLE 491 239 0 0 491 239
Possible 1,243 596 0 0 1,243 596
TOTAL PROVED + PROBABLE + POSSIBLE 1,734 835 0 0 1,734 835
(1) Estimates of Reserves of natural gas include associated and non-associated gas. All gas flared.
(2) "Gross Reserves" are Company's working interest reserves before the deduction of royalties.
(3) "Net Reserves" are Company's working interest reserves after deduction of royalty obligations plus the Company's royalty interests.
(4) "Barrels of Oil Equivalent" uses an industry standard of 6:1 (thousand cubic feet per barrel of oil equivalent). BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6Mcf: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.

"The Akepo field represents near-term cash flow for Exile with initial production from the Akepo-1st well still slated for Q3 2011," said Mr. Tony Henshaw, President and CEO of Exile. "Beyond the Akepo-1st well, other exploration targets have been identified within the licence area, providing low-cost step-out opportunities that management believes will contribute to our reserves and production numbers."

The D&M Reserves Estimates Report for the Akepo property is effective December 31, 2010 and the full Reserves Estimates Report for the Akepo field is available on the Company's website at www.exileresources.com and is filed on SEDAR at www.sedar.com. Exile recommends that readers refer to the Reserves Estimates Report in its entirety as it details the process for determining the reserves estimates, the assumptions underpinning the modeling, and defines all technical terms used.

Summary of Akepo Licence Area

The Company has an 8% working interest, converting to a 17.5% working interest in approximately 7,100 acres of land in the Akepo field, located in the northwest part of the Niger Delta in the OML 90 licence block. Exile is in partnership with Sogenal Ltd. Oil and Gas Company, who is the operator of the field, and Oando Exploration and Production Ltd., the technical partner for the development of the field.

About the Authors of the Evaluation

DeGolyer and MacNaughton is an international petroleum consulting firm with offices in the United States of America, Canada and Russia, which specializes in evaluation of reserves and resources for major oil and gas companies, governments, financial institutions and the investment industry. DeGolyer and MacNaughton have conducted assessments of and for the largest petroleum and financial companies in the world. During seven decades, the firm has successfully performed studies on hundreds of thousands of petroleum properties in more than 100 countries.

About Exile Resources Inc.

Exile Resources Inc. is engaged in the acquisition, exploration and development of crude oil and natural gas properties in existing and underdeveloped basins. The Company aims to identify and acquire interests in additional properties with a greater emphasis placed on exploration. Exile utilizes strategic partnership and joint ventures in order to fully realize the production potential of any asset it acquires. With significant experience and track record of success in international operations, the Company is pursuing additional prospects in Africa, Turkey and beyond, looking for opportunities that are early on in the exploration and development value chain. Please visit Exile Resources web site for further information: www.exileresources.com.

CAUTIONARY STATEMENTS

BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

The estimates of reserves for individual properties may not reflect the same confidence level as estimates of reserves for all properties, due to the effects of aggregation.

Forward-Looking Statements - Certain information set forth in this news release may contain forward-looking statements within the meaning of the applicable securities legislation. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Exile Resources Inc.

Forward-looking information includes, but is not limited to, statements with respect to: current strategic initiatives; prospective nature of the Company's properties; estimates regarding future production; the future financial and operating performance of Exile and its projects the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of estimates, currency fluctuations, independent actions of its joint venture partners, dependence upon regulatory approvals, the availability of future financing and exploration risk. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such forward- looking information, including but not limited to: general business, economic, competitive, political and social risks and uncertainties; risks relating to oil and gas exploration and exploitation activities; oil and gas prices; transaction risks; and delays in obtaining regulatory approvals. Although Exile has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements and, as such, undue reliance should not be placed on forward-looking statements. Exile does not undertake to update any forward-looking information, 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 Exile Resources Inc.

For further information:

Exile Resources Inc.
Tony Henshaw, President & CEO
Tel: (44) 20-7793-2592
Tony.Henshaw@exileresources.com

TMX Equicom
David Feick, Investor Relations
Tel: +1(403) 218-2839
dfeick@equicomgroup.com 

To receive news releases from Exile, please email dfeick@equicomgroup.com and mention "Exile Resources" in the subject line.

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Exile Resources Inc.

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