Gentry Increases Proved Reserves by 13%



    CALGARY, March 12 /CNW/ - Gentry Resources Ltd. ("Gentry") is pleased to
announce its year end reserves for the reporting year ended December 31, 2006.

    
    2006 Accomplishments

    -   Proved reserves at December 31, 2006 increased by 13% to 6.7mmboe up
        from 6.0mmboe recorded December 31, 2005. Proved reserves represent
        66% of the Company's total reserves.

    -   Proved finding and development costs were $18.38 per boe.

    -   Production replacement on a proved basis, before dispositions, was
        162% of 2006 production.

    -   Gentry's reserves were evaluated for the first time by Sproule
        Associates Limited.

    -   Proved and probable reserves, prior to dispositions of 0.4mmboe,
        were essentially flat year over year. Year end proved and probable
        reserves were 10.1mmboe.

    -   Proved and probable finding and development costs over the past three
        years averaged $21.05 per boe. Proved and probable finding and
        development costs for 2006 were $31.05 per boe.

    -   Average production increased by 27% year over year to 4,175 boe/d
        from 3,280 boe/d in 2005. Gentry's fourth quarter production averaged
        4,335 boe/d compared to 3,936 boe/d in the third quarter, an increase
        of 10%.

    -   Year end net asset value per share discounted at 5% was $5.82, or
        $5.04 discounted at 10%.

    -   Gentry's net undeveloped Western Canada land holdings increased by
        14% to 179,255 net acres from 157,527 net acres in 2005.

    -   Gentry has an option to earn approximately 100,000 net acres
        (156 sections) from the previously announced Princess Farm-in
        Agreement. The Company has in excess of 1200 km squared of mostly
        contiguous 3D seismic covering a significant portion of the Princess
        undeveloped and option land base. The contiguous land base and 3D
        seismic provides the Company with several years of exploratory and
        development drilling activity.

    -   Gentry drilled a total of 51 wells (48.0 net) in 2006, yielding a 90%
        success rate (91% net) resulting in 22 gas wells (20.5 net), 19 oil
        wells (18.2 net) and five abandoned wells (4.5 net). Five wells
        (4.8 net) remain suspended awaiting further completion.

    -   Gentry maintained a solid balance sheet with year end net debt of
        approximately $47mm (unaudited). The Company continues to own
        10.7 million shares of an internationally focused oil and gas company
        which has a market value of approximately $14mm.
    

    RESERVES
    An independent engineering evaluation of Gentry's petroleum and natural
gas reserves was completed by Sproule Associates Limited effective December
31, 2006 (the "Sproule Report"). These estimates were prepared in accordance
with National Instrument 51-101 Standards of Disclosure for Oil and Gas
Activities ("NI 51-101"). Gentry's reserves committee which reviews the
qualifications and appointment of the independent reserves evaluators, also
reviews the process for providing information to the evaluators. It meets with
the independent evaluators to discuss the procedures used in the independent
report, to review the Company's major properties and to identify and discuss
any areas of risk. As such the Sproule Report was reviewed by the reserves
committee of Gentry and was approved by the Company's Board of Directors on
March 9, 2007.
    The reserve data provided in this release only represents a portion of
the disclosure required under NI 51-101. Additional disclosure will be
provided in the Company's Annual Information Form to be filed at www.sedar.com
on or before March 31, 2007.

    
    RESERVES SUMMARY TABLE - FORECAST PRICES AND COSTS
    Working Interest Reserves

    As at December 31(1)                  2006                2005
                              ---------------------------   -------
                               Oil &                Oil       Oil    Percent
                              Liquids     Gas      Equiv.    Equiv.   Change
                              (mbbls)    (mmcf)    (mboe)    (mboe)      (%)
                              ---------------------------   -----------------
    Proved
      Developed Producing      2,761    17,041     5,601     5,306        6
      Developed Non-producing    148     1,022       319       560      (43)
      Undeveloped                115     4,030       787        94      737
                              ---------------------------   -------
    Total Proved               3,023    22,093     6,706     5,958       13

    Probable
      Developed                  684     5,322     1,571     3,087      (49)
      Undeveloped                477     8,126     1,831     1,622       13
                              ---------------------------   -------
    Total Probable             1,161    13,448     3,402     4,707      (28)

    Proved plus Probable       4,184    35,542    10,109    10,665       (5)
                              ---------------------------   -------  --------
                              ---------------------------   -------  --------
    (1)  Due to rounding, some columns may not add precisely.
    

    At December 31, 2006, Gentry's proved producing reserves grew by 6% to
5,601 mboe from the prior year. Proved reserves increased 13% to 6,706 mboe.
Total proved and probable reserves were 10,109 mboe, down 5% compared to the
end of 2005.
    Approximately 45% of Gentry's proved reserves are crude oil and natural
gas liquids and 55% are natural gas. On a proved plus probable basis, Gentry's
reserves are 41% oil and liquids and 59% natural gas.

    NET PRESENT VALUE OF RESERVES - FORECAST PRICES AND COSTS

    Gentry's crude oil, natural gas liquids and natural gas reserves were
evaluated using the Sproule Report and are prior to any provision for income
taxes, interest, debt service charges and general and administrative expenses.
It should not be assumed that the discounted future net production revenues
estimated herein represent the fair market value of the reserves.

    
    December 31, 2006(1)(2)                    Discounted at
                             ------------------------------------------------
                               NPV 0%    NPV 5%   NPV 10%   NPV 15%   NPV 20%
                              ($000s)   ($000s)   ($000s)   ($000s)   ($000s)
                             ------------------------------------------------
    Proved
      Developed Producing    149,229   123,354   108,123    97,574    89,609
      Developed Non-
       producing               8,172     6,734     5,728     4,991     4,432
      Undeveloped             16,065    13,492    11,483     9,884     8,588
                             ------------------------------------------------
    Total Proved             173,466   143,580   125,333   112,449   102,630

    Probable
      Developed               43,184    28,375    22,071    18,271    15,624
      Undeveloped             37,481    28,920    23,059    18,855    15,722
                             ------------------------------------------------
    Total Probable            80,665    57,296    45,130    37,126    31,347

                             ------------------------------------------------
    Total Proved plus
     Probable                254,131   200,875   170,463   149,575   133,977
                             ------------------------------------------------
                             ------------------------------------------------
    (1)  As required by NI 51-101, undiscounted well abandonment costs of
         $5.6 million for proved reserves and $6.1 million for proved plus
         probable reserves are included in the net present value
         determination.
    (2)  Due to rounding, some columns may not add precisely.
    

    At a 10% discount, the proved producing reserves make up 63% of the
proved plus probable value while total proved reserves account for 74% of the
proved plus probable value.

    RESERVE LIFE INDEX AND PRODUCTION REPLACEMENT RATIO

    The Company's RLI, on a proved and probable basis and using fourth
quarter 2006 volumes of 4,335 boe/d, is 7.9 years for crude oil and liquids
and 5.6 years for natural gas, resulting in a combined RLI of 6.4 years.
    During 2006, proved reserve additions, calculated on a Company Interest
basis and before dispositions, replaced production volumes by 162%.

    
    FORECAST PRICES

    Product price forecasts used in the Sproule Report is summarized below:

                                           Edmonton              Spot
                        WTI Oil             Lt Oil            Natural Gas
                       ($US/bbl)          ($CDN/bbl)          ($CDN/mmbtu)
    -------------------------------------------------------------------------
      2007               65.73               74.10                7.72
      2008               68.82               77.62                8.59
      2009               62.42               70.25                7.74
      2010               58.37               65.56                7.55
      2011               55.20               61.90                7.72
      2012               56.31               63.15                7.85
    

    FINDING AND DEVELOPMENT COSTS (unaudited)

    Gentry's gross capital expenditures for 2006 were $42.8 million.
Including changes to future development capital, finding and development costs
were $18.38/boe on a proved basis and $31.05 on a proved and probable basis.

    
    Finding and Development Costs (1)(2)

                                    Proved
                      Proved     and Probable
                    ($ per boe)   ($ per boe)
    --------------------------------------------
        2006           18.38        31.05
        2005           27.90        20.05
    3 yr average       21.05        20.21


    (1)  The aggregate of the exploration and development costs incurred in
         the most recent financial year and the change during that year in
         estimated future development costs generally will not reflect total
         finding and development costs related to reserves additions for that
         year.
    (2)  BOEs may be misleading particularly if used in isolation. A BOE
         conversion ratio of 6 mcf to 1 bbl is based on an energy equivalency
         conversion method primarily applicable to the burner tip and does
         not represent a value equivalency at the wellhead.
    

    NET ASSET VALUE (unaudited)

    At December 31, 2006, Gentry had a before tax net asset value of
$5.04 per share using total proven plus probable reserves as evaluated in the
Sproule Report discounted at 10% and the Company's assessment of undeveloped
land, seismic data, investments and net debt.

    The calculation of net asset value per share is outlined in the following
table: (000s, except share amounts)

    
    -------------------------------------------------------------------------
                                                5% discount     10% discount
    -------------------------------------------------------------------------
    Net present value of proved plus probable
     reserves (1)                              $    200,875     $    170,463
    Undeveloped land (2)                             45,293           45,293
    Seismic(2)                                       12,993           12,993
    Investments(3)                                   13,889           13,889
    Net debt(4)                                     (46,985)         (46,985)
    -------------------------------------------------------------------------
    Total                                      $    226,065     $    195,653
    -------------------------------------------------------------------------
    Outstanding shares                           38,811,130       38,811,130
    -------------------------------------------------------------------------
    Net asset value per share                  $       5.82     $       5.04
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1)  As per the Sproule Report.
    (2)  As evaluated by the Company.
    (3)  Market value.
    (4)  Unaudited.

    UNDEVELOPED LAND - WESTERN CANADA

    Undeveloped Western Canada Land Holdings (acres)
    -------------------------------------------------------------------------
    As at December 31, 2006
    Gross                              346,921
    Net                                179,255
    

    This land base provides considerable opportunity for the Company's future
growth.
    Just over 115,000 net acres are fee simple lands located in the Company's
Princess core area of Alberta. These fee simple lands have no expiry date.

    About Gentry

    Gentry is a Calgary-based oil and natural gas company active in the
exploration, development and production of crude oil and natural gas in
western Canada. The Company has grown primarily through aggressive exploration
and development of its lands. Gentry trades on the TSX under the symbol "GNY"
and currently has 38,867,110 common shares outstanding.

    Disclaimer: Statements in this press release may contain forward-looking
statements, including management's assessment of future plans and operations
and including expectations of future production and capital expenditures.
These statements are based on current expectations that involved numerous
risks and uncertainties, which will cause actual results to differ from those
anticipated. These risks include, but are not limited to: the risks of the oil
and gas industry (e.g. operational risks in exploration, development and
production; potential delays or changes in plans with respect to exploration
or development projects or capital expenditures; the uncertainty of reserve
estimates; the uncertainty of estimates and projections relating to
production, costs and expenses, and health, safety and environmental risks),
and price fluctuation. As a consequence, actual results may differ materially
from those anticipated in the forward-looking statements.




For further information:

For further information: Hugh Ross, President & Chief Executive Officer,
(403) 264-6161; R. Gordon McKay, Chief Operating Officer, (403) 264-6161;
Ketan Panchmatia, Chief Financial Officer, (403) 264-6161; Roger Fullerton,
Manager, Investor Relations, (952) 929-7243; Website: www.gentryresources.com;
Email: gentry@gentryresources.com; TSX Symbol: GNY

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GENTRY RESOURCES LTD.

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