Gentry Increases Reserves by 29%



    CALGARY, March 10 /CNW/ - Gentry Resources Ltd. ("Gentry" or the
"Company") is pleased to announce its year-end reserves for the reporting year
ended December 31, 2007. Gentry's reserves were evaluated by Sproule
Associates Limited in accordance with National Instrument 51-101.

    
    2007 Reserve Highlights

    -  Proved plus probable reserves increased 29% to 13.0 million boe, up
       from 10.1 million boe recorded at December 31, 2006.
    -  Proved reserves increased 18% to 7.9 million boe from 6.7 million boe
       on December 31, 2006.
    -  Production replacement was 295% on a proved plus probable basis and
       179% for proved reserves, based on 2007 production.
    -  Reserve Life Index ("RLI") increased to 7.9 years on a proved plus
       probable basis, up from 6.4 years at the end of 2006. On a proved
       basis, RLI increased to 4.8 years from 4.2 years at year-end 2006.
    -  Oil and natural gas liquids ("NGLs") represent 55% of proved plus
       probable reserves on a boe basis, up from 41% at the end of 2006. Oil
       and NGLs represent 51% of total proved reserves, up from 45% at the
       end of 2006.
    -  Net present value of proved plus probable reserves, discounted at 5%,
       was up 29% to $258 million from $201 million in the previous year; at
       a 10% discount the increase was 22% to $208 million from $170 million
       recorded in December 31, 2006.
    -  Year-end net asset value per share, discounted at 5%, was $4.86, and
       $3.95 when discounted at 10%.
    -  Gentry's land holdings in Western Canada increased 54% to 276,652 net
       undeveloped acres (432 sections) from 179,415 acres (280 sections) in
       2006. Under an ongoing farm-in agreement in the Princess area, Gentry
       has an option to earn an additional 65,000 acres of undeveloped land.
    

    RESERVES

    An independent engineering evaluation of Gentry's petroleum and natural
gas reserves was completed by Sproule Associates Limited effective December
31, 2007 (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 Board of Directors has a Reserves Review
Committee which reviews the qualifications and appointment of the independent
reserves evaluators, and reviews the process for providing information to the
evaluators. It meets with the independent evaluators to discuss the procedures
used in the independent report, reviews the Company's major properties and
identifies and discusses any areas of risk. As such, the Sproule Report was
reviewed by the reserves committee and, on its recommendation the report was
approved by the Board of Directors on March 7, 2008.
    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, 2008.

    
    RESERVES SUMMARY TABLE - FORECAST PRICES AND COSTS
    Working Interest Reserves

    As at December 31(1)                 2007                2006
                           ------------------------------  --------
                                                   Oil       Oil     Percent
                            Oil & NGLs   Gas      Equiv.    Equiv.    Change
                             (mbbls)    (mmcf)    (mboe)    (mboe)      (%)
                           ------------------------------  ------------------
    Proved
      Developed Producing      2,983    19,673     6,262     5,601        12
      Developed
       Non-producing             416     1,167       610       319        91
      Undeveloped                618     2,360     1,011       787        28
                           ------------------------------  --------
    Total Proved               4,017    23,199     7,883     6,706        18

    Probable
      Developed                1,091     7,973     2,420     1,571        54
      Undeveloped              2,008     4,131     2,697     1,831        47
                           ------------------------------  --------
    Total Probable             3,099    12,104     5,117     3,402        50

                           ------------------------------  --------
    Proved plus Probable       7,116    35,304    13,000    10,109        29
                           ------------------------------  --------  --------
                           ------------------------------  --------  --------
    (1) Due to rounding, some columns may not add precisely.
    

    At December 31, 2007, Gentry's proved producing reserves grew by 12% to
6,262 mboe from the prior year. Proved reserves increased 18% to 7,883 mboe.
Total proved plus probable reserves were 13,000 mboe, up 29% compared to the
end of 2006.
    Approximately 51% of Gentry's proved reserves are crude oil and NGLs and
49% are natural gas. On a proved plus probable basis, Gentry's reserves are
55% oil and NGLs and 45% natural gas.
    Approximately 50% of Gentry's 2007 production revenue was derived from
oil and NGLs production and 50% from its gas production.

    NET PRESENT VALUE OF RESERVES - FORECAST PRICES AND COSTS

    Gentry's crude oil, NGLs 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, 2007(1)(2)                    Discounted at
                            -------------------------------------------------
                              NPV 0%    NPV 5%   NPV 10%   NPV 15%   NPV 20%
                             ($000s)   ($000s)   ($000s)   ($000s)   ($000s)
                            -------------------------------------------------
    Proved
      Developed Producing    174,757   138,145   117,806   104,109    93,993
      Developed
       Non-producing          16,226    13,693    11,948    10,679     9,713
      Undeveloped             23,333    17,616    13,739    10,948     8,848
                            -------------------------------------------------
    Total Proved             214,316   169,453   143,493   125,736   112,555

    Probable
      Developed               71,685    44,894    32,489    25,323    20,664
      Undeveloped             66,930    44,023    32,145    24,862    19,868
                            -------------------------------------------------
    Total Probable           138,614    88,917    64,634    50,186    40,532

                            -------------------------------------------------
    Total Proved
     plus Probable           352,931   258,370   208,127   175,922   153,087
                            -------------------------------------------------
                            -------------------------------------------------
    (1) As required by NI 51-101, undiscounted well abandonment costs of
        $8.8 million for proved reserves and $10.9 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 57% of the
proved plus probable value, while total proved reserves account for 69% of the
proved plus probable value.

    RESERVE LIFE INDEX AND PRODUCTION REPLACEMENT RATIO

    The Company's RLI on a proved plus probable basis and using fourth
quarter 2007 volumes of 4,528 boe/d, is 10.4 years for crude oil and NGLs and
6.1 years for natural gas, resulting in a combined RLI of 7.9 years.
    Production replacement in 2007 was 295% on a proved plus probable basis
and 179% on a proved basis.

    FORECAST PRICES

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

    
                    WTI Oil       Edmonton Lt Oil   Spot Natural Gas
                   ($US/bbl)        ($Cdn/bbl)        ($Cdn/mmbtu)
    -----------------------------------------------------------------
    2008             89.61              88.17             6.51
    2009             86.01              84.54             7.22
    2010             84.65              83.16             7.69
    2011             82.77              81.26             7.70
    2012             82.26              80.73             7.61
    

    FINDING AND DEVELOPMENT COSTS (unaudited)

    Gentry's capital expenditures for 2007 were $111 million (unaudited).
Finding, development and acquisition costs, including changes to future
development capital, were $44.04/boe on a proved basis and $29.18 on a proved
plus probable basis.

    
    Finding and Development Costs (1)(2)

                                      Proved
                    Proved         plus Probable
                  ($ per boe)       ($ per boe)
    ---------------------------------------------
    2007             58.86             33.58
    2006             18.38             31.05
    3 yr average     27.74             26.56
    ---------------------------------------------

    Finding, Development & Acquisition Costs (1)(2)

                                      Proved
                    Proved         plus Probable
                  ($ per boe)       ($ per boe)
    ---------------------------------------------
    2007             44.04             29.18
    2006             17.12             37.26
    3 yr average     30.20             26.27
    ---------------------------------------------

    (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.
    

    These 2007 figures reflect a downward reserve revision of 1.5 million boe
(proved plus probable) associated with the Princess Nisku pool. Poor
production performance from two Nisku gas wells and an unsuccessful
development well drilled in the summer of 2007 have led to significantly
reduced expectations for future development of the Nisku pool.
    These costs also include the large capital costs associated with the
exploration and development of the extensive 459 gross sections of land in the
Princess area. In 2007 Gentry drilled 41 wells in Princess, including 18
exploration wells to complete the initial earning commitment on farm-in lands.
Significant infrastructure investments have been made in Princess over the
last few years. Gentry has built or refurbished three facilities with a
capacity of 10,000 barrels of fluid per day, including gas conservation, and
has constructed eight satellite stations and over 135 kilometers of pipelines.
The third facility came onstream in January 2008 with the benefits to be seen
in 2008.
    Gentry, to date, has concentrated on drilling wells to discover and
delineate the oil-in-place in a large geographical area at Princess, and
producing the oil wells under primary depletion. In 2008 the Company intends
to implement a waterflood in the Tilley Pekisko oil pool within the Princess
area. Reservoir simulation modeling has predicted a significant increase in
the oil reserves due to waterflooding. Gentry is currently evaluating
additional areas to apply this waterflooding technique within Princess.
    Gentry will also be drilling several horizontal Pekisko wells within the
existing pools to enhance production performance.

    NET ASSET VALUE (unaudited)

    At December 31, 2007, Gentry had a before tax net asset value of $4.86
per share using total proved plus probable reserves as evaluated in the
Sproule Report, discounted at 5%, and the Company's assessment of undeveloped
land, seismic data and net debt. At a 10% discount, the before tax net asset
value is $3.95 per share.

    
    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)                      $  258,370    $  208,127
    Undeveloped land(2)                                 52,921        52,921
    Seismic(2)                                          16,032        16,032
    Net debt(3)                                        (59,734)      (59,734)
    -------------------------------------------------------------------------
    Total                                           $  267,589    $  217,346
    -------------------------------------------------------------------------
    Outstanding shares                              55,058,370    55,058,370
    -------------------------------------------------------------------------
    Net asset value per share                       $     4.86    $     3.95
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) As per the Sproule Report.
    (2) As evaluated by the Company.
    (3) Unaudited.
    

    UNDEVELOPED LAND - WESTERN CANADA

    Gentry's land holdings in Western Canada increased 54% to 276,652 net
undeveloped acres (432 sections) from 179,415 acres (280 sections) in 2006.
Under an ongoing farm-in agreement in the Princess area, Gentry has an option
to earn an additional 65,000 acres of undeveloped land.

    
    Undeveloped Western Canada Land Holdings (acres)
    -------------------------------------------------------------------------
    As at December 31, 2007
    Gross                                    406,794
    Net                                      276,652
    

    This land base provides considerable opportunity for the Company's future
growth.
    An important characterization of the Company lands is that approximately
60% of its undeveloped land holdings are freehold lands. These lands are held
in large contiguous blocks with expiries ranging from five years to over 30
years.

    About Gentry

    Gentry is a Calgary-based 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,
and has recently expanded into two new core areas with both development and
high-impact drilling opportunities. Gentry trades on the TSX under the symbol
"GNY" and currently has 55,044,479 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; Ketan Panchmatia, Chief Financial Officer, (403) 264-6161; R.
Gordon McKay, Chief Operating 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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