Montney targets could yield $ 53,000,000 in probable net revenue over 14 years



    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:

For further information: please contact the Company at (604) 269-9801 or
info@pembertonenergy.ca

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