PAN - TSXV
CALGARY, March 2 /CNW/ - PanTerra Resource Corp. (The "Company") wishes
to report that it has received its 2006 Engineering Report by Sproule
Associates Limited ("Sproule") of Calgary, Alberta and has SEDAR filed the
'Statement of Reserves Data' as per regulatory requirements.
Sproule has assigned 'Discovered Resources' to the Company in compliance
with Canadian Oil and Gas Evaluation Handbook definitions and is able to
disclose such resources as in-place volumes. 'Discovered Resources' are
defined in the COGE Handbook a, "those quantities of oil and gas estimated on
a given date to be remaining in, plus those quantities already produced from,
known accumulations. Discovered resources are divided into economic and
uneconomic categories, with the estimated future recoverable portion
classified as reserves and contingent resources, respectively."
On the effective date (December 31, 2006) of the Sproule report, not all
the data supplied by the Company to the specialty lab in the USA was
completely evaluated thus not all of the properties the Company operates have
been assigned in-place volumes at the time of our SEDAR filing.
Summary of Discovered Gas Resources
Area Working Gross Net
Interest Gas-in-Place Gas-in-Place
% (Bcf Raw) (Bcf Raw)
Moose Jaw, Saskatchewan 50 1,884 942
Foam Lake, Saskatchewan 50 none at this time none at this time
WhiteHIll Lakes, Saskatchewan 50 240 120
Shell Lake, Saskatchewan 50 none at this time none at this time
Total Unproved Properties 2,124 1,062
Although the Company has discovered gas resources in the Foam Lake and
Shell Lake properties, those resources have not been recognized in this report
because insufficient data is available to permit a quantitative estimate of
the in-place volumes to be made at this time.
The Company has now been assigned 'discovered resources' which is a
significant advancement from 'prospective resources' (quantities of oil and
gas estimated on a given date to be contained in accumulations yet to be
discovered) as reported in its November 3, 2006 press release.
While the Sproule report considers that "gas has been discovered" on the
Company's holdings at Shell Lake and Foam Lake, more data for gas in-place
estimates will have to be supplied by the Company. Sproule does however state
that from the core data supplied by the Company, the holdings at Foam Lake
could "contain gross raw gas in place in the order of 4.5 to 6.5 Bcf/section,
for a total gas-in-place volume of 3.0 to 6.0 TCF. However, these estimates
have not been recognized for the holdings at this time because the 'adsorption
data' neither confirms nor quantifies the in-place gas content of the shales."
In order to satisfy Sproule's requirements, the Company wishes to
announce that it will be drilling two additional wells in the very near
future. One at Shell Lake and one at Foam Lake and will do 'desorption
canister analyses' of the cores it intends to cut. Once this data has been
received and analyzed, the Company will have Sproule do an addendum to its
The Company's principal targets of interest on the exploratory permits
lie within the shales, siltstones and thinly bedded sands of the Milk River,
First and Second White Speckled shale and Barons formations which are Upper
Cretaceous in age and occur at shallow depths in the province of Saskatchewan.
The Company is pursuing accumulations of 'biogenic gas' in these
Since acquiring these large land holdings, the Company (as Operator) has
participated in the drilling of 39 wells, of which 2 were at Shell Lake, 16 at
Foam Lake, 16 at Moose Jaw and 5 at WhiteHill Lakes. The Company maintains a
50% working interest in all of its current holdings in the province of
Although discovered resources are interpreted to exist on the Company's
properties, there is no certainty that they will be economically viable or
technically feasible to produce any portion of those discovered resources.
As of the effective date of the Sproule Report, the Company has neither
tested nor completed any of the wells and has not demonstrated that the
shale-gas resource is technically or economically recoverable. Thus no proved,
probable or possible reserves have been assigned to the holdings, which are
considered as unproved and undeveloped at this time.
A suitable completion technique has not been developed for the target
formations. Until the Company can demonstrate that the shale gas can be
economically produced, no reserves can be assigned to these holdings.
PanTerra Resource Corp. is an Alberta-based resource company focused on
the exploration and development of unconventional shallow and shale gas. The
Company holds three exploration permits and four licenses for a total of
1.1-million acres (550,000 acres net) on four properties in Saskatchewan.
PanTerra trades on the TSX Venture Exchange under the symbol "PAN". Further
information can be found at www.panterraresource.com.
The TSX Venture Exchange has not reviewed nor accepts responsibility for
the adequacy or accuracy of the contents of this news release.
For further information:
For further information: Fred P. Rumak P.Geol., President and C.E.O. at
(403) 261-5900, Email: firstname.lastname@example.org; or Herve B. Collet, V.P.
Operations, C.O.O. at (403) 261-5900, Email: email@example.com