Patch International Inc. Announces Independent Engineering Evaluation and Filing of Statement of Reserves



    CALGARY, Sept. 22 /CNW/ - Patch International Inc. (OTCBB:PTCHF) ("Patch"
or the "Company") is pleased to announce that it has filed on SEDAR its
National Instrument Form 51-101F1 - Statement of Reserves Data and Other Oil
and Gas Information for its year ended May 31, 2008. The Statement of Reserves
contains the disclosure and report relating to resource data and other oil and
gas information, effective as of May 31, 2008, required pursuant to National
Instrument 51-101 Standards of Disclosure for Oil and Gas Activities of the
Canadian Securities Administrators.
    A copy of the Statement of Reserves may be found for viewing on the
System for Electronic Document Analysis and Retrieval (SEDAR) website at
www.sedar.com.
    The Statement of Reserves contains the resource estimates from the
Evaluation of Bitumen Contingent Resources Report ("Report") as evaluated by
McDaniel & Associates Consultants Limited (McDaniel). The Report was prepared
using assumptions and methodology guidelines in the Canadian Oil and Gas
Evaluation Handbook and in accordance with National Instrument 51-101. The
effective date of the evaluation is May 31, 2008. The Report incorporates the
McDaniel price deck as at July 1st, 2008 in the forecast price scenario.

    
    Contingent Resource
    -------------------
    
    McDaniel has recognized best estimate Contingent Resources of 139 million
barrels (Patch working interest share before royalty) with a low estimate of
94 million barrels and a high estimate of 203 million barrels. The area
included in Contingent Resource assignments, based on well control, amounts to
approximately 27% of Patch's gross lands. The assigned Contingent Resources
are further categorized as economic.
    The Report estimated that Patch's best estimate Contingent Resources
would generate $2,021 million (undiscounted) of future net revenue after
deduction of $1,804 million in future capital requirements and abandonment
costs of $35.0 million, with a net present value before income tax discounted
at 8% ("NPV(8)") of $373 million.
    McDaniel calculates Contingent Resources based on that portion of
discovered recoverable bitumen that meets the requisite minimum qualitative
and quantitative criteria to be exploited using conventional Steam Assisted
Gravity Drainage (SAGD) production method and a diluent - bitumen blending
method for transportation and marketing.
    The Contingent Resource volumes have not been classified as Reserves at
this time pending further delineation drilling, development planning and
regulatory approvals.

    
    Share Value based on Contingent Resources and Common Shares Outstanding
    -----------------------------------------------------------------------
    
    On a per share basis outstanding, the estimated NPV(8) for the low
estimate Contingent Resource equates to $2.57 per Patch common share. The
estimated NPV(8) for best estimate Contingent Resources equates to $8.50 per
Patch common share outstanding. The estimated NPV(8) for the high estimate
Contingent Resources equates to $16.90 per Patch common share outstanding.
There are approximately 43.9 million Patch common shares outstanding.

    
    Summary Table
    -------------
    The following table outlines the summary of the assessed Contingent
Resources and estimated Company share of net present value before income taxes
as of May 31st, 2008 based on forecasted prices and costs.


    Contingent Resource             Company         Net Present Value Before
                               Working Interest     Income Tax Discount at 8%
                                     (MBbl)                 $MM (CAD)
    -------------------------------------------------------------------------

    Low Estimate (P90)               93,664                    113
    Best Estimate (P50)             139,064                    373
    High Estimate (P10)             203,356                    742
    -------------------------------------------------------------------------

    Definitions:

    1.  Contingent Resource

        Defined as those quantities of petroleum estimated, as of a given
        date, to be potentially recoverable from known accumulations using
        established technology or technology under development, but which are
        not currently considered to be commercially recoverable due to one or
        more contingencies. Contingencies may include factors such as
        economic, legal, environmental, political, regulatory matters or a
        lack of markets. It is also appropriate to classify as contingent
        resources, the estimated discovered recoverable quantities associated
        with a project in the early evaluation stage. Contingent Resources
        are further classified in accordance with the level of certainty
        associated with the estimates and may be sub-classified based on
        project maturity and/or characterized by their economic status.

    2.  Low Estimate

        Defined as a conservative estimate of the quantity that will actually
        be recovered from the accumulation. If probabilistic methods are
        used, this term reflects P90 confidence level.

    3.  Best Estimate

        Defined as the best estimate of the quantity that will actually be
        recovered from the accumulation. If probabilistic methods are used,
        this term is a measure of central tendency of the uncertainty
        distribution (P50).

    4.  High Estimate

        Defined as an optimistic estimate of the quantity that will actually
        be recovered from the accumulation. If probabilistic methods are
        used, this term reflects P10 confidence level.

    Patch and its Board of Directors are continuing to work with its Financial
Advisor, CIBC World Markets Inc., to conduct a strategic process. The Board of
Directors remains committed to maximizing shareholder value as a result of
this process and is continuing negotiations with potential counterparties.
However, there is no assurance that a definitive agreement will be reached.

    NO REGULATORY AUTHORITY HAS APPROVED NOR DISAPPROVED THE CONTENTS OF THIS
    RELEASE. The TSX Venture Exchange does not accept responsibility for the
    adequacy or accuracy of this release.
    

    Forward Looking Statements: This press release contains forward-looking
statements. Management's assessment of future plans and operations, expected
production levels, operating expenditures, future engineering reports and the
timing of increases in production may constitute forward-looking statements
under applicable securities laws and necessarily involve risks including,
without limitation, risks associated with oil and gas exploration,
development, exploitation, production, marketing and transportation, loss of
markets, volatility of commodity prices, currency fluctuations, imprecision of
reserve estimates, environmental risks, competition from other producers,
inability to retain drilling rigs and other services, incorrect assessment of
the value of acquisitions, failure to realize the anticipated benefits of
acquisitions, delays resulting from or inability to obtain required regulatory
approvals and ability to access sufficient capital from internal and external
sources. As a consequence, the Company's actual results may differ materially
from those expressed in, or implied by, the forward-looking statements.
Readers are cautioned that the foregoing list of factors is not exhaustive.
Additional information on these and other factors that could affect the
Company's operations and financial results are included in reports on file
with Canadian securities regulatory authorities and may be accessed through
the SEDAR website (www.sedar.com). Furthermore, the forward-looking statements
contained in this press release are made as at the date of this press release
and the Company does not undertake any obligation to update publicly or to
revise any of the included forward-looking statements, whether as a result of
new information, future events or otherwise, except as may be required by
applicable securities laws.
    The reserves and future net revenue in this press release represent
estimates only. The present value of estimated future net cash flows and the
share value based on the net present value referred to herein should not be
construed as the current market value of estimated crude oil and natural gas
reserves attributable to the Company's properties. Resources do not
constitute, and should not be confused with, reserves. No bitumen reserves
have been recovered with any of the Company's project areas and there is no
assurance that any commercial oil sands project will be developed. Estimates
of Patch in-place bitumen "Contingent Resources", are forward-looking
statements. Further classification is dependent on, among other things,
additional feasibility studies and pilot testing and are inherently uncertain
and are generally considered more uncertain than estimates of reserves. Future
estimates of recoverable resources and actual recoverable resources will
differ any may differ materially from the estimate of in-place Discovered
Resources or other resources. The commercial viability of discovered and
undiscovered resources is affected by numerous factors which are beyond the
Company's control and which cannot be predicted, such as the potential for
further financing, environmental, permitting, legal, title, taxation,
socio-political, marketing or other relevant issues.





For further information:

For further information: Jason Dagenais, Chief Operating Officer, Patch
International Inc., Suite 1670 Scotia Centre, 700-2nd Street SW, Calgary,
Alberta, T2P 2W1, (403) 441-4390, extension 2005, Email: info@patchenergy.com

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PATCH INTERNATIONAL INC.

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