CALGARY, April 16 /CNW/ - Richards Oil & Gas Limited (the "Company"),
(TSX Venture: RIX) announces that the Company's proved plus probable reserves
as at December 31, 2006 were 1,359 Mboe (thousand barrels of oil equivalent),
as reported by Sproule Associates Ltd. ("Sproule"), the independent reserves
evaluators, in accordance with National Instrument 51-101. The updated reserve
value is a 218 percent increase over the same period last year. The increase
in reserves is mainly the result of developing the CBM reserves at the
Company's Morningside and Lacombe properties.
Highlights of the Company's 2006 reserves report include:
- Total proved reserves increased 283 percent to 812 Mboe from 212 BOE
one year ago.
- Total proved plus probable reserves increased 217 percent to
1,359 Mboe from 427 Mboe one year ago.
- Reserve life index was 13.9 years, based on estimates of future
production which peaks in 2008 at 517 boepd.
- Net present value of total proved plus probable reserves discounted
at 10 per cent (before income taxes) increased to $13.4 million from
$5.5 million one year ago, up 144 percent.
The Company's 25,760 gross (12,002 net) acres of earned and acquired
undeveloped land was not assessed as part of this evaluation.
Sproule also has assigned a resource volume of 159 bcf to the Company's
undeveloped land at December 31, 2006. The majority of these resources relate
to the Company's lands in and around Hinton, Alberta where the Company is
exploring to commercially produce coal bed methane from the Ardley coal
Richards Oil & Gas Limited (www.richardsoilandgas.com) is a Calgary-based
exploration company, involved in the development of natural gas and crude oil,
with an emphasis on the exploitation of coal bed methane (CBM). With a
significant land base and industry-leading experience in the development of
CBM projects, the Company is at the forefront of the CBM industry in Western
Canada. The Company is able to capitalize on opportunities that create both
short-term cash flow and long-term value for its shareholders.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release.
For further information:
For further information: Brad Turner, President & CEO, Richards Oil &
Gas Limited, Tel: (403) 265-8444, E-Mail: firstname.lastname@example.org; Lonn
Bate, CFO, Richards Oil & Gas Limited, Tel: (403) 265-8444, E-Mail: