Rolling Thunder Exploration Ltd. announces December 31, 2006 year-end reserves and operational highlights



    CALGARY, March 12 /CNW/ - Rolling Thunder Exploration Ltd. ("Rolling
Thunder" or the "Corporation") (TSX-V: ROL.A, ROL.B; OTC Pink Sheets:   RTHXF)
announces December 31, 2006 year-end reserves and operational highlights.

    
    Corporate Highlights

    -   Increased Proved reserves by 46% in eight months over the year ended
        April 30, 2006;

    -   Increased Proved plus Probable reserves by 50% in eight months over
        the year ended April 30, 2006;

    -   Net Present Value of the Proved plus Probable reserves discounted at
        10% increased 71% from $46.7 MM for the year ended April 30, 2006 to
        $80.0 MM for the year ended December 31, 2006;

    -   Net Asset Value per share increased 41% over the same period, from
        $1.35 at April 30, 2006 to $1.91 at December 31, 2006;

    -   Finding and development costs, excluding future capital, decreased to
        $11.10 per boe Proved plus Probable and $18.93 per boe Proved;

    -   Exceeded 2006 exit target by 23%, averaging 1,109 boe/d for Q4 2006;

    -   Obtained Good Production Practice ("GPP") for two wells at Teepee
        Creek;

    -   Current production is approximately 1,200 boe/d. With facilities
        modifications at Teepee Creek, overall corporate production is
        expected to increase to approximately 1,500 boe/d by the end of the
        first quarter 2007;

    -   2007 year-end exit forecast of 2,000 boe/d; and

    -   2007 initial budget of $22 MM, consisting of $17 MM for drilling,
        completion and facilities (14 wells) and $5 MM for land and seismic.

    The Corporation's December 31, 2006 Reserve Report was prepared by AJM
Petroleum Consultants ("AJM") in accordance with National Instrument 51-101,
using AJM's December 31, 2006 price forecast. Proved reserves have increased
from 1,287.4 Mboe at year-end April 30, 2006 to 1,879.7 Mboe at year-end
December 31, 2006, an increase of 46%. (During 2006, Rolling Thunder changed
its year-end from April 30 to December 31 and will now remain on a December 31
year-end cycle.) Proved plus Probable reserves increased from 2,251.1 Mboe to
3,383.6 Mboe over the same period, an increase of 50%. The net present value
discounted at 10% increased correspondingly from $46.7 MM to $80.0 MM, an
increase of 71% over the eight month period.
    A summary of the December 31, 2006 year-end reserve report is listed
below.

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                                        Light and Medium
                                               Oil             Natural Gas
    Reserves                             Gross       Net     Gross       Net
    Category                            (Mbbls)   (Mbbls)    (Mmcf)    (Mmcf)
    -------------------------------------------------------------------------
    Proved developed producing           407.2     288.1   3,584.6   2,247.0
    Proved developed non-producing         0.0       0.0       4.8       3.8
    Proved undeveloped                   194.1     146.2   3,408.8   2,494.2
    -------------------------------------------------------------------------
    Total proved                         601.3     434.3   6,998.2   4,745.0
    Total probable                       477.0     355.7   5,636.3   4,100.2
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    Total proved plus probable          1078.4     790.0  12,634.5   8,845.2
    -------------------------------------------------------------------------
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                                            Natural Gas
                                              Liquids              BOE
    Reserves                             Gross       Net     Gross       Net
    Category                            (Mbbls)   (Mbbls)    (Mboe)    (Mboe)
    -------------------------------------------------------------------------
    Proved developed producing            59.2      32.8   1,063.8     695.4
    Proved developed non-producing         0.1       0.0       0.9       0.7
    Proved undeveloped                    52.7      35.4     815.0     597.2
    -------------------------------------------------------------------------
    Total proved                         112.0      68.2   1,879.7   1,293.3
    Total probable                        87.5      57.4   1,503.9   1,096.5
    -------------------------------------------------------------------------
    Total proved plus probable           199.5     125.6   3,383.6   2,389.8
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Rolling Thunder's reserves were independently evaluated by AJM Petroleum
    Consultants, independent reservoir engineers, as of December 31, 2006 and
    in accordance with the requirements of National Instrument 51-101.

    Net Present Value of Future Net Revenue (Forecast Prices and Costs)

    The following table presents the net present values of the Corporation's
future net revenue attributable to categories in the previous table, estimated
using forecast prices and costs, before and after deducting future income tax
expenses. The future net revenues are presented undiscounted and discounted at
5 percent, 10 percent, 15 percent and 20 percent.


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                                      Before income taxes discounted at
                                  0%        5%       10%       15%       20%
    Reserves Category           ($M)      ($M)     ($M)       ($M)      ($M)
    -------------------------------------------------------------------------
    Proved
      Developed producing   35,208.9  31,822.2  29,147.9  26,987.6  25,204.8
      Developed
       non-producing            16.5      16.2      15.9      15.6      15.4
      Undeveloped           24,504.5  21,633.7  19,321.5  17,423.9  15,841.7
    -------------------------------------------------------------------------
    Total proved            59,729.9  53,472.2  48,485.3  44,427.1  41,061.9
    Total probable          51,564.3  39,453.0  31,516.8  26,016.9  22,022.2
    -------------------------------------------------------------------------
    Total proved
     plus probable          111294.2  92,925.2  80,002.1  70,444.0  63,084.1
    -------------------------------------------------------------------------
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    -------------------------------------------------------------------------
                                      After income taxes discounted at
                                  0%        5%       10%       15%       20%
    Reserves Category           ($M)      ($M)      ($M)      ($M)      ($M)
    -------------------------------------------------------------------------
    Proved
      Developed producing   28,519.3  25,689.4  23,478.4  21,709.7  20,262.4
      Developed
       non-producing            10.6      10.5      10.3      10.2      10.1
      Undeveloped           16,330.2  14,224.4  12,544.9  11,178.8  10,048.7
    -------------------------------------------------------------------------
    Total proved            44,860.2  39,924.3  36,033.7  32,898.7  30,321.2
    Total probable          36,185.5  27,249.7  21,423.7  17,406.9  14,503.2
    -------------------------------------------------------------------------
    Total proved
     plus probable          81,045.7  67,174.0  57,457.4  50,305.6  44,824.4
    -------------------------------------------------------------------------
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    Summary of Pricing Information (Forecast Prices and Costs)

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                                               Natural
                                   Hardisty        Gas
                  WTI   Edmonton   Heavy 12       AECO
              Cushing,       Par    Degrees       Spot  Inflation   Exchange
             Oklahoma      Price        API      Price       Rate       Rate
             ($US/bbl) ($Cdn/bbl) ($Cdn/bbl) ($Cdn/Mcf)   (%/year) ($US/$Cdn)
    -------  ----------------------------------------------------------------
    2006        66.27      73.43      39.80       6.37        2.0       0.88
    2007        65.00      72.85      40.35       7.20        2.0       0.88
    2008        69.35      77.75      45.25       7.80        2.0       0.88
    2009        70.75      79.36      50.10       7.70        2.0       0.88
    2010        69.00      77.30      49.69       7.80        2.0       0.88
    2011        67.10      75.15      49.15       8.05        2.0       0.88
    2012        66.25      74.15      48.15       8.20        2.0       0.88
    2013        67.55      75.60      49.60       8.30        2.0       0.88
    2014        68.90      77.15      51.15       8.55        2.0       0.88
    2015        70.30      78.70      52.70       8.70        2.0       0.88
    2016        71.70      80.25      54.25       8.90        2.0       0.88
    2017        73.15      81.85      55.85       9.05        2.0       0.88
    -------------------------------------------------------------------------


    Reserve Reconciliation (Forecast Prices and Costs)

    -------------------------------------------------------------------------
                                                                      Proved
                                                                        Plus
    (in Mboe's)                           Total Proved   Probable   Probable
    -------------------------------------------------------------------------
    Opening balance at April 30, 2006          1,287.4      967.3    2,251.1
    Exploration and development (including
     revisions)                                  766.7      540.2    1,307.1
    Acquisitions                                     -          -          -
    Production                                  (174.6)         -     (174.6)
    -------------------------------------------------------------------------
    Closing balance, December 31, 2006         1,879.7    1,503.9    3,383.6
    -------------------------------------------------------------------------
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    Net Asset Value Per Fully Diluted Share Comparison (Unaudited)
    Using Reserve Values at December 31, 2006 and April 30, 2006 discounted
    at 10% - Forecast Prices and Costs Before Taxes

    -------------------------------------------------------------------------
    (in Canadian $)                             Dec. 31, 2006  Apr. 30, 2006
    -------------------------------------------------------------------------
    Proved reserve value (net of
     future development costs)                     48,485,300     26,588,900
    Proved plus probable reserve value
     (net of future development costs)             80,002,100     46,745,500
    Undeveloped land (No. acres x $125/acre)        1,429,364      1,534,581
    Estimated net debt                             (3,244,395)    (2,420,938)
    Option proceeds(1)                              1,090,250      4,709,750
    -------------------------------------------------------------------------
    Total net assets                               79,277,319     50,568,893
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Fully diluted shares outstanding(2)            41,419,073     37,460,445
    Estimated net asset value per fully
     diluted share                                      $1.91          $1.35
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1)  Option proceeds were calculated using options that were "in the
         money" at December 31, 2006
    (2)  Fully diluted shares outstanding was calculated as the sum of the
         number of Class A common shares outstanding at December 31, 2006,
         and April 30, 2006 and the number of Class A common shares that
         would result if the Class B common shares were converted using the
         30 day weighted average Class A common share price at
         December 31, 2006 and April 30, 2006, and the number of options that
         were "in-the-money" at December 31, 2006 and April 30, 2006.


    Finding, Development and Acquisition ("FD&A") Costs (Unaudited)

    -------------------------------------------------------------------------
    (in Canadian $)                                                   Proved
    Capital Costs                                      Proved  Plus Probable
    -------------------------------------------------------------------------
    Exploration and development capital
     expenditures                                  14,513,299     14,513,299
    Acquisition expenditures                                -              -
    Change in future development costs ("FDC")
     (discounted 10%)                              (3,818,000)    (4,103,100)
    -------------------------------------------------------------------------
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    -------------------------------------------------------------------------
    (in Canadian $)                                                   Proved
    FD&A Costs ($/boe)                                 Proved  Plus Probable
    -------------------------------------------------------------------------
    Exploration and development (without FDC)           18.93          11.10
    Acquisitions (without FDC)                              -              -
    All-in FD&A (without FDC)                           18.93          11.10
    All-in FD&A (with FDC)                              13.95           7.96
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    FD&A costs with change in future development costs decreased
significantly from $27.31 per boe on a Proved basis and $38.46 per boe on a
Proved plus Probable basis at April 30, 2006 to $13.95 and $7.96 per boe on a
Proved and Proved plus Probable basis respectively at December 31, 2006. Total
future development costs decreased from $7.3 MM to $3.5 MM Proved and from
$11.7 MM to $7.6 MM Proved plus Probable from the year ended April 30, 2006 to
the year ended December 31, 2006. This resulted in a negative change in FDC
for purposes of calculating FD&A costs. The reduced FD&A costs reflect
increased efficiency resulting from one-time facilities costs at Teepee Creek.

    Operations Review

    Rolling Thunder's focus continues to be the development of our
significant light oil discovery at Teepee Creek. To date, the pool consists of
seven oil wells and one gas well. Six wells are currently on production, and
two more are expected to be tied-in by the end of the first quarter. With
facilities modifications and tie-ins, we anticipate between 1,100 and 1,200
boe/d from the Teepee Creek facility. Five additional development wells are
planned for 2007. The Corporation is also in the process of drilling two
exploration wells approximately 3.5 miles north of the original discovery on a
similar feature. Operations are expected to be completed prior to spring
breakup.
    At McLeod, the tie-in of the Corporation's new gas discovery at 06-08 is
complete. Rolling Thunder expects a net 150 boe/d from this new well.

    2007 Forecast

    Rolling Thunder currently plans a $22 MM budget for 2007, consisting of
$17 MM for drilling, completions and tie-ins, and $5MM for land and seismic.
The Corporation plans on drilling 14 wells, of which seven will be in our core
area of Teepee Creek. Rolling Thunder is currently tying in its behind pipe
production in Teepee Creek and McLeod and is maintaining its 2007 corporate
average forecast of 1,500 boe/d and 2007 year-end exit forecast of 2,000
boe/d. The Corporation's strong 2006 results put Rolling Thunder in a great
position to capitalize on the current market. We plan to leverage this
position for 2007 and in addition to growth through the drill bit, plan to
pursue strategic acquisitions which will ensure long term growth.

    Natural Gas volumes that have been converted to barrels of oil equivalent
(BOEs) have been converted on the basis of six thousand cubic feet (mcf) to
one barrel (bbl). BOEs may be misleading, particularly if used in isolation. A
BOE conversion ratio of six mcf to one bbl is based on an energy equivalency
method and does not necessarily represent value equivalency at the wellhead.
Certain information contained herein constitutes forward-looking information
under applicable securities laws. All statements, other than statements of
historical fact, which address activities, events or developments that we
expect or anticipate may or will occur in the future, are forward-looking
information. Forward-looking information typically contains statements with
words such as "seek", "anticipate", "plan", "continue", "estimate", "expect",
"may", "will", "project", "potential", "targeting", "intend", "could",
"might", "should", "believe" or similar words suggesting future outcomes or
outlook. The following discussion is intended to identify certain factors,
although not necessarily all factors, which could cause future outcomes to
differ materially from those set forth in the forward-looking information. The
risks and uncertainties that may affect the operations, performance,
development and results of Rolling Thunder's businesses include, but are not
limited to, the following factors: volatility of oil and gas prices, commodity
supply and demand, fluctuations in currency and interest rates, ultimate
recoverability of reserves, timing and costs of drilling activities and
pipeline construction, new regulations and legislation and the availability of
capital. The reader is cautioned that these factors and risks are difficult to
predict and that the assumptions used in the preparation of such information,
although considered reasonably accurate by Rolling Thunder at the time of
preparation, may prove to be incorrect or may not occur. Accordingly, readers
are cautioned that the actual results achieved will vary from the information
provided herein and the variations may be material. Readers are also cautioned
that the foregoing list of factors and risks is not exhaustive. Additional
information on these and other risks, uncertainties and factors that could
affect Rolling Thunder's operations or financial results are included in our
filings with the securities commissions or similar authorities in each of the
provinces of Canada, as may be updated from time to time. There is no
representation by Rolling Thunder that actual results achieved will be the
same in whole or in part as those set out in the forward-looking information.
Furthermore, the forward-looking statements contained herein are made as of
the date hereof, and Rolling Thunder does not undertake any obligation to
update publicly or to revise any forward-looking information, whether as a
result of new information, future events or otherwise. Any forward-looking
information contained herein is expressly qualified by this cautionary
statement.

    
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    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.
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For further information:

For further information: To find out more about Rolling Thunder
Exploration Ltd. (TSX-V: ROL.A, ROL.B; OTO: RTHXF), visit our website at
www.rollingthunderexploration.com or contact: Peter Bolton, President & Chief
Executive Officer, (403) 532-6221, peterb@rollingthunderexploration.com;
Kamelia Wong, Chief Financial Officer, (403) 532-6223,
kameliaw@rollingthunderexploration.com

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