Source Releases Independent Third Party Resource Report On Harmon Valley
Heavy Oil Asset, Alberta
CALGARY, Alberta, April 2 /CNW/ -- Source Petroleum is pleased to release
its December 31, 2006, resource estimates on its heavy oil project at Harmon
Valley, Alberta as prepared by AJM Petroleum Consultants, Calgary, Alberta.
AJM has assigned a contingent resource of 247 MMbbls and a [p10] case of
323 MMbbls on the Harmon Valley heavy oil asset situated in the Alberta Peace
River Arch heavy oil district.
Ultimate recoveries of 40% - 70% using Cold flow and SAGD may be achieved
of the total oil in place as an industry average in heavy oil.
Preliminary economics by AJM, based on only 5% Cold flow recovery and
12.5% SAGD recovery have been assigned a Net Present Value [discounted at 10%
[NPV10] at forecast price of $217.5-Million.
We are extremely pleased with the Preliminary report on Cold flow and
SAGD recovery conducted by AJM using very conservative parameters.
Furthermore, the report conducted by AJM was prepared prior to the
drilling of the first horizontal well on the property which is currently under
evaluation and the company looks forward to providing a new engineering report
as early as possible.
The Harmon Valley asset is situated 12 KM S.W. from Baytex Energy's heavy
oil project, 20 KM S.S.W. of Shell Canada's Cadotte heavy oil project and 25
KM S.W. of BlackRock's Ventures heavy oil Project which was recently sold to
Shell Canada for $2.4-Billion.
The Peace River Oil Sands District is believed to contain approximately 9
billion barrels of oil in place with current significant production of heavy
Primary production of heavy oil from through horizontal wells in the
manner proposed in the Peace River Oil Sands area has seen significant
development with numerous projects placed on production.
Source Petroleum Inc., with 50% participation interest, along with its
joint venture partner are targeting operations in the same Blue Sky Gething
formation with potential ooip reserves of up to 320 million barrels.
For further information please refer to the Website of Source Petroleum
at www.source-petroleum.com. Further information will follow as it becomes
Except for the historical and present factual information contained
herein, the matters set forth in this release include statements of
management's current expectations. Statements identified by words such as
"expects," "projects," "plans," "believes," "estimates," "may" and similar
expressions are forward-looking statements within the meaning of the "safe
harbor" provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements, include the statement that we believe there
may be an estimate of 9 billion barrels oil in place at the Peace River Oil
Sands District, that there is a potential ooip reserve of up to 260 - 450
million barrels on the our Peace River property are subject to risks and
uncertainties that may cause actual results to differ materially, including
the possibility that the historical data may be inaccurate or misinterpreted,
the anticipated benefits from our operations cannot be fully realized, the
possibility that commodity prices, costs or difficulties related to the
conduct of its business will be greater or lesser than expected, and the
impact of competition and other risk factors relating to our industry will be
greater than expected, all as detailed from time to time in the company's
reports filed with the SEC. The company disclaims any responsibility to update
these forward-looking statements.
Sam Charanek, President and CEO
Source Petroleum Inc.
620, 304 8th Ave SW.
Calgary AB. T2P-1C1
IR INQUIRIES (SKYLINE IR): Toll free 866 913 SOPO (7676)
For further information:
For further information: Sam Charanek, President and CEO, Source
Petroleum Inc., 620, 304 8th Ave SW., Calgary, Alberta, T2P-1C1; investors
(SKYLINE IR): +1-866-913-SOPO (7676), firstname.lastname@example.org