UNX ENERGY UPDATES PROSPECTIVE RESOURCES FOR PETROLEUM LICENCE 2713

CALGARY, Feb. 17 /CNW/ - UNX Energy Corp. (TSXV: UNX) ("UNX", or the "Company"), an emerging oil and gas company with interests in the offshore of the Republic of Namibia, announced today that per the Company's request, DeGolyer and MacNaughton of Dallas, Texas, ("D&M") have completed an update to their original Prospective Resources Evaluation Report (the "D&M Report") for UNX's Petroleum Licence ("PEL") 2713 dated April 1, 2010. The D&M Report was prepared in accordance with National Instrument 51-101 ("NI 51-101"), Sections 5.9 and 5.10 standards for review and assessment of prospective resources. The Company has also received the finalized 3D Petroleum Systems Modeling report for PEL 2713, as prepared by Integrated Petroleum Expertise Co. ("IPEX"), which provides a scientifically supported thesis that the sub-surface conditions in the zones of interest in the PEL are primarily oil prone.

"We are very encouraged with the results of the IPEX 3D Model and the independent prospective resources estimates that we have received to-date from D&M," said Mr. Gabriel Ollivier, President and CEO of UNX Energy. "The new reports support our oil thesis for the 2713 licence area and provide an independent assessment of the magnitude, quantity and quality of prospects that we have identified in the region. UNX has increased the estimates for gross unadjusted recoverable prospective resources on our Namibian property from 2.4 billion barrels of oil equivalent prospective resources to 10.5 billion barrels of oil equivalent, an increase of approximately 438%, and the gross probability of geological success ("Pg") adjusted prospective resources estimate by 557% to 3.2 billion barrels of oil equivalent. This represents an overall average geological probability of success of 30%. In addition, there is potential for our prospective resource numbers to further increase once D&M completes their prospective resources estimate for PEL 2815 and from the Moosehead feature that extends onto Block 2813A."

"UNX has been very aggressive and proactive in our efforts to obtain valuable data that reduces the uncertainty for the various prospects on our blocks in the Orange Basin," said Mr. Knowledge Katti, Director and Namibian representative of UNX. "We are very proud of our commitment and partnership with all Namibian stakeholders and look forward to the possibility of helping the country achieve energy independence and wealth through oil discoveries in its offshore concessions. While we are hopeful that big oil discoveries await us offshore, there is no disputing that the size of the prospects combined with the high geological probability of success are compelling, so we are confident that Namibia could indeed prove to be blessed with a prosperous energy future."

The prospective resources estimates from the updated D&M Report for PEL 2713 are summarized in the following two tables:

Table 1: Gross Prospective Resources - PEL 2713

                 
Description   P90
(Low est.)
  P50
(Best est.)
  P10
(High est.)
  Mean est.
Recoverable Oil (MMbbl)   2,447   6,042   14,596   7,527
Recoverable Solution Gas (BCF)   263   1,018   4,307   1,911
Recoverable Gas (BCF)   3,936   10,385   22,570   12,117
Recoverable Condensate (MMbbl)   131   493   1,393   659
Pg Adjusted Recoverable Oil (MMbbl)               2,134
Pg Adjusted Recoverable Solution Gas (BCF)               543
Pg Adjusted Recoverable Gas (BCF)               4,241
Pg Adjusted Recoverable Condensate (MMbbl)               231
                 

Table 2: UNX Net Prospective Resources - PEL 2713 (90% Working Interest ("WI"))

                 
Description   P90
(Low est.)
  P50
(Best est.)
  P10
(High est.)
  Mean est.
Recoverable Oil (MMbbl)   2,202   5,438   13,136   6,774
Recoverable Solution Gas (BCF)   236   916   3,877   1,720
Recoverable Gas (BCF)   3,543   9,347    20,314    10,906
Recoverable Condensate (MMbbl)   118   443   1,253   594
Pg Adjusted Recoverable Oil (MMbbl)               1,921
Pg Adjusted Recoverable Solution Gas (BCF)               488
Pg Adjusted Recoverable Gas (BCF)               3,817
Pg Adjusted Recoverable Condensate (MMbbl)               208
                 

UNX has used the industry standard of 6:1 (thousand cubic feet per barrel of oil equivalent) for conversion of the D&M reported gas resources to oil equivalent resources resulting in the following summary table:

Table 3: UNX Calculated Recoverable Prospective Resources Summary - PEL 2713

     
Description Gross Resources Net Resources (90%WI)
Oil1
(MMbbl)
Gas2
(BCF)
Oil
Equivalent
(MMboe)
Oil3
(MMbbl)
Gas4
(BCF)
Oil
Equivalent
(MMboe)
Pg Unadjusted P90 (Low est.) 2,578 4,199 3,278 2,320 3,779 2,950
Pg Unadjusted P50 (Best est.) 6,535 11,403 8,436 5,882 10,263 7,592
Pg Unadjusted P10 (High est.) 15,989 26,877 20,469 14,390 24,189 18,422
Pg Unadjusted Mean est.  8,186  14,028  10,524  7,368  12,625  9,472 
             
Pg Adjusted 2,365 4,784 3,162 2,129 4,305 2,846

1 Oil is defined as the arithmetic summation of D&M's estimate of gross prospective resources for recoverable oil and recoverable condensate.
2 Gas is defined as the arithmetic summation of D&M's estimate of gross prospective resources for recoverable solution gas and recoverable gas.
3 Oil is defined as the arithmetic summation of D&M's estimate of net prospective resources for recoverable oil and recoverable condensate.
4 Gas is defined as the arithmetic summation of D&M's estimate of net prospective resources for recoverable solution gas and recoverable gas.

As presented in Table 3, the Pg unadjusted gross mean oil-equivalent prospective recoverable resources is 10.5 (net 9.5) billion barrels of oil equivalent ("BOE") and a Pg adjusted gross mean prospective recoverable resources of 3.2 (net 2.8) billion BOE which equates to an average probability of geological success of 30%.

UNX has also received the finalized 3D Petroleum Systems Modeling report (the "Model") for the 2713 licence area as prepared by IPEX. The 69-page report applies advanced scientific methodologies in modeling a region's generation, expulsion, migration, timing, and entrapment of hydrocarbons. Moreover, the Model incorporates all available regional technical data including source rock, temperature and burial information; thus providing a highly defendable argument regarding the probabilities of oil versus gas generation. 

The conclusion of the IPEX Report is that the petroleum systems in the 2713 licence area are considerably different than those encountered 140 kilometers to the south-east in the Kudu gas field, with predicted present day sub-surface temperatures being much lower on PEL 2713 compared to Kudu. Specifically, the Model provides a stress-tested oil argument for the prospects contained in the D&M Report, the only exception being the Chimay prospect which is more gas-prone. The Model is clear in its conclusion that the zones of interest for the massive Moosehead prospect are in the expected oil window for the region.

The Company is planning to issue several prospective resources reports over the course of 2011. The above independent resources estimates reflect several features mapped on Block 2713A, with some minor overlap to the west onto Block 2713B, this latter block remaining largely unmapped at this time due to sparse seismic coverage. The core prospect in the D&M Report is Moosehead, being a sizeable feature in the southern portion of 2713A. The Company's preliminary interpretations indicate that both of the Moosehead plays (the Aptian and Turonian) extends from the southern portion of Block 2713A onto the 2813A contract area, where UNX also holds a 40% working interest. The Company is working with its PEL 2813 joint venture partners to finalize the mapping of the two prospective zones and expects to issue an independent resources update once the collaborative process is complete. UNX's joint venture partners for PEL 2813 are HRT Participações em Petróleo S.A. (HRTP3:BZ) ("HRT"), the designated operator with a 40% working interest, and Acarus Investments (Proprietary) Ltd., a local Namibian company with a 20% carried interest. Additionally, the Company expects to take receipt of an independent prospective resources report for the 90%-owned PEL 2815 in the coming weeks.

The estimates of the prospective resources are prepared by D&M, an independent international petroleum consulting firm registered in the State of Texas. The report has been prepared in accordance with Sections 5.9 and 5.10 of NI 51-101, and is based upon D&M's review of technical data including geology, geophysics and reservoir parameters.

The D&M prospective resources report is available on the Company's website at www.unxenergy.com and is filed on SEDAR at www.sedar.com. UNX recommends that readers refer to the prospective resources report in its entirety as it details the process for determining the prospective resources estimates, the assumptions underpinning the modeling, and defines all of the technical terms used. The prospective resources estimates described in the report and in this release are "undiscovered resources" as defined in the Canadian Oil and Gas Evaluation ("COGE") Handbook. Undiscovered resources are defined as those quantities of oil and gas estimates on a given date to be contained in accumulations yet to be discovered. The estimate of the potentially recoverable portions of undiscovered resources are classified as prospective resources. Prospective resources are defined as those quantities of oil and gas estimated on a given date to be potentially recoverable from undiscovered accumulations.

In accordance with Section 5.9 of NI 51-101, the Company declares that there is no certainty that any portion of these resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.

Other Information

About BOE

BOE's may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

About the Authors of the Independent Prospective Resources Report

D&M is an international petroleum consulting firm with offices in the United States of America, Canada and Russia, who specialize in evaluation of reserves and resources for major oil and gas companies, governments, financial institutions and the investment industry. DeGolyer and MacNaughton have conducted assessments of and for the largest petroleum and financial companies in the world. During seven decades, the firm has successfully performed studies on hundreds of thousands of petroleum properties in more than 100 countries. For more detail on D&M, please visit their website, at: www.demac.com

About IPEX

IPEX is located in Rio de Janeiro, Brazil, and is a subsidiary of HRT Participações em Petróleo S.A. It is a geological and geophysical services company that is recognized as the leading petroleum system and geochemical company in the southern hemisphere. The company provides a wide range of services, drawing from its professional petroleum exploration and environmental team, and its laboratory's state-of-the-art technologies. Examples of IPEX's offering include 3D petroleum system modeling of petroleum systems, molecular geochemistry of oil and gas samples including diamondoid analysis, and oil seepage detection services. For more detail on IPEX, please visit their website at: www.ipexco.com.br.

About UNX Energy Corp.

UNX Energy Corp. is a junior, independent oil and gas company, focused on exploration for crude oil in offshore Namibia, Africa. Headquartered in Calgary, Alberta, Canada, UNX's asset base consists of approximately 51,000 square kilometres (approximately 32,000 net) of offshore acreage, strategically located along the prolific South Atlantic Margin. Development of these highly prospective blocks is being advanced by an experienced management team, qualified technical staff and strong in-country relationships. UNX employs strategic technical expertise to optimize the probability of exploration success in the region. UNX is committed to conducting its business in a socially and environmentally responsible manner, ultimately working towards the goal of sustainable development in Namibia's oil and gas sector for the benefit of all stakeholders.

On Behalf of the Board of Directors
of UNX Energy Corp.

Duane Parnham
Chairman

For further information visit our website at www.unxenergy.com
Sedar Profile #00016276

Forward Looking Information
This news release contains certain forward-looking statements that reflect the current views and/or expectations of UNX Energy Corp. with respect to its performance, business and future events. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, those relating to changes in the market, potential downturns in economic conditions, foreign exchange fluctuations, changes in business strategy, regulatory requirements, demand for our resources, competition and dependence on key personnel. These risks, as well as others, could cause actual results and events to vary significantly. UNX Energy Corp. does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.


SOURCE UNX Energy Corp.

For further information:

Maria Elliott, VP Finance & CFO
Telephone: (403) 984-6430
Email: maria.elliott@unxenergy.com

David Feick, Investor Relations   
Telephone: (403) 218-2839   
Email: dfeick@equicomgroup.com  


Heidi Christensen Brown,  Investor Relations
Telephone: (403) 218-2833
Email: hchristensenbrown@equicomgroup.com

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