Vero Energy Inc. reports 64% increase in reserves for 2007



    /NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN
    THE UNITED STATES/

    CALGARY, Feb. 27 /CNW/ - Vero Energy Inc. ("Vero", "the Company")
(TSX: VRO) is pleased to announce the results of its independent reserve
evaluation together with its contingent resource report effective December 31,
2007 (the "Sproule Report") as evaluated by Sproule Associates Limited in
accordance with the disclosure requirements provided by Standards of
Disclosure for Oil and Gas Activities ("NI 51-101").

    
    Highlights
    ----------

    -   Proved plus probable reserves increased 64% to 13,352 MBOE almost
        exclusively through the drill bit resulting in:

           -  A 48% increase in reserves per fully diluted share

           -  Proved plus probable finding and development costs of
              $10.16/boe excluding future capital and $11.28/boe including
              future capital

           -  A recycle ratio of 2.4

           -  Replacement of production of 4.0 times

    -   Proved reserves increased 59% to 9,585 MBOE resulting in:

           -  A 43% increase in reserves per fully diluted share

           -  Proved finding and development costs of $13.27/boe excluding
              future capital and $15.58/boe including future capital

           -  A recycle ratio of 1.8

    -   The net present value of Vero's estimated future net revenue based on
        forecast prices and costs and discounted at 10% before tax is
        $242.7 million, a 61% increase over December 31, 2006 which was
        accomplished despite a 12.5% decrease in the forecast AECO natural
        gas price used for the first two years of the evaluation

    -   Proved developed producing reserves represent 77% of total proved
        reserves and total proved reserves represent 72% of the total proved
        plus probable reserves

    -   Proved and probable reserve life index (RLI) of 7.8 years based on
        Vero's 2007 production

    -   Company interest proved plus probable reserves are comprised of 78%
        natural gas, 11% natural gas liquids and 11% light oil

    -   Land and holdings of 75,704 net undeveloped acres at December 31,
        2007

    Oil and Gas Reserves and Net Present Values
    -------------------------------------------
    The following table provides summary information presented in the Sproule
Report effective December 31, 2007. Detailed reserve information will be
presented in the Company's fourth quarter and year-end financial results press
release and in the Statement of Reserves Data and Other Oil and Gas
Information section of the Company's Annual Information form scheduled to be
filed on SEDAR prior to March 31, 2008.

    Company Interest Oil and Gas Reserves
    Based on Forecast Price and Costs
    -------------------------------------------------------------------------
                                   Light/    Natural              Barrels of
                                  medium         gas     Natural         oil
                                     oil     liquids         gas  equivalent
    -------------------------------------------------------------------------
                                   (Mbbl)      (Mbbl)      (MMcf)      (Mboe)

    Proved
      Producing                      912         803      34,181       7,412
      Non-producing                    0          71       2,454         480
      Undeveloped                    137         219       8,024       1,693
                              ----------- ----------- ----------- -----------
    Total Proved                   1,049       1,093      44,659       9,585
    Probable                         397         429      17,654       3,768
                              ----------- ----------- ----------- -----------
    Total Proved & Probable        1,446       1,521      62,313      13,352
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Present Values of Future Net Revenue
    Based on Forecast Prices and Costs
    -------------------------------------------------------------------------
                                                      0%        5%       10%
    -------------------------------------------------------------------------
                                                    (MM$)     (MM$)     (MM$)

    Proved
      Producing                                    239.9     193.0     164.1
      Non-producing                                 13.5      10.6       8.8
      Undeveloped                                   39.7      26.3      18.4
                                                --------- --------- ---------
    Total proved                                   293.1     229.9     191.3
    Probable                                       117.5      73.4      51.4
                                                --------- --------- ---------
    Total proved and probable                      410.6     303.3     242.7
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Notes:
    ------
        (1) In the case of BOEs, using BOEs derived by converting gas to
            oil in the ratio of six thousand cubic feet of gas to one
            barrel of oil (6 Mcf:1 bbl)
        (2) Total values may not add due to rounding
        (3) Net present values are before tax
        (4) It should not be assumed that the undiscounted and discounted
            future net revenues estimated by the Sproule Report represent the
            fair market value of the reserves
        (5) Company Interest consists of working interest and royalty
            interest before deduction of royalties payable
        (6) Forecast pricing used is based on an average price model of four
            engineering firms (AJM, Sproule, McDaniel, GLJ)
    

    FINDING, DEVELOPMENT AND ACQUISITION COSTS ("FD&A")

    Vero's FD&A costs for 2007, 2006 and the three year average are presented
in the tables below. The costs used in the FD&A calculation are the capital
costs related to: land acquisition and retention; drilling; completions;
tangible well site; tie-ins; and facilities, plus the change in estimated
future development costs as per the independent reserve report. These costs
exclude any dispositions of properties. Due to the timing of capital costs and
the subjectivity in the estimation of future costs, the aggregate of the
exploration and development costs incurred in the most recent financial year
and the change during that year in estimated future development costs
generally will not reflect total finding and development costs related to
reserve additions for that year. The reserves used in this calculation are
company interest reserve additions plus or minus revisions. The 2007 costs are
unaudited as the financial results are in the process of being finalized.

    
                                                                      3 Year
    Proved Finding & Development Costs              2007      2006   Average
    -------------------------------------------------------------------------
    Capital expenditures (excluding acquisitions,
     unaudited, 000's)                            68,932    57,026   133,753
    Change in future capital (000's)              11,990    (1,623)   16,836
    -------------------------------------------------------------------------
    Total capital for F&D (unaudited 000's)       80,922    55,403   150,589
    Reserve additions, excluding
     acquisitions (mboe)                           5,194     3,157     9,461
    Proved F&D costs - including future capital
     ($/boe)                                       15.58     17.55     15.92
    Proved F&D costs - excluding future capital
     ($/boe)                                       13.27     18.06     14.14
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Recycle ratio
      Including future capital                       1.8       1.7       1.8
      Excluding future capital                       2.1       1.7       2.0
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Proved plus Probable Finding &                                    3 Year
    Development Costs                               2007      2006   Average
    -------------------------------------------------------------------------
    Capital expenditures (excluding acquisitions,
     unaudited, 000's)                            68,932    57,026   133,753
    Change in future capital (000's)               7,604    12,339    27,299
    -------------------------------------------------------------------------
    Total capital for F&D (unaudited 000's)       76,536    69,365   161,052
    Reserve additions, excluding acquisitions
     (mboe)                                        6,783     3,964    12,248
    Proved F&D costs - including future capital
     ($/boe)                                       11.28     17.50     13.15
    Proved F&D costs - excluding future capital
     ($/boe)                                       10.16     14.39     10.92
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Recycle ratio
      Including future capital                       2.4       1.7       2.2
      Excluding future capital                       2.7       2.1       2.6
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Proved Finding, Development &                                     3 Year
    Acquisition Costs                               2007      2006   Average
    -------------------------------------------------------------------------
    Capital expenditures (including acquisitions,
     unaudited, 000's)                            71,410   124,596   230,999
    Change in future capital (000's)              11,990    (1,623)   16,836
    -------------------------------------------------------------------------
    Total capital for F&D (unaudited 000's)       83,400   122,973   247,835
    Reserve additions, including acquisitions
     (mboe)                                        5,267     4,420    12,171
    Proved F&D costs - including future capital
     ($/boe)                                       15.84     27.82     20.36
    Proved F&D costs - excluding future capital
     ($/boe)                                       13.56     28.19     18.98



    Proved plus Probable Finding, Development &                       3 Year
    Acquisition Costs                               2007      2006   Average
    -------------------------------------------------------------------------
    Capital expenditures (including acquisitions,
     unaudited, 000's)                            71,410   124,596   230,999
    Change in future capital (000's)               7,604    12,338    27,299
    -------------------------------------------------------------------------
    Total capital for F&D (unaudited 000's)       79,014   136,934   258,298
    Reserve additions, including acquisitions
     (mboe)                                        6,951     5,442    15,910
    Proved F&D costs - including future capital
     ($/boe)                                       11.37     25.16     16.23
    Proved F&D costs - excluding future capital
     ($/boe)                                       10.27     22.90     14.52
    

    Mannville Coalbed Methane - Contingent Resources

    Sproule Associates Limited, an independent engineering firm, was retained
to provide an estimate of the Mannville coalbed methane ("CBM") resources in
accordance with the disclosure requirements provided by Standards of
Disclosure for Oil and Gas Activities ("NI 51-101") on Vero's undeveloped
lands (5,100 net acres) in Corbett Creek, Alberta, as of December 31, 2007.
Due to the technical and economic uncertainty of these resources, they were
classified as contingent resources. The following table shows the estimates of
contingent resources under each category:

    
    Mannville Coalbed Methane -                      Low      Best      High
    Contingent Resources
    -------------------------------------------------------------------------
    Company Gross Technically Recoverable Sales
     Gas (Bcf)                                       7.6      15.0      29.0
    -------------------------------------------------------------------------

    It is Vero's opinion that, at the time when Vero determines that
conditions warrant investment into this resource, they have the potential to
be moved into a fully evaluated reserve category upon demonstration of
economic returns.

    Notes:
    ------
    (1) Contingent resources are defined in the Canadian Oil and Gas
        Evaluation Handbook as those quantities of oil and gas estimated on a
        given date to be potentially recoverable from known accumulations,
        but are not currently economic.
    (2) The contingencies that result in the classification of the Mannville
        CBM as a contingent resource include, but are not limited to:
        permeability to gas, gas saturation and/or content, an appropriate
        and successful field development plan, corporate commitment, and
        economic factors.
    (3) There is no certainty that it will be commercially viable to produce
        any portion of the reported contingent resource.
    (4) When evaluating resources according to the Canadian Oil and Gas
        Evaluation Handbook guidelines, the following definitions are
        applied:
        -  Low Estimate: This is considered to be a conservative estimate of
           the quantity that will actually be recovered from the
           accumulation. If probabilistic methods are used, this term
           reflects a P90 confidence level;
        -  Best Estimate: This is considered to be 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 (most likely/mode,
           P50/median, or arithmetic average/mean);
        -  High Estimate: This is considered to be an optimistic estimate of
           the quantity that will actually be recovered from the
           accumulation. If probabilistic methods are used, this term
           reflects a P10 confidence level.
    (5) Sproule has estimated net coal pay on a section-by-section basis
        where logs were available for the Company-interest lands and
        estimated the original gas-in-place volumetrically. Where no logs
        were available for a Company-interest sections, wells surrounding the
        section were used to estimate the net coal pay. Low, best, and high
        estimates were made using a minimum seam thickness of 3 feet in
        consideration of a horizontal drilling limit as follows:
        -  Low Estimate: Only the primary (thickest) coal seam was used and a
           recovery factor of 40%;
        -  Best Estimate: The primary and secondary (greater than 3 feet in
           thickness) seams were used and a recovery factor of 55%;
        -  High Estimate: The primary, secondary, and tertiary
           (greater than 3 feet in thickness) coal seams were used and a
           recovery factor of 65%.
    (6) The in-situ gas content for each section was estimated from a non-
        confidential desorption data map constructed by Sproule. The in-situ
        gas content on Company-interest lands was estimated at 325 scf
        per ton. A clean coal density of 1,800 tons per acre-foot was used in
        this study throughout the Company-interest lands.
    (7) Company gross consists of working interest excluding royalty interest
        and before deduction of royalties payable.
    

    Cautionary Statement
    --------------------
    Forward Looking Statements: Certain information regarding the Company in
this news release including management's assessment of reserve and production
estimates, reserves additions and estimates of future net revenue 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, the timing and length of plant turnarounds and the impact of such
turnarounds and the timing thereof, 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, performance or achievements could differ materially from those
expressed in, or implied by, these forward-looking statements and, accordingly
no assurance can be given that any events anticipated by the forward-looking
statements will transpire or occur, or, if any of them do so, what benefits
the Company will derive there from. Readers are cautioned that the foregoing
list of factors is not exhaustive. Additional information on these and other
factors that could effect 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), and the
Company's website (www.veroenergy.ca). Furthermore, the forward-looking
statements contained in this news release are made as at the date of this news
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.
    BOE Disclosure: Disclosure provided herein in respect of barrels of oil
equivalent (boe) 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.

    %SEDAR: 00022902E




For further information:

For further information: Doug Bartole, President & CEO, (403) 218-2063;
Gerry Gilewicz, Vice-President Finance & CFO, (403) 693-3170; Scott Koyich,
Investor Relations, (403) 215-5979; www.veroenergy.ca

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