TSX Venture Exchange Symbol: DES
CALGARY, April 30, 2013 /CNW/ - Desmarais Energy Corporation (TSXV: DES) (the "Corporation" or "Desmarais") announces that a horizontal well in the Virginia Hills area located at 1-20-64-13-W5M has been successfully drilled to total depth by the operator, and is standing cased for completion in Q2 - 2013. Desmarais currently has a 5% before payout royalty interest on 32.598% of the production associated with such well and a 30% working interest on the 32.598% interest after payout. The Virginia Hills area has been the focus of utilizing horizontal drilling technology and multi-stage acid fracture stimulation to unlock new light oil reserves in the Beaverhill Lake formation.
Desmarais also announces that it has filed its December 31, 2012 Financial Statements, MD&A, and updated its report regarding the Corporation's reserves data and other oil and gas information for the year ended December 31, 2012 as required under National Instrument 51 - 101 Standards of Disclosure for Oil and Gas Activities ("NI 51 - 101"). All information has been filed on SEDAR at www.sedar.com.
Year End highlights include: proved plus probable ("P + P") reserves of oil to 75.5 MSTB from 61.4 MSTB in 2011 (+23% increase year over year), and 1397 MMCF reserves of natural gas from 1418 MMCF in 2011 (-1.5% decrease year over year). In terms of BOEs, the company interest reserves are 310.4 MSTB as at December 31, 2012 (+3.6% increase year over year) compared to 299.6 MSTB for the corresponding period of 2011. Estimated net present value of P + P reserves discounted at 10% was $3.489 million compared to $3.490 million in 2011.
Neither 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.
In the interest of providing readers with information regarding Desmarais, including management's assessment of the future plans and operations of Desmarais, certain statements contained in this news release constitute forward-looking statements or information (collectively "forward-looking statements") within the meaning of applicable securities legislation. Forward-looking statements are typically identified by words such as "anticipate", "continue", "estimate", "expect", "forecast", "may", "will", "project", "could", "plan", "intend", "should", "believe", "outlook", "potential", "target" and similar words suggesting future events or future performance. In particular but without limiting the foregoing, this news release contains forward-looking statements pertaining to the anticipated completion operations on the well in the Virginia Hills area in Q2 of 2013.
In addition, information and statements in this press release relating to "reserves" are deemed to be forward-looking information, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated, and that the reserves described can be profitably produced in the future. Disclosure herein of the net present value of the Corporation's reserves do not represent the fair market value of the Corporation's reserves.
With respect to forward-looking statements contained in this document, Desmarais has made a number of assumptions. The key assumptions underlying the aforementioned forward-looking statements include assumptions that: (i) the operator of the well will be able to obtain equipment in a timely manner to carry out its planned completion activities; and (ii) spring break up and other potential interruptions in respect of the completion activities will not set back, delay or otherwise cancel the operator's completion plans.
Certain information regarding Desmarais set forth in this document may constitute forward-looking statements under applicable securities laws and necessarily involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Desmarais' control, including without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, reliance on third parties, loss of markets, volatility of commodity prices, environmental risks, inability to obtain drilling rigs or other services, capital expenditure costs, including drilling, completion and facility costs, unexpected decline rates in wells, wells not performing as expected, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management and fluctuations in foreign exchange or interest rates. Readers are cautioned that the foregoing list of factors is not exhaustive.
Desmarais' actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that the Corporation will derive therefrom. All subsequent forward-looking statements, whether written or oral, attributable to the Corporation or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Additional information on these and other factors that could affect Desmarais' 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).
The forward-looking statements contained in this document are made as at the date of this news release and Desmarais 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.
Barrel of oil equivalents or boes 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. Given the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6 mcf: 1 bbl, utilizing a conversion ratio of 6 Mcf: 1 bbl may be a misleading indication of value.
SOURCE: Desmarais Energy Corporation
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