Iteration Energy Ltd. announces year end reserves for Cyries Energy Inc.


    CALGARY, March 24 /CNW/ - Iteration Energy Ltd. ("Iteration") (TSX: ITX)
is pleased to report selected information from the reserves report of Cyries
Energy Inc. ("Cyries") effective December 31, 2007. Cyries was acquired
pursuant to a Plan of Arrangement by Iteration effective March 7, 2008.
    The GLJ Petroleum Consultants Ltd. reserves report dated March 12, 2008
and effective as of December 31, 2007 (the "GLJ Report") of Cyries' reserves
was prepared in accordance with National Instrument 51-101.
    Highlights from the GLJ Report, based on forecast prices and costs, are
as follows:

    -   Total proved reserves of 22,050 mboe(1)
    -   Total proved plus probable reserves of 30,799 mboe(1)
    -   NPV10 proved plus probable reserves of $564 million(2)


    (1) "BOE" means barrel of oil equivalent and is calculated on the basis
        of 1 boe to 6,000 cubic feet of natural gas. BOE's may be misleading,
        particularly if used in isolation. A BOE conversion ratio of 1 boe
        for 6,000 cubic feet of natural gas is based on an energy equivalency
        conversion method primarily applicable at the burner tip and does not
        represent a value equivalency at the wellhead.
    (2) NPV10 means the net present value discounted at 10%. Calculations are
        before tax and based on forecast prices and costs as at January 1,
        2008 by GLJ Petroleum Consultants Ltd. The price forecast can be
        viewed on their website at

                          Summary of Gross Reserves
                         (Forecast prices and costs)

                                                                 December 31,
    Proved reserves
      Light and medium oil (mbbls)                                     5,171
      Heavy oil (mbbls)                                                    0
      Gas (mmcf)                                                      91,070
      Natural gas liquids (mbbls)                                      1,700

      BOE (mboe)                                                      22,050

    Proved plus probable reserves
      Light and medium oil (mbbls)                                     6,797
      Heavy oil (mbbls)                                                    0
      Gas (mmcf)                                                     129,729
      Natural gas liquids (mbbls)                                      2,381

      BOE  (mboe)                                                     30,799

                       Summary of Oil and Gas Reserves
                           As of December 31, 2007
                         (forecast prices and costs)

                        Light and
                        medium oil          Heavy oil          Natural gas
                     Gross      Net      Gross      Net      Gross      Net
    Reserve         ---------------------------------------------------------
     Category        (mbbl)    (mbbl)    (mbbl)    (mbbl)    (mmcf)    (mmcf)
       producing     4,548     3,885         0         0    74,409    55,920
       non-producing   306       274         0         0    13,062     9,426
      Undeveloped      317       288         0         0     3,600     2,648
    Total proved     5,171     4,447         0         0    91,070    67,994
    Probable         1,625     1,437         0         0    38,658    29,542
    Total proved
     plus probable   6,797     5,883         0         0   129,729    97,536

                        Natural gas
                          Liquids              BOE
                     Gross       Net     Gross      Net
    Reserve         -------------------------------------
     Category        (mbbl)    (mbbl)    (mboe)    (mboe)
       producing     1,480       992    18,430    14,197
       non-producing   116        76     2,599     1,921
      Undeveloped      104        64     1,021       793
    Total proved     1,700     1,132    22,050    16,911
    Probable           681       450     8,749     6,810
    Total proved
     plus probable   2,381     1,582    30,799    23,722

                     Net Present Value of Future Revenue
                             Before Income Taxes
                           As at December 31, 2007
                           Discounted at (%/year)
                         (Forecast prices and costs)

                                0         5        10        15        20
    Reserve Category          ($M)      ($M)      ($M)      ($M)      ($M)
       producing             566,550   459,612   391,228   343,497   308,076
       non-producing          76,595    61,608    51,641    44,606    39,393
      Undeveloped             18,849    12,563     8,542     5,788     3,803
    Total proved             661,994   533,784   451,411   393,890   351,272
    Probable                 272,190   162,834   112,161    84,014    66,361
    Total proved plus
     probable                934,184   696,617   563,572   477,904   417,632

    Cyries' Future Development Capital Requirements
    Future development capital requirements of Cyries reserves, as reported in
the GLJ Report with forecast prices and costs, are as follows:

    -   Total proved: $25.231 million
    -   Total proved plus probable: $39.981 million

    Effect of Alberta's Proposed New Royalty Framework
    On October 25, 2007, the Alberta Government released a report titled "The
New Royalty Framework" (the "NRF") containing the government's proposals for
Alberta's new royalty framework, which is scheduled to take effect on
January 1, 2009. Detailed regulations have yet to be released. Iteration's
initial estimate, based on currently available information, is that the NRF
would reduce the NPV10 of the Cyries' proved plus probable reserves by 3-5%,
based on the GLJ Petroleum Consultants Ltd. January 1, 2008 forecast prices
and costs. The range provided is based on differing assumptions around the
impact NRF will have on deep gas wells.

    Iteration is an Alberta based corporation engaged in the business of
exploring for and developing oil and natural gas reserves in Western Canada
and acquiring oil and natural gas properties. Iteration's common shares are
listed on the Toronto Stock Exchange under the symbol "ITX".

    Advisory Regarding Forward-Looking Statements
    This press release contains forward-looking statements and
forward-looking information within the meaning of applicable securities laws.
The use of any of the words "expect", "anticipate", "continue", "estimate",
"objective", "ongoing", "may", "will", "project", "should", "believe",
"plans", "intends" and similar expressions are intended to identify
forward-looking information or statements. More particularly and without
limitation, this press release contains forward looking statements and
information concerning reserves, production, price, operating costs,
operational results and capital expenditures. Statements relating to
"reserves" are deemed to be forward-looking statements, as they involve the
implied assessment, based on certain estimates and assumptions that the
reserves described exist in the quantities predicted or estimated and can
profitably be produced in the future. Forward-looking statements and
information are based on Iteration's current beliefs as well as assumptions
made by and information currently available to Iteration concerning
anticipated financial performance, business prospects, strategies and
regulatory developments. Although management considers these assumptions to be
reasonable based on information currently available to it, they may prove to
be incorrect.
    Since forward-looking statements and information address future events
and conditions, by their very nature they involve inherent risks and
uncertainties. Actual results could differ materially from those currently
anticipated due to a number of factors and risks. These include, but are not
limited to, the risks associated with the oil and gas industry in general,
such as operational risks in development, exploration and production delays or
changes in plans with respect to exploration or development projects or
capital expenditures, the uncertainty of reserve estimates, the uncertainty of
estimates and projections relating to reserves, production, costs and
expenses, health, safety and environmental risks, commodity price and exchange
rate fluctuations, marketing and transportation, loss of markets,
environmental risks, competition, incorrect assessment of the value of
acquisitions, failure to realize the anticipated benefits of acquisitions,
ability to access sufficient capital from internal and external sources,
failure to obtain required regulatory and other approvals, and changes in
legislation, including but not limited to tax laws, royalties and
environmental regulations. Accordingly, readers should not place undue
reliance on the forward-looking statements and information contained in this
press release concerning these times. Readers are cautioned that the foregoing
list of factors is not exhaustive.
    Additional information on these and other factors that could affect
Iteration's, operations or financial results are available on the SEDAR
website ( and on Iteration's website (
The forward-looking statements and information contained in this press release
are made as of the date hereof and Iteration undertakes no obligation to
update publicly or revise any forward-looking statements or information,
whether as a result of new information, future events or otherwise, unless so
required by applicable securities laws.

    %SEDAR: 00002576E

For further information:

For further information: Iteration Energy Ltd., Brian L. Illing,
President and Chief Executive Officer, Tel: (403) 290-4867 or Jane Mactaggart,
Vice President Exploitation, Tel: (403) 290-4865; Website:

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