Kootenay Energy Inc. Increases Reserves by 78% in 2006

    CALGARY, April 16 /CNW/ - Kootenay Energy Inc. ("Kootenay" or
the"Company") is pleased to announce the results of its December 31, 2006 year
end corporate reserve evaluation prepared by GLJ Petroleum Consultants.
Kootenay continued to strengthen its position and grow its production and
reserve base with success in executing its 2006 drilling program on Company
owned and farm in lands as well as successful strategic property acquisitions.
    Kootenay continued to increase production throughout the year averaging
229 barrels of oil equivalent per day with an exit rate of 420 barrels of oil
equivalent per day. Production in the first quarter of 2007 is expected to
average 420 barrels of oil equivalent per day. The Company is currently
producing 420 barrels of oil equivalent per day with an additional 100 barrels
of oil equivalent per day which is tested and behind pipe awaiting tie-in.
Seventy eight (78%) percent of Kootenay's production is light conventional
oil, twenty percent (20%) consists of associated and non-associated natural
gas, and the remaining two percent (2%) is natural gas liquids and heavy oil.
The proved plus probable reserve life index (RLI) exceeds six years.
    The following tables illustrate the increases in reserve volumes and net
asset value for the specific reserve classifications.

                             Proved Producing   Total Proved    Proved plus
    Reserves(1)                    (mboe)          (mboe)     Probable (mboe)
    December 31, 2006                     742           1040            1559
    December 31, 2005                     414            662             877
    Year over Year                        328            378             682
    Percentage Increase                   79%            57%             78%
    (1) Company Gross, before royalties.

    The growth in total proved reserves per basic share is 42%. Growth in
proved plus probable reserves per basic share is 60%.

    Net Asset Value (PV10)                                       Proved plus
                             Proved Producing   Total Proved       Probable
    December 31, 2006             $15,200,000    $20,709,000     $28,985,000
    December 31, 2005              $7,267,000    $11,485,000     $14,915,000
    Year over Year                  7,933,000      9,224,000      14,070,000
    Percentage Increase                  109%            80%             94%

    Kootenay's two year full cycle finding and development costs for proved
plus probable reserves including future capital are $15.36 per barrel of oil
    Kootenay is well positioned to continue its growth in 2007. The Company
has a portfolio of drilling opportunities to increase production and reserves
which will be financed with cash flow generated in 2007, and is looking to
expand its land holdings in an effort to continue to identify new growth
    Details of the reserve evaluation and information and reports relating to
reserves data and other oil and gas information for the year have been filed
on SEDAR in accordance with National Instrument 51-101. Full financial results
for the year ending December 31, 2006 are expected to be filed by month end.

    The calculations of barrels of oil equivalent ("boe") are based on a
conversion rate of six thousand cubic feet ("mcf") of natural gas to one
barrel of crude oil. 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.

    The above disclosure contains certain forward-looking statements that
involve substantial known and unknown risks and uncertainties. These
forward-looking statements are subject to numerous risks and uncertainties,
certain of which are beyond the Corporation's control, including: the impact
of general economic conditions in Canada, industry conditions, increased
competition, the lack of available qualified personnel or management,
equipment failures, fluctuations in product prices and in foreign exchange or
interest rates and stock market volatility. The Corporation's actual results,
performance or achievements could differ materially from those expressed in,
or implied by, these forward-looking statements and, accordingly, no
assurances 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 the Corporation will derive there from.


    %SEDAR: 00020600E

For further information:

For further information: Kootenay Energy Inc. - Jack Marsh, President
and Chief Executive Officer, (403) 355-9800

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890