Nordic Oil and Gas Files 2009 Reserves and Engineering Report
WINNIPEG, April 29 /CNW/ - Donald Benson, Chairman and Chief Executive Officer of Nordic Oil and Gas Ltd. ("Nordic" or the "Company"), today announced that the Company has filed its Statement of Reserves and Economic evaluation of Oil and Gas Properties, consistent with the requirements of Form 51-101. The independent reserve evaluation was prepared by Chapman Petroleum Engineering Ltd. ("Chapman") in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101") - for the year ended December 31, 2009. The Company's statement of reserves data and other oil and gas information for the year ended December 31, 2009 (NI 51-101 F1, F2 and F3) have been filed on SEDAR and can be seen on the Company's profile at www.sedar.com.
The following tables summarize the oil and natural gas reserves and the value of future net revenue of the Company as evaluated by Chapman as at December 31, 2009 in its report dated March 9, 2010 (the "Chapman Report"), and summarized in the Company's NI 51-101 F1 filed on SEDAR. All evaluations of future revenue are after the deduction of future income tax expenses, unless otherwise noted in the tables, royalties, development costs, production costs and well abandonment costs but before consideration of indirect costs such as administrative, overhead and other miscellaneous expenses. The estimated future net revenue contained in the following tables does not necessarily represent the fair market value of the Company's reserves. There is no assurance that the forecast price and cost assumptions contained in the Chapman Report will be attained and variances could be material. Other assumptions and qualifications relating to costs and other matters are included in the Chapman Report. The recovery and reserves estimates on the Company's properties described herein are estimates only. The actual reserves on the Company's properties may be greater or less than those calculated.
SUMMARY OF OIL AND GAS RESERVES BASED ON FORECAST PRICES AND COSTS - AS AT 12/31/2009 Company Reserves(1) ------------------------------------------------------- Natural Coal Bed Natural gas Heavy Oil Gas(9) Methane Liquids ------------- ------------- ------------- ------------- Gross Net Gross Net Gross Net Gross Net Reserves Category MSTB MSTB MMscf MMscf MMscf MMscf Mbbl Mbbl ----------------- ------ ------ ------ ------ ------ ------ ------ ------ PROVED Developed Producing(2)(6) 139 126 261 232 69 66 1 1 Developed Non- Producing(2)(7) 89 75 388 334 273 235 0 0 Undeveloped (2)(8) 140 119 0 0 0 0 0 0 ------ ------ ------ ------ ------ ------ ------ ------ TOTAL PROVED(2) 368 321 649 566 341 301 1 1 TOTAL PROBABLE(3) 372 300 1,219 1,031 265 234 3 3 ------ ------ ------ ------ ------ ------ ------ ------ TOTAL PROVED + PROBABLE(2)(3) 740 620 1,869 1,597 606 535 4 3 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ TOTAL POSSIBLE(4) - - - - - - - - ------ ------ ------ ------ ------ ------ ------ ------ TOTAL PROVED + PROBABLE + POSSIBLE 740 620 1,869 1,597 606 535 4 3 ------ ------ ------ ------ ------ ------ ------ ------ Note: (1) Includes associated, non-associated and solution gas where applicable. SUMMARY OF NET PRESENT VALUES BASED ON FORECAST PRICES AND COSTS - AS AT 12/31/2009 Net Present Values of Future Net Revenue -------------------------------------------- Before Income Tax Discounted at -------------------------------------------- 0%/yr. 5%/yr. 10%/yr. 15%/yr. 20%/yr. Reserves Category $M $M $M $M $M -------- -------- -------- -------- -------- PROVED Developed Producing(2)(6) 6,740 5,705 4,913 4,310 3,840 Developed Non- Producing(2)(7) 6,092 4,838 3,953 3,304 2,817 Undeveloped(2)(8) 3,296 2,568 1,990 1,525 1,147 -------- -------- -------- -------- -------- TOTAL PROVED(2) 16,127 13,111 10,855 9,139 7,803 TOTAL PROBABLE(3) 18,926 14,131 11,123 9,055 7,546 -------- -------- -------- -------- -------- TOTAL PROVED + PROBABLE(2)(3) 35,053 27,242 21,978 18,194 15,350 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- TOTAL POSSIBLE(4) - - - - - -------- -------- -------- -------- -------- TOTAL PROVED + PROBABLE + POSSIBLE 35,053 27,242 21,978 18,194 15,350 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Net Present Values of Future Net Revenue -------------------------------------------- After Income Tax Discounted at -------------------------------------------- 0%/yr. 5%/yr. 10%/yr. 15%/yr. 20%/yr. Reserves Category $M $M $M $M $M -------- -------- -------- -------- -------- PROVED Developed Producing(2)(6) 6,740 5,705 4,913 4,310 3,840 Developed Non- Producing(2)(7) 4,724 3,802 3,149 2,666 2,301 Undeveloped(2)(8) 2,438 1,810 1,317 926 611 -------- -------- -------- -------- -------- TOTAL PROVED(2) 13,902 11,317 9,378 7,902 6,751 TOTAL PROBABLE(3) 14,304 10,566 8,232 6,635 5,476 -------- -------- -------- -------- -------- TOTAL PROVED + PROBABLE(2)(3) 28,205 21,882 17,609 14,537 12,228 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- TOTAL POSSIBLE(4) - - - - - -------- -------- -------- -------- -------- TOTAL PROVED + PROBABLE + POSSIBLE 28,205 21,882 17,609 14,537 12,228 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- OIL AND GAS RESERVES AND NET PRESENT VALUES BY PRODUCTION GROUP BASED ON FORECAST PRICES AND COSTS Net Unit Reserves Present Values ----------------------------------------- Value at Oil Gas(9) NGL (BIT) 10%/yr ------ ------ ------ ------ ------ ------ ------- ------- Reserve Group Gross Net Gross Net Gross Net 10% by Category MSTB MSTB MMscf MMscf Mbbl Mbbl M$ --------------- ------ ------ ------ ------ ------ ------ ------- ------- Heavy Oil --------- Proved Developed Producing 139 126 - - - - 4,157 32.99 Developed Non-Producing 89 75 - - - - 2,543 33.91 Undeveloped 140 119 - - - - 1,900 16.72 ------ ------ ------ ------ ------ ------ ------- ------- Total Proved 368 321 - - - - 8,689 27.07 Probable 372 300 - - - - 8,678 28.93 ------ ------ ------ ------ ------ ------ ------- ------- Proved Plus Probable 740 620 - - - - 17,367 28.01 Possible - - - - - - - - ------ ------ ------ ------ ------ ------ ------- ------- Proved + Probable + Possible 740 620 - - - - 17,367 28.01 Assoc & Non- ------------ Assoc Gas --------- Proved Developed Producing - - 261 232 1 1 542 2.34 Developed Non-Producing - - 388 334 0 0 1,121 3.36 Undeveloped - - 0 0 0 0 0 0 ------ ------ ------ ------ ------ ------ ------- ------- Total Proved - - 649 566 1 1 1,663 2.94 Probable - - 1,219 1,031 3 3 2,039 1.98 ------ ------ ------ ------ ------ ------ ------- ------- Proved Plus Probable - - 1,869 1,597 4 3 3,703 2.32 Possible - - - - - - - - ------ ------ ------ ------ ------ ------ ------- ------- Proved + Probable + Possible - - 1,869 1,597 4 3 3,703 2.32 Coal Bed Methane ---------------- Proved Developed Producing - - 69 66 0 0 214 3.24 Developed Non-Producing - - 273 235 0 0 289 1.23 Undeveloped - - 0 0 0 0 0 n/a ------ ------ ------ ------ ------ ------ ------- ------- Total Proved - - 341 301 0 0 503 1.67 Probable - - 265 235 0 0 404 1.72 ------ ------ ------ ------ ------ ------ ------- ------- Proved Plus Probable - - 606 535 0 0 908 1.70 Notes: (1) "Gross Reserves" are the Company's working interest (operating or non-operating) share before deducting of royalties and without including any royalty interests of the Company. "Net Reserves" are the Company's working interest (operating or non-operating) share after deduction of royalty obligations, plus the Company's royalty interests in reserves. (2) "Proved" reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves. (3) "Probable" reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves. (4) "Possible" reserves are those additional reserves that are less certain to be recovered than probable reserves. It is unlikely that the actual remaining quantities recovered will exceed the sum of the estimated proved plus probable plus possible reserves. (5) "Developed" reserves are those reserves that are expected to be recovered from existing wells and installed facilities or, if facilities have not been installed, that would involve a low expenditure (e.g. when compared to the cost of drilling a well) to put the reserves on production. (6) "Developed Producing" reserves are those reserves that are expected to be recovered from completion intervals open at the time of the estimate. These reserves may be currently producing or, if shut-in, they must have previously been on production, and the date of resumption of production must be known with reasonable certainty. (7) "Developed Non-Producing" reserves are those reserves that either have not been on production, or have previously been on production, but are shut in, and the date of resumption of production is unknown. (8) "Undeveloped" reserves are those reserves expected to be recovered from known accumulations where a significant expenditure (for example, when compared to the cost of drilling a well) is required to render them capable of production. They must fully meet the requirements of the reserves classification (proved, probable, possible) to which they are assigned. (9) Includes associated, non-associated and solution gas where applicable.
About Nordic Oil and Gas Ltd.
Nordic Oil and Gas Ltd. is a junior oil and gas company engaged in the exploration and development of oil, natural gas and Coal Bed Methane in Alberta and Saskatchewan. The Corporation is listed on the TSX Venture Exchange and trades under the symbol NOG. Nordic was one of the "2008 TSX Venture 50" companies, a ranking of the top 10 public venture capital companies in five industry sectors listed on the TSX Venture Exchange.
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 the contents of this News Release.
This press release contains forward-looking statements with respect to Nordic Oil and Gas Ltd. properties, and matters concerning the business, operations, strategy, and financial performance of Nordic. These statements generally can be identified by use of forward-looking words such as "may", "will", "expect", "estimate", "anticipate", "intends", "believe" or "continue" or the negative thereof or similar variations. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations, including that the estimates and projections regarding the properties are realized. Forward-looking statements are based on a number of assumptions which may prove to be incorrect. Unless otherwise stated, all forward looking statements speak only as of the date of this press release and Nordic does not undertake any obligation to update such statements except as required by law.
%SEDAR: 00015188E
For further information: Don Bain, Corporate Secretary, Nordic Oil and Gas Ltd., Tel. (204) 229-7751, Fax: (204) 943-1829, E-mail: [email protected], www.nordicoilandgas.com
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