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THE WOODLANDS, TX, March 29, 2012 /CNW/ - Porto Energy Corp., ("Porto" or the "Company") (TSXV:PEC), a company focused on oil and gas exploration, appraisal and development in Portugal, today announced that it has received an updated independent resource evaluation (the "Updated Report") from Dallas, Texas-based Netherland, Sewell & Associates, Inc. ("NSAI"). This report was completed on each of the five concessions in which the Company maintains an interest. The Updated Report is dated March 23, 2012 with an effective date of March 31, 2012.
"We have increased our resource totals principally through the addition of our Lower Jurassic Lias resource play and the completion of 3D seismic work at Aljubarrota-3 and Torres Vedras-3 concessions, despite reducing resources associated with drilling results from the Aljubarrota (Alj-4) and Torres Vedras (SPC-1 and SPC-2) wells," said Joseph Ash, President and CEO of Porto. "This updated data will be supportive of our ongoing joint venture initiatives but does not yet reflect the results of additional seismic work done offshore and the 240 km2 3D seismic program shot over the Montejunto Anticline."
Comparing the Updated Report to the original NSAI report dated January 28, 2011, P50 risked recoverable contingent resources decreased from 61 Mmboe to 44 Mmboe based on flow-test results from the Alj-4 well in the Brenha formation. However, this 17 Mmboe reduction was offset by a 32 Mmboe increase of P50 risked prospective resources in the Aljubarrota Brenha, due in part to newly acquired 3D defining a larger feature than originally mapped and the identification of an additional Lower Jurassic Lias resource play.
Compared to the original NSAI report, P50 net risked recoverable prospective resources increased 45 Mmboe, or 12%, from 366 Mmboe to 412 Mmboe. Negative adjustments of 43 Mmboe, related to SPC-1 and SPC-2 results, were more than offset by 70 MMboe attributed to the newly identified Lower Jurassic Lias resource play which extends across all five of the Company's existing concessions. Using a BOE conversion ratio of 6Mcf:1bbl, resource additions associated with the Lower Jurassic Lias resource play are approximately 63% oil and 37% natural gas. In addition, the presalt play at the original Rhodochrosite and Garnet prospects has been refined by 3D data acquisition and reinterpreted as the presalt Alcobaca prospect with P50 risked prospective resources of 34 MMboe. In total, the Updated Report has a combined (contingent plus prospective) resource base comprised of 45% oil and 55% natural gas.
The Updated Report provides the following data with respect to risked contingent and prospective resources:
TOTAL CONTINGENT AND PROSPECTIVE RESOURCES
(Company's Net Interest - Mmboe) (1)(2)
|UPDATED ESTIMATES||ORIGINAL ESTIMATES||NET INCREASE/(DECREASE)|
SELECTED DATA FROM UPDATED RESOURCE
(Company's Net Interest - Mmboe) (1)(2)
|RESOURCE CATEGORY||UPDATED ESTIMATES||ORIGINAL ESTIMATES||NET INCREASE/(DECREASE)||UPDATED|
|Eastern 2D Reef||21.9||31.2||43.1||21.8||31.0||43.3||-||-||-||24.7%|
|Western 2D Reef||2.3||3.9||6.3||6.2||8.9||12.4||(3.9)||(5.0)||(6.2)||14.4%|
|São Pedro de Muel|
1The Company owns a 100% gross interest in the Aljubarrota-3, Cabo Mondego-2, Rio Maior-2 and Sao Pedro de Muel-2 Concessions. It owns a 97.5% gross interest in the Torres Vedras-3 Concession at depths below 400 meters and 87.5% at depths above 400 meters. All of the Company's concessions are located in the Lusitanian Basin of Portugal.
2Barrels of oil equivalent (BOEs) include oil, solution gas, associated gas and condensate. BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 bbl has been used and is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
3Amounts may not total due to rounding.
The Updated Report was prepared by NSAI in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook (the "COGE Handbook") and National Instrument 51-101 "Standards of Disclosure for Oil and Gas Activities" ("NI 51-101"). Investors should also refer to the Company's most recent NI 51-101F1 filing dated December 29, 2011 available on SEDAR at www sedar.com for additional information including the risks and uncertainty associated with the recovery of resources.
About Porto Energy Corp.
Porto Energy Corp. is an international oil and gas company engaged in the exploration of crude oil and natural gas in Portugal, including the appraisal of a gas discovery. Through its wholly owned subsidiary, Mohave Oil And Gas Corporation (a Texas corporation with branch offices in Portugal), the Company holds working interests in five concessions in Portugal's Lusitanian Basin totaling 1,444,152 net acres or 5,844 km2. Through its exploration efforts to date, the Company has identified seven major exploration trends over its concessions including unconventional oil and gas resource plays as well as conventional oil and gas targets. Porto Energy's shares trade on the TSX Venture Exchange under the ticker symbol "PEC". For more information on Porto Energy visit www.portoenergy.com.
No proved, probable or possible reserves have been assigned by the Company at this time. Undiscovered resources are those quantities of oil and gas estimated on a given date to be contained in accumulations yet to be discovered. Estimates of resources always involve uncertainty, and the degree of uncertainty can vary widely between accumulations/projects and over the life of a project. There is no certainty that it will be commercially viable to produce any portion of the resources.
Estimates with respect to resources that may be developed and produced in the future are often based upon volumetric calculations, probabilistic methods and upon analogy to similar types of resources, rather than upon actual production history. Estimates based on these methods generally are less reliable than those based on actual production history. Subsequent evaluation of the same resources based upon production history will result in variations, which may be material, in the estimated resources. Resource estimates may require revision based on actual production experience.
Contingent resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable because of one or more contingencies. The contingent resources shown are contingent upon demonstration of the economic viability of the projects. Commercial flow rate testing and documentation of development plans will provide further evidence of economic viability of these projects. If these contingencies are resolved, some portion of the contingent resources estimated may be reclassified as reserves. There is no certainty that it will be commercially viable to produce any portion of the contingent resources.
Low Estimate is considered to be a conservative estimate of the quantity that will actually be recovered. It is likely that the actual remaining quantities recovered will exceed the low estimate. Using probabilistic methods, there should be at least a 90 percent probability (P90) that the quantities actually recovered will equal or exceed the low estimate.
Best Estimate is considered to be the best estimate of the quantity that will actually be recovered. It is equally likely that the actual remaining quantities recovered will be greater or less than the best estimate. Using probabilistic methods, there should be at least a 50 percent probability (P50) that the quantities actually recovered will equal or exceed the best estimate.
High Estimate is considered to be an optimistic estimate of the quantity that will actually be recovered. It is unlikely that the actual remaining quantities recovered will exceed the high estimate. Using probabilistic methods, there should be at least a 10 percent probability (P10) that the quantities actually recovered will equal or exceed the high estimate.
This press release contains certain forward-looking statements. These statements relate to future events or the Company's future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "should", "believe", "predict" and "potential" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. These forward-looking statements are made as of the date of this press release and the Company does not undertake to update any forward-looking statements that are contained in this press release, except in accordance with applicable securities laws.
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.
For further information:
Heath Cleaver - Chief Financial Officer
Email: [email protected]