CALGARY, Aug. 7 /PRNewswire-FirstCall/ - Patch International Inc. (OTCBB: PTCH - News; the "Company") is pleased to announce results of its recently completed independent resource report (the "Report") prepared by McDaniel & Associates Consultants Ltd. ("McDaniel") of Calgary, Alberta. Based upon this past winter's activities, the Company's Best Estimate (P50) Contingent resources have been estimated to be 139 million barrels and support a 20,000 Bbl/d project. Management believes the contemplated 2007/2008 winter delineation drilling program may increase the resource base sufficiently to support a 40,000 Bbl/d project.
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Based on the Report, the Company has initiated planning for a potentially earlier production startup by engaging engineering firms to provide facilities cost estimates and timelines for essential services, conducting baseline environmental awareness studies, initiating the proposal for a SAGD application for production, and consulting with numerous oil sands technology suppliers for ideas which may improve project economics.
McDaniel was engaged to evaluate the new 2007 data and prepare the Report of the Contingent resources, as well as an estimate of the Undiscovered resources ("undiscovered bitumen in-place") underlying the Company's 80% working interest in the Ells River area (formerly described as the Dover Project). The Report was prepared effective May 31, 2007, estimating the volume of Contingent resources as well as an estimate of the net present value of future net revenue attributable to these resources based on forecast and constant prices and costs and a 2012 startup.
The Report assessed only the portions of the sedimentary column which meet specific reservoir criteria required for economic development employing the in-situ SAGD recovery technology. The recoverable resources have been classified as "Contingent" since these recoverable volumes do not satisfy the requirements of reserves with respect to sufficient delineation density, regulatory approval, and corporate budget approval.
The Best Estimate (P50) Contingent resources have been estimated to be 139 million barrels, with a High Estimate (P10) of 203.3 million barrels. The synergistic interpretation and integration of well logs, core and seismic information has provided for a comprehensive resource assessment and given the Company direction to increase its SAGD capable resource base in the coming seasons with specific delineation targets and new high impact prospects, with an additional prospective potential estimated at 69.8 million barrels.
