dpe.v +.01 to.35
This is a small company but moving in the right direction. Important to note that the reserve report doesn't include their two near term additions to production and should increase substantially once those are factored in. During their last report qtr ending 9/30/07, Drake produced an average of 87boepd so the increase to 250boepd by end of Q2 is huge. Bobwins
Drake Pacific Nearly Doubles Reserves
Friday April 11, 9:00 am ET
CALGARY, ALBERTA--(Marketwire - April 11, 2008) - Drake Pacific Enterprises Ltd. ("DPE" or "the Company") (TSX VENTURE:DPE - News) announces the summary results of its year-end December 31, 2007 reserve reports, prepared by Martin & Brusset Associates for DPE's Carmangay properties and by Sproule Associates for all other DPE properties, effective December 31, 2007. The reports were prepared for the purpose of evaluating the Company's Petroleum and Natural Gas Reserves according to the Canadian Oil and Gas Evaluation Handbook (COGEH) with reserve definitions consistent with National Instrument 51-101 Standards of Disclosure for Oil & Gas Activities.
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At December 31, 2007, proved plus probable reserves nearly doubled, increasing to 311 thousand boe from 157 thousand boe at December 31, 2006, an increase of 98%. Total proved reserves increased by 78% to 207 thousand boe at December 31, 2007 compared to 116 thousand boe at December 31, 2006.
The value of before tax proved and probable reserves (NPV 10%) increased from $4.45 million to $6.19 million, based on forecast prices, an increase of 39%.
All reserves added during 2007 can be attributed to successful drilling operations at Carmangay and Gilby as well as production improvements on other company properties.
Expected production from the reactivation of wells at Sousa and the newly-drilled oil well at Swan Hills have not been evaluated with the reserve reports at this time. As previously announced, DPE expects that the Swan Hills well will have an initial production rate over 100 Bopd (Net 70 Bopd plus royalties) and Sousa reactivations will be approximately 130 Boepd (Net 22% - 57%) based on production rates at the time of shut in.
The Company plans to use the increased cash flow from Sousa and Swan Hills to further expand its aggressive drilling program this summer; however, a temporary drop in production in Q1 due to workovers and third party pipeline shut-ins will have a slight negative impact on these programs. DPE production at the end of the second quarter is expected to be near 250 boepd.
The changes in reserves increase the company's NAV per share to $0.50 / Share. These calculations include $6,190,000 in reserves and assume a land value of $485,000, working capital of $15,000, bank debt of $1,430,000 with common shares outstanding of 10.6 million. Sousa and Swan Hills production will be assessed at a later date and is not considered in the NAV calculations.
Drake Pacific Enterprises Ltd. is active in oil and gas exploration and development throughout Alberta. Headquartered in Calgary, Alberta, Canada, the Company is publicly traded on the Toronto Stock Exchange Venture Board under the stock symbol DPE.V.
This news release contains forward-looking information, Implicit in this information are assumptions regarding commodity pricing, production , royalties and expenses that, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. These forward-looking statements are based on certain assumptions that involve a number of risks and uncertainties and are not guarantees of future performance. Actual results could differ materially as a result of changes in the Company's plans, commodity prices, equipment availability, general economic, market, regulatory and business conditions as well as production, development and operating performance and other risks associated with oil and gas operations. There is no guarantee made the Company that the actual results achieved will be the same as those forecasted herein.
Barrel of oil equivalent ("boe") amounts may be misleading, particularly if used in isolation. A boe conversion ratio has been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel and is based on an energy equivalent conversion method application at the burner tip and does not necessarily represent an economic value equivalent at the wellhead.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
Contact:
Neil Orr
Drake Pacific Enterprises Ltd.
V.P. Operations and Business Development
Email: norr@drakepacific.com
