DRLY-Doral Energy Corp. Announces Results of 3rd Party Total Proved Reserves With an Undiscounted Net Present Value of $23,915,000
Date : 08/26/2010 @ 6:30AM
Source : GlobeNewswire Inc.
Stock : Doral Energy Corp. (DRLY)
Quote : 0.03 0.0 (0.00%) @ 2:05AM
Doral Energy Corp. (OTCBB:DRLY) ("Doral" or "the Company"), announced today that it has received the results of the independent third-party reserve report completed by Joe C. Neal and Associates, on its producing properties located in Chaves and Roosevelt Counties, New Mexico. As of Aug 1, 2010, Doral net Total Proved Reserves total 1.027 million barrels of oil ("MMBO"). Of these reserves, Proved Developed Producing ("PDP") Reserves total 0.121 MMBO; and Proved Undeveloped ("PUD") Reserves total 0.907 MMBO. The Joe C. Neal and Associates report contains 50 undrilled PUD locations based upon down-spacing from 40 acres to 20 acres. This report does not contain any speculation on secondary or tertiary recovery methods but rather primary production only.
The Doral Energy Total Proved Reserves have a net present value discounted at 10% ("PV-9%") of 4.152 million dollars, with PDP PV-10% of 2.334 million dollars and PUD PV-10% of 1.818 million dollars. On an undiscounted basis, the net present value of Doral Energy's Total Proved Reserves equate to a future net income of $23,915,000. Estimated reserves and future net income amounts presented in this report, as of August 1, 2010, are related to hydrocarbon prices. The hydrocarbon prices used in the preparation of this report are based on the average price of oil at the first of the month for the proceeding 12-month period. The benchmark price of $69.67 per barrel was utilized which has been adjusted by lease gravity, transportation fees and regional price differentials. The oil price was held constant for the economic life of the properties as specified by the SEC.
E. Will Gray II, Chairman and CEO of Doral Energy, states, "With the completion of the new reserve report, management can now focus on immediately developing a plan to not only potentially increase production from existing producers but to place together a comprehensive in-fill drilling program. Furthermore, with the completion of our 3rd party reserve report, Doral has once again proved its ability to acquire proved reserves at an acquisition price per barrel that is one of the most competitive in the industry. Doral's last two acquisitions, since the divestiture of our Hanson Energy Assets, have come at a total cost of $1.72MM with an acquisition cost of less than $1.7 per proved barrel." Mr. Gray further states, "In addition to the completion of Doral's 3rd party reserves, a new domain name is begin utilized at www.DoralEnergyCorp.com that provides all updated contact information for both the new corporate headquarters as well as Doral's IR contact. The new corporate website is still under construction and management appreciate all shareholders patience during this process. Management would kindly ask that all shareholders utilize Doral's IR personnel to answer any questions or concerns and looks forward to completing the new corporate website as soon as possible."
About Doral Energy Corp.
Doral Energy Corp. (OTCBB:DRLY) is an oil and gas exploitation and production company headquartered in Midland, Texas. Doral Energy Corp.'s strategy is to grow a portfolio of under-developed production and exploitation assets with the potential for generating near-term increases in existing production through operational improvements, and longer-term development of proved undeveloped reserves by infill drilling. Doral focuses on identifying acquisitions that generate immediate cash flow from production, but which also have strong proved developed non-producing and proved undeveloped reserves that can be tapped for significant growth. The prolific Permian Basin of Texas and New Mexico is the geographic region of focus for the Company's future acquisition activity. Shareholders and investors are encouraged to visit Doral Energy's interim website at www.DoralEnergyCorp.com for more information.
Shareholders and investors are encouraged to visit Doral Energy's interim website at www.DoralEnergyCorp.com for more information.
On behalf of DORAL ENERGY CORP.
Everett Willard ("Will") Gray, II, Chief Executive Officer
Forward Looking Statements
This news release contains forward-looking statements that are not historical facts and are subject to risks and uncertainties. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined, and assumptions of management. Forward looking statements are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "aims", "potential", "goal", "objective", "prospective", and similar expressions or that events or conditions "will", "would", "may", "can", "could" or "should" occur. Information concerning oil or natural gas reserve estimates may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include misinterpretation of data, inaccurate estimates of oil and natural gas reserves, the uncertainty of the requirements demanded by environmental agencies, the Company's ability to raise financing for operations, breach by parties with whom the Company has contracted, inability to maintain qualified employees or consultants because of compensation or other issues, competition for equipment, inability to obtain drilling permits, potential delays or obstacles in drilling operations and interpreting data, the likelihood that no commercial quantities of oil or gas are found or recoverable, and our ability to participate in the exploration of, and successful completion of development programs on all aforementioned prospects and leases. Additional information on risks for the Company can be found in the Company's filings with the U.S. Securities and Exchange Commission.
CONTACT: Doral Energy Corp.