Do you see the potential trend here. This is why many of us are so pessimistic when it comes to RP backing up his mouth. Currently he is 0 for every attempt, and the result has been steady shareholder loss after loss after loss after loss.
IRVING, Texas--(BUSINESS WIRE)--Pilgrim Petroleum Corporation (Pink Sheets:PGPM) is pleased to announce that the final Assessment on its interests in Archer and Wichita Counties Texas, prepared by Gustavson Associates has been completed. The report has an effective date of September 15, 2006, and evaluates Pilgrim Petroleum acreage located on the Bend Arch-Fort Worth Basin Province, Texas. Gustavson Associates was engaged by Pilgrim Petroleum Corporation to prepare the report as the due diligence basis to comply with Canadian TSX (Toronto Stock Exchange) requirements in addition to SEC guidelines.
The report was prepared for the company using assumptions and methodology guidelines outlined in the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook") and in accordance with National Instrument 51-101 ("NI 51-101"). Additionally, Gustavson Associates conducted a scoping economic analysis of the Prospect using the “Best Estimate” for both an oil and gas future net revenues (before deductions of income taxes).
Specifically, the report provides the following highlights:
Low Estimate
996 MBbl
3.98 BCF
Best Estimate
1,832 MBbl
7.32 BCF
High Estimate
2,676 MBbl
10.70 BCF
ECONOMIC EVALUATION
Pilgrim also requested Gustavson Associates to complete economic runs with the estimated prospective resources and similar production profiles. This study will show estimate development schedules for Pilgrim’s acreage and generate a forecast of future net revenues and discounted cash flow.
The following estimates are based on the best estimate of the prospective hydrocarbon resources. The initial net prices, for the purpose of the analysis are $59.95 per barrel for the oil case and $4.97 per MCF for the gas case and include deductions for estimated future well abandonment costs.
Best Estimate Net Revenue Before Income Tax
$102,370,000
Best Estimate Net Present Value of Future Net Revenues (at 10% discount rate)
$52,050,000
Pilgrim Petroleum President and CEO Rafael Pinedo said, "We are very pleased to have interest in such an outstanding exploration prospect with the potentially dramatic high impact upside potential of this acreage. The Gustavson report is consistent with historical estimates of the resource potential and risks for the blocks and the report clearly confirms our belief that we have in our hands a world-class exploration prospect. As we move into this next phase of commencing the exploration program, we will continue to work to advance on our re-activation program and aggressively finish our audit and become a fully reporting company."
