Second Wave Petroleum Ltd fka SCS

[NYBob]

Second Wave Petroleum Inc. Announces 2011 Year End Reserves and Strategic Alternatives Review Process
Toronto Stock Exchange: SCS
83,986,964 Common Shares

http://tmx.quotemedia.com/article.php?newsid=48854312&qm_symbol=SCS

CALGARY, Feb. 28, 2012 /CNW/ -

Second Wave Petroleum Inc.
(TSX: SCS) ("Second Wave" or the "Company") is pleased to announce the results of its independent reserves evaluation as of December 31, 2011 and the initiation of a strategic alternatives review process with a view of enhancing shareholder value due to unsolicited expressions of interest.

In this news release, unless otherwise stated, all reserves are expressed on a company gross basis before deduction of royalties, and all estimates of net present value are based on forecast prices and costs and discounted at 10%.

Highlights:

The Company increased its proved plus probable ("P+P") reserves by 87% year-over-year to 10,950 mboe (approximately 72% oil and natural gas liquids). Estimated net present value of P+P reserves increased by 112% year-over-year to $192.9 mm.

P+P reserves associated with the Beaverhill Lake formation in Judy Creek increased to 4,127 mboe (approximately 90% oil and natural gas liquids) with an estimated net present value of $114.9 mm at year end 2011. No reserves were assigned to the Beaverhill Lake play at year end 2010.

By year end 2011 the Company had drilled or was drilling 21.0 gross (10.8 net) Beaverhill Lake horizontal light oil wells with P+P reserves assigned to a total of 50.0 gross (22.4 net) wells, representing 16% of the Company's net unrisked Beaverhill Lake drilling inventory of 144 drilling locations in Judy Creek.

Average P+P reserves assigned per horizontal Beaverhill Lake well, including 2011 production, was approximately 190 mboe with an estimated net present value of $5.7 mm per well. No reserves have been attributed to secondary or tertiary recovery in the Beaverhill Lake formation.

Finding and development ("F&D") costs in 2011 were $27.80 per boe of P+P reserves and $43.80 per boe of proved reserves on capital spending of $45.2 mm, excluding land and seismic but including changes to estimated future development costs. A recycle ratio of 1.8:1 was achieved based on P+P reserves and using estimated fourth quarter corporate operating netbacks of $49.00 per boe. The Company spent $12.1 mm in 2011 on its gas plant, oil batteries and gathering systems in Judy Creek with a view to the development of its currently-booked reserves and the potential for future development of additional resources.

In response to certain expressions of interest the Company's board of directors has initiated a process to identify, examine and consider strategic alternatives available to the Company with a view to enhancing shareholder value. Second Wave has engaged RBC Capital Markets as its financial advisor to assist in this process.

SECOND WAVE PETROLEUM LTD CL A (TSE:SCS) Presentation -

http://www.secondwavepetroleum.com/investor/presentation_events.html

mick thanks for chart,
what energy plays do you recommend?

http://www.secondwavepetroleum.com/documents/pres/SCS-Presentation-2012-02.pdf

http://www.secondwavepetroleum.com/index.html
God Bless