►Petrobank Announces Canadian Reserve Additions Replacing 422% of 2005 Production
20:21 EST Wednesday, March 01, 2006
CALGARY, ALBERTA--(CCNMatthews - March 1, 2006) - Petrobank Energy and Resources Ltd. (TSX:PBG) (TSX:PBG.NT.A) (OSE:PBGN) ("Petrobank" or the "Company") is pleased to announce that our Canadian reserve engineers, Sproule Associates Limited ("Sproule"), have completed their evaluation of our Canadian reserves as at December 31, 2005. All reserves stated herein are based on forecast prices and costs and are Company gross reserves. Summary results of the Sproule report are highlighted as follows:
- Total proved reserves of 7.4 million boe
- Proved plus probable reserves of 11.6 million boe
- Proved plus probable reserve additions of 3.3 million boe
- Proved plus probable production replacement 422%
- Proved, probable and possible (3P) reserves of 16.2 million boe
- NPV 10% (before taxes) of $204.3 million (P+P), $254.8 million (3P)
- Estimated total proved F&D costs including future development costs - $19.42 / boe
Reserve Reconciliation - Forecast Prices (mboe)
Proved +
Total Proved + Probable+
Proved Probable Possible
------------------------------------------------------------------------
December 31, 2004 reserves 4,952 9,151 14,466
2005 production net of
royalty income (771) (771) (771)
Net additions 3,191 3,255 2,493
-------------------------------------
December 31, 2005 reserves 7,372 11,635 16,188
Working Interest Reserves(1)
Forecast Prices(2)
Natural Light and Heavy
Gas Medium Oil Oil NGL Total
(mmcf) (mbbl) (mbbl) (mbbl) (mboe)
------------------------------------------------------------------------
Developed Producing 19,135 244 4 9 3,445
Total Proved 40,930 467 4 80 7,372
Proved + Probable 63,524 867 26 155 11,635
Proved + Probable
+ Possible 86,180 1,258 335 231 16,188
(1) Company working interest reserves excluding royalty income reserves
and before deduction of royalties payable.
(2) Based on the Sproule Associates Limited price forecast effective
December 31, 2005.
Net Present Value - Before Tax ($ millions)
Forecast Prices
As at December 31, 2005
0% 5% 10% 15%
----------------------------------
Developed Producing 137.5 116.1 102.6 93.0
Total Proved 229.0 182.4 153.1 132.9
Proved + Probable 352.9 256.8 204.3 171.2
Proved + Probable + Possible 491.6 332.6 254.8 208.8
The full reserve disclosure tables, as required under National Instrument 51-101, will be contained in Petrobank's 2005 Annual Information Form, which will be filed on SEDAR on or before March 31, 2006.
Petrobank's Canadian production is estimated to have averaged 3,127 boepd during the fourth quarter of 2005 including 443 boepd of royalty income production. Royalty income volumes are excluded from Company gross reserves noted above but are included in calculating Company net reserves and net present value.
Petrobank Energy and Resources Ltd. is a Calgary-based oil and natural gas exploration and production company with operations in western Canada and Colombia. The Company operates high-impact projects through three business units. The Canadian Business Unit combines conventional oil and gas operations with two higher potential coalbed methane opportunities. The Latin American Business Unit produces oil through two Incremental Production Contracts in Colombia and has finalized contracts on five new exploration blocks and three Technical Evaluation Areas covering a total of 2.0 million acres in the Llanos and Putumayo Basins. The Heavy Oil Business Unit owns 28,800 acres of oil sands leases with an estimated 1.3 billion barrels of bitumen-in-place and is constructing the WHITESANDS pilot project to field-demonstrate Petrobank's patented THAI(TM) heavy oil recovery process. THAI(TM) is an evolutionary in-situ combustion technology for the recovery of bitumen and heavy oil that combines a vertical air injection well with a horizontal production well. THAI(TM) integrates existing proven technologies and provides the opportunity to create a step change in the development of heavy oil resources globally.
Natural gas volumes have been converted to barrels of oil equivalent ("boe") so that six thousand cubic feet ("mcf") of natural gas equals one barrel based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the well head. Boes may be misleading, particularly if used in isolation.
Certain statements in this release are "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Specifically, this release contains forward-looking statements relating to prospects and the expected amount and timing of capital projects. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. Such factors include, but are not limited to: general economic, market and business conditions; fluctuations in oil and gas prices; the results of exploration and development of drilling and related activities; fluctuation in foreign currency exchange rates; the uncertainty of reserve estimates; changes in environmental and other regulations; risks associated with oil and gas operations; and other factors, many of which are beyond the control of the Company. There is no representation by Petrobank that actual results achieved during the forecast period will be the same in whole or in part as those forecast.
FOR FURTHER INFORMATION PLEASE CONTACT:
Petrobank Energy and Resources Ltd.
John D. Wright
President and CEO
(403) 750-4400
or
Petrobank Energy and Resources Ltd.
Chris J. Bloomer
Vice-President Heavy Oil and CFO
(403) 750-4400
or
Petrobank Energy and Resources Ltd.
Corey C. Ruttan
Director Corporate Finance and Investor Relations
(403) 750-4400
(403) 266-5794 (FAX)
Email: ir@petrobank.com
Website: www.petrobank.com
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