Coalbed Methane (CBM) Corral Message Board

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Gold/Mining/Energy : Coalbed Methane (CBM) Corral

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From: johnlw	2/19/2008 3:21:31 PM
	of 365

From EBR's latest release today: Sensitivity to changes in Alberta royalties On Oct. 25, 2007, the Government of Alberta announced changes to royalties paid to the province to be effective on Jan. 1, 2009. As part of the review process, the province has identified non-conventional resources, such as CBM and the oil sands, as future industries for Alberta, and changes to the royalty structure are designed to encourage further development. Ember's average well productivity included in its reserve report is estimated at 50 thousand cubic feet per day. Based on the proposed changes, royalties paid to the Alberta government will decline from a base rate of 9 per cent in 2008 to 5 per cent in 2009 and beyond. The 5-per-cent royalty rate would remain in effect at prices up to $9.50 per thousand cubic foot. At $11.50 per thousand cubic feet, the royalty rate would increase to the original 9 per cent. As a result, Ember is expected to benefit immediately from the proposed changes and will continue to benefit in a higher gas price environment. A sensitivity case was run on the 2007 year-end reserves that resulted in an overall increase in the company's share of net present value.

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