FIELD ACTIVITIES / Sharpe Completes Oil and Gas Reserve Report
ME SYMBOL: SHO
OTC Bulletin Board SYMBOL: SHGPF
JANUARY 27, 1998
HOUSTON, TEXAS--Sharpe Resources Corporation is pleased to
announce that it has recently completed its yearend oil and gas
reserve report for its wholly owned subsidiary, Sharpe Energy
Company. The recent reserve report completed by independent
petroleum engineering consultants Hainey and Hainey of Houston,
Texas indicates total proven and probable reserves of 5.2 million
BOE which includes 2.8 MM BOE's of proven reserves. The net
reserve figures to Sharpe indicate a net present value discounted
10 percent of more than $53 million (US $37 million) using yearend
1997 pricing for 1998 and a three percent annual escalation for
the forecast period. The bulk of the asset base is attributed to
the Matagorda gas project and the West Thrifty water flood unit,
both projects are in Texas.
The stated reserves represent a major improvement in reserve
growth for the Company in 1997. Plans for 1998 are to proceed to
full development of these assets. The Company currently has
approximately 24,500,000 shares issued and outstanding.
The drilling program on the West Thrifty Unit is in progress.
Initial results of the first well indicate low oil cuts, well 1501
is under flow test. Currently, well 1501 is under natural flow at
the rate of approximately 900 BOFD. Plans are to flow test the
well in this manner for 30 days, oil cuts are expected to improve
during this period.
Sharpe cautions that the statements made in this press release and
other forward looking statements made on behalf of the Company may
be affected by such other factors including, but not limited to,
volatility of oil and gas prices, product demand, market
competition, imprecision of reserve estimates, the Company's
ability to replace and expand oil and gas reserves and other risks
detailed herein and from time to time in the Securities and
Exchange Commission filings of the Company. |
