RESERVES / Neutrino Resources announces 1997 Reserves
CALGARY, March 3 /CNW/ - Neutrino Resources Inc. today announced its oil
and gas reserves as at January 1, 1998, which were evaluated by its
independent engineering consultants, Chapman Petroleum Engineering Ltd. and
Gilbert Laustsen Jung Associates Ltd. Total proven reserves are 37.4 billion
cubic feet of natural gas and 6.15 million barrels of crude oil and natural
gas liquids for a total 9.89 million barrels oil equivalent (''BOE'') of
proven reserves. Total proven plus probable reserves are 48.1 billion cubic
feet of natural gas and 9.88 million barrels of crude oil and natural gas
liquids for a total 14.69 million BOE of proven plus probable reserves.
Jeff Arsenych, President of Neutrino, reported ''At Neutrino's current
production rates, the reserve life index is now 7.7 years for proven reserves
and 11.5 years for proven plus probable reserves. At 15% discounted cash
flow, before tax, proven plus 50% probable reserves were valued at $78.6
million using the consultants' price forecast assumptions.''
During 1997, Neutrino added an estimated 4.96 million BOE of proven
reserves and 6.98 million BOE of proven plus probable reserves. This includes
a property acquisition at Swan Hills, Alberta which was effective January 1,
1997. Property and corporate acquisitions comprised 61% of proven reserve
additions and 70% of proven plus probable reserve additions, with the balance
being added through drilling and related activities. Proven reserve additions
replaced 487% of production while proven plus probable reserve additions
replaced 686% of production. Proven plus 50% probable additions in 1997 were
allocated 39% to light oil, 12% to heavy oil, 14% to natural gas liquids and
35% to natural gas. At $41.9 million total capital outlay in 1997, unit
investment costs were $7.02/BOE for proven plus 50% probable reserve
additions. After deduction of an estimated $6.1 million of non-reserve assets
from a February 28, 1997 corporate acquisition, unit investment costs were
$6.00/BOE. During 1997, approximately $5 million was invested in land,
seismic and facilities which represents capital where reserve additions have
yet to be realized or the primary result was an improvement in operating
efficiencies. Since first production in 1994 to the end of 1997, Neutrino has
added, net of dispositions, an estimated 11.6 million BOE of proven reserves
at a total cost of $5.87/BOE and 15.45 million BOE of proven plus 50% probable
reserves at a total cost of $4.41/BOE. The $68.1 million of total capital,
net of dispositions, for the 1994-97 period includes approximately $11.1
million of non-reserve assets obtained through four corporate, mergers.
Neutrino is a profitable, emerging oil and gas exploration and production
company based in Calgary. Neutrino's common shares trade on The Toronto Stock
Exchange, under the symbol ''NTO''. |
