FIELD ACTIVITIES / Ridel Resources reports Results of Engineering Report
Ridel Resources Ltd. (Ridel) reports that the results of an independent
engineering report on the assets of the Asia Pacific Energy Company, Limited
(APEC), as prepared by Sproule International Limited (Sproule), have been
obtained.
APEC holds a Performance Compensation Contract in the Union of Myanmar
(Burma), which allows the company to earn profits derived from the
rehabilitation of the Htaukshabin, Kanni, and Peppi oil and gas fields (all
contiguous), and the development of deeper reservoirs on the concession.
Sproule's opinion of the value of the reserves, in US dollars, are based on
an effective date of March 1, 1998, and a 1998 price of $15.95 per barrel of
oil. The results are as follows:
PETROLEUM RESERVES
Remaining Reserves Net Present Value
Gross After Income Tax
M$ (discounted)
At 0% At 10% At 15%
----- ------- ------
OIL, MMBL
Proved Developed and 10,705.0 26,091 17,628 14,664
Non-Producing
Probable* 3,432.6 7,313 4,057 3,151
------- ----- ----- -----
Total 14,138.5 33,404 21,685 17,815
*Probable values have been reduced by 50 percent to account for risk
CONCLUSIONS
Based upon the above information, Ridel intends to exercise its option to
acquire the assets of APEC for 15 million shares at a deemed price of
CDN$1.00 per share. The total net present value of US$21,685,000 (at a 10%
discount rate and after income tax) for the assets of APEC will substantially
enhance Ridel's shareholder value.
Production to date has been 26.1 million barrels from these fields, with an
additional 14.1 million barrels of proved plus probable reserves attainable
by rehabilitation and remediation. Ridel intends to develop these
opportunities over the next four years.
Ridel's direct expenditures on the project to date exceed CDN$1.5 million.
The Sproule report was commissioned by Ridel as the purchaser.
This transaction is subject to Vancouver Stock Exchange approval.
RIDEL RESOURCES LTD.
BRENT JARDINE
President
THIS NEWS RELEASE WAS PREPARED BY MANAGEMENT OF THE COMPANY WHO TAKES FULL
RESPONSIBILITY FOR ITS CONTENTS. THE VANCOUVER STOCK EXCHANGE NEITHER
APPROVES NOR DISAPPROVES OF THE CONTENTS OF THIS NEWS RELEASE.
CONTACT:
CORPORATE CONCEPTS INC.
TELEPHONE: (604) 685-2286
FACSIMILE: (604) 685-0513
TOLL-FREE: 800-361-8333
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