VANCOUVER, BRITISH COLUMBIA — (Marketwire) — 08/04/11 — Canada Energy Partners Inc. (“Canada Energy” or the “Company”) (TSX VENTURE: CE) is pleased to report the results of the Company–s fiscal year-end reserve study of the Company–s Montney lands, performed by GLJ Petroleum Consultants Ltd. (“GLJ”), and the Peace River CBM Project reserves, evaluated by Netherland Sewell & Associates, both of which are effective as of April 30th, 2011.
The combined total of the Company–s Montney and CBM proved reserves is 8.8 billion cubic feet equivalent (“BCFe”) and proved plus probable (“2P”) is 41.7 BCFe representing a 169% increase in year-over-year (Fiscal year-end April 30th) 2P reserves.
As to the Montney formation, GLJ ascribed Company interest reserves of 8.54 BCFe of proved reserves and 2P of 26.22 BCFe. Company Interest reserves means the Company–s working interest share before deduction of royalties and including any royalty interest of the Company. The undiscounted projected net cash flow is estimated to be $21.6 million from the proved reserves and $78.4 million from the 2P reserves. The present value discounted at 10% (“PV10”) of the proved reserves is $7.09 million and $24.05 million for the 2P reserves. 81.1% of these 2P reserves were attributable to the Monias property and 18.9% to the Peace River property.
As to the Company–s Gething CBM Project, the Company interest reserves as reported by Netherland Sewell at fiscal year-end April 30, 2010 were 0.27 BCF proved and 15.50 BCF 2P.
There have been three transactions in the Montney play in northeast British Columbia in the last 9 months representing $3.2 billion of financial commitments from international energy companies. CIBC has reported that the average sales price for 2P gas reserves in Western Canada in 2010 was $2.07 per thousand cubic feet (“mcf”). Canada Energy Partners owns 27,799 net acres (42 net sections) of Montney rights.
Eduard Epshtein has resigned as the Chief Financial Officer of the Company effective July 14th and John Proust has been appointed as the Interim CFO. Mr. Epshtein has made a significant contribution to the Company–s development since its inception. The Company appreciates Mr. Epshtein–s contribution and wishes him well in his new endeavours.
Canada Energy is an active oil and gas exploration and development company. The Company possesses a large concentrated land position in a high-impact, multi-zone, natural gas-bearing area in northeast British Columbia.
BCFe may be misleading, particularly if used in isolation. A BCFe conversion ratio of 1 bbl: 6 mcf is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. The estimated values disclosed do not represent fair market value.
On behalf of the Board of Directors of Canada Energy Partners Inc.
John Proust, Chairman
Forward Looking Statements: This news release contains forward looking statements relating to expected or anticipated flow rates, timing for drilling and completion operations, future events and operations, number of wells to be drilled, timing of projects and anticipated results that are forward looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events, and the company–s capability to execute and implement future plans. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. There is no representation by the company that actual results achieved during the forecast period will be the same in whole or in part as that forecast.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Contacts:
Canada Energy Partners Inc.
John Proust
Chairman
Direct Phone: (604) 696-9020
Canada Energy Partners Inc.
Ben Jones
President and CEO
Direct Phone: (225) 388-9900
Canada Energy Partners Inc.
1500 – 885 West Georgia St.
Vancouver, BC V6C 3E8
Main Phone: (604) 909-1154
Fax: (604) 488-0319