CALGARY, ALBERTA — (Marketwire) — 09/14/11 — Oil Optimization Inc. (TSX VENTURE: OOI) (“OOI” or the “Company”) announced that its former joint venture partner has assigned its 50% interest in the Petroleum Concession Agreement (“PCA”) covering Block L9-48 to OOI, giving the Company 100% ownership and control over the Block. Thailand–s Department of Mineral Fuels (“DMF”) is also expected to appoint OOI as the official operator going forward, enabling the exploration program to resume immediately.
Under the terms of the assignment the Company will pay its former joint venture partner US$200,000 (a) within 60 days after being granted the Production Area Approval within any part of the Block by the DMF; or (b) within 60 days after the Company transfers any interest in the concession rights in the Block to a third party, including any of the Company–s affiliates, subsidiaries or any company under common control of the Company, or one or more companies, which are directly or indirectly associated by means of shareholding, management or otherwise, whichever is the earlier.
An independent resource evaluation (the “Report”) was completed on Block L9-50 by Petrotech Engineering Limited (“Petrotech”) April 30, 2010. Using probabilistic analysis, Petrotech assigned a total best estimate of Prospective Resources of 95,000,000 barrels of oil, for the twelve Leads on Block L9-48.
The Report provides an estimate of the potential gross undiscovered oil and gas prospective resources underlying Block L9/48 and is in addition to Petrotech–s Report dated April 30, 2011, which addressed OOI–s 100% interest in the PCA covering Block L14/50. Petrotech assigned a total best estimate of Prospective Resources of OOI–s 100% interest of 23,700,000 barrels of oil, for the 5 Leads on Block L14/50.
“OOI–s management is pleased with the outcome of the negotiations and now looks forward to accelerating the work program in the coming months,” stated Luc Desmarais, President and CEO, who added, “The additional 50% interest in Block L9/48 increases our recoverable prospective resource best estimate by 47,500,000 barrels to 118,700,000 barrels from 17 prospects in the L14/50 and L9/48 Licences. Historic regional geology and 2D seismic data were reviewed by Petrotech to prepare a probabilistic Prospective Resources Estimate of that portion of the prospects lying entirely within the L14/50 and L9/48 PCA–s.”
The estimates were prepared in accordance with the requirements of Canadian National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities Section 5.9 (“NI 51-101”). Capitalized terms related to resources classifications used in this press release are based on the definitions and guidelines in Section 5.3.5 of the Canadian Oil and Gas Evaluation Handbook Volume 1.
The Sums of each Prospect and the Sums of Prospects are arithmetic sums, and as such do not represent the same probability levels as the estimates for the individual prospects. Prospective Resources are those quantities of oil and gas estimated to be potentially recoverable from undiscovered accumulations. There is no certainty that the Prospective Resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the prospective resources. Application of any geological and economic chance factor does not equate prospective resources to contingent resources or reserves. In addition, the following mutually exclusive Classifications of Resources were used:
Low Estimate – This is considered to be a conservative estimate of the quantity that will actually be recovered from the accumulation. This term reflects a P90 confidence level where there is a 90% chance that a successful discovery will be more than this resources estimate.
Best Estimate – This is considered to be the best estimate of the quantity that will actually be recovered from the accumulation. This term is a measure of central tendency of the uncertainty distribution and in this case reflects a 50% confidence level where the successful discovery will have a 50% chance of being more than this resources estimate.
High Estimate – This is considered to be an optimistic estimate of the quantity that will actually be recovered from the accumulation. This term reflects a P10 confidence level where there is a 10% chance that the successful discovery will be more than this resources estimate.
These distributions do not include consideration of the probability of success of discovering and producing commercial quantities of oil, but rather represent the likely distribution of the oil deposits, if discovered. Also, the Sums of Prospects are arithmetic sums, and as such do not represent the same probability levels as the estimates for the individual prospects.
Petrotech has acted independently in the preparation of the Reports and its employees have no direct or indirect ownership in the property appraised or the area of study described. With respect to Assumptions and Limiting Conditions within the Reports, the Report is limited to a discussion of the potential undiscovered oil and gas Prospective Resources of the subject property and does not attempt to place a value thereon. Petrotech reserves the right to revise its opinions of reserves and resources, if new information is deemed sufficiently credible to do so. The accuracy of any estimate is a function of available time, data and of geological, engineering and commercial interpretation and judgment. While the resources estimates presented herein are believed to be reasonable, they should be viewed with the understanding that additional analysis or new data may justify their revision and Petrotech reserves the right to make such revision.
About Oil Optimization
Oil Optimization Inc. (TSX VENTURE: OOI) is a Canadian-listed international junior oil and gas exploration company with operations located onshore Thailand. OOI currently holds a 100% interest in Blocks L3/50, L14/50 and L9/48, for a total of 2,500,000 acres. The Company is focused on exploring and developing each of these blocks as well as seeking accretive acquisitions in the region.
Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “objective”, “ongoing”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends” and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this news release contains forward-looking statements and information concerning the expected activities of Oil Optimization. The forward-looking statements and information are based on certain key expectations and assumptions made by Oil Optimization. Although Oil Optimization believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because Oil Optimization can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward- looking information for anything other than its intended purpose. Oil Optimization undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Oil Optimization Inc.
Christopher Serin
Chief Financial Officer
(604) 628-7124