CALGARY, ALBERTA–(Marketwired – March 9, 2016) – BOULDER ENERGY LTD. (“Boulder” or the “Company“) (TSX:BXO)(OTCQX:BLLDF) is pleased to report its 2015 year end oil and gas reserves.
RESERVES HIGHLIGHTS
- Total proved (“TP”) reserves of 26.1 million boe (71% oil and NGLs) and total proved plus probable (“P+P”) reserves of 34.6 million boe (71% oil and NGLs).
- Approximately 75.5 percent of P+P reserves are in the TP category.
- Approximately 40.1 percent of P+P reserves are producing (P+P Developed Producing).
- P+P reserves include 81 future drills, including 74 proved undeveloped locations and 7 probable locations.
- Future development costs of $222.2 million (TP) and $247.9 million (P+P) (undiscounted).
The evaluation of Boulder’s petroleum and natural gas reserves as at December 31, 2015 was prepared by the Company’s independent reserve engineering firm, Sproule Associates Limited (“Sproule”) and was conducted pursuant to National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (“NI 51-101”) and the Canadian Oil and Gas Evaluation Handbook (“COGEH”) reserves definitions. Additional reserve information as required under NI 51-101 will be included in the Company’s Annual Information Form which will be filed on SEDAR on or before March 30, 2016. Financial information presented above is based on management prepared financial statements for the year ended December 31, 2015 which are in the process of being audited by Boulder’s independent auditors and, accordingly, such financial information is subject to change based on the results of the audit. See “Reader Advisory – Unaudited Financial Information” below.
RESERVES INFORMATION
The Company’s oil and gas properties are located in the Brazeau area of west central Alberta and Peace River Arch area of northwestern Alberta, which feature light crude oil, natural gas and natural gas liquids. On May 15, 2015, Boulder Energy Ltd. and DeeThree Exploration Ltd. (“DeeThree”) completed a corporate reorganization pursuant to a Plan of Arrangement (the “Reorganization”). The Reorganization resulted in the acquisition by Boulder of DeeThree’s oil and natural gas properties located in the Brazeau and Peace River Arch areas and Boulder commenced active oil and natural gas operations upon close of the Arrangement on May 15, 2015.
The following table represents the Company’s reserves effective as at December 31, 2015 as evaluated by Sproule. The evaluation of Boulder’s petroleum and natural gas reserves was conducted pursuant to NI 51-101 and COGEH reserves definitions.
Summary of Reserves as at December 31, 2015
(Forecast Pricing)
Gross Company Share Reserves(2)(4)(5) | ||||
Light Crude Oil (mbbls) |
Natural Gas (mmcf) |
NGLs (mbbls) |
BOE(3) (mboe) |
|
Proved | ||||
Developed producing | 6,749 | 20,522 | 874 | 11,043 |
Developed non-producing | 252 | 3,655 | 156 | 1,017 |
Undeveloped | 9,445 | 21,114 | 1,089 | 14,053 |
Total Proved(1) | 16,446 | 45,292 | 2,118 | 26,113 |
Total Probable(1) | 5,297 | 14,968 | 676 | 8,467 |
Total Proved plus Probable(1) | 21,742 | 60,260 | 2,794 | 34,580 |
Notes: | ||
(1) | Total values may not add due to rounding. | |
(2) | “Gross” Company reserves are the Company’s total working interest share before the deduction of any royalties and without including any royalty interests of the Company. | |
(3) | In the case of BOEs, using BOEs derived by converting gas to oil equivalent in the ratio of six thousand cubic feet of gas to one barrel of oil (6 MCF:1 bbl). See “Reader Advisory – BOE Presentation” and “Reader Advisory – Information Regarding Disclosure on Oil and Gas Reserves” below. | |
(4) | Based on Sproule published price forecasts effective December 31, 2015. See “Pricing Assumptions” below. | |
(5) | The Company’s reserves are developed with horizontal wells completed with multi-stage fracturing techniques. | |
Summary of Before Tax Net Present Values as at December 31, 2015
(Forecast Pricing)
The following table summarizes the Net Present Value of the Company’s share of oil and natural gas reserves effective as at December 31, 2015.
Net Present Value Before Income Taxes Discounted At | |||||
0% ($M) |
5% ($M) |
10% ($M) |
15% ($M) |
20% ($M) |
|
Proved | |||||
Developed producing | 309,847 | 229,553 | 182,046 | 151,449 | 130,293 |
Developed non-producing | 22,130 | 14,286 | 9,937 | 7,337 | 5,678 |
Undeveloped | 358,256 | 228,174 | 154,122 | 108,335 | 78,014 |
Total Proved(1)(2)(3)(4) | 690,232 | 472,013 | 346,105 | 267,122 | 213,985 |
Total Probable(1)(2)(3)(4) | 279,418 | 176,150 | 125,742 | 96,838 | 78,228 |
Total Proved plus Probable(1)(2)(3)(4) | 969,650 | 648,163 | 471,847 | 363,959 | 292,213 |
Notes: | ||
(1) | Total values may not add due to rounding. | |
(2) | Based on Sproule published price forecasts effective December 31, 2015. See “Pricing Assumptions” below. | |
(3) | Includes abandonment and reclamation costs as defined in NI 51-101. | |
(4) | It should not be assumed that the net present values of future net revenues estimated by Sproule represent fair market value of the reserves. There is no assurance that the forecast price and cost assumptions will be attained and variances could be material. See “Reader Advisory – Information Regarding Disclosure on Oil and Gas Reserves” below. | |
Pricing Assumptions
The reserve evaluation was based on Sproule’s forecast pricing and foreign exchange rates, as at December 31, 2015, as outlined in the following table.
Summary of Pricing Assumptions as of December 31, 2015(1) Forecast Prices | ||||||
Canadian Light Sweet Crude 40° API ($Cdn/Bbl) (4) |
Natural Gas Alberta AECO-C Spot ($Cdn/ MMBtu) (5) |
Edmonton Pentanes Plus ($Cdn/ bbl) |
Edmonton Butane ($Cdn/ bbl) |
Edmonton Propane ($Cdn/ bbl) |
Exchange Rate(2) ($US/ $CDN) |
|
Forecast(3) | ||||||
2016 | 55.20 | 2.25 | 59.10 | 39.09 | 9.09 | 0.75 |
2017 | 69.00 | 2.95 | 73.88 | 51.43 | 13.64 | 0.80 |
2018 | 78.43 | 3.42 | 83.98 | 58.46 | 25.84 | 0.83 |
2019 | 89.41 | 3.91 | 95.73 | 66.64 | 35.35 | 0.85 |
2020 | 91.71 | 4.20 | 98.19 | 68.35 | 42.30 | 0.85 |
2021 | 93.08 | 4.28 | 99.66 | 69.38 | 42.94 | 0.85 |
Thereafter Escalation Rate of 1.5% (crude oil) and 1.76% (natural gas) | ||||||
Notes: | ||
(1) | This summary table identifies benchmark reference pricing schedules that might apply to a reporting issuer. | |
(2) | The exchange rate used to generate the benchmark reference prices in this table. | |
(3) | As at December 31, 2015. | |
(4) | The price received for the Company’s oil, which is considered to be light crude oil, has historically corresponded very closely to Canadian Light Sweet 40° API ($Cdn/Bbl). | |
(5) | The price received for the Company’s natural gas has historically corresponded to AECO-C Spot pricing ($Cdn/MMBtu), adjusted for heat value and transportation. | |
2015 YEAR END REPORTING
The Company will report its 2015 year end results on March 22, 2016.