KELOWNA, BC, March 22, 2017 /CNW/ – Georox Resources Inc. (“Georox” or the “Corporation“) (GXR:TSX-V; OF6A:FRA) is pleased to provide information on its oil and gas reserves as of December 31, 2016 as evaluated in a report (the “Report“) by the Corporation’s independent reserve engineering firm, Sproule Unconventional Limited (“Sproule”). The reserves were evaluated in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities (“NI 51-101“) and the Canadian Oil and Gas Evaluation (“COGEH“) Handbook. The Statement of Reserves Data (Form 51-101 F1), providing additional summary information from the Report can be found on SEDAR at www.sedar.ca under the Corporation’s name.
Highlights of Georox’s year end reserves are as follows:
- A year over year increase of 19% in total proved plus probable oil and gas reserves, or an increase of 112,700 barrels of oil equivalent (“boe“) to 696,000 boe.
- A year over year increase of 56% in the before tax net present value of the proved plus probable reserves, discounted at 10 percent, to $16.1MM.
- Current reserve life index of 19.0 years based on proved plus probable reserves.
- Reserves weighted 98% to crude oil as a percentage of total proved plus probable reserves.
APPRAISAL REPORT – EFFECTIVE DATE DECEMBER 31, 2016 |
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PETROLEUM RESERVES AND ECONOMIC EVALUATION(1) |
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RED EARTH & POUCE COUPE, ALBERTA and SILVERDALE AREA, |
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SASKATCHEWAN |
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RESERVES NET TO APPRAISED INTEREST(2) (3) |
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PRODUCT |
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BOE |
BEFORE TAX CASH FLOW |
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RESERVE |
(MBOE) |
0% |
5% |
10% |
15% |
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$ |
$ |
$ |
$ |
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Proved Developed |
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Producing |
161.0 |
4,516 |
4,047 |
3,631 |
3,284 |
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Non-Producing |
18.8 |
709 |
543 |
427 |
345 |
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Proved Undeveloped |
231.5 |
6,865 |
5,445 |
4,338 |
3,477 |
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Total Proved |
411.4 |
12,090 |
10,035 |
8,396 |
7,106 |
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Probable |
284.6 |
12,813 |
9,737 |
7,682 |
6,248 |
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Total Proved Plus Probable |
696.0 |
24,903 |
19,772 |
16,078 |
13,354 |
Notes:
- Based on Sproule’s December 31, 2016 escalated price forecast.
- The reserves definitions and ownership classification used in this evaluation are the standards defined by COGEH reserve definitions and consistent with NI 51-101 and used by Sproule. The oil reserves are presented in thousands of barrels, at stock tank conditions. The natural gas reserves are presented in millions of cubic feet, at base conditions of 101.325kPa and 15 degrees Celsius. The natural gas liquids reserves are presented in thousands of barrels, at base conditions of 15 degrees Celsius and equilibrium pressure.
- Numbers may not reflect exact numbers in report tables due to rounding.
Reserve Reconciliation
The following is a reconciliation of Georox’s Reserve changes in the Corporation’s gross working interest reserves from December 31, 2015 to the gross working interest reserves at December 31, 2016.
Reserves (MBOE) |
Proved |
Probable |
Proved plus |
Opening Balance (December 31, 2015) |
437.7 |
145.7 |
583.4 |
Infill Drilling |
0 |
0 |
0 |
Extensions |
0 |
0 |
0 |
Acquisitions |
0 |
0 |
0 |
Economic Factors |
(10.2) |
(1.1) |
(11.3) |
Dispositions |
0 |
0 |
0 |
Production |
(43.5) |
0 |
(43.5) |
Technical Revisions |
(18.1) |
23.9 |
5.8 |
Improved Recovery |
45.5 |
116.2 |
161.7 |
Closing Balance (December 31, 2016) |
411.4 |
284.7 |
696.1 |
The term “gross working interest” means Georox’s working interest (operated or non-operated) share before the deductions of royalties and without any royalty interests of Georox, which is referred to as “Gross” reserves under NI 51-101.
Georox is pleased to announce that it has received significant recognition in both proven and proven plus probable reserves categories for its future water flood in Red Earth. In addition to increased reserves and future rates, this water flood is also expected to significantly reduce operating costs. Georox has begun the application process for the water flood which is expected to be fully operational later this year.
About Georox:
Georox is a Canadian natural resource company engaged in the acquisition, exploration and development of oil and gas properties in Western Canada. The Common Shares trade on the TSX Venture Exchange under the symbol GXR and on the Frankfurt Stock Exchange under the symbol OF6A.