Marquee’s year-end 2012 reserves were evaluated by independent reserves evaluator Sproule & Associates Consultants Ltd. (“Sproule”). The evaluation of all of Marquee’s oil and gas properties was done in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook (“COGE Handbook”) and National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (“NI 51-101”). Additional reserve information as required under NI 51-101 will be included in the Company’s Annual Information Form which is expected to be filed on SEDAR on March 22, 2013.
Highlights of the 2012 reserve report include:
Summary of Reserves
As at December 31, 2012(1)
Gross Company Reserves | |||||
Description | Light Oil (Mbbl) |
Heavy Oil (Mbbl) |
Gas (MMcf) | NGL (Mbbl) |
Total (Mboe) |
Proved Producing | 1,032 | 1,012 | 9,134 | 176 | 3,744 |
Proved non-producing | 65 | 900 | 21 | 236 | |
Undeveloped | 1,479 | 32 | 5,331 | 114 | 2,513 |
Total proved(2) | 2,576 | 1,044 | 15,365 | 311 | 6,493 |
Probable | 1,819 | 922 | 14,346 | 321 | 5,452 |
Total proved plus probable(2) | 4,395 | 1,966 | 29,711 | 632 | 11,945 |
(1) | Based on Sproule December 31, 2012 forecast prices | |||
(2) | Gross Company reserves are the Company’s total working interest share before the deduction of royalties. |
Summary of Before Tax Net Present Values
As at December 31, 2012(1)
Before Tax Net Present Value of Future Revenue ($M) | |||||
Discount Rate | |||||
Description | 0% | 5% | 10% | 15% | 20% |
Proved Producing | 97,796 | 81,118 | 69,709 | 61,421 | 55,134 |
Proved non-producing | 5,797 | 5,092 | 4,528 | 4,071 | 3,694 |
Undeveloped | 46,932 | 28,164 | 16,789 | 9,388 | 4,336 |
Total proved | 150,524 | 114,373 | 91,027 | 74,880 | 63,164 |
Probable | 135,346 | 79,240 | 49,507 | 31,959 | 20,802 |
Total proved plus probable | 285,870 | 193,613 | 140,534 | 106,839 | 83,966 |
(1) | Based on Sproule December 31, 2012 forecast prices |
Reconciliation of Reserves
2012 Reserves Reconciliation | |||||
December 31, 2011 |
Acquired (Sold) |
Production | Additions, revisions |
December 31, 2012 |
|
Total proved (Mboe) | 5,077 | (213) | (693) | 2,322 | 6,493 |
Proved + probable (Mboe) | 10,913 | (1,645) | (693) | 3,370 | 11,945 |
Marquee incurred capital expenditures of $44.6 million in 2012, of which $38.2 million was spent on exploration and development and $6.4 million was spent on land and seismic. The following table summarizes Marquee’s Finding and Development costs including changes in Future Development Costs.
Finding and Development Costs
In accordance with NI 51-101
Future Development Costs (“FDC”) |
Finding and Development Costs (2) | ||||
Undiscounted | Discounted (1) | Undiscounted | Discounted (1) | ||
2011 | Total Proved | $59.5 million | $49.5 million | ||
Total Proved + Probable | $122.3 million | $101.50 million | |||
2012 | Total Proved | $58.2 million | $51.0 million | $17.92 | $19.13 |
Total Proved + Probable | $109.1 million | $95.9 million | $8.82 | $11.23 | |
Y/Y change | Total Proved | ($1.3 million) | $1.5 million | ||
Total Proved + Probable | ($13.2 million) | ($5.1 million) |
(1) | Discounted at 10% | |||
(2) | Including change in FDC |
Net Asset Value Per Share
Net Asset Value at December 31, 2012 | |
Proved plus probable NPV before income taxes @ 10% (1) | $140.5 million |
Estimated net debt at December 31, 2012 | ($43.8 million) |
Estimated undeveloped land value (2) | 22.0 million |
Total | $118.7 million |
Basic shares outstanding | 54.7 million |
Net Asset Value Per Basic Share | $2.17 |
Fully diluted shares outstanding | 60.5 million |
Net Asset Value Per Fully Diluted Share | $1.96 |
(1) | As presented in the Sproule reserve report dated effective December 31, 2012 | |||
(2) | Internal management estimate |
Marquee has a reserves committee, comprised of independent board members that review the qualifications and appointment of the independent reserve evaluators. The committee also reviews the procedures for providing information to the evaluators. All booked reserves are based upon annual evaluations by the independent qualified reserve evaluators conducted in accordance with the COGE (Canadian Oil and Gas Evaluation) Handbook and NI 51-101. The evaluations are conducted using all available geological and engineering data. The reserves committee has reviewed the reserves information and approved the reserve report.
Marquee expects to release year end 2012 financial information and provide an operations update following the close of market on March 21, 2013.
Further Information about Marquee Energy Ltd.
Marquee Energy Ltd. is a publicly traded Calgary-based growth oriented junior oil and gas company currently focused on high rate of return, oil and liquids rich gas production in Southern Alberta. Further information about Marquee Energy Ltd. may be found in its continuous disclosure documents filed with Canadian securities regulators at www.sedar.com.
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 release.
FORWARD-LOOKING INFORMATION
Certain statements included or incorporated by reference in this news release may constitute forward looking statements under applicable securities legislation. Such forward looking statements or information typically contain statements with words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “estimate”, “propose”, or similar words suggesting future outcomes or statements regarding an outlook. Forward looking statements or information in this news release may include, but are not limited to:
Such forward-looking statements or information are based on a number of assumptions all or any of which may prove to be incorrect. In addition to any other assumptions identified in this document, assumptions have been made regarding, among other things:
Forward-looking information is based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by the Company and described in the forward-looking information. The material risk factors affecting the Company and its business are contained in Marquee’s Annual Information Form which is available under Marquee’s issuer profile on SEDAR at www.sedar.com.
The forward-looking information contained in this press release is made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward looking information contained in this press release is expressly qualified by this cautionary statement.
BOEs are presented on the basis of one BOE for six Mcf of natural gas. Disclosure provided herein in respect of BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
Estimated net present values of future net revenues do not represent a fair market value.
The estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates of reserves and future net revenue for all properties, due to the effects of aggregation.
SOURCE: Marquee Energy Ltd.
Richard Thompson
President & Chief Executive Officer
(403) 384-0000
RThompson@marquee-energy.com
Roy Evans
Vice President, Finance & Chief Financial Officer
(403) 384-0000
REvans@marquee-energy.com
or visit the Company’s website at www.marquee-energy.com.