ENGLEWOOD, CO–(Marketwired – April 05, 2017) – PetroShare Corp. (OTCQB: PRHR) today announced its proved reserves as of December 31, 2016, as prepared by Cawley, Gillespie & Associates, the Company’s third party reserve engineer, were approximately 6.3 million barrels of oil equivalent. The estimated pre-tax value of future cash flows from the Company’s proved reserves, discounted at 10% (PV-10), was approximately $43 million, utilizing commodity prices of $42.75 per barrel of oil (Bbl) and $2.48 per MMBtu of natural gas. The volume of the proved reserves is split 70% for oil and natural gas liquids (NGL) and 30% for natural gas.
|PetroShare Corp. Summary of Proved Reserves as of December 31, 2016|
|Proved Developed||Proved Undeveloped||Total Proved|
|Oil and NGLs – Bbls||441,948||3,950,447||4,392,395|
|Natural Gas – Mcf||1,788,894||9,703,962||11,492,856|
Frederick J. Witsell, President of PetroShare commented, “Our growth in proved reserves is the result of our increased participation in non-operated horizontal wells in the Wattenberg Field, together with reserves added as a result of acquisitions we consummated during the year. In the first quarter of 2017, our participation as a non-operated working interest partner in 11 (1.32 net) horizontal wells behind three different area operators resulted in a first quarter exit production rate of approximately 900 barrel of oil equivalent per day (BOE/D) net to our interest. This exit production rate was above our internal estimates and the initial non-operated horizontal wells continue to trend on or above our type curve projections.
“The remaining 6 (0.86 net) horizontal wells on the non-operated Jacobucci pad were completed and turned into sales in late March and are expected to materially add to our net production growth in the next 30 to 90 days. We anticipate that in the second quarter of 2017 a peak production rate from all operated and non-operated wells is expected to range between 1,250-1,500 BOE/D.
“In the meantime, we have begun our operated drilling program and have completed the initial construction of the surface location and well cellars on our planned 14-well Shook pad. We plan to commence drilling operations on all 14 Shook wells over the next few weeks and begin completion activities in the third quarter, with the anticipated production from these operated wells supplementing the growth coming from non-operated wells. We currently have a total of 30 horizontal well permits, including those for our South Brighton Lakes Pad, which is designed to hold 8 extended length (2 mile) horizontal Niobrara and Codell wells.”
The Company continues to build out its footprint in the DJ Basin and now hold approximately 9,500 net acres to our interest following the April 3, 2017 closing of the previously-announced Morning Gun acquisition.
About PetroShare Corp.
PetroShare Corp. is an independent oil and natural gas exploration and development company that targets capital deployment opportunities in established unconventional resource plays. Its current focus is in the Niobrara/Codell formations and adjacent oil and gas producing zones in the Rocky Mountain region with specific targets in the Wattenberg field within the DJ Basin of northeast Colorado. For more information, visit www.PetroShareCorp.com
Caution Concerning Forward-Looking Statements
This press release contains certain forward-looking statements and information, including “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements and information expressed, as of the date of this release, PetroShare’s estimates, forecasts, projections, expectations or beliefs as to certain future events and results. These forward-looking statements include, among others, statements regarding the benefits that PetroShare expects from transactions and plans and objectives of management for future operations. Forward-looking statements and information are necessarily based on a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, technical, economic and competitive uncertainties, risks and contingencies, and there can be no assurance that such statements and information will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements and information.
Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements and information include, but are not limited to, receipt of working capital, actions of third parties over which we have no control, the level of success in exploration, development and production activities, possible defects in title to properties, fluctuations in the market price of crude oil and natural gas, industry risks, possible federal and/or state initiatives related to regulation of hydraulic fracturing, risks related to permitting and the projected timeframes to receive the necessary permits, environmental risks and hazards, uncertainty as to calculation of crude oil and natural gas resources and reserves and other risks described in the Company’s annual report on Form 10-K for the year ended December 31, 2016 and other filings with the Securities and Exchange Commission. Readers should not place undue reliance on forward-looking statements or information included herein, which speak only as of the date hereof. PetroShare undertakes no obligation to reissue or update forward-looking statements or information as a result of new information or events after the date hereof except as may be required by law. All forward-looking statements and information made in this news release are qualified by this cautionary statement.