Calgary, Alberta – Petro Viking Energy Inc. (“Petro Viking” or the “Company”) (CNSX:VIK.CN) is pleased to announce a 250% increase in reserves and the expansion of its 50% participation in its summer drilling program to 3 (three) wells.
The Company in May commissioned Deloitte LLP to complete an interim Independent Evaluation of its reserves to include the current production plus 4 proven and 2 probable drilling locations; 6 wells of a potential 15 well locations within its current land position as announced on March 17th whereby it increased its mineral rights to 7,680 acres (3,840 acres net). Petro Viking Energy as a 50% participation in these lands, effective April 1, 2021 it was determined by Deloitte that Company’s net Reserves had increased 250% from 481,100 BOE to 1,222,700 BOE (2P) on a net working interest basis was assigned a value of $7,173,000 based on NPV discounted @ 10% of the 2,445,400 BOE (2P) Gross Reserves valued at $14,346,000, NPV discounted @ 10%.
Furthermore with the benefit of the associated facilities in combination with the proven reserves the Company has agreed to increase its commit to 3 (three) new drilling locations in the summer of 2021 having combined proven reserves of 736,200 BOE. The Capital cost of this program is estimated to be $1,075,000 net ($2,150,000 Gross) at an average Finding Development, Completion and Equipping cost (FDCE) of $2.92/BOE.
Petro-Viking and its partner will continue to expand as anticipated the foundation of its current low cost natural gas and liquids production in the region. In parallel the Company continues to focus on the rapid development of these lands in combination with the completion of the review of the Joint Venture’s Business Plan of operating as a fully Integrated Carbon Neutral Energy Producer through the collective organic development of its 100% owned and operated resources.
These locations in addition to ramping up production through workovers and remediation puts the Company on solid footing towards its initial goal of more than 500 boe/d of sustainable low cost liquids rich natural gas production in 2021 generating Corporate netbacks of approximately $15 boe/d resulting the Company exiting 2021 generating greater than $2,500,000 per year at prices greater than CDN $2.40/mcf for natural gas and liquids prices greater than WTI US $50.00/bbl.