Border Petroleum Announces 2013 Reserves and Corporate Update
May 24 2013 - 5:28PM
Marketwired Canada
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Border Petroleum Corp. (TSX VENTURE:BOR) ("Border" or the "Company") announces
the results of its 2013 year-end oil and gas reserves evaluation and provides
shareholders with a corporate update.
Border's March 31, 2013 year-end reserves were evaluated in a report (the
"Sproule Report") prepared by independent reserves evaluator Sproule &
Associates Consultants Ltd. ("Sproule"). The evaluation of all of Border'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 information about Border's properties
as required under NI 51-101 will be included in the Company's Annual Information
Form which is expected to be filed on SEDAR in July 2013.
Summary of Reserves
As at March 31, 2013(1)
---------------------------------------------------------------------------
Gross Company Reserves
---------------------------------------------------------------------------
Light Heavy Total
Oil Oil Gas NGL (Mboe)
Description (Mbbl) (Mbbl) (MMcf) (Mbbl) (3)
---------------------------------------------------------------------------
Proved Producing 93.1 7.2 768 21.1 249.3
---------------------------------------------------------------------------
Proved Non-Producing 0 0 465 13.3 90.8
---------------------------------------------------------------------------
Proved Undeveloped 300.0 0 0 0 300.0
---------------------------------------------------------------------------
Total Proved(2) 393.1 7.2 1,233 34.4 640.1
---------------------------------------------------------------------------
Probable 826.4 3.9 760 21.4 978.6
---------------------------------------------------------------------------
Total Proved plus Probable(2) 1,219.5 11.1 1,993 55.8 1,618.7
---------------------------------------------------------------------------
(1) Based on Sproule's forecast prices as of March 31, 2013.
(2) Gross Company reserves are the Company's total working interest share before
the deduction of royalties.
(3) A conversion ratio of 6 mcf of natural gas to 1 bbl of oil is used. See
"Notes Regarding Oil and Gas Disclosure" below.
Summary of Before Tax Net Present Values
As at March 31, 2013(1)
---------------------------------------------------------------------------
Before Tax Net Present Value ($MM)
---------------------------------------------------------------------------
Discount Rate
---------------------------------------------------------------------------
Description 0% 5% 10% 15% 20%
---------------------------------------------------------------------------
Proved Producing 3,460 3,101 2,820 2,595 2,412
---------------------------------------------------------------------------
Proved Non-Producing 465 390 330 282 243
---------------------------------------------------------------------------
Proved Undeveloped 6,111 3,424 1,707 567 -212
---------------------------------------------------------------------------
Total Proved 10,036 6,915 4,857 3,444 2,443
---------------------------------------------------------------------------
Probable 29,407 19,086 13,059 9,211 6,580
---------------------------------------------------------------------------
Total Proved Plus Probable 39,443 26,001 17,916 12,655 9,023
---------------------------------------------------------------------------
(1) Based on Sproule's forecast prices as of March 31, 2013.
Future Development Costs
As at March 31, 2013(1)
---------------------------------------------------------------------------
Proved Future Proved Plus Probable
(000's) Development Cost Future Development Cost
---------------------------------------------------------------------------
2013 0 3,586
---------------------------------------------------------------------------
2014 10,239 24,578
---------------------------------------------------------------------------
Undiscounted Total 10,239 28,164
---------------------------------------------------------------------------
Discounted @ 10%/yr 9,054 25,161
---------------------------------------------------------------------------
(1) Future Development Costs shown are associated with booked reserves in the
Sproule Report and do not necessarily represent the Corporation's full
exploration and development budget.
(2) The numbers in this table may not add exactly due to rounding.
Corporate Update:
Border currently has a positive working capital balance of approximately $7.3
million and an unutilized bank line of $3.5 million. Border's current total
production is approximately 230 boepd (26 percent liquids). Border's tax pool
balance as at December 31, 2012 was approximately $32.1 million with an
additional $17.5 million of successored pools primarily related to its Leduc
properties. Further, after taking into account qualifying expenditures of
approximately $1.0 million in the quarter ended March 31, 2013, the Company has
approximately $2.0 million of outstanding obligations to incur Canadian
Exploration Expenses.
Under the direction of the Special Committee, the financial advisors to the
Special Committee and management have commenced populating the virtual data room
to be used in connection with the previously announced strategic alternatives
process and continue their build out of the information package that will be
provided to interested parties. The data room and information package are
anticipated to be complete within the next seven days.
Border does not intend to disclose developments with respect to the strategic
review process unless and until the Board of Directors has approved a definitive
transaction or strategic option, or unless otherwise required by law or
disclosure of which is deemed appropriate. The Company cautions that there are
no guarantees that the strategic review will result in a transaction or if a
transaction is undertaken, as to its terms or timing.
Border currently has 332,978,953 common shares outstanding.
Forward-Looking Statements
This press release contains forward-looking statements with respect to estimates
of the quantities of proved reserves and probable reserves and related net
present values and future development costs, as well as Border's strategic
review process.
The forward-looking statements contained in this document are based on certain
key expectations and assumptions made by Border. Although Border believes that
the expectations and assumptions on which the forward-looking statements are
based are reasonable, undue reliance should not be placed on the forward-looking
statements because Border can give no assurance that they will prove to be
correct.
Since forward-looking statements address future events and conditions, by their
very nature they involve inherent risks and uncertainties. Actual results could
differ materially from those currently anticipated due to a number of factors
and risks. These include, but are not limited to risks associated with the oil
and gas industry in general (e.g., operational risks in development, exploration
and production; delays or changes in plans with respect to exploration or
development projects or capital expenditures; the uncertainty of reserve
estimates; the uncertainty of estimates and projections relating to production,
costs and expenses, and health, safety and environmental risks), commodity price
and exchange rate fluctuations and uncertainties resulting from potential delays
or changes in plans with respect to exploration or development projects or
capital expenditures.
The forward-looking statements contained in this document are made as of the
date hereof and Border undertakes no obligation to update publicly or revise any
forward-looking statements or information, whether as a result of new
information, future events or otherwise, unless so required by applicable
securities laws.
Notes Regarding Oil and Gas Disclosure
As used in this press release, "boe" means barrel of oil equivalent on the basis
of 6 mcf of natural gas to 1 bbl of oil. Boes 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.
It should not be assumed that the present worth of estimated future net revenue
represents the fair market value of the reserves disclosed in this press
release. The reserve and related revenue estimates set forth in this press
release are estimates only and the actual reserves and realized revenue may be
greater or less than those calculated.
Abbreviations
Crude Oil Natural Gas
bbl barrel Mcf thousand cubic feet
bbls barrels MMcf million cubic feet
Mbbls thousand barrels
MMbbls million barrels
boepd barrels of oil equivalent per day
$M thousands of dollars
$MM millions of dollars
FOR FURTHER INFORMATION PLEASE CONTACT:
Border Petroleum Corp.
Kelly Kimbley
President & CEO
2300, 635 - 8th Avenue SW
Calgary, AB T2P 3M3
(403) 538-8450
Border Petroleum (TSXV:BOR)
Historical Stock Chart
From Apr 2024 to May 2024
Border Petroleum (TSXV:BOR)
Historical Stock Chart
From May 2023 to May 2024
