CEI Coelacanth Energy Inc

CALGARY, Dec. 2, 2011 /CNW/ - Carmen Energy Inc. ("Carmen" or the "Corporation") is pleased to report an independent reserves evaluation by InSite Petroleum Consultants Ltd. ("InSite") entitled "Evaluation of the Oil and Gas Reserves in the Sylvan Lake and Viking-Kinsella Areas" (the "InSite Sylvan Lake/Viking-Kinsella Report"). The InSite Sylvan Lake/Viking-Kinsella Report is an estimate of the oil, natural gas and natural gas liquids reserves associated with the 102/14-7-38-3w5 well on the Sylvan Lake properties and the Hz16-17-49-12w4 well on the Viking-Kinsella properties in which Carmen has a right to earn a working interest pursuant to previously disclosed farmin agreements. The InSite Sylvan Lake/Viking-Kinsella Report has an effective date of December 1, 2011 and was prepared in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities and the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook"). The following is a summary of data contained in the InSite Sylvan Lake/Viking-Kinsella Report of estimated reserves as evaluated in the InSite Sylvan Lake/Viking-Kinsella Report with regards to now on first month production. All evaluations of future net revenue are after the deduction of future, royalties, development costs, production costs and well abandonment costs but before consideration of indirect costs such as administrative, overhead and other miscellaneous expenses. The estimated future net revenue contained in the following tables do not represent the fair market value of the reserves in which Carmen has a right to earn an interest. There is no assurance that the forecast price and cost assumptions contained in the InSite Sylvan Lake/Viking-Kinsella Report will be attained and variations could be material. Reserves Data (Forecast Prices and Costs) SUMMARY OF OIL AND NATURAL GAS RESERVES AND NETPRESENTVALUESOF FUTURENETREVENUEASOF DECEMBER 1, 2011 FORECAST PRICES AND COSTS (SEPTEMBER 30, 2011) RESERVES LIGHT AND NATURALGAS MEDIUMOIL HEAVYOIL NATURAL GAS LIQUIDS SULPHUR Gross Net Gross Net Gross Net Gross Net Gross Net RESERVES CATEGORY (Mbbls) (Mbbls) (Mbbls) (Mbbls) (MMcf) (MMcf) (Mbbls) (Mbbls) (LT) (LT) PROVED: Developed 4.9 4.5 - - 126.7 115.9 4.9 3.8 114.1 97.9 Producing Developed - - - - - - - - - - Non-Producing Undeveloped - - - - - - - - - - TOTAL PROVED 4.9 4.5 - - 126.7 115.9 4.9 3.8 114.1 97.9 PROBABLE 63.8 54.4 - - 168.6 155.0 3.4 2.5 45.6 38.1 TOTAL PROVED PLUS PROBABLE 68.7 58.9 - - 295.3 270.9 8.4 6.4 159.7 136.0 Notes: (1) "Gross" means: (i) in relation to Carmen's interest in production and reserves, its "company gross reserves", which are Carmen's interest (operating and non operating) share before deduction of royalties and without including any royalty interest of Carmen; (ii) in relation to wells, the total number of wells in which Carmen has an interest; and (iii) in relation to properties, the total area of properties in which Carmen has an interest. (2) "Net" means: (a) in relation to Carmen's interest in production and reserves, Carmen's working interest (operating and non operating) share after deduction of royalty obligations, plus Carmen's royalty interests in production or reserves; (b) in relation to wells, the number of wells obtained by aggregating Carmen's working interest in each of its gross wells; and (c) in relation to Carmen's interest in a property, the total area in which Carmen has an interest multiplied by the working interest owned by Carmen. The estimated net present value of future net revenue before income taxes associated with the Sylvan Lake and Viking-Kinsella reserves effective December 1, 2011 and based on published InSite future price forecast as of September 30, 2011 are summarized in the following table: UNIT VALUE BEFORE INCOME TAXES NETPRESENTVALUESOF FUTURE NETREVENUE DISCOUNTEDAT BEFORE INCOMETAXESDISCOUNTEDAT (%/year) 10%(1) 0% 5% 10% 15% 20% RESERVES CATEGORY ($000s) ($000s) ($000s) ($000s) ($000s) ($/BOE) PROVED: Developed 416.7 351.6 301.2 261.6 230.2 10.91 Producing Developed - - - - - - Non-Producing Undeveloped - - - - - - TOTAL PROVED 416.7 351.6 301.2 261.6 230.2 10.91 PROBABLE 4,361.5 3,254.8 2,586.3 2,147.2 1,838.5 31.23 TOTAL PROVED PLUS 4,778.2 3,606.5 2,887.4 2,408.8 2,068.7 26.15 PROBABLE Note: (1)     Unit values are based on net reserve volumes. Pricing Assumptions The forecast cost and price assumptions in this section assume increases in wellhead selling prices and take into account inflation with respect to future operating and capital costs. Crude oil and natural gas benchmark reference pricing, inflation and exchange rates utilized in the InSite Sylvan Lake/Viking-Kinsella Report were as follows: SUMMARY OF PRICING ASSUMPTIONS AS OFSEPTEMBER30, 2011FORECAST PRICESANDCOSTS(1)(2) OIL NATURALGAS NATURAL GASLIQUIDS SULPHUR WTI Edmonton Cushing Par Price AECO Edmonton Edmonton Edmonton EXCHANGE Oklahoma 40° API Gas Price Condensate Butane Propane Ethane RATE(3) Year ($US/Bbl) ($Cdn/Bbl) ($Cdn/MMBtu) ($Cdn/Bbl) ($Cdn/Bbl) ($Cdn/Bbl) ($Cdn/Bbl) ($/LT) ($US/$Cdn) 2011 85.00 84.73 3.83 88.97 67.79 50.84 11.50 65.00 0.980 2012 95.00 92.50 4.30 95.28 74.00 55.50 13.01 66.30 1.000 2013 100.00 97.50 5.00 100.43 78.00 58.50 15.27 67.63 1.000 2014 101.00 98.45 5.60 101.40 78.76 59.07 17.20 68.98 1.000 2015 102.00 99.40 6.00 102.38 79.52 59.64 18.49 70.36 1.000 2016 104.00 101.35 6.35 104.39 81.08 60.81 19.61 71.77 1.000 2017 106.00 103.29 6.59 106.39 82.64 61.98 20.37 73.20 1.000 2018 108.12 105.36 7.07 108.52 84.29 63.22 21.94 74.66 1.000 2019 110.28 107.47 7.22 110.69 85.97 64.48 22.38 76.16 1.000 2020 112.49 109.62 7.36 112.90 87.69 65.77 22.83 77.68 1.000 2021 114.74 111.81 7.51 115.16 89.45 67.09 23.30 79.23 1.000 2022 117.03 114.04 7.66 117.47 91.24 68.43 23.77 80.82 1.000 2023 119.37 116.33 7.81 119.82 93.06 69.80 24.25 82.44 1.000 2024 121.76 118.65 7.97 122.21 94.92 71.19 24.74 84.08 1.000 2025 124.20 121.03 8.13 124.66 96.82 72.62 25.24 85.77 1.000 2026 126.68 123.45 8.29 127.15 98.76 74.07 25.75 87.48 1.000 There- after +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr 1.000 Notes: (1)     As at September 30, 2011. (2)     Inflation rate for costs escalated 2% per year from 2011. (3)     Exchange rate used to generate the benchmark reference prices in this table. About Carmen Energy Inc. Carmen is based in Calgary, Alberta and a publicly traded oil and gas exploration and production company. The focus is on exploration and development of Western Canadian Sedimentary Basin based oil and gas properties. The current projects are the Jumpbush properties in south eastern Alberta, the Ferrybank properties in central Alberta, the Sylvan Lake area properties in Southern Alberta, the Viking-Kinsella properties in Alberta and the Hamburg properties in northern western Alberta. ON BEHALF OF THE BOARD OF DIRECTORS Mr. Brian Doherty, President, CEO and Director Contact: brian.doherty@carmenenergy.ca; (403) 537-5590 Advisory Regarding Forward-Looking Information and Statements This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "will", "expects", "believe", "plans", "potential" and similar expressions are intended to identify forward-looking statements or information. More particularly and without limitation, this press release contains statements relating to "reserves" which are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, which the reserves described, can be profitably produced in the future. Readers should be cautioned that the forgoing list of forward-looking statements and information contained herein should not be considered exhaustive. The forward-looking statements and information in this press release are based on certain key expectations and assumptions made by Carmen. Although Carmen believes that the expectations and assumptions on which such forward looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because Carmen can give no assurance that they will prove to be correct. Since forward-looking statements and information 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, the risks associated with the oil and gas industry in general such as 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 and resource estimates; the uncertainty of estimates and projections relating to reserves, resources, production, costs and expenses; health, safety and environmental risks; commodity price and exchange rate fluctuations; marketing and transportation; loss of markets; environmental risks; competition; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions including the Acquisitions; ability to access sufficient capital from internal and external sources; changes in legislation, including but not limited to tax laws, royalties and environmental regulations. Management has included the above summary of assumptions and risks related to forward-looking information provided in this press release in order to provide securityholders with a more complete perspective on Carmen's future operations and such information may not be appropriate for other purposes. The forward-looking statements and information contained in this press release are made as of the date hereof and Carmen 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. BARRELS OF OIL EQUIVALENT Barrels of oil equivalent (BOE) is calculated using the conversion factor of 6 Mcf (thousand cubic feet) of natural gas being equivalent to one barrel of oil. BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf:1 bbl (barrel) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. 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 press release.   Carmen Energy Inc CONTACT: Mr. Brian Doherty, President, CEO and DirectorContact: brian.doherty@carmenenergy.ca; (403) 537-5590

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