CALGARY, April 21, 2017 /CNW/ - Return Energy Inc.
("Return" or the "Company") (TSX-V: "RTN") has today
acquired, through its wholly-owned subsidiary, Winslow Resources
Inc., certain partner interests in its core area of Rycroft, north of Grande Prairie, Alberta, for cash
consideration of $750,000 (subject to
final adjustments), effective February 1,
2017.
The interests acquired include production of approximately 60
BOE/day (80% natural gas), and the non-operated 50% interest in the
Company's operated Rycroft
gathering system and gas plant (Return's ownership is now 100%).
All of the acquired production is processed through the
Rycroft gas plant. Based on the
Company's existing independent reserve report prepared by Sproule
Associates Limited ("Sproule"), dated effective December 31, 2016 (the "Reserve Report"),
the acquisition includes prorated proved developed producing
reserves of 171,600 BOE and proved plus probable reserves of
228,400 BOE. Before tax net present value of future net
revenue discounted at 10% equals $989,000 for proved developed producing reserves
and $1,266,000 for proved plus
probable reserves.
Ken Tompson, Return's President
& CEO, commented, "This consolidation of interests at
Rycroft has been a key part of the
development plan put in place since acquiring our Peace River Arch
assets in October 2016. Sole
ownership of the gas plant will give us greater flexibility and
control over plant through-put, in addition to allowing for
potential increased revenue derived from future processing of
third-party volumes."
A copy of this news release can also be found on Return's
website at www.returnenergyinc.com and on SEDAR 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.
Reader Advisories
BOE Presentation. References herein to "BOE" mean barrels
of oil equivalent derived by converting gas to oil in the ratio of
six thousand cubic feet (Mcf) of gas to one barrel (bbl) of oil.
BOE may be misleading, particularly if used in isolation. A BOE
conversion ratio of 6 Mcf: 1 bbl is based on an energy conversion
method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead. In addition, 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.
Information Regarding Disclosure on Oil and Gas Reserves. The
Reserve Report has been prepared by Sproule Associates Limited in
accordance with National Instrument 51-101 and COGEH reserve
definitions. Actual crude oil, natural gas and natural gas
liquids reserves may be greater than or less than the estimates
provided herein. The forecast cost and price assumptions used
in the Reserve Report assume increases in wellhead selling prices
and take into account inflation with respect to future operating
and capital costs and are net of the associated royalties,
operating costs, development costs, and abandonment and reclamation
costs and are stated prior to provision for interest and general
and administrative expenses. Light crude oil, conventional
natural gas and natural gas liquids benchmark reference pricing,
inflation and exchange rates utilized by Sproule in the Reserve
Report were Sproule's forecast as at December 31, 2016. Net present values have
been presented on a before tax basis. Net present value of reserves
do not represent fair market value.
Forward-Looking Statements and Information. This news release
contains certain statements which constitute forward-looking
statements or information ("forward-looking statements").
These statements relate to future events or Return's future
performance. All statements other than statements of historical
fact may be forward-looking statements or information.
Forward-looking statements or information is often, but not always,
identified by the use of words such as "seek", "anticipate",
"plan", "continue", "estimate", "expect", "may", "will", "project",
"predict", "potential", "targeting", "intend", "could", "might",
"should", "believe" and similar expressions. Statements relating to
"reserves" are also deemed to be forward-looking statements, as
they involve the implied assessment, based on certain estimates and
assumptions, that the reserves described exist in the quantities
predicted or estimated and that the reserves can be profitably
produced in the future. In particular, this news release
contains forward-looking statements pertaining to the following:
projections of market prices and costs, supply and demand for oil
and natural gas, the quantity of reserves and oil and natural gas
production levels. Such forward-looking statements are subject to
numerous risks and uncertainties, some of which are beyond the
Company's control. Although the Company believes that the
expectations in its forward-looking statements are reasonable, they
are based on factors and assumptions concerning future events which
may prove to be inaccurate. Those factors and assumptions are based
upon currently available information. Such statements are subject
to known and unknown risks, uncertainties and other factors that
could influence actual results or events and cause actual results
or events to differ materially from those stated, anticipated or
implied in the forward looking statements. As such, readers are
cautioned not to place undue reliance on the forward looking
statements, as no assurance can be provided as to future results,
levels of activity or achievements. The forward-looking statements
contained in this document are made as of the date of this document
and, except as required by applicable law, the Company does not
undertake any obligation to publicly update or to revise any of the
included forward-looking statements, whether as a result of new
information, future events or otherwise. The forward-looking
statements contained in this document are expressly qualified by
this cautionary statement.
SOURCE Return Energy Inc
