Sentinel Announces Reserve Information
August 07 2008 - 4:33PM
Marketwired Canada
NOT FOR DISSEMINATION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES.
Sentinel Rock Oil Corporation ("Sentinel" or the "Company") (TSX VENTURE:SEN) is
pleased to announce that it has filed on Sedar it's reserve report for the
period ended July 1, 2008 as evaluated by DeGolyer and MacNaughton Canada Ltd.
("D&M") and prepared in accordance with National Instrument 51-101 Standards of
Disclosure for Oil and Gas Activities.
This report documents the results achieved by the company on its activities
previously reported throughout 2007 - 2008 from its ongoing drilling programs.
Sentinel's President and CEO Tyler Cran commented, "We are pleased and
encouraged by the reserve increases in all categories. As a result of our last
drilling operations, we have established Proved Reserves, our Proved plus
Probable Reserves (2P) have increased by 1,770% and our Proved plus Probable
plus Possible (3P) Reserves by over 534%. The combined reserves have increased
from 1.477 to 5.307 MMboe and are consistent with our strategy of growing the
resource base of the company. This reserve growth positions us well to take
advantage of the current strong developing market for heavy oil."
Cran also commented "The drilling activity and results from the drilling program
were on plan as well as in line with expectations that management had set out at
the beginning of the program."
The Reserves report will be available at www.sedar.com.
RESERVES REPORT
Based on reserves reports prepared by D&M, using forecast prices and
costs, Sentinel's Gross Reserves for July 1, 2008 as compared to the
previous year end are as follows.
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Dollars - Company share 2007 2008 % Change
Proved $ 0 $ 528,000
Proved + Probable $ 2,266,000 $ 40,119,000 1,770%
Proved + Probable + Possible $ 21,063,000 $ 112,376,000 534%
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oil/STB - company share
2007 2008 % Change
Proved 0 0 0%
Proved + Probable 291,265 1,605,660 551%
Proved + Probable + Possible 1,472,591 4,972,005 338%
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gas/MMCF - company share
2007 2008 % Change
Proved 0 145
Proved + Probable 144 851 591%
Proved + Probable + Possible 763 2,012 264%
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Combined Gas and Oil to standard BOE
2007 2008 % Change
Proved 0 24,167
Proved + Probable 292,129 1,747,493 598%
Proved + Probable + Possible 1,477,169 5,307,338 359%
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NAV Calculations
shares outstanding 28,264,431 2007 2008 % Change
Proved + Probable (2P) $ 0.08 $ 1.42 1,770%
Proved + Probable + Possible (3P) $ 0.75 $ 3.98 534%
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NAV Calculations
fully diluted 30,426,931 2007 2008 % Change
Proved + Probable (2P) $ 0.07 $ 1.32 1,770%
Proved + Probable + Possible (3P) $ 0.69 $ 3.69 534%
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- The net present value of Sentinel's proved plus Probable reserves increased to
$40.12 million, a 1,770% increase while the NPV of the total Proved plus
Probable plus Possible reserves increased to $112.37 million, a 534% increase.
(1) Proved Reserves are those reserves that can be estimated with a high degree
of certainty to be recoverable. It is likely that the actual remaining
quantities recovered will exceed the estimated proved reserves.
(2) Probable Reserves are those additional reserves that are less certain to be
recovered than proven reserves. It is equally likely that the actual remaining
quantities recovered will be greater or less than the sum of the proven plus
probable reserves.
(3) Possible Reserves are those additional reserves that are less certain to be
recovered than probable reserves. There is only a 10-percent probability that
the quantities actually recovered will equal or exceed the sum of the proven
plus probable plus possible reserves.
(4) The Net Present Value (NPV) based on D&M Forecast Pricing and costs, before
taxes, discounted at 10%. The estimated NPV does not necessarily represent the
fair market value of our reserves. There is no assurance that forecast prices
and costs assumed in the D&M evaluations will be attained, and variances could
be material.
Additional information on Sentinel Rock Oil Corporation is available on the
Company's website at www.sroc.ca.
All references in this release to BOE's are based on a 6 to 1 conversion ratio.
Boe's may be misleading, particularly if used in isolation. A BOE conversion 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.
Sentinel is a Calgary, Alberta based oil Exploration Company focusing on heavy
oil with operations currently located in Northern Alberta and mid west
Saskatchewan.
This news release contains forward-looking information. Forward-looking
information is generally identifiable by the terminology used, such as "expect",
"believe", "estimate", "should" "anticipate" and "potential" or other similar
wording. Forward-looking information in this news release includes, but is not
limited to, references to: well drilling programs and drilling plans, estimates
of reserves and potentially recoverable resources, and information on future
production and project start-ups. By their very nature, the forward-looking
statements contained in this news release require Sentinel and its management to
make assumptions that may not materialize or that may not be accurate. The
forward-looking information contained in this news release is subject to known
and unknown risks and uncertainties and other factors, which could cause actual
results, expectations, achievements or performance to differ materially,
including without limitation: imprecision of reserve estimates and estimates of
recoverable quantities of oil, changes in project schedules, operating and
reservoir performance, the effects of weather and climate change, the results of
exploration and development drilling and related activities, demand for oil and
gas, commercial negotiations, other technical and economic factors or revisions
and other factors, many of which are beyond the control of Sentinel. Although
Sentinel believes that the expectations reflected in its forward-looking
statements are reasonable, it can give no assurances that the expectations of
any forward-looking statements will prove to be correct.
28,264,431 common shares issued
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