Resaca Exploitation Inc Reserves Update (8959P)
31 Oktober 2012 - 8:00AM
UK Regulatory
TIDMRSOX
RNS Number : 8959P
Resaca Exploitation Inc
31 October 2012
For immediate release 31 OCTOBER 2012
Resaca Exploitation, Inc.
("Resaca" or "the Company")
Reserves Update
Resaca (AIM: RSOX), the oil and natural gas production,
exploitation, and development company focused on the Permian Basin
in the USA, is pleased to announce an updated reserve study as of
30 June 2012 for the Company's oil and gas properties and to
provide an update on the Company's production.
Reserves Update
As of 30 June 2012, Resaca's proved and probable ("2P") reserves
were 27.7 million barrels ("MMbbls") of oil and 13.5 billion cubic
feet ("Bcf") of natural gas, for a total of 30.0 million barrels of
oil equivalent ("MMboe"). This represents 0.1 MMboe increase in
Resaca's 2P reserves since 30 June 2011 after realization of 0.3
MMboe of production during the fiscal year ended 30 June 2012. The
Company's proved reserves represented 48% of the 2P reserves as of
30 June 2012. Additionally, Resaca's possible reserves were 14.3
MMbbls of oil and 3.3 Bcf of natural gas as of 30 June 2012 for
total proved, probable and possible ("3P") reserves of 42.0 MMbbls
of oil and 16.8 Bcf of natural gas (total 3P reserves of 44.9
MMboe). Resaca's 3P reserves increased 9.1 MMboe since 30 June
2011, representing a 25% increase after consideration of fiscal
year production. The increase in 3P reserves is primarily
attributable to an increase in original oil in place estimates for
the Company's Cooper Jal Unit probable and possible CO(2) recovery
reserves and possible CO(2) recovery reserves related to the
Langlie Jal property, which was acquired during the fiscal year
ended 30 June 2012. All reserves are calculated on a net revenue
interest basis (working interest volumes, less royalties).
Resaca's proved developed producing ("PDP") reserves as of 30
June 2012 were 2.9 MMbbls of oil and 2.4 Bcf of natural gas, for a
for a total of 3.3 MMboe. This represents a 0.1 MMboe increase in
PDP reserves since 30 June 2011 after realization of 0.3 MMboe of
production during the fiscal year ended 30 June 2012. This
represents a 3% increase in PDP reserves after consideration of
fiscal year production. The increase in PDP reserves is primarily
attributable to the continued waterflood performance at the
Company's Cooper Jal Unit.
Resaca commissioned Haas Petroleum Engineering Services, Inc.
("Haas") to prepare a reserve report for its primary and secondary
recovery (water injection) reserves and Williamson Petroleum
Consultants, Inc. ("Williamson") to prepare a reserve report
considering only those additional reserves which could be recovered
through tertiary recovery (CO(2) injection). Together, these
reports provide a complete analysis of Resaca's reserves. Details
of the reports are set out in the table below:
NPV @10%
Natural Discount
Oil Gas $MM
(MMbbls) (Bcf) MMboe (Pre-Tax)
---------- -------- ------ -----------
Proved Reserves
Haas 12.6 11.0 14.4 $316.5
Williamson 0 0 0 0
---------- -------- ------ -----------
Total Proved Reserves 12.6 11.0 14.4 $316.5
========== ======== ====== ===========
Probable Reserves
Haas 2.6 2.5 3.1 $79.3
Williamson 12.5 0 12.5 139.3
---------- -------- ------ -----------
Total Probable Reserves 15.1 2.5 15.6 $218.6
========== ======== ====== ===========
Total 2P Reserves 27.7 13.5 30.0 $535.1
========== ======== ====== ===========
Possible Reserves
Haas 4.0 3.3 4.6 $109.1
Williamson 10.3 0 10.3 112.1
---------- -------- ------ -----------
Total Possible Reserves 14.3 3.3 14.9 $221.2
========== ======== ====== ===========
Total 3P Reserves 42.0 16.8 44.9 $756.3
========== ======== ====== ===========
The reserve estimates are based on the unweighted average
12-month prices as of 30 June 2012 under the revised SEC rules,
calculated as the unweighted arithmetic average of the
first-day-of-the-month oil and natural gas prices for each month
within the 12-month period ended 30 June 2012 of $95.67 per barrel
for oil and $3.15 per MMbtu for natural gas, and are further
adjusted by field for quality, transportation fees, and regional
price differentials. The reserves are calculated "before tax" and
consider the anticipated costs to develop and produce.
The Company is in the process of finalizing the audit of its
results for the fiscal year ended 30 June 2012 and expect to
release these results in November.
Commenting on the reserves and production update, J.P. Bryan,
Chairman and CEO of Resaca, said:
"We are pleased with the results from the continued performance
of our waterfloods and the further third party validation of the
CO(2) recovery potential at our Cooper Jal property, which we have
reflected in our reserves as of 30 June 2012.
We continue to move forward with the asset sales we announced
earlier in the month with the goal of reducing our debt, maximizing
the value for our property base, and strengthening the company for
future growth."
For further information please contact:
Resaca Exploitation, Inc.
J.P. Bryan, Chairman and Chief Executive
Officer +1 713-753-1300
John J. ("Jay") Lendrum, III, Vice Chairman +1 713-753-1400
Dennis Hammond, President and Chief
Operating Officer +1 713-753-1281
Will Gray, Executive Vice President +1 713-753-1273
Buchanan (Investor Relations) +44 (0) 20 7466 5000
Tim Thompson
Helen Chan
Ben Romney
finnCap Limited (Nomad and Broker) + 44 (0) 20 7220 0500
Matt Goode, Corporate Finance
Christopher Raggett, Corporate Finance
Victoria Bates, Corporate Broking
About Resaca
Resaca is an independent oil and gas development and production
company based in Houston, Texas. Resaca is focused on the
acquisition and exploitation of long-life oil and gas properties,
utilizing a variety of primary, secondary and tertiary recovery
techniques. Resaca's current properties are located in the Permian
Basin of West Texas and Southeast New Mexico. Additional
information is available at www.resacaexploitation.com.
In accordance with the AIM Rules, the information in this
announcement has been reviewed and approved by Dennis Hammond,
President. Mr. Hammond has a Bachelor of Science degree in
Petroleum Engineering, is a registered professional engineer in the
State of Texas, and has over 30 years relevant experience within
the sector.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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