Cumberland Oil & Gas Ltd. (TSX VENTURE:COG) ("Cumberland" or the "Company") has
filed its Audited Financial Statements, related Management's Discussion and
Analysis ("MD&A") and Annual Information Form for the year ended December 31,
2011. Copies of these documents may be obtained under Cumberland's SEDAR profile
via the SEDAR website at www.sedar.com or through the Company's website at
www.cumberlandltd.com


2011 Financial and Operating Highlights



--  Achieved water-flood response at the Valhalla Doe Creek "M" light oil
    pool ("Valhalla"). Light oil production has increased from 10 barrels of
    oil per day ("bopd") at December 2010 to over 50 bopd in the fourth
    quarter 2011. 
--  Successful in moving 63 mbbl from proved non-producing to proved
    producing reserves due to positive water-flood response at Valhalla. The
    before tax net revenues (discounted at 10%) of the Company's oil
    reserves increased by 1% year over year in part due to the Company's
    success at Valhalla. Light oil reserves now account for approximately
    90% of the Company's proved plus probable before tax net revenues. 
--  Average annual production for fiscal 2011 increased by 41% to 89 barrels
    of oil equivalent ("boe") per day. 
--  Acquired an additional 902.4 net hectares of land at West Nig through
    the acquisition of its partners' combined 80% interest in this prospect.
    This land was acquired at an average price of $305 per hectare. At the
    February 22, 2012 BC crown land sale, an eight section license
    approximately one mile away was sold for an average price of $3,232 per
    hectare. 
--  Entered into a farm-out and joint venture agreement at West Nig with a
    well capitalized senior oil and gas producer. This senior producer has
    agreed to drill and complete an Upper Montney horizontal well by August
    2012. 
--  Positive working capital of $0.70 million as at December 31, 2011.

                                 Three months ended              Year ended 
                                        December 31             December 31 
Financial                          2011        2010        2011        2010 
----------------------------------------------------------------------------
                                                                            
Oil and gas sales               531,096     155,910   1,834,293     759,057 
Funds used in operations (1)   (211,046)   (340,536)   (371,381) (1,095,472)
  Per basic and diluted                                                     
   share                          (0.01)      (0.01)      (0.01)      (0.03)
Cash used in operating                                                      
 activites                      (95,808)   (234,756)   (414,459) (1,093,772)
  Per basic and diluted                                                     
   share                          (0.00)      (0.01)      (0.01)      (0.03)
Net loss                       (639,908)   (839,286) (1,118,311) (1,914,015)
  Per basic and diluted                                                     
   share                          (0.02)      (0.02)      (0.03)      (0.06)
Capital expenditures, net        37,010     997,236     406,130   3,029,637 
Working capital (2)             699,173   1,626,685     699,173   1,626,685 
Weighted average shares                                                     
  - Basic                    35,684,319  35,684,319  35,684,319  32,184,073 
  - Diluted                  35,684,319  35,684,319  35,684,319  32,185,073 



Notes:

(1) Funds used in operations is calculated as cash used in operating activities
and adding changes in non-cash working capital, if any. Funds used in operations
per share is calculated using the basic and diluted weighted-average number of
shares for the period. Funds used in operations and funds used in operations per
share are used to analyze Cumberland's operating performance. Funds used in
operations and funds used in operations per share do not have standardized
measures prescribed by International Financial Reporting Standards ("IFRS") and
therefore may not be comparable with calculations of similar measures for other
companies.


(2) Working capital includes current assets and current liabilities.



                                   Three months ended             Year ended
                                          December 31            December 31
Operations                            2011       2010        2011       2010
----------------------------------------------------------------------------
                                                                            
Daily production                                                            
  Crude oil (bbl/d)                     50          8          42         11
  Natural gas (mcf/d)                  275        306         280        311
  Oil equivalent (boe/d @ 6:1)          96         59          89         63
                                                                            
Average prices                                                              
  Crude oil ($/bbl)                  97.49      79.46       95.51      73.72
  Natural gas ($/mcf)                 3.16       3.59        3.60       3.95
  Oil equivalent ($/boe)             60.05      28.96       56.62      33.97
                                                                            
Netback                                                                     
  Operating netback ($/boe) (1)      12.08     (17.27)      20.05       6.04



Note:

(1) Operating netback equals oil and gas sales less royalties, operating
expenses and transportation costs, calculated on a boe basis. Operating netback
does not have a standardized measure prescribed by IFRS and therefore may not be
comparable with the calculation of similar measures for other companies


Reserves Summary

The following table provides summary reserve information based upon the report
from McDaniel & Associates Consultants Ltd.("McDaniel") evaluating Cumberland's
crude oil, natural gas and natural gas liquids reserves as at December 31, 2011
(the "McDaniel Report") using the published McDaniel (2012-01) price forecast.




                                                              Barrels of Oil
                         Natural Gas    Light/Medium Oil          Equivalent
                 Gross (1)   Net (2) Gross (1)   Net (2) Gross (1)   Net (2)
                    (Mmcf)    (Mmcf)    (Mbbl)    (Mbbl)    (Mboe)    (Mboe)
----------------------------------------------------------------------------
Proved                                                                      
  Producing          489.3     421.6     129.6      84.6     211.2     154.9
  Non-producing          -         -         -         -         -         -
  Undeveloped            -         -      52.6      37.4      52.6      37.4
----------------------------------------------------------------------------
Total proved         489.3     421.6     182.2     122.0     263.8     192.3
Probable             192.0     165.6     223.8     174.9     255.8     202.5
----------------------------------------------------------------------------
Total proved                                                                
 plus probable       681.3     587.2     406.0     297.0     519.6     394.8
----------------------------------------------------------------------------



Notes:

1. "Gross" reserves are working interest reserves before royalty deductions. 

2. "Net" reserves included working interest reserves after royalty deductions
plus royalty reserves. 


3. Oil equivalent amounts have been calculated using a conversion rate of six
thousand cubic feet of natural gas to one barrel of oil. 


4. May not add due to rounding.

Reserves Values

The estimated before tax net revenues associated with Cumberland's reserves
effective December 31, 2011 as set forth in the McDaniel Report, and based on
the published McDaniel (2012-01) future price forecast, are summarized in the
following table:




                                         Discounted at:                     
($ thousands)                    0%        5%       10%       15%       20% 
----------------------------------------------------------------------------
Proved                                                                      
  Producing                 5,610.6   4,787.8   4,151.8   3,656.0   3,264.1 
  Non-producing                (8.1)     (6.8)     (5.8)     (5.0)     (4.3)
  Undeveloped               1,348.3   1,029.4     780.9     586.2     432.3 
----------------------------------------------------------------------------
Total proved                6,950.8   5,810.3   4,926.8   4,237.1   3,692.1 
Probable                    9,393.4   6,417.4   4,597.2   3,429.0   2,643.3 
----------------------------------------------------------------------------
Total proved plus probable 16,344.2   1,227.8   9,524.1   7,666.1   6,335.4 
----------------------------------------------------------------------------



Notes:

1. The estimated future net revenues are stated before deducting future
estimated site restoration costs and are reduced for estimated future
abandonment costs and estimated capital for future development associated with
the reserves. 


2. May not add due to rounding. 

3. Prior to provision of income taxes, interest, debt service charges and
general and administrative expenses. It should not be assumed that the
undiscounted and discounted future net revenues estimated by McDaniel represent
the fair market value of the reserves.


Reserves Reconciliation

The following summary reconciliation of Cumberland's gross reserves compares
changes in the Company's reserves as at December 31, 2011, to the Company's
reserves as at December 31, 2010, based on the McDaniel (2012-01) price
forecast.




                                                                      Total 
                                                Total                Proved 
                                                                       plus 
                                               Proved   Probable   Probable 
                                               (Mboe)     (Mboe)     (Mboe) 
----------------------------------------------------------------------------
Balance December 31, 2010                       286.7      272.2      558.9 
Technical revisions                               9.4      (16.4)      (7.0)
Discoveries/extensions                              -          -          - 
Production                                      (32.4)         -      (32.4)
----------------------------------------------------------------------------
Balance December 31, 2011                       263.8      255.8      519.6 
----------------------------------------------------------------------------



Notes:

1. Gross reserves means working interest reserves before royalty deductions. 

2. May not add due to rounding.

Operations Update and 2012 Outlook

In 2011, the Company experienced positive water-flood response to its light pool
at Valhalla. Light oil production increased from 10 bopd at the end of 2010 to
50 bopd during the fourth quarter of 2011. The Company expects the pool to
continue to respond to water injection and for light oil production to increase
during 2012.


During 2011, the Company acquired its partners' interests at West Nig, an
emerging liquids-rich Montney resource play in N.E. British Columbia. Ownership
of 100% of the land enabled Cumberland to negotiate a farm-out of its interest
to a senior oil and gas producer active in the area. This senior producer has
undertaken to drill and complete, at its sole cost, an Upper Montney horizontal
well by August of this year. Recent drilling activity in the area has focused
primarily on the Upper Montney formation, with very encouraging results. Within
the last few months a competitor has targeted the Lower Montney formation with a
horizontal well, and has reported very high liquids content in that zone. These
results continue to support the potential of this play.


The Company's remaining focus for 2012 will be on developing its oil resource
play at Chambery in southwest Saskatchewan as well as attempting to add to its
land holdings in the Peace River Arch. The Company's lands in Chambery are in
close proximity to several resource development projects being successfully
undertaken by large companies in that area. Recent drilling results have been
very encouraging. In addition, prices paid at recent land sales immediately
adjacent to Cumberland's land supports the Company's technical thesis in this
area.


READER ADVISORIES

Information Regarding Disclosure on Oil and Gas Reserves

Our oil and gas reserves statement for the year ended December 31, 2011, which
includes complete disclosure of our oil and gas reserves and other oil and gas
information in accordance with NI 51-101, is contained within our Annual
Information Form which is available on our SEDAR profile at www.sedar.com. In
relation to the disclosure of estimates of reserves relating to less than all of
the Company's reserves, such estimates for individual properties may not reflect
the same confidence level as estimates of reserves for all properties, due to
the effects of aggregation.


Forward-Looking Statements

This news release contains certain forward-looking information and statements
within the meaning of applicable securities laws. The use of any of the words
"expect', "anticipate", "continue", "estimate", "may", "will", "should",
"believe", "intends" and similar expressions are intended to identify
forward-looking information or statements. In particular, but without limiting
the foregoing, this news release contains forward-looking information and
statements pertaining to the following: the volumes and estimated value of
Cumberland's oil and gas reserves; anticipated production volumes from the
expected well at Chambery and from the Valhalla Doe Creek "M" pool with
continued water-flood activities; the drilling of a horizontal well at West Nig
during the year; anticipated operational activities; the sources of funding for
certain of the company's future operations; the life of Cumberland's reserves,
the volume and product mix of Cumberland's production; future oil and natural
gas prices; future liquidity and financial capacity; the total future capital
associated with development of reserves and resources; future operating costs,
royalty rates and exchange rates.


The recovery and reserve estimates of Cumberland's reserves provided herein are
estimates only and there is no guarantee that the estimated reserves will be
recovered. In addition, forward-looking statements or information are based on a
number of material factors, expectations or assumptions of Cumberland which have
been used to develop such statements and information but which may prove to be
incorrect. Although Cumberland believes that the expectations reflected in such
forward-looking statements or information are reasonable, undue reliance should
not be placed on forward-looking statements because Cumberland can give no
assurance that such expectations will prove to be correct. In addition to other
factors and assumptions which may be identified herein, assumptions have been
made regarding, among other things: results from drilling and development
activities consistent with past operations and offsetting wells; the effect of
water-flood activities at the Pool; continued and timely development of
infrastructure in areas of new production; joint venture partner activities,
including fulfilling its commitment to drill a horizontal well at West Nig;
availability of debt and equity financing and cash flow to fund Cumberland's
current and future plans and expenditures; the impact of increasing competition;
stability of the economic and political environment in which Cumberland
operates; timely receipt of any required regulatory approvals; ability of
Cumberland to obtain qualified staff, equipment and services in a timely and
cost efficient manner; drilling results; ability of the operator of the projects
in which Cumberland has an interest in to operate the field in a safe, efficient
and effective manner; ability of Cumberland to obtain financing on acceptable
terms; field production and decline rates; ability to replace and expand oil and
gas reserves through acquisition, development and exploration; timing and cost
of pipeline, storage and facility construction and expansion and the ability of
Cumberland to secure product transportation; future commodity prices; currency,
exchange and interest rates; regulatory framework regarding royalties, taxes,
and environmental matters in the jurisdictions in which Cumberland operates; and
the ability of Cumberland to successfully market its oil and natural gas
products.


The forward-looking information and statements included in this news release are
not guarantees of future performance and should not be unduly relied upon. Such
information and statements, including the assumptions made in respect thereof,
involve known and unknown risks, uncertainties and other factors that may cause
actual results or events to differ materially from those anticipated in such
forward-looking information or statements including, without limitation; changes
in commodity prices; changes in the demand for or supply of Cumberland's
products; unanticipated operating results or production declines; changes in tax
or environmental laws, royalty rates or other regulatory matters; changes in
development plans of Cumberland or by third party operators of Cumberland's
properties, default of third parties of contractual commitments; inaccurate
estimation of Cumberland's oil and gas reserve and resource volumes; limited or
a lack of access to capital markets; increased costs; inadequate insurance
coverage; impact of competitors and certain other risks detailed from
time-to-time in Cumberland's public disclosure documents (including, without
limitation, those risks identified in this news release and Cumberland's Annual
Information Form).


The forward-looking information and statements contained in this news release
speak only as of the date of this news release and Cumberland does not assume
any obligation to publicly update or revise any of the included forward-looking
statements or information, whether as a result of new information, future events
or otherwise, except as may be required by applicable securities laws.


BOE Equivalent

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. Given 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 ratio of 6:1 may be a misleading indication of
value.


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