Canext Announces Corporate and Reserves Update
27 Oktober 2009 - 9:52PM
Marketwired Canada
Canext Energy Ltd. ("Canext" or "the Company") (TSX VENTURE:CXZ) announces that
the Board of Directors have initiated a process to evaluate various strategic
alternatives for the Company. These alternatives may include a sale, merger,
major asset disposition, major financing, or any other alternative to assist in
unlocking additional value for the benefit for all shareholders.
Canext has retained National Bank Financial Inc. to act as its financial advisor
to assist in the review process.
The Company does not expect to update its progress with respect to the review of
the alternatives until the Board of Directors authorizes any transaction or if
required by applicable disclosure requirements. There can be no assurances that
any transaction will occur or, if one is undertaken, any certainty with regard
to its terms or timing.
In conjunction with the review, the Company has updated its reserve information.
The following tables summarize the Company's reserve information as prepared in
accordance with National Instrument ("NI") 51-101 by Trimble Engineering
Associates Ltd ("Trimble Report") with an effective date of September 30, 2009.
Reserves Summary - Company working interest before royalties using forecasted
prices as at September 30, 2009
Light and
Medium Oil NGL's Gas BOE 6:1
mstb mstb mmscf mstboe
----------------------------------------------------------------------------
Proved Developed
Producing 370 126 6,787 1,628
Proved Developed Non
Producing 36 13 1,591 313
----------------------------------------------------
Total Proved
Developed 406 139 8,378 1,941
Proved Undeveloped 227 58 5,835 1,258
----------------------------------------------------
Total Proved 633 197 14,213 3,199
Probable 419 132 13,515 2,804
----------------------------------------------------
Total Proved +
Probable 1,052 329 27,728 6,002
----------------------------------------------------
----------------------------------------------------
(Tables may not add due to rounding.)
The Company's Proved plus Probable reserves are down from 6,554 mstboe at the
start of the year due to production of 279 mstboe, property dispositions of 149
mstboe and revisions to previous estimates of 123 mstboe. The revisions to
previous estimates for Proved reserves were positive 1.1 % while the revisions
for P + P reserves were negative 1.9 %. The revisions to oil and NGL estimates
were positive for both the Proved and Proved plus Probable cases while revisions
to natural gas estimates were negative for both cases.
Summary of Net Present Values of Future Net Revenue
Forecasted Prices and Costs
Before Income Taxes, Discounted at (%/year)
As at September 30, 2009
0% 10% 15%
M$ M$ M$
----------------------------------------------------------------------------
Proven Developed Producing 50,539 33,406 28,903
Proven Developed Non Producing 4,275 2,401 1,834
------------------------------------------
Total Developed 54,814 35,807 30,737
Undeveloped 30,987 14,783 10,919
------------------------------------------
Total Proved 85,801 50,590 41,657
Probable 84,138 33,160 23,437
------------------------------------------
Total Proved + Probable 169,939 83,750 65,093
------------------------------------------
------------------------------------------
Note: NI 51-101 disclosure requires Canext to provide the following warning: It
should not be assumed that the present value of estimated future net cash flows
shown above are representative of the fair market value of the reserves.
Forecasted price assumptions used in the Trimble Report as at September 30, 2009
Exchange WTI Edmonton AECO
Rate @ Cushing Light Spot
YEAR US$/CDN$ US$/bbl CDN$/bbl $/MMbtu
2009 Forecast 0.94 71.25 75.00 4.50
2010 Forecast 0.95 76.75 80.00 6.00
2011 Forecast 0.96 82.25 85.00 6.75
2012 Forecast 0.97 88.00 90.00 7.25
2013 Forecast 0.98 93.75 95.00 7.75
Prices escalating at 2.0 percent annually thereafter.
Operations Update
Canext has recently brought on-stream two new wells at its Sweeney oil property.
These wells are producing at a combined rate of approximately 190 bopd (115 bopd
net). The production rates are currently restricted due to facility constraints
and pending regulatory approval. The Company has applied for and received a
license to construct the first phase of a new multi well oil battery at Sweeney.
Construction has started with a target completion date prior to December 31,
2009. The battery will be capable of 2,600 barrels of fluid per day and up to
1,000 mcf/d of natural gas. The first phase will include 4,000 barrels of fluid
storage. Costs are estimated as $2,900,000 ($1,740,000 net) which includes
pipeline tie-ins and solution gas conservation for several wells.
Canext estimates November production at Sweeney will average 500 - 550 boepd
(300 - 330 boepd net). Upon completion of the battery and regulatory approval
for good production practice, the Company estimates increasing production for
the pool by 300 - 400 boepd (180 - 240 boepd net).
Third quarter financial information should be released on or about November 16,
2009.
Reader advisory:
The term "BOE" may be misleading, particularly if used in isolation. In
accordance with NI 51-101, a BOE conversion ratio for natural gas of 6 mscf: 1
bbl has been used which is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.
Investors are cautioned that the preceding statement of the Company may include
certain estimates, assumptions and other forward-looking information. The actual
future performance, developments and/or results of the Company may differ
materially from any or all of the forward-looking statements, which include
current expectations, estimates and projections, in all or part attributable to
general economic conditions and other risks, uncertainties and circumstances
partly or totally outside the control of the Company, including natural gas/oil
prices, reserve estimates, drilling risks, future production of gas and oil,
rates of inflation, changes in future costs and expenses related to the
activities involving the exploration, development and production of gas and oil
hedging, financing availability and other risks related to financial activities.
The Company's forward looking statements are expressly qualified in their
entirety by this cautionary statement. Except as required by law, the Company
undertakes no obligation to publicly update or revise any forward-looking
statements.
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