Tango Releases Year-End Reserves
January 29 2010 - 8:02AM
Marketwired Canada
Tango Energy Inc. (TSX VENTURE:TEI)
Oil and Gas Reserves
Tango's proved plus probable petroleum and natural gas reserves (working
interest before royalty) increased 25%, after production, to 2,366 mboes as at
December 31, 2009. Reserves increased due to success at Quaich. Proven plus
probable reserve additions and revisions after production were 468 mboe, which
replaced approximately 270% of Tango's production volumes during 2009.
The following tables provide information on Tango's petroleum oil and gas
reserves and the present value of the estimated future net cash flow associated
with such reserves as at December 31, 2009. The information set forth below is
derived from the Paddock Lindstrom report, which has been prepared in accordance
with the standards contained in the COGE Handbook and the reserves definitions
contained in NI 51-101. It should not be assumed that the estimated future net
cash flow shown below is representative of the fair market value of the
Corporation's properties. There is no assurance that such price and cost
assumptions will be attained and variances could be material. "Gross" reserve
quantities include the Company's share of reserves before royalty plus royalty
income volumes. "Net" reserve quantities include the Company's share of reserves
after royalty plus royalty income volumes.
----------------------------------------------------------------------------
SUMMARY OF OIL AND GAS RESERVES
AND NET PRESENT VALUES OF FUTURE NET REVENUE
as of December 31, 2009
FORECAST PRICES AND COSTS
----------------------------------------------------------------------------
RESERVES
----------------------------------------------------------------------------
NATURAL GAS
NATURAL GAS LIQUIDS BOE's
----------------------------------------------------------------------------
Gross Net Gross Net Gross Net
RESERVES CATEGORY (mmcf) (mmcf) (mbbl) (mbbl) (mbbl) (mbbl)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
PROVED
----------------------------------------------------------------------------
Developed Producing 3,133 2,061 10 10 532 354
----------------------------------------------------------------------------
Developed Non-Producing 4,228 3,169 28 26 733 554
----------------------------------------------------------------------------
Undeveloped - - - - - -
----------------------------------------------------------------------------
TOTAL PROVED 7,361 5,230 38 36 1,265 908
----------------------------------------------------------------------------
PROBABLE 6,226 4,654 63 62 1,101 838
----------------------------------------------------------------------------
TOTAL PROVED PLUS PROBABLE 13,587 9,884 101 98 2,366 1,746
----------------------------------------------------------------------------
----------------------------------------------------------------------------
NET PRESENT VALUES OF FUTURE NET REVENUE
----------------------------------------------------------------------------
BEFORE INCOME TAXES DISCOUNTED AT
----------------------------------------------------------------------------
RESERVES CATEGORY 0% (m$) 5% (m$) 10% (m$) 15% (m$) 20% (m$)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
PROVED
----------------------------------------------------------------------------
Developed Producing 9,915 8,403 7,316 6,504 5,876
----------------------------------------------------------------------------
Developed Non-Producing 16,421 13,788 11,957 10,592 9,529
----------------------------------------------------------------------------
Undeveloped - - - - -
----------------------------------------------------------------------------
TOTAL PROVED 26,336 22,191 19,273 17,096 15,405
----------------------------------------------------------------------------
PROBABLE 23,393 16,082 11,735 8,911 6,962
----------------------------------------------------------------------------
TOTAL PROVED PLUS PROBABLE 49,729 38,273 31,008 26,007 22,367
----------------------------------------------------------------------------
----------------------------------------------------------------------------
NET PRESENT VALUES OF FUTURE NET REVENUE
----------------------------------------------------------------------------
AFTER INCOME TAXES DISCOUNTED AT
----------------------------------------------------------------------------
RESERVES CATEGORY 0% (m$) 5% (m$) 10% (m$) 15% (m$) 20% (m$)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
PROVED
----------------------------------------------------------------------------
Developed Producing 7,339 6,213 5,404 4,802 4,337
----------------------------------------------------------------------------
Developed Non-Producing 12,154 10,142 8,748 7,711 6,906
----------------------------------------------------------------------------
Undeveloped - - - -
----------------------------------------------------------------------------
TOTAL PROVED 19,493 16,355 14,152 12,513 11,243
----------------------------------------------------------------------------
PROBABLE 17,581 11,984 8,649 6,481 4,985
----------------------------------------------------------------------------
TOTAL PROVED PLUS PROBABLE 37,074 28,339 22,801 18,994 16,228
----------------------------------------------------------------------------
As of January 8, 2010 proved developed producing reserves include an additional
2,023 mmcf of reserves with a present value of $6.7 million, discounted at 10%,
transferred from proved developed non-producing reserves. This change is due to
the 12-34 well at Quaich commencing production on January 8, 2010.
----------------------------------------------------------------------------
SUMMARY OF PRICING AND INFLATION RATE ASSUMPTIONS
as of December 31, 2009
FORECAST PRICES AND COSTS
----------------------------------------------------------------------------
NATURAL GAS Condensate INFLATION EXCHANGE
AECO C Edmonton RATES RATE
Year ($Cdn/mmBTU) ($Cdn/bbl) %/Year ($US/Cdn)
----------------------------------------------------------------------------
Forecast
----------------------------------------------------------------------------
2010 5.82 83.25 0.0 0.95
----------------------------------------------------------------------------
2011 6.29 85.87 2.0 0.95
----------------------------------------------------------------------------
2012 6.77 88.49 2.0 0.95
----------------------------------------------------------------------------
2013 7.28 93.77 2.0 0.95
----------------------------------------------------------------------------
2014 7.80 99.05 2.0 0.95
----------------------------------------------------------------------------
Forecast product prices and operating costs were escalated at a rate of 2.0% per
year beyond 2014. The exchange rate used for the US/Canadian dollar was 0.95.
The forecast prices presented above utilize Paddock Lindstrom's price forecast
as at December 31, 2009.
Additional reserve information will be included in Tango's NI 51-101 report,
which will be filed on SEDAR.
This release contains forward-looking information. By their nature,
forward-looking statements involve assumptions and known and unknown risks and
uncertainties that may cause actual future results to differ materially from
those contemplated. These risks include such things as volatility of oil and gas
prices, commodity supply and demand, fluctuations in currency and interest
rates, ultimate recoverability of reserves, timing and costs of drilling
activities and pipeline construction, new regulations and legislation and
availability of capital. Tango does not undertake to update any of such
forward-looking statements. Please refer to Tango's Annual Report for more
detail as to the nature of these risks and uncertainties. Although Tango
believes that the expectations represented by these forward looking statements
are reasonable, there can be no assurance that such expectations will prove to
be correct.
BOE's may be misleading, particularly if used in isolation. In accordance with
NI 51-101, a barrel of oil equivalent (boe) conversion ratio of 6 mcf: 1 boe is
based on an energy equivalency conversion method primarily applicable at the
burner tip and does not represent a value equivalency at the wellhead.
Abbreviations used are defined as flows: m$ (thousands of dollars); mcf
(thousand standard cubic feet); mmcf (million standard cubic feet); mboe
(thousands of barrels of oil equivalent); mmBTU (million British Thermal Units).
The aggregate of the exploration and development costs incurred in the most
recent financial year and the change during that year in the estimated future
development costs generally will not reflect total finding and development costs
related to reserve additions for that year.
Toscana Energy Income Corporation (TSXV:TEI)
Historical Stock Chart
From May 2024 to Jun 2024
Toscana Energy Income Corporation (TSXV:TEI)
Historical Stock Chart
From Jun 2023 to Jun 2024
