Pilgrim Petroleum Report on Economic and Potential Recoverable Assessment in Archer and Wichita County Interests
May 20 2008 - 12:58PM
Marketwired
DALLAS, TX (FRANKFURT: PHV) is pleased to announce that the
company's Assessment on its interests in Archer and Wichita
Counties Texas, prepared by Gustavson Associates, can be found at
http://www.bpetroleum.com. The report has an effective date of
September 15, 2006, and evaluates Pilgrim Petroleum acreage located
on the Bend Arch-Fort Worth Basin Province, Texas.
The report was prepared using assumptions and methodology
guidelines outlined in the Canadian Oil and Gas Evaluation Handbook
("COGE Handbook") and in accordance with National Instrument 51-101
("NI 51-101"). Additionally, Gustavson Associates conducted a
scoping economic analysis of the Prospect using the "Best Estimate"
for both an oil and gas future net revenues (before deductions of
income taxes).
Specifically, the report provides the following highlights:
Low Estimate 996 MBbl 3.98 BCF
Best Estimate 1,832 MBbl 7.32 BCF
High Estimate 2,676 MBbl 10.70 BCF
ECONOMIC EVALUATION
Pilgrim also requested Gustavson Associates to complete economic
runs with the estimated prospective resources and similar
production profiles. This study will show estimate development
schedules for Pilgrim's acreage and generate a forecast of future
net revenues and discounted cash flow.
The following estimates are based on the best estimate of the
prospective hydrocarbon resources. The initial net prices, for the
purpose of the analysis are: $59.95 per barrel for the oil case and
$4.97 per MCF for the gas case and include deductions for estimated
future well abandonment costs.
Best Estimate Net Best Estimate Net Present
Revenue Before Income Tax Value of Future Net Revenues
(at 10% discount rate)
$102,370,000 $52,050,000
Pilgrim Petroleum President and CEO Rafael Pinedo said, "Pilgrim
has strategically waited to develop its asset portfolio together
with its venture partners to fully take advantage of its lease
position. The projected figure is just an estimation based on
previous Geologic studies of the area together with conservative
oil price range. With Triple digit oil prices and current market
conditions, a great level of profitability undermines the risk
associated to oil and gas exploration/drilling. As we approach
second quarter, we will communicate more on Drilling Plans for this
year. We are very excited about the opportunities we have
ahead."
The report is available for review on the Company's website.
About Pilgrim Petroleum Corporation
Headquartered in Dallas, Texas, Pilgrim Petroleum Corporation is
a publicly traded company (PINKSHEETS: PGPM) (FRANKFURT: PHV). The
company is acquiring oil and gas leases, producing properties,
mineral rights and surface interest's primary on marginal fields.
Once acquired, the company intends to develop each property to
maximize the income from each by refurbishing and improving the
existing production.
Forward-Looking Statements: The statements which are not
historical facts contained in this release are forward-looking
statements that involve risks and uncertainties, including but not
limited to, the effect of economic conditions, the impact of
competition, the results of financing efforts, changes in
consumers' preferences and trends. The words "estimate,"
"possible," and "seeking" and similar expressions identify
forward-looking statements, which speak only to the date the
statement was made. The Company undertakes no obligation to
publicly update or revise any forward-looking statements, because
of new information, future events, or otherwise. Future events and
actual results may differ materially from those set forth herein,
contemplated by, or underlying the forward looking statements.
2008 Pilgrim Petroleum Corporation. The information herein is
subject to change without notice. Pilgrim Petroleum Corporation
shall not be liable for technical or editorial errors or omissions
contained herein.
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CONTACT: Pilgrim Petroleum Corporation Eddie Monet 619-864-0166
www.apetroleum.com
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