Reserves Estimates
January 17 2005 - 9:00AM
UK Regulatory
First Calgary Petroleums Ltd. Updates Algeria Reserves Estimates
effective October 31, 2004
TSX: FCP LSE: FPL
CALGARY, Jan. 17 /CNW/ - First Calgary Petroleums Ltd. (FCP or the
Company) today announces it has received a summary of its reserves and values
as of October 31, 2004 as estimated by the independent engineering company,
DeGolyer and MacNaughton. The gross proved, probable and possible recoverable
reserves estimated by DeGolyer & MacNaughton have increased to 13.5 trillion
cubic feet of natural gas equivalent (TCFe), consisting of 8.4 trillion cubic
feet of natural gas and 860 million barrels (MMBBLS) of oil, condensate and
LPG. The reserves are attributed to the Ledjmet 405b and Rhourde Yacoub 406a
blocks located in Algeria's Berkine Basin.
The reserves estimates were prepared in accordance with Canadian
Securities National Instrument 51-101 Standards of Disclosure for Oil & Gas
Activities and are based on work completed and information available to
October 31, 2004. The specific conditions under which the results reported
herein were estimated are contained in the final report of DeGolyer and
MacNaughton.
The gross and FCP net recoverable gas, oil, condensate and LPG (natural
gas liquids) reserves estimated by DeGolyer and MacNaughton are as follows:
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Gross Recoverable Reserves FCP Net Recoverable Reserves
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Gas Oil, Total Gas Gas Oil, Total Gas
Condensate Equivalent Condensate Equivalent
and LPG Volume and LPG Volume
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BCF MMBBLS BCFe BCF MMBBLS BCFe
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Proved
Undeveloped 615 65 1,008 121 15 214
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Probable 2,164 229 3,535 285 46 556
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Proved and
Probable 2,779 294 4,543 406 61 770
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Possible 5,631 566 9,025 640 112 1,313
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Proved,
Probable and
Possible 8,410 860 13,568 1,046 173 2,083
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FCP's estimated future net revenue and present values relating to the
reserves are as follows:
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Future Net Revenue and Future Net Revenue and
Present Values (after tax) Present Values (after tax)
using Forecast Prices using Constant Prices
(US $Million) (US $Million)
-------------------------------------------------------------------------
PV PV PV PV
Undiscounted (8%) (10%) Undiscounted (8%) (10%)
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Proved
Undeveloped $799 $383 $316 $875 $447 $377
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Probable $2,211 $1,194 $1,029 $2,409 $1,351 $1,177
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Proved and
Probable $3,010 $1,577 $1,345 $3,284 $1,798 $1,554
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Possible $5,752 $2,923 $2,516 $5,784 $3,104 $2,702
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Proved,
Probable and
Possible $8,762 $4,500 $3,861 $9,068 $4,902 $4,256
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(1) The gross and net recoverable reserves volumes are estimated under
the constant price case.
(2) The reserves estimates relate to Ledjmet Block 405b and Rhourde
Yacoub Block 406a and reflect only the drilling and production test
results obtained to October 31, 2004. Excluded from these figures
are the test results from LEW-1 and the drilling and production test
results from LES-2 and MLE-6.
(3) FCP's net reserves allocations are based upon the terms of the
contracts relating to each block. The Ledjmet Block 405b reserves
allocation is calculated annually based upon a sliding scale formula
that considers capital investment, production levels and product
prices. Accordingly, the net allocation can vary annually and will
be dependent upon the costs, production levels and product prices
realised. For Rhourde Yacoub Block 406a, FCP is allocated the
equivalent of 49% of the gross production on an equivalent-barrel
basis.
(4) Future net revenues are after Algerian royalties and taxes. The
Company believes there will be no Canadian income taxes payable on
the production of these reserves.
(5) Gas equivalent units have been calculated by the Company at 1 barrel
(BBL) for 6 thousand cubic feet of natural gas equivalent.
(6) BCF means billion cubic feet of natural gas and BCFe means billion
cubic feet of natural gas equivalent.
Richard G. Anderson, FCP's President and CEO, commented, "The reserves
estimate of 13.5 trillion cubic feet equivalent of natural gas by DeGolyer &
MacNaughton is nearly double that of last year. During this ten month period
the Company drilled seven wells, of which six were exploration and one
appraisal, realising a 100% success rate. To have a reserves base increase of
this magnitude from the drilling of seven wells, together with a large
undrilled acreage position, positions FCP for continued growth and
development."
Additional information respecting the Company's reserves is contained in
the Renewal Annual Information Form which is available on SEDAR at
www.sedar.com.
First Calgary Petroleums Ltd. is an oil and gas exploration company
actively engaged in international exploration and development activities in
Algeria. The Company's common shares trade on the Toronto Stock Exchange in
Canada (FCP) and on the AIM market of the London Stock Exchange in the UK
(FPL).
This news release includes statements about expected future events and
financial results that are forward looking in nature and subject to risks and
uncertainties. FCP cautions that actual performance may be affected by a
number of factors, many of which are beyond its control. Future events and
results may vary substantially from what First Calgary Petroleums Ltd.
currently foresees.
For further information: Richard G. Anderson, President and CEO, First
Calgary Petroleums Ltd., Tel: (403) 264-6697, Website: www.fcpl.ca; European
contacts: Jim Joseph, College Hill, Tel: +44 (0) 207 457 2020; Carina Corbett,
4C Communications Ltd., Tel: +44 (0) 207 907 4761
(FPL)
END
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