Olympia Energy Inc. Announces Production Update and Year-End Reserves.Energy Editors/Business Editors CALGARY Calgary (kăl`gərē), city (1991 pop. 710,677), S Alta., Canada, at the confluence of the Bow and Elbow rivers. The largest city in Alberta and the fastest-growing major city in Canada, Calgary is a corporate, transportation, and financial , Alberta--(BUSINESS WIRE)--March 10, 2004 Olympia Olympia, city, ancient Greece Olympia, ancient city, important center of the worship of Zeus in ancient Greece, in Elis near the Alpheus (now Alfiós) R. It was the scene of the Olympic games. Energy Inc. is pleased to announce recent production increases, as well as the results of its year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. reserves report prepared by Gilbert Lausten Jung Jung , Carl Gustav 1875-1961. Swiss psychiatrist who founded analytical psychology and came up with the concepts of extraversion and introversion and the notion of the collective unconscious. as at December 31, 2003. Current net production from the Lochend Cardium field is 11 mmscf/d of gas, 298 bbls/d of oil and 951 bbls/d of NGL's (2797 boe/d). Recent reactivation reactivation to become active after a period of quiescence or, as in bacterial and viral infections, latency. cross reactivation workovers in the Little Horse, Gilwood oil pool have resulted in a net oil production increase of 450 bbls/d. These operations conducted in the first quarter of 2004 bring the current corporate daily production to 5912 boe/d. Olympia has received its updated independent reserve evaluation report, compliant with National Instrument 51-101 from Gilbert Laustsen Jung Associates ('GLJ'). Under NI 51-101, proved reserve assignments are based on a 90 percent certainty that total quantities recovered will equal or exceed proved reserve estimates. Proved plus probable reserves are the most likely case and are based on a 50 percent certainty that they will equal or exceed estimates. The new standard provides for a more conservative evaluation conservative evaluation - Under this parallel evaluation strategy, no evaluation is started unless it is known to be needed. Opposite of speculative evaluation. of proven and probable reserves, particularly on new wells where production history has not yet been established. The reserves committee of Olympia's board of directors, which is made up of a majority of independent directors, met with GLJ GLJ Georgetown Law Journal representatives and has reviewed the independent evaluator's reserves report in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the committee's mandate. Summary information is presented herein. Additional disclosure, in accordance with NI 51-101, will be provided in the company's annual information form. Reserves for year end December 31, 2003 are as follows:
Total Proved Reserves
Heavy
Gas Oil Oil NGL's BOE
(bcf) (mbbls) (mbbls) (mbbls) (mbbls)
--------------------------------------------------------------------
Jan 1,2003 Opening 48.3 1415.0 1796 1750 13014.3
Revisions -4.5 -541.5 -1371.4 -103.4 -2769.6
Drilling Discoveries 5.9 0.0 0 26 1009.3
Drilling Extensions 5.2 350.7 0 498.8 1719.5
Acquisitions 0.0 0.0 0 0 0
Divestitures 0.0 0.0 0 0 5
Production -4.6 -157.0 -105.1 -191.3 -1225.0
--------------------------------------------------------------------
Dec 31, 2003 Closing 50.3 1067.2 319.5 1980.1 11753.4
Total Proved plus Probable Reserves
Heavy
Gas Oil Oil NGL's BOE
(bcf) (mbbls) (mbbls) (mbbls) (mbbls)
--------------------------------------------------------------------
Jan 1, 2003 Opening 58.3 1870 2238 2208 16029
Revisions -2.8 -836.7 -1638.6 -37.1 -2975.3
Drilling Discoveries 9.5 0.0 0.0 42.0 1625.3
Drilling Extensions 6.5 482.2 0.0 623.7 2194.2
Acquisitions 0.0 0.0 0.0 0.0 0.0
Divestitures 0.0 0.0 0.0 0.0 -5.0
Production -4.6 -157.0 -105.1 -191.3 -1220.1
--------------------------------------------------------------------
Dec 31, 2003 Closing 66.9 1358.5 494.3 2645.3 15648.1
Note: The previous evaluation was prepared in accordance with National Policy 2-B reserves definitions. Under that policy, probable reserves were required to be adjusted by a factor to account for risk associated with their recovery. Olympia previously applied a risk factor of 50% in reporting its probable reserves. Under new NI 51-101 reserves definitions, estimates are prepared such that the full proved plus probable reserves are estimated to be recoverable. The above reconciliation and comparisons outlined below reflect current proved plus probable reserves versus previous proved plus risk adjusted probable ('Established') reserves reported by Olympia. Investors should note that boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency equivalency the combining power of an electrolyte. See also equivalent. conversion method primarily applicable at the burner A drive that writes write-once optical discs such as CD-Rs and DVD-Rs. A "burner" implies a one-time recording, but the term is erroneously used to refer to drives that "write" to re-recordable CD-RW and DVD-RW/+RW media as well. See burn, CD-R and DVD-R. tip and does not represent a value equivalency at the wellhead well·head n. 1. The source of a well or stream. 2. A principal source; a fountainhead. 3. The structure built over a well. wellhead Noun 1. . Total Proved plus Probable Reserves decreased 2.4% over the previous year from 16.0 mmboe to 15.6 mmboe. After adjustment for production, Total Proved plus Probable Reserves increased 5.7% over the previous year, from 14.8 mmboe to 15.7 mmboe. Total Proved Reserves proved reserves The quantity of minerals expected to be recoverable under current economic and operating conditions. The amount of proved reserves is important in valuing the stock of a company with significant holdings in natural resources. decreased 9.7% over the previous year, from 13.0 mmboe to 11.7 mmboe. After adjustment for production, Total Proved Reserves were unchanged from the previous year at 11.8 mmboe. Proved Producing Reserves increased over the previous year by 14% to 9.6 mmboe. Proven Undeveloped Reserves account for 18% of the Total Proven Reserve base of which two-thirds consists of shallow gas which is expected to be fully developed in the next 3 years. Negative technical revisions were largely the result of performance of the Company's Majestic heavy oil property. While this resulted in a revision to reserves of 1.3 mmboe (proven), it had a minimal effect on value (NPV NPV See: Net present value 10% of $3.8 million). Recent production increases at Lochend were heavily risked by the independent reserve evaluators in keeping with the new NI 51-101 standards. Current production has outperformed the production forecast used in deriving the Lochend reserve estimates. Olympia Energy Inc. is an oil and gas exploration and production company with a solid base of production, balanced drilling portfolio and an active exploration and development program that trades under the symbol "OLY OLY Olney, Illinois (Airport Code) " on the Toronto Stock exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. . Olympia Energy Inc. Suite 2100, 500-4th Ave. S.W. Calgary, Alberta, T2P 2V6 |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion