Cuervo Resources Inc CRVNF

RE: Engineering update - where is it?

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Portfolio: -Portfolio Select List- retirement All Portfolios Create New Portfolio -Custom Views-Create New View News Releases << Previous | Index | Next >> Find Energy Ltd. Announces Year End Reserves CALGARY, ALBERTA, Mar 8, 2006 (CCNMatthews via COMTEX) -- Find Energy Ltd. ("Find" or the "Company") (TSX:FE) is pleased to announce that the Audit and Reserves Committee of the Board of Directors has accepted the report of GLJ Petroleum Consultants Ltd. ("GLJ") evaluating the oil and gas reserves of the Company as at December 31, 2005. Find's reserves have been evaluated using reserve definitions contained in Canadian Securities Administrator National Instrument 51-101 (NI 51-101) and the Canadian Oil and Gas Evaluation Handbook. The results of the report are summarized below showing comparisons to the previous year. Oil/NGL Gas BOE (mbbls) (mmcf) (mboe) 2005 2004 % 2005 2004 % 2005 2004 % ------------------- ------------------ ------------------Proved 3,149 3,658 (14) 42,972 16,164 166 10,311 6,351 62Probable 966 1,115 (13) 12,323 6,116 101 3,020 2,134 42 ------------------- ------------------ ------------------Total 4,115 4,773 (14) 55,295 22,280 148 13,331 8,485 57 ------------------- ------------------ ------------------ ------------------- ------------------ ------------------ The before tax present value of the Company's reserves under various discount rates are as follows: 5% 8% 10% ------- ------- ------- Total proved ($000) 282,326 255,151 240,622 Total proved plus probable ($000) 340,366 300,702 280,374 Find had an excellent year in terms of replacing reserves as 8.6 million boes of reserves were added via the drill bit versus production of 1,185,000 boes. This equates to a reserve replacement ratio of 7.3 times production. After dispositions of 2.1 million proved boes and 2.8 million proved plus probable boes of reserves, mostly from Southeast Saskatchewan, and positive technical revisions of 0.2 million proved plus probable boes, a total of 5.9 million boes were added resulting in a reserve replacement ratio net of dispositions of 5.0 times production. Using unaudited year end capital expenditures, Find estimates that its 2005 proved finding costs including future capital were $13.81 per boe and that its 2005 proved plus probable finding costs including future capital were $11.51 per boe. When future capital costs are excluded, Find estimates that its 2005 proved finding costs were $13.13 per boe and that its 2005 proved plus probable finding costs were $10.82 per boe. All calculations of finding costs include the Pembina West Blue Rapids gas plant at a capital cost of $13.4 million. Based on production at year end of approximately 5,100 boed, Find has a proved reserve life index of 5.5 years and a proved plus probable reserve life index of 7.2 years. During 2005, Find participated in the drilling of 63 wells (43.6 net). This drilling program resulted in 57 gas wells (39.8 net), 3 oil wells (1.8 net) and 3 dry and abandoned wells (2.0 net) for a success rate of 95 percent. To date in 2006, Find has drilled a total of 9 wells (6.5 net), with 2 wells currently drilling. This has resulted in 8 gas wells (6.2 net) and 1 dry and abandoned well (0.3 net). Find expects to release its 2005 audited financial results on March 22, 2006 and to file its Annual Information Form containing complete NI 51-101 disclosure of its reserves by March 31, 2006. This news release contains information regarding estimated net present values of reserves. It should not be assumed that the estimates of net present value of the reserves represents the fair market value of the reserves. Investors are further cautioned that the preparation of financial statements in accordance with Canadian generally accepted accounting principles ("GAAP") requires management to make certain judgments and estimates that affect the reported amounts of assets, liabilities, revenues and expenses. Estimating reserves is also critical to several accounting estimates and requires judgments and decisions based upon available geological, geophysical, engineering and economic data. These estimates may change, having either a negative or positive effect on net earnings as further information becomes available, and as the economic environment changes. Under NI 51-101, the methodology used to calculate FD&A costs includes incorporating changes and future development capital ("FDC") required to bring proved undeveloped and probable reserves to production. For continuity, Find presented FD&A costs both excluding and including FDC. In all cases, the FD&A number is calculated by dividing the identified capital expenditures by the applicable reserve additions. Find has adopted the standard of 6 mcf of natural gas being equivalent to 1 barrel of oil when converting natural gas to barrels of oil equivalent (boe). This practice may be misleading, particularly if used in isolation. A 6:1 conversion ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. This news release contains certain forward-looking statements, which are based on Find's current internal expectations, estimates, projections, assumptions and beliefs. Some of the forward-looking statements may be identified by words such as "expects", "anticipates", "believes", "projects", "plans" and similar expressions. These statements are not guarantees of future performance and involve a number of risks and uncertainties, many of which are beyond Find's control. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Find's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits Find will derive from them. The risks and uncertainties associated with the forward-looking statements included in this news release include, among other things, changes in general economic, market and business conditions; changes or fluctuations in production levels, unexpected drilling results, commodity prices, currency exchange rates, capital expenditures, reserves or reserves estimates and debt service requirements; changes to legislation, investment eligibility or investment criteria; Find's ability to comply with current and future environmental or other laws; Find's success at acquisition, exploration and development of reserves; actions by governmental or regulatory authorities including increasing taxes, changes in investment or other regulations; and the occurrence of unexpected events involved in the exploration for, and the operation and development of, oil and gas properties. Many of these risks and uncertainties are described in Find's Revised Annual Information Form and Find's Management's Discussion and Analysis. Readers are also referred to risk factors described in other documents Find files with Canadian securities authorities. Copies of these documents are available without charge from Find. Except as required by applicable law, Find disclaims any responsibility to update these forward-looking statements. SOURCE: Find Energy Ltd. Find Energy Ltd. William T. Davis C.E.O. [phone] [phone] (FAX) Find Energy Ltd. Jeffrey P. Jongmans C.F.O. [phone] [phone] (FAX) Copyright (C) 2006 CCNMatthews. All rights reserved.