PR re ACG This morning. Drilling shouls startearly June
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Anglo Canadian Oil Corp(C-ACG) -News Release
Anglo Cdn's Dodsland DPIIP at 81.2 MMstb
2011-05-02 07:02 CT -News Release
Shares issued 200,725,867
ACG Close 2011-04-29 C
.21
Mr. James Ehret reports
ANGLO CANADIAN OIL CORP. ANNOUNCES SASKATCHEWAN RESOURCE VOLUMES
Aresource study covering Anglo Canadian Oil Corp.'s lands in theDodsland/Kindersley area of southwest Saskatchewan, commissioned byAnglo and performed by AJM Petroleum Consultants, has been completed andsummarized.
RESOURCE STUDY
MIDDLE BAKKEN FORMATION
DODSLAND/BUFFALO COULEE, SASKATCHEWAN
INTRODUCTION
AngloCanadian Oil Corp. ("Anglo Canadian" or "the company") holds Bakkenrights in 17,640 non-contiguous acres in the Dodsland/Buffalo Couleearea of Saskatchewan, at a working interest of 100 percent. These landholdings range in area from Township 26 to 34 and from Range 20 to 26W3,near the towns of Kerrobert and Kindsersley. Middle Bakken productionexists in and around Anglo Canadian's land holdings and consistsprimarily of vertical wells, however, there is a small proportion ofhorizontal Bakken producers. The oil ranges in gravity from 11.9 degreesAPI at Hoosier East Bakken to 15.4 degrees API at Plover Lake EastBakken.
Resource Categorization
This report summarizes theconventional resources in the Middle Bakken Formation. Oil constitutesthe primary product of Bakken pools of the area of interest; therefore,calculations were made in barrels of oil. However, gas has also beenencountered by drilling.
Volumes assigned are categorized asDiscovered Petroleum Initially-in-Place and Contingent Resources as allof the lands have nearby well penetrations into the reservoir ofinterest.
Results and Recommendations
Anglo Canadian's landholdings in the Dodsland/Buffalo Coulee area were analyzedstochastically for Middle Bakken potential. When land was considered asmultiple groups of adjacent land holdings, the results were notmeaningful due to the ranges of geological parameters seen within eachof the groups. Adjacent land holdings did not necessarily have similarranges of parameters, therefore, AJM grouped all of the company's landholdings together, into one group, when creating distributions ofgeological parameters. This avoids summing multiple estimated volumesarithmetically, a misleading practice according to statisticalprinciples. The sum of the best estimates is generally considered to bean approximation of overall best estimate. However, the sum of the lowestimates is likely to be lower than the expected low estimate, and thesum of the high estimates is likely to be higher than the expected highestimate.
In order to estimate Contingent Remaining Resources, thevolume of Bakken oil produced from Anglo Canadian's leases as ofDecember 31, 2010 and the Bakken reserve volumes assigned to AngloCanadian in the AJM December 31, 2010 Corporate Evaluation have beensubtracted from the Discovered Petroleum Initially-In-Place.
Theresource estimation results are included in the table below. Additionaldetails regarding the stochastic analysis are included within the TablesSection of the report. As there was only one horizon of interest, aMonte Carlo analysis was not necessary to aggregate multiple results.
Discovered Petroleum Initially-in-Place
----------------------------------------------------------------------------Dodsland/Buffalo Coulee Low Estimate Best Estimate High EstimateBakken (MMstb) (MMstb) (MMstb)----------------------------------------------------------------------------Discovered PetroleumInitially-In-Place (DPIIP) 51.5 81.2 128.1----------------------------------------------------------------------------Discovered RemainingPetroleum Initially-In-Place (DRPIIP) 51.4 80.9 127.8---------------------------------------------------------------------------- Contingent Oil Resources
----------------------------------------------------------------------------Dodsland/Buffalo Coulee Low Estimate Best Estimate High EstimateBakken (MMstb) (MMstb) (MMstb)----------------------------------------------------------------------------Contingent Remaining OilResources 3.6 6.8 12.7---------------------------------------------------------------------------- Contingent Gas Resources
----------------------------------------------------------------------------Dodsland/Buffalo Coulee Low Estimate Best Estimate High EstimateBakken (Bcf) (Bcf) (Bcf)----------------------------------------------------------------------------Contingent Raw Gas Resources 3.1 6.2 12.3----------------------------------------------------------------------------Contingent Sales GasResources 1.9 3.8 7.7---------------------------------------------------------------------------- Cautionary Statements
Theestimate of remaining recoverable resources (un-risked) includescontingent resources that have not been adjusted for risk based on thechance of development. There is no certainty that the pools will bedeveloped or, if they are developed, there is no certainty as to thetiming of such development.
Individual wells or small pools couldhave results that are below the low estimates or exceed the highestimates for any or all parameters. Distributions are estimates for theaverage result over the company's land holdings as a whole.
RESOURCE AND RESERVE DEFINITIONS
Theterm "resources" encompasses all petroleum quantities that originallyexisted on or within the earth's crust in naturally occurringaccumulations, including Discovered and Undiscovered (recoverable andunrecoverable) plus quantities already produced. Accordingly, totalresources is equivalent to Total Petroleum Initially-In-Place ("PIIP").
TotalPetroleum Initially-In-Place ("PIIP") is that quantity of petroleumthat is estimated to exist originally in naturally occurringaccumulations. It includes that quantity of petroleum that is estimated,as of a given date, to be contained in known accumulations, prior toproduction, plus those estimated quantities in accumulations yet to bediscovered (equivalent to "total resources").
Discovered PetroleumInitially-In-Place (equivalent to discovered resources) is thatquantity of petroleum that is estimated, as of a given date, to becontained in known accumulations prior to production. The recoverableportion of Discovered Petroleum Initially-In-Place includes Production,Reserves, and Contingent Resources; the remainder is unrecoverable.
Production is the cumulative quantity of petroleum that has been recovered at a given date.
Reservesare estimated remaining quantities of oil and natural gas and relatedsubstances anticipated to be recoverable from known accumulations, as ofa given date, based on: the analysis of drilling, geological,geophysical, and engineering data; the use of established technology;and specified economic conditions, which are generally accepted as beingreasonable. Reserves are further classified in accordance with thelevel of certainty associated with the estimates and may besub-classified based on development and production status. Refer to thefull definitions on Reserves in Section 5.4 of COGEH.
ContingentResources are those quantities of petroleum estimated, as of a givendate, to be potentially recoverable from known accumulations usingestablished technology or technology under development, but which arenot currently considered to be commercially recoverable due to one ormore contingencies. Contingencies may include factors such as economic,legal, environmental, political and regulatory matters, or a lack ofmarkets. It is also appropriate to classify as contingent resources theestimated discovered recoverable quantities associated with a project inthe early evaluation stage. Contingent Resources are further classifiedin accordance with the level of certainty associated with the estimatesand may be sub-classified based on project maturity and/orcharacterized by their economic status. Refer to COGEH and Figure 5-1.The full report may be viewed on Anglo's websitewww.anglocanadianoil.com
Anglo has licensed two potential Bakkenand/or Mannville oil wells in the Kindersley/Dodsland area of South WestSaskatchewan. The first of these wells is expected to spud early Junepending ground conditions and equipment availability.
Anglo isalso pleased to announce that at recent Alberta Crown sales it haspurchased an additional 89,919 acres (36,389 ha) of petroleum andnatural gas mineral rights. These lands principally target oil proneformations in Central Alberta, primarily the Beaverhill Lake. Duvernaypotential also exists on these lands.
Six potential Nordeggdrilling locations are expected to be scouted as early as next week.Anglo plans on drilling two wells on its Nordegg play this summer,pending all regulatory approvals, weather, and equipment availability"