C&C Energia Ltd T.CZE

RE: Reserves report

[segltech]

Choice Announces Year End Reserves 07:00 EDT Tuesday, May 02, 2006 CALGARY, ALBERTA--(CCNMatthews - May 2, 2006) - Mr. Gordon Harris President and CEO of Choice Resources Corp. (TSX VENTURE:CZE), is pleased to report on the latest reserves results as completed by Sproule Associates Limited as of February 28, 2006. The reserve definitions and ownership classification used in the evaluation are the standards defined by COGEH reserve definitions and consistent with NI 51-101 and used by Sproule Associates Limited. The values in the table below are on a before-tax basis and the final detailed NI 51-101 report will be filed on SEDAR towards the end of May. In terms of the underlying asset value of the Corporation the value of the reserves have increased 55% discounted at 10% from the last fiscal year end report. The reserves value on the same basis has increased 16% from the September report. The proven Company volumes before royalty have increased approximately 50% from the last fiscal year end report after production and property sales and have increased 48% from the September report after production and property sales. Probable reserves have declined slightly due to a move into the proven category. Management is very pleased with the results achieved and the Corporation now has a combined inventory of over 70 development and exploration projects. The Corporation expects to drill 40 wells on a gross basis this year (35 net) with a capital budget of approximately $33 million. There were 58.7 million shares issued and outstanding at February 28, 2006 and there are currently 67.6 million shares issued and outstanding. Summary of the Evaluation of the Company's P&NG Reserves (As of February 28, 2006) ------------------------------------------------------------------------ Remaining Reserves Company Gross Gross Net ------------------------------------------------------------------------ Light/Medium Oil (Mbbl) Proved Developed Producing 29.2 12.3 10.3 Total Proved 29.2 12.3 10.3 Probable Developed 9.3 3.9 3.3 Total Probable 9.3 3.9 3.3 Total 38.5 16.2 13.5 ------------------------------------------------------------------------ Pipeline Gas (MMcf) Proved Developed Producing 42,502 31,469 23,376 Proved Developed Non-Producing 1,778 1,163 954 Proved Undeveloped 1,915 1,643 1,273 Total Proved 46,195 34,274 25,604 Probable Developed 5,697 4,526 3,609 Probable Developed Non-Producing 639 461 386 Probable Undeveloped 1,759 1,565 1,275 Total Probable 8,095 6,552 5,270 Total 54,290 40,827 30,874 ------------------------------------------------------------------------ Natural Gas Liquids (Mbbl) - values included with gas - Proved Developed Producing 890.5 628.7 407.8 Proved Undeveloped .0 .0 -.1 Total Proved 890.5 628.7 407.8 Probable Developed 44.2 32.3 20.9 Probable Undeveloped .0 .0 .0 Total Probable 44.2 32.3 20.9 Total 934.7 661.0 428.6 ------------------------------------------------------------------------ Sulphur (Mlt) - values included with gas - Proved Developed Producing 203.8 143.8 114.0 Proved Undeveloped .0 .0 .0 Total Proved 203.8 143.8 114.0 Probable Developed 9.8 7.1 5.6 Probable Undeveloped .0 .0 .0 Total Probable 9.8 7.1 5.6 Total 213.6 150.9 119.6 ------------------------------------------------------------------------ GRAND TOTAL (Mboe) Proved Developed Producing 8,207.2 6,029.5 4,428.1 Proved Developed Non-Producing 296.3 193.8 159.1 Proved Undeveloped 319.1 273.8 212.1 Total Proved 8,822.6 6,497.2 4,799.3 Probable Developed 1,012.7 797.7 631.2 Probable Developed Non-Producing 106.5 76.8 64.3 Probable Undeveloped 293.2 260.9 212.5 Total Probable 1,412.5 1,135.3 908.0 Total 10,235.1 7,632.5 5,707.4 ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ Net Present Values Before Income Taxes (M$) ------------------------------------------------------------------------ At 0% At 5.0% At 10.0% At 15.0% ------------------------------------------------------------------------ Light/Medium Oil (Mbbl) Proved Developed Producing 423 397 375 355 Total Proved 423 397 375 355 Probable Developed 101 86 75 65 Total Probable 101 86 75 65 Total 524 484 449 420 ------------------------------------------------------------------------ Pipeline Gas (MMcf) Proved Developed Producing 177,790 93,607 67,278 55,011 Proved Developed Non-Producing 6,222 5,416 4,829 4,377 Proved Undeveloped -1,328 8,701 6,712 4,732 Total Proved 182,684 107,723 78,818 64,120 Probable Developed 24,705 14,030 9,979 7,735 Probable Developed Non-Producing 2,233 1,827 1,529 1,303 Probable Undeveloped 3,100 5,389 4,145 3,037 Total Probable 30,038 21,246 15,653 12,075 Total 212,721 128,969 94,472 76,195 ------------------------------------------------------------------------ Natural Gas Liquids (Mbbl) - values included with gas - Proved Developed Producing Proved Undeveloped Total Proved Probable Developed Probable Undeveloped Total Probable Total ------------------------------------------------------------------------ Sulphur (Mlt) - values included with gas - Proved Developed Producing Proved Undeveloped Total Proved Probable Developed Probable Undeveloped Total Probable Total ------------------------------------------------------------------------ GRAND TOTAL (Mboe) Proved Developed Producing 178,213 94,004 67,652 55,366 Proved Developed Non-Producing 6,222 5,416 4,829 4,377 Proved Undeveloped -1,328 8,701 6,712 4,732 Total Proved 183,107 108,120 79,193 64,475 Probable Developed 24,806 14,117 10,054 7,801 Probable Developed Non-Producing 2,233 1,827 1,529 1,303 Probable Undeveloped 3,100 5,389 4,145 3,037 Total Probable 30,139 21,332 15,728 12,140 Total 213,245 129,453 94,921 76,615 CAUTION REGARDING FORWARD LOOKING STATEMENTS Certain statements contained herein constitute forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe", and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Corporation believes the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this report should not be unduly relied upon. These statements speak only as of the date of this presentation. The Corporation does not undertake any obligation to publicly update or revise any forward-looking statements. Per barrel of oil equivalent ("boe") may be misleading particularly if used in isolation. A BOE conversion of 6000 cubic feet of gas to 1 barrel of oil and is based on an energy equivalency conversion method primarily applicable at the burner tip. This does not represent a value equivalency at the wellhead and may not be appropriate for value comparisons. FOR FURTHER INFORMATION PLEASE CONTACT: Choice Resources Corp. Gordon D. Harris President and CEO [phone] or Choice Resources Corp. Steve Austin Chief Financial Officer [phone] [phone] (FAX) The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release.