Exall News..........................
Exall proved, probable reserves at 1.01 million boe
2007-05-29 10:46 ET - News Release
Mr. Frank Rebeyka reports
EXALL INCREASES PRODUCTION AND RESERVES
Exall Energy Corp. has provided an update of its operations and reserves.
Highlights:
Exall's current proved plus probable oil and gas reserves now 1.01 million barrels of oil equivalent, following the acquisition of Kingsmere and recent drilling success;
reserve life index (RLI) increases to 14.3 years;
Exall has drilled and cased seven wells (1.7 net) for oil production and six wells (0.2 net) for gas production since December, 2006; and
current production increases threefold from 2006 average levels to 210 boe/day composed of 60 per cent oil and 40 per cent gas. Additional tie-ins currently under way will further increase production.
Exall has drilled and cased seven wells (1.7 net) for oil production and six (0.2 net) for gas production since December, 2006. Winter drilling operations on the properties acquired through the acquisition of Kingsmere Exploration Ltd. are completed, and the company has drilled and cased two wells (one net) for oil production. One horizontal well (0.6 net) was drilled and penetrated 150 metres of potentially productive sand but was suspended over breakup due to borehole problems. Exall plans to redrill the well once access is restored. An independent engineering evaluation done by AJM Petroleum Consultants has assigned 288,000 barrels of probable reserves to the well. Exall's interest is a 60-per-cent working interest and a 2-per-cent to 6-per-cent sliding scale overriding royalty (ORR) before payout, converting to 76-per-cent working interest after payout. Three additional locations have been established by this well.
Five new oil wells drilled (0.725 net) in the Jayar field near Grande Prairie have been put in production as of March 31 and have increased total production from the core property to over 110 boe/day. Six new gas wells (0.2 net) bring production to over 30 boe/day from the Susan B. Harris and Layton gas units in Texas.
Proved plus probable reserves at Dec. 31, 2006, were 812,600 boe, according to an independent reserve evaluation conducted by McDaniel & Associates Consultants Ltd., and AJM Petroleum Consultants in accordance with the rules provided by National Instrument 51-101. Exall's proved reserves stood at 371,000 boe. The composition of total proved reserves at Dec. 31, 2006, consists of 61 per cent oil and natural gas liquids and 39 per cent natural gas. The additional reserves assigned to the horizontal well bring the total proved plus probable to 1.01 million boe.