Atikwa a real steal
I'm posting this because i want to shine a light on this good little play my assumption is that they will be taken out by legacy or CNQ soon Legacy just acquired Molopo next door
If anyone is looking for a good oil and gas play Atikwa looks pretty good they just started drilling on their Winfell property, a third party is paying for the drilling. Legacy just made a big acquisition right next door my guess the drilling is just to verify what is there. Management has a good record of developing juniors. Most insiders are in over the current price
Here are some of the PR
Atikwa Hits New Field Wildcat Well
OCT 27, 2010 - 08:30 ET
CALGARY, ALBERTA--(Marketwire - Oct. 27, 2010) - Atikwa Resources Inc (TSX VENTURE:ATK) ("Atikwa" or the "Company") is excited to announce the discovery and successful completion and flow testing of a New Field Wildcat, liquids rich natural gas reservoir in the Porcupine Hills.
The original reservoir pressure has been determined to be just over 4,900 psi. Based on the initial pressure, and the average net-pay and porosity in the well over one section of areal extent, Company engineers have estimated a "Discovered Resource" of 6 bcf of natural gas, associated with the well. The Company holds an 87% working interest in the well and seven contiguous sections of land in the area.
Discovered Resources are defined in the COGE Handbook: "Discovered resources are those quantities of oil and gas estimated on a given date to be remaining in, plus those quantities already produced from, known accumulations. Discovered resources are divided into economic and uneconomic categories, with the estimated future recoverable portion classified as reserves and contingent resources, respectively." There is no certainty that it will be commercially viable to produce any portion of the Discovered Resource.
Operationally, the Company successfully re-entered, perforated, and fracture stimulated the zone of interest. The fracture fluids were recovered after a clean-up period, and the well flow-tested natural gas with associated liquids from the completed zone. The Company will provide flow-rate information once the operational and reservoir parameters of the well are quantified and the most effective program to produce the well is determined. Additional laboratory work will be performed to determine the amount of liquids that are associated with the natural gas. Longer term, flow-lining options are also being reviewed.
The current plans are to shut the well in for a period of time to perform a pressure build-up test, which will help to confirm reservoir properties, and determine pool size. CEO Sean Kehoe stated: "Although we are still in the early stages of testing, our preliminary evaluations would suggest that we have natural gas with liquids in a reservoir that has good pressure and appears to have some significant areal extent geologically. The natural gas liquids are attractive because they commonly sell in relation to crude oil prices. In some cases liquids rich gas can be even more attractive economically than certain oil plays." The well will qualify for the "Alberta New Well Royalty Rate", which provides a maximum 5% Crown royalty rate during the first full year of production.
Porcupine Hills represents the third play tested in a series of four large Original Oil in Place and Original Gas in Place resource plays that the Company is in the process of developing. The other three programs include a Bakken light oil play in Saskatchewan, the initial well is producing strongly with a follow-up development program now being planned, a Spearfish light oil development play in Manitoba with 20 net horizontal drilling locations and a liquids rich natural gas play on eight sections of land in the lower Mannville formation at Windfall, Alberta.
This news release contains forward-looking statements relating to the Company's plans and other aspects of the Company's anticipated future operations, strategies, financial and operating results and business opportunities. Forward-looking statements typically use words such as "anticipate", "believe", "project", "expect", "plan", "intent" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future, or consists of statements regarding estimates of future production, operating costs or other expectations, beliefs, plans, objectives, assumptions or statements about future events or performance. Statements regarding reserves are also forward-looking statements, as they reflect estimates as to the expectation that the deposits can be economically exploited in the future.
Although the Company believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements and you should not unduly rely on forward-looking statements. The forward-looking statements contained in this news release are made as the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A conversion ratio for gas of 6 mcf: 1 boe is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Atikwa Announces Increase in Reserves and Contingent Resources
Check out their NAV reoprt
December 22, 2010 - 02:28:31 PM
CALGARY, ALBERTA--(Marketwire - Dec. 22, 2010) - Atikwa Resources Inc. ("Atikwa" or the "Company") (TSX VENTURE:ATK). is pleased to announce that AJM, an independent engineering and geological consulting firm and a qualified reserves evaluator, has provided Atikwa with an independent NI 51-101 Compliant Reserve Evaluation and Contingent Resource Assessment (the "Report") for the Company's Canadian light oil and liquids rich natural gas assets. The Report, effective as at Nov 30, 2010, is in accordance with section 5.9 of National Instrument 51-101 ("NI 51-101") - "Standards of Disclosure for Oil and Gas Activities" and reports a "best estimate" of Contingent Resources, as defined in the Canadian Oil and Gas Evaluation Handbook (the "COGEH"). Net asset value (per share), NPV, future net revenue, do not necessarily represent fair market value. A Summary is included in the tables below:
Proved and Probable Reserves - 9 month comparison - WI BOEs (thousands of barrels)
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As at 28 FEB 2010 As at 30 NOV 2010
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Proved + Probable Proved + Probable
Proved (1P) (2P) Proved (1P) (2P)
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Pierson Man 0 0 761.1 1,277.0
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Roncott Sask 28.9 37.6 96.8 222.6
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Ferrier Alta 18.6 22.9 12.3 16.5
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Total 47.5 60.5 870.3 1,516.1
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Proved and Probable Reserves -9 month comparison - Before Income Tax 10% Net Present Value
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As at 28 FEB 2010 As at 30 NOV 2010
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Proved + Proved +
Proved (1P) Probable (2P) Proved (1P) Probable (2P)
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Pierson Man
$10,985,200 $22,012,800
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Roncott Sask $297,500 $638,500 $1,136,700 $3,849,800
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Ferrier Alta $340,100 $419,900 $115,900 $191,700
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Total $637,600 $1,058,400 $12,237,800 $26,054,300
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Contingent Resources (Net Working Interest)
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As at 30 NOV 2010
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Contingent Low (1C) Best (2C) High (3C)
Resources Estimate Estimate Estimate Best (2C)
(Sales Gas) (Billion (Billion (Billion Estimate
cubic feet) cubic feet) cubic feet) 10% NPV
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Windfall Alta 44.346 61.189 84.428 $149,667,000
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Porcupine Alta
Hills 27.153 36.134 48.084 $ 78,432,000
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Total 71.499 97.323 132.512 $228,099,000
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In the Report, up to 90% of the acreage controlled by Atikwa was recognized by AJM as containing Contingent Resources. As these are liquid rich gas plays, the NPV calculation includes a sales gas liquids ratio of 29.4 barrels per million cubic feet at Windfall and 31.1 barrels per million cubic feet at Porcupine Hills.
Sean Kehoe, President and CEO of Atikwa commented "Over the last nine months, with a budget of approximately nine million dollars, the Company has purchased, farmed in and drilled to earn an ownership in a portfolio of four very exciting oil and gas resource properties, which are all in varying stages of maturation. Building this resource Company has always been about creating real value with a view to sell to a larger oil Company at some point in the future, at the end of the day all oil and gas companies are measured on their reserves and their potential to grow reserves. I believe that these numbers demonstrate very clearly that we have been successful on both counts."
With regard to the Contingent Resources, President Sean Kehoe stated; "We are very pleased to provide our shareholders with an independent assessment of the potential magnitude of our Windfall and Porcupine Hills programs. These resource estimates demonstrate a significant opportunity for the Company to add future production, reserves and value. I believe that in terms of the current stock price, the market has not even begun to realize the full potential of this Company."
Atikwa Resources Inc. is a technically focused oil and gas Company, which is currently concentrating on developing four significant resource opportunities from original geologic concept through operations, production and development. Atikwa is composed of a team of professionals that have a demonstrated track record of creating significant value in start-up junior oil and gas companies through a, hands on approach, which starts with a thorough understanding of the rocks and a view to establishing sustainable long term production.
Atikwa Shares trade on the TSX Venture Exchange under the symbol ATK. Atikwa currently has 218 Million common shares outstanding. For further information please contact the company at (403) 269-2636.
Required Disclosure regarding Contingent Resources;
While of higher inherent risk, Contingent Resources are an important component of overall recovery estimations for unconventional resource plays. It should be noted that given the early stages of development, the best estimate of Contingent Resources may change in the future with further exploration and development activity. Additional drilling, testing and development are expected to confirm economic development and ultimate recovery factors in the plays. The resource estimates provided herein are estimates only and the actual resources may be greater or less than the estimates provided herein.
The sums presented are an arithmetic sum of multiple estimates of Contingent Resources, which statistical principles indicate may be misleading as to volumes that may actually be recovered. Readers should give attention to the estimates of individual classes of Contingent Resources and appreciate the differing probabilities of recovery associated with each. The probability associated with the High estimate would be considered far less likely than P10, and conversely, the Low estimate would be expected to be much higher than the presented arithmetic sum. Probabilistic aggregation could have been performed, but given the lack of general acceptance in these procedures, COGEH (section 5.5.3) prefers that these values not be presented.
In the table above, AJM has also provided a resource net present value (NPV) estimation for one potential development scenario at each property that is consistent with the Company's development plans. These NPV values are not NI 51-101 compliant but do show considerable value based on the planned development scenario and would be incremental to the Reserve Evaluation.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements relating to the Company's plans and other aspects of the Company's anticipated future operations, strategies, financial and operating results and business opportunities. Forward-looking statements typically use words such as "anticipate", "believe", "project", "expect", "plan", "intent" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future, or consists of statements regarding estimates of future production, operating costs or other expectations, beliefs, plans, objectives, assumptions or statements about future events or performance. Statements regarding reserves are also forward-looking statements, as they reflect estimates as to the expectation that the deposits can be economically exploited in the future. Although the Company believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements and you should not unduly rely on forward-looking statements. The forward-looking statements contained in this news release are made as the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A conversion ratio for gas of 6 mcf: 1 boe is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.