CALGARY, ALBERTA--(Marketwire - April 28, 2011) - Eaglewood Energy Inc. (the "Corporation") (TSX VENTURE:EWD) is pleased to announce the results of the pressure, volume, temperature ("PVT") analysis of the downhole fluid samples from its Ubuntu-1 well on its PPL 259 license in Papua New Guinea.
The analysis, conducted by ODIN Reservoir Consultants Pty Ltd based in Perth, Australia indicates that in addition to natural gas and natural gas liquids, Ubuntu may also contain volumes of oil or a combination of oil and gas. The oil prospectivity is based on the PVT analysis of the Ubuntu-1 downhole fluid samples, which indicate a saturated reservoir fluid and suggests the possibility of the existence of a gas-oil contact somewhere in this reservoir. The Ubuntu reservoir fluid appears to be similar to that discovered in Elevala-1, where the presence of a possible oil leg was inferred by the previous operator of the well.
CEO Brad Hurtubise commented "We are pleased to have finally completed the independent engineering report and PVT analysis of Ubuntu-1. The information, combined with Ubuntu-1's very similar reservoir characteristics to the nearby Elevala-1 well which was tested at an AOF rate of 60mmcf/d, convince us that Ubuntu can be commercialised as infrastructure is developed around Ubuntu and the other discoveries in the PPL 259 License area. The Ubuntu discovery along with ongoing seismic programs and activities of other operators in the immediate area, continue to de-risk and enhance the value of the PPL 259 license. The Corporation, as operator, is endeavouring to acquire additional seismic over Ubuntu and has applied to the PNG government for a variation and extension of PPL 259."
CALGARY, ALBERTA--(Marketwire - April 28, 2011) - Eaglewood Energy Inc. (the "Corporation") (TSX VENTURE:EWD) is pleased to announce the results of a report of estimated resources on its Ubuntu-1 well in Papua New Guinea. Gaffney, Cline & Associates, an independent qualified reserves evaluator, prepared a Statement of Resources on the Ubuntu-1 well for the Corporation dated effective April 21, 2011 (the "GCA Report"). The resource estimates in the GCA Report are prepared in compliance with National Instrument 51-101 and the COGE Handbook.
The GCA Report discloses a Mean Estimate of natural gas initially in place of 85.6 BCF, and a mean estimate of natural gas liquids initially in place of 4.7 MMbbl. Using a 6:1 conversion ratio to convert natural gas liquids to natural gas equivalent, the estimated mean natural gas equivalent initially in place is113.8 BCFE.
The GCA Report also discloses, as part of the total resource estimate, 1C, 2C and 3C contingent resources of 18.9, 35.7 and 111.5 BCF of natural gas, respectively and 1C, 2C and 3C contingent resources of 0.69, 1.47 and 4.64 MMbbl of natural gas liquids, respectively.
There are a number of significant factors relevant to the estimates provided above, including, but not limited to:
- Requirement for additional 2D seismic acquisition to better define the structural framework of the Ubuntu discovery.
- Definition of a Field Development Plan (FDP) – current Recovery Factors are notional and based on a gas blowdown development scenario.
- Review of natural gas and natural gas liquids recovery factors once an FDP is decided.
There are also a number of contingencies which preclude the estimated resources from being classified as reserves. Such contingencies include, but are not limited to, the development plan envisaged by the Corporation and additional seismic acquisition and appraisal drilling.
CEO Brad Hurtubise commented "We are pleased to have the independent engineering report to help clarify the resources in the Ubuntu Discovery. In our opinion, this information supports our belief that Ubuntu can be commercialised, and clearly derisks our other prospects in the immediate area."
Reader Advisory
"Contingent resources" means those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political, and regulatory matters or a lack of markets. It is also appropriate to classify as contingent resources the estimated discovered recoverable quantities associated with a project in the early evaluation stage.
"Natural gas initially in place" and "natural gas liquids initially in place" mean those quantities of natural gas or natural gas liquids that are estimated to exist originally in naturally occurring accumulations. It includes that quantity of natural gas or natural gas liquids that are estimated, as of a given date, to be contained in known accumulations, prior to production.
"1C (Low Estimate or P90)" means a conservative estimate of the quantity that will actually be recovered from the accumulation. It is likely that the actual remaining quantities discovered will exceed the low estimate. If probabilistic methods are used, there should be at least a 90 percent probability that the quantities actually recovered will equal or exceed the low estimate.
"2C (Best Estimate or P50)" means the best estimate of the quantity that will actually be recovered from the accumulation. It is equally likely that the actual remaining quantities recovered will be greater or less than the best estimate. If probabilistic methods are used, there should be at least a 50 percent probability that the quantities actually recovered will equal or exceed the best estimate.
"3C (High Estimate or P10)" means an optimistic estimate of the quantity that will actually be recovered. It is unlikely that the actual remaining quantities recovered will exceed the high estimate. If probabilistic methods are used, there should be at least a 10 percent probability that the quantities actually recovered will equal or exceed the high estimate.
"Mean Estimate" represents the statistical mean of the Low Estimate, the Best Estimate and the High Estimate using probabilistic methods.
No proved, probable or possible reserves have been assigned to the Ubuntu well at this time. Undiscovered resources are those quantities of oil and gas estimated on a given date to be contained in accumulations yet to be discovered. Estimates of resources always involve uncertainty, and the degree of uncertainty can vary widely between accumulations/projects and over the life of a project. Readers are also advised that there is no certainty that it will be commercially viable to produce any portion of the resources.