CALGARY, ALBERTA--(Marketwire - June 29, 2011) - Oil Optimization Inc. (TSX VENTURE:OOI) ("OOI" or the "Company") announced that an independent resource evaluation (the "Report") has been completed by Petrotech Engineering Limited ("Petrotech") on OOI's Block L14-50 petroleum concession (the "L14-50 Licence") onshore Thailand. Using volumetric estimates, Petrotech assigned a total best estimate of Prospective Resources, for the five Leads on the L14-50 Licence, of 23,700,000 barrels of oil.
The Report provides an estimate of the potential gross undiscovered oil and gas prospective resources underlying the L14/50 Licence and is in addition to Petrotech's Report dated June 28, 2010 which addressed OOI's 50% interest in the Block L9/48 petroleum concession (the "L9/48 License"). Petrotech assigned a total best estimate of Prospective Resources of OOI's interest, for the 12 Leads on the L9-48 Licence, of 47,500,000 barrels of oil. A copy of the Petrotech Report will be posted on our website later today at www.oilop.com.
"OOI's management is pleased to have Petrotech's independent concurrence of its work on the L14/50 License," stated Luc Desmarais, President and Chief Executive Officer, who added, "The arithmetic sum and best estimate of 71,300,000 barrels of recoverable prospective oil resources, from 17 leads in the L14/50 and L9/48 Licences, highlights the significant potential of these two licences." Historic regional geology and 2D seismic data were reviewed by Petrotech to prepare the Prospective Resources Estimate of that portion of the leads lying entirely within the L14/50 and L9/48 Licences.
The estimates were prepared in accordance with the requirements of Canadian National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities Section 5.9 ("NI 51-101"). Capitalized terms related to resources classifications used in this press release are based on the definitions and guidelines in Section 5.3.5 of the Canadian Oil and Gas Evaluation Handbook Volume 1.
The Sums of each Lead are arithmetic sums, and as such do not represent the same probability levels as the estimates for the individual prospects. Prospective Resources are those quantities of oil and gas estimated to be potentially recoverable from undiscovered accumulations. There is no certainty that the Prospective Resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the prospective resources. Application of any geological and economic chance factor does not equate prospective resources to contingent resources or reserves. In addition, the following mutually exclusive Classifications of Resources were used:
Low Estimate - This is considered to be a conservative estimate of the quantity that will actually be recovered from the accumulation. This term reflects a P90 confidence level where there is a 90% chance that a successful discovery will be more than this resources estimate.
Best Estimate - This is considered to be the best estimate of the quantity that will actually be recovered from the accumulation. This term is a measure of central tendency of the uncertainty distribution and in this case reflects a 50% confidence level where the successful discovery will have a 50% chance of being more than this resources estimate.
High Estimate - This is considered to be an optimistic estimate of the quantity that will actually be recovered from the accumulation. This term reflects a P10 confidence level where there is a 10% chance that the successful discovery will be more than this resources estimate.
These distributions do not include consideration of the probability of success of discovering and producing commercial quantities of oil, but rather represent the likely distribution of the oil deposits, if discovered. Also, the Sums of Prospects are arithmetic sums, and as such do not represent the same probability levels as the estimates for the individual prospects.
Petrotech has acted independently in the preparation of the Reports and its employees have no direct or indirect ownership in the property appraised or the area of study described. With respect to Assumptions and Limiting Conditions within the Reports, the Report is limited to a discussion of the potential undiscovered oil and gas Prospective Resources of the subject property and does not attempt to place a value thereon. Petrotech reserves the right to revise its opinions of reserves and resources, if new information is deemed sufficiently credible to do so. The accuracy of any estimate is a function of available time, data and of geological, engineering and commercial interpretation and judgment. While the resources estimates presented herein are believed to be reasonable, they should be viewed with the understanding that additional analysis or new data may justify their revision and Petrotech reserves the right to make such revision.
About Oil Optimization
Oil Optimization Inc. (TSX VENTURE:OOI) is a Canadian listed international junior oil and gas exploration company with operations located onshore Thailand. OOI currently holds interests in three exploration blocks, being a 100% interest in Block L3/50, a 100% interest in Block L14/50 and a 50% interest in Block L9/48 for a total of 1,000,000 net hectares. The Company is focused on exploring and developing each of these blocks as well as seeking accretive acquisitions in the region. Visit www.oilop.com for more information.
Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this news release contains forward-looking statements and information concerning the expected activities of Oil Optimization. The forward-looking statements and information are based on certain key expectations and assumptions made by Oil Optimization. Although Oil Optimization believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because Oil Optimization can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward-looking information for anything other than its intended purpose. Oil Optimization undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
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