Hydrocarb Reports FYE Oil Reserve Increase of 97%

HOUSTON, Sept. 30, 2015 /PRNewswire/ -- Hydrocarb Energy Corporation (OTCQB:HECC) today announced that based on a new reserve report, as of July 31, 2015, the Company's fiscal year end, that it realized a 97% year over year increase in proved oil reserves and a 51% increase in proved natural gas reserves.

This increase was accomplished through workover and recompletions in existing wells. Additionally, the report estimated approximately $54.6 million of net present value discounted at 10% (PV10).  This is a $3.1 million increase over the July 2014 PV10 of $51.5 million despite lower oil and gas pricing.

The table below reconciles the components driving the 2015 reserve increase:

Additionally, in 2015, HECC's reserve replacement ratio, a key measure of growth for investors, was over 1800% (18.9:1) for oil and over 4100% (41.1:1) for gas. Reserves were evaluated by petroleum engineers R.E. Davis and Associates using SEC guidelines.

Chuck Dommer, the Company's President and Chief Operating Officer stated, "We are very pleased with the results over the last year of continuing to enhance our production and now we are set to continue development of our proved reserves going forward, understanding that we also have significant probable and possible potential that is not included on this SEC focused reserve report."  

When asked to comment, Kent Watts the Company's Chief Executive Officer stated, "Considering a major impetus for our planned financing required to fully develop our proved reserves going forward, on a non-discounted basis, this new report supports that there is almost $100 million of net lease operating positive cash flow potentially available to Hydrocarb."  He went on to say, "It appears that about 85% of this net positive cash flow could be realized over the next 10 years. Adding speculative value based on potential stemming from our ability as an operator and our invaluable production infrastructure in Galveston Bay, the financial modeling to support raising our development capital is formidable even at current oil prices."

In 2016 and 2017 the company intends to increase production and improve revenues through recompletion of existing wells to other productive reservoirs and pursue drilling targets of the Frio formation reservoirs within the boundary of its leases.

About Hydrocarb: Hydrocarb Energy Corporation is a publicly-traded Domestic and International Energy Exploration and Production Company targeting major under-explored oil and gas projects in emerging, highly prospective regions of the world. With exploration concessions in Africa and domestic production in Galveston Bay, we maintain offices in Houston, Texas, and Windhoek, Namibia.

For further information: www.hydrocarb.com.

Forward-looking Statements

This news release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  Forward-looking statements give our current expectations, opinion, belief or forecasts of future events and performance.  A statement identified by the use of forward looking words including "may," "expects," "projects," "anticipates," "plans," "believes," "estimate," "should," and certain of the other foregoing statements may be deemed forward-looking statements.  Although the company believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this news release.  Forward-looking statements are subject to risks inherent in natural gas and oil drilling and production activities, including risks of fire, explosion, blowouts, pipe failure, casing collapse, unusual or unexpected formation pressures, environmental hazards, and other operating and production risks, which may temporarily or permanently reduce production or cause initial production or test results to not be indicative of future well performance or delay the timing of sales or completion of drilling operations; delays in receipt of drilling permits; risks with respect to natural gas and oil prices, a material decline which could cause the company to delay or suspend planned drilling operations or reduce production levels; risks relating to the availability of capital to fund drilling operations that can be adversely affected by adverse drilling results, production declines and declines in natural gas and oil prices; risks relating to unexpected adverse developments in the status of properties; risks relating to the absence or delay in receipt of government approvals or fourth party consents; and other risks described in the company's Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and other filings with the SEC, available at the SEC's website at www.sec.gov. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from those projected. The forward-looking statements in this press release are made as of the date hereof. The company takes no obligation to update or correct its own forward-looking statements, except as required by law, or those prepared by third parties that are not paid for by the company. The company's SEC filings are available at http://www.sec.gov.

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SOURCE Hydrocarb Energy Corporation