We are happy to release a recently received report from Ralph E Davis regarding our Concord Dome assets. They have concluded that our three new wells will produce more than 350’000 barrels of oil over their life as producers. Most of these reserves are from the current producing zones, and one zone on the B#9 well is valued “behind pipe”. They have not valued any potential new wells other than they expect a total of 10 producing wells after drilling program. We are happy with the valuation of our producing reserves at $10mm 8% discounted, which will add to our lending base. We believe there is great development potential in the report as they have not valued any new wells, and we also think they have underestimated the production rates.
Green Bank’s reservoir engineer has updated the valuation of our other reserves which is included in the matrix below. The report is based on current oil and gas prices and we can see that the development in the gas price has significantly increased the valuation of KYTX, and the stabile oil price has increased the future revenues from Orange Dome as well. We now have for the first time an undercounted valuation of our proven reserves alone of more than $120 mm. We have more than 1.2 mm barrels of proven oil reserves in addition to our gas assets. We have not added any probable reserves, as they are not valued by the bank for our lending base. We believe we will continue to increase our reserve valuation over the coming months.
|PDP||Proven||PDP||Proven||Undisc.||PW 8||Undisc.||PW 8|