491 0 Kommentare Mapan Energy Ltd. Announces 2014 Year-End Reserves, Operations Update and Executive Appointment

CALGARY, ALBERTA--(Marketwired - Jan. 28, 2015) - Mapan Energy Ltd. ("Mapan" or the "Company") (TSX VENTURE:MPG) is pleased to announce its 2014 year-end reserves. Mapan's independent reserve report (the "GLJ report") was prepared by GLJ Petroleum Consultants ("GLJ") in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101") with an effective date of December 31, 2014.

Highlights

The Company's Proved Reserves increased from the March 31, 2014 report by 19% from 12.58 million (MM) Barrels of Oil Equivalent (BOE) ⁽¹⁾ to 15 MM BOE at year end December 31, 2014.
Proved plus Probable Reserves increased by 27% from 15.16 MM BOE to 19.18 MM BOE.
Proved Producing Reserves are 12.64 MM BOE. Proved Producing reserves represent 84% of all Proved Reserves and 66% of all Proved plus Probable Reserves.
Technical Revisions increased Proved Reserves by 2.42 MM BOE. The majority of the upward technical revisions are due to improved performance of the producing wells.
The Net Present Value of future net revenue attributable to the reserves (before tax) discounted at 10% is $117.6 MM for the Proved Reserves and $144.5 MM for the Proved plus Probable Reserves.
The undiscounted, total future development capital for the Proved plus Probable Reserves is $34.0MM.
The Company's Proved and Proved plus Probable Reserves are comprised of 94% natural gas and 6% oil and natural gas liquids.
⁽¹⁾ Based on the independent reserve report (the "March Report") prepared by GLJ effective March 31, 2014 in respect of the reserves acquired by the Company on the acquisition (the "Acquisition") of certain oil and natural gas properties on July 31, 2014 (the "Acquired Assets"). Unlike the GLJ Report, the reserves in the March Report do not include relatively minor reserves attributable to the properties that were held by the Company prior to the Acquisition.

Operations

On January 20, 2015, shut-in production from Mapan's properties in the Deep Basin North, processed at the Elmworth Gas Plant, came back on line as Trans Canada Pipeline lifted production restrictions on its natural gas transmission pipeline ("NGTL") system at Elmworth and put back into service a 30 inch pipeline in this area. Company production of approximately 9mmcf/d (1,500 BOE/D) had been shut in for 137 days due to this outage on NGTL. Mapan's current production is approximately 6,100 BOE/D. Approximately 600 to 700 BOE/D remains shut-in due to current, ongoing inspections, repairs and outages on the NGTL system well downstream of Mapan's producing properties. These new production restrictions on the NGTL system are expected to last several weeks.

Reserves

Summary of Oil and Gas Reserves

Effective Date: December 31, 2014		Light & Medium Oil		Natural Gas Liquids		Natural Gas		Total Oil Equivalent
		Gross	Net	Gross	Net	Gross	Net	Gross	Net
Reserve Category		(Mbbl)	(Mbbl)	(Mbbl)	(Mbbl)	(MMcf)	(MMcf)	(Mboe)	(Mboe)
Proved
	Developed Producing	56	43	556	365	72,141	65,612	12,635	11,343
	Developed Non-Producing	-	-	53	38	2,549	2,345	478	429
	Undeveloped	-	-	209	164	10,082	9,577	1,889	1,760
Total Proved		56	43	818	567	84,772	77,534	15,002	13,533
Probable
Total Probable		18	13	264	185	23,351	21,382	4,174	3,762
Total Proved plus Probable		74	57	1,082	752	108,123	98,916	19,176	17,295

Notes:
(1) Columns may not add due to rounding
(2) "Gross" reserves means the company's working interest (operated and non-operated) share before deduction of royalties payable to others and including any royalty interests of the company
(3) "Net" reserves means the company's working interest (operated and non-operated) share after deduction of royalty obligations plus the company's royalty interests in reserves

Summary of Net Present Value of Future Net Revenue

		Before Income Tax Discounted at (%/yr)
		0%	5%	10%	15%	20%
Reserve Category		(M$)	(M$)	(M$)	(M$)	(M$)
Proved
	Developed Producing	174,224	137,649	113,223	96,097	83,574
	Developed Non-Producing	4,815	3,541	2,649	2,011	1,544
	Undeveloped	15,540	6,781	1,696	-1,416	-3,405
Total Proved		194,578	147,971	117,568	96,692	81,712
Probable
Total Probable		73,949	42,564	26,975	18,466	13,426
Total Proved plus Probable		268,527	190,535	144,542	115,157	95,139

		After Income Tax Discounted at (%/yr)
		0%	5%	10%	15%	20%
Reserve Category		(M$)	(M$)	(M$)	(M$)	(M$)
Proved
	Developed Producing	160,047	126,754	104,588	89,075	77,738
	Developed Non-Producing	3,589	2,584	1,875	1,367	995
	Undeveloped	12,271	4,763	405	-2,262	-3,968
Total Proved		175,908	134,102	106,869	88,180	74,765
Probable
Total Probable		57,913	32,787	20,483	13,844	9,949
Total Proved plus Probable		233,821	166,888	127,352	102,024	84,715

Notes:
(1) Columns may not add due to rounding
(2) It should not be assumed that the undiscounted and discounted future net revenues estimated by GLJ represent the fair market value of the reserves
(3) The after-tax net present value of future net revenue of the Company's reserves reflects the tax burden on the properties on a stand-alone basis and utilizes corporate tax pools. This does not consider the business-entity level tax situation or tax planning. It does not provide an estimate of the value at the level of the business entity, which may be significantly different. Mapan's financial statements and management's discussion and analysis should be consulted for information at the business entity level.

Reconciliation of Gross Reserves (before Royalties) by Principal Product Type

		Light & Medium Oil			Natural Gas
				Proved +			Proved +
		Proved	Probable	Probable	Proved	Probable	Probable
Factors		(Mbbl)	(Mbbl)	(Mbbl)	(MMcf)	(MMcf)	(MMcf)
March 31, 2014		76	30	106	71,875	14,692	86,567
	Technical Revisions	-9	-12	-21	13,043	3,208	16,251
	Infill Drilling	-	-11	-11	10,082	5,452	15,534
	Production	-11	11	-	-10,228	-	-10,228
December 31, 2014		56	18	74	84,772	23,351	108,123

		Natural Gas Liquids			Total Oil Equivalent
				Proved +			Proved +
		Proved	Probable	Probable	Proved	Probable	Probable
Factors		(Mbbl)	(Mbbl)	(Mbbl)	(Mboe)	(Mboe)	(Mboe)
March 31, 2014		524	101	625	12,579	2,579	15,158
	Technical Revisions	160	50	211	2,325	573	2,898
	Infill Drilling	209	113	322	1,889	1,022	2,911
	Production ⁽²⁾	-76	0	-76	-1,791	0	-1,791
December 31, 2014		818	264	1,082	15,002	4,174	19,176

Notes:
(1) Columns may not add due to rounding
(2) Production is for the period April 1, to December 31, 2014
(3) There were no reserves attributed to other catagories
(4) The foregoing reconciliation of gross reserves provides a reconciliation of the Company's reserves as at December 31, 2014 to the reserves attributable to the Acquired Assets as evaluated in the March Report, which does not include relatively minor reserves that were already held by the Company prior to the acquisition of the Acquired Assets. A complete reconciliation of reserves of the Company will be included in the annual information form of the Company for the year ended December 31, 2014.

Pricing

GLJ employed the following pricing, exchange rate and inflation rate assumptions as of December 31, 2014 in the GLJ Report in estimating the net present value of the future net revenue attributable to the reserves. Actual wellhead prices received by the Company may vary due to transportation charges and product quality adjustments:

	Natural Gas		Light Crude Oil		Pro- pane	Butane	Pen- tanes Plus
	Henry Hub	AECO	WTI	Edmon- ton	Edmon- ton	Edmon- ton	Edmon- ton	Infla- tion	Ex- change
Year								Rates	Rate
Forecast	($US/ MMBtu)	($CAD/ MMBtu)	($US/ bbl)	($CAD/ bbl)	($CAD/ bbl)	($CAD/ bbl)	($CAD/ bbl)	(%/ year)	($US/ $CAD)

2015	3.31	3.31	62.50	64.71	19.63	52.91	69.24	2.0	0.850
2016	3.75	3.77	75.00	80.00	32.00	60.80	85.60	2.0	0.875
2017	4.00	4.02	80.00	85.71	38.57	65.14	91.71	2.0	0.875
2018	4.25	4.27	85.00	91.43	41.14	69.49	97.83	2.0	0.875
2019	4.50	4.53	90.00	97.14	43.71	73.83	103.94	2.0	0.875
2020	4.75	4.78	95.00	102.86	46.29	78.17	110.06	2.0	0.875
2021	5.00	5.03	98.54	106.18	47.78	80.70	113.62	2.0	0.875
2022	5.25	5.28	100.51	108.31	48.74	82.31	115.89	2.0	0.875
2023	5.50	5.53	102.52	110.47	49.71	83.96	118.20	2.0	0.875
2024	5.68	5.71	104.57	112.67	50.70	85.63	120.56	2.0	0.875
There- after	+2%/yr	+2%/yr	+2%/yr	+2%/yr	+2%/yr	+2%/yr	+2%/yr	2.0	0.875

Note:
(1) Actual wellhead prices received by the Company may vary due to transportation charges and product quality adjustments

Corporate Presentation

Mapan has updated its corporate presentation to reflect the 2014 year-end reserves which can be found on its website at www.mapanenergy.com.

Executive Appointment

Mapan is pleased to announce the appointment of Colin Taylor to the position of Vice President Land. Mr. Taylor has over ten years of industry experience and will be a key addition to the Mapan team.

ADVISORY: This press release contains forward-looking statements. More particularly, this press release contains forward-looking statements concerning the timing that production may be shut-in, the reserves attributable to the Company's assets and the estimate of the net present value of the future net revenues attributable thereto. Although Mapan believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Mapan cannot give assurances that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Risks include risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets and other economic and industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling services, incorrect assessment of value of acquisitions and failure to realize the benefits therefrom, delays resulting from or inability to obtain required regulatory approvals, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources and economic or industry condition changes. Actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Mapan will derive therefrom. Additional information on these and other factors that could affect Mapan are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). The forward-looking statements contained in this press release are made as of the date hereof and Mapan undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Barrels of Oil Equivalent: Disclosure provided herein in respect of barrels of oil equivalent (BOE) may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1; utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.