10th Feb 2014 09:39
10 February 2014
Matra Petroleum plc
("Matra" or the "Company")
Reserve Update
Matra Petroleum plc, the oil and gas investing company focussed on the USA, is pleased to announce the results of an independent reserve audit conducted by DeGolyer and MacNaughton ("D&M").
As announced on 22 January 2014, Matra's wholly owned subsidiary, Matra Petroleum U.S.A., Inc. ("Matra USA") has completed its Phase II acquisition of interests in certain oil and gas leasehold interests in the Texas Panhandle region of the USA through its investment in PGM-JV, a joint venture vehicle incorporated in Texas of which Matra owns 50 per cent.
D&M conducted a review of all of the assets included in both the Phase I and Phase II acquisitions and the results of the independent reserve audit are set out below:
Aggregated Results for Leases Acquired during Phase I and II
Gross Reserves | Net Reserves* | |||||||
Oil and Condensate | Wet Gas | TOTAL | Oil and Condensate | Wet Gas | TOTAL | |||
(Mbbl) | (MMcf) | (MBOE) | (Mbbl) | (MMcf) | (MBOE) | |||
Proved | ||||||||
Developed Producing | 96 | 1,250 | 243 | 37 | 512 | 97 | ||
Developed Nonproducing | 1,152 | 25,287 | 4,127 | 731 | 13,471 | 2,316 | ||
Undeveloped | 2,131 | 50,608 | 8,085 | 1,459 | 35,499 | 5,635 | ||
Total Proved | 3,379 | 77,145 | 12,455 | 2,227 | 49,482 | 8,048** | ||
Probable | 2,379 | 55,350 | 8,891 | 1,478 | 29,954 | 5,002 | ||
Proved plus Probable | 5,758 | 132,495 | 21,346 | 3,705 | 79,436 | 13,050** | ||
*Net Reserves are defined as that portion of gross reserves attributable to the interests owned by Matra, held through PGM-JV, after deducting royalties and interests owned by others.
**In the course of conducting extensive due diligence prior to closing of Phase II, the Company discovered certain title defects with respect to the properties being acquired. These defects are under active review by all relevant parties and are subject to ongoing title defect cure procedures, the results of which will be reported in due course.
The Company has extracted from the D&M report the Reserves associated with those leases that are currently free and clear from title defects and the results of this analysis are as set out below:
Gross Reserves | Net Reserves* | |||||||
Oil and Condensate | Wet Gas | TOTAL | Oil and Condensate | Wet Gas | TOTAL | |||
(Mbbl) | (MMcf) | (MBOE) | (Mbbl) | (MMcf) | (MBOE) | |||
Proved | ||||||||
Developed Producing | 96 | 1,236 | 241 | 37 | 502 | 96 | ||
Developed Nonproducing | 800 | 15,206 | 2,589 | 586 | 11,351 | 1,921 | ||
Undeveloped | 1,739 | 49,201 | 7,527 | 1,203 | 34,614 | 5,276 | ||
Total Proved | 2,635 | 65,643 | 10,358 | 1,826 | 46,466 | 7,293 | ||
Probable | 1,678 | 36,799 | 6,008 | 1,168 | 26,042 | 4,232 | ||
Proved plus Probable | 4,313 | 102,442 | 16,365 | 2,994 | 72,508 | 11,524 | ||
The potential economic value of the above Reserves will, in part, depend on the Company's chosen field development plan and operating strategy which has prepared and is currently being evaluated. The Company will be in a position to provide a detailed independent valuation of these Reserves in the Re-admission Document which is currently being prepared.
For further information, please contact:
Matra Petroleum plc c/o Bell Pottinger
Henry Lerwill 020 7861 3169
Canaccord Genuity Limited
Henry Fitzgerald-O'Connor 0207 523 8000
Estimated of proved and probable reserves presented have been prepared in accordance with the Petroleum Management System (PRMS) approved in March 2007 by the Society of Petroleum Engineers, the World Petroleum Council, the American Association of Petroleum Geologists, and the Society of Petroleum Evaluation Engineers.
This statement has been approved by the Company's CTO Igor Indychko with over 21 years of experience in petroleum exploration and production for the purpose of the Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange in respect of AIM companies, which outline standards of disclosure for mineral projects.
Glossary
Reserves | Reserves are those quantities of petroleum anticipated to be commercially recoverable by application of development projects to known accumulations from a given date forward under defined conditions. Reserves must further satisfy four criteria: they must be discovered, recoverable, commercial and remaining (as of the evaluation date) based on the development project(s) applied. Reserves are further categorised in accordance with the level of certainty associated with the estimates and may be sub-classified based on project maturity and/or characterized by development and production status.
|
Mbbl | Thousand barrels of oil |
MMcf | Million cubic feet |
MBOE | Thousand barrels of oil equivalent |
Related Shares:
MTA.L