Molori Energy Publishes Updated NI 51-101 Report Demonstrating Further Growth in Reserves
Vancouver, British Columbia (Newsfile Corp. - May 4, 2017) - Molori Energy Inc. (TSXV: MOL) (OTCQB: MOLOF) ('Molori' or the 'Company') is pleased to provide an operational and National Instrument 51-101 reserve report ('NI 51-101') update.
Molori currently owns a 25 percent working interest in certain leases located in the bifurcated Texas panhandle owned by Texas-based independent oil and gas producer Ponderosa Energy, LLC ('Ponderosa'). This latest NI 51-101 covers 77 of the leases in which Molori holds a working interest.
In summary, the initial projected average production was 40 barrels of oil equivalent per day ('BOEPD')* in June 2016, when Molori made its first investment into Ponderosa. For the month of March 2017, production averaged 412 BOEPD, a ten-fold increase in daily average production. This production increase is due primarily to an aggressive work-over campaign to return non-producing wells to production, while keeping Lease Operating Expenses ('LOE') below USD$15 per barrel due to tight cost controls.
Further, the initial NI 51-101 report dated April 01, 2016, resulted in USD$5.15 million of 1P (Total Proven Reserves) consisting of US$1.25 million PDP (Proved Developed Producing) and USD$2.89 million PDNP (Proved Developed non-Producing). The new updated NI 51- 101 report dated May 03, 2017, effective April 01, 2017 and prepared by Amiel David, Ph.D of PeTech Enterprises Inc, has resulted in US$30.1 million 1P (Total Proven Reserves), including USD$21.9 million in PDP and USD$8.2 million in PDNP.
The NI 51-101 was prepared in accordance with standards set out in the Canadian Oil and Gas Evaluation Handbook (the 'COGE Handbook'), prepared jointly by the Society of Petroleum Evaluation Engineers (Calgary Chapter) and the Canadian Institute of Mining. Metallurgy & Petroleum (Petroleum Society).
Joel Dumaresq, CEO of Molori commented, 'the latest reserve report is further validation of Molori's strategy of acquiring non-producing oil wells, cost-effectively re-working those wells, and bringing them back into production. In the past 10 months, our partners at Ponderosa have increased gross PDP ('Proved Developed Producing') values from USD $1.3 million to over $21.9 million at the end of March. Molori is committed to expanding upon this core business strategy while at the same time assembling additional prospective acreage'.Proved Reserves Discounted Cash Flow Million $ - 100% Apr-17 PDP $ 21,900 (Proved Developed Producing) PDNP $ 8,186 (Produced Developed Not Producing) PV-10 (1P) $ 30,086 (Total Proven)
-All numbers are in USD-Molori interest is 25%
* Per BOE amounts have been calculated by using the conversion ratio of six thousand cubic feet (6 MCF) of natural gas to one barrel (1 bbl) of crude oil. The BOE conversion ratio of 6 mcf to 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 natural gas as compared to oil is significantly different from the energy equivalent of 1:6, utilizing a conversion on a 1:6 basis may be misleading as an indication of value. The ratio of gas to oil was 70% gas and 30% oil in June 2016 and 40% gas and 60% oil in April 2017.
Molori Energy Inc. is an oil and gas production company with current operations in the Texas Panhandle West Field. This giant field was discovered in 1910 and expanded three years later to create one of the US largest gas fields. The experienced management team at Molori is aggressively acquiring select properties which provide immediate cash flow and development opportunities, now and in the years ahead. Molori is seizing the opportunity, in the current oil & gas environment, to assemble oil and gas production in nearby and politically safe jurisdictions.
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Cautionary Notes Regarding Forward Looking Statements
This News Release contains forward-looking statements. Forward-looking statements include but are not limited to those with respect to the prices of oil and gas, the estimation of oil and gas resources and reserves, the realization of oil and gas reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency fluctuations, requirements for additional capital, Government regulation of oil and gas operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage and the timing and possible outcome of pending litigation. In certain cases, forward-looking statements can be identified by the use of words such as 'plans', 'expects' or 'does not expect', 'is expected', 'budget', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates' or 'does not anticipate', or 'believes' or variations of such words and phrases, or statements that certain actions, events or results 'may', 'could', 'would', 'might' or 'will' be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the actual results of current exploration activities, conclusions or economic evaluations, changes in project parameters as plans continue to be refined, possible variations in grade and or recovery rates, failure of plant, equipment or processes to operate as anticipated, accidents, labour disputes or other risks of the oil & gas industry, delays in obtaining government approvals or financing or incompletion of development or construction activities, risks relating to the integration of acquisitions, to international operations, and to the prices of oil & gas. While the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise except as required by law.
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Company: Molori Energy Inc.
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