Welcome!

Microsoft Cloud Authors: Pat Romanski, Lori MacVittie, Andreas Grabner, Jim Kaskade, John Basso

News Feed Item

Paramount Provides Update on Cavalier Energy Inc.: Probable Reserves Recognized for Hoole Project

CALGARY, ALBERTA -- (Marketwire) -- 01/10/13 -- Paramount Resources Ltd. ("Paramount") (TSX:POU) is pleased to announce that its wholly-owned subsidiary Cavalier Energy Inc. ("Cavalier") has received an updated independent evaluation of the Grand Rapids formation in its 100 percent owned in-situ oil sands leases in the Hoole area of Alberta (the "Hoole Lands").

The evaluation ascribed 93 million barrels of probable reserves with a net present value (discounted at 10 percent) of $379 million to Cavalier's initial 10,000 barrel per day in-situ SAGD oil sands development covering approximately two sections of the Hoole Lands (the "Hoole Project"). Over and above the aforementioned reserves, the evaluation ascribed 719 million barrels of economic contingent resources (best estimate) with a net present value (discounted at 10 percent) of $1.949 billion to the remaining approximate 54 sections of Cavalier's Hoole Lands (the "Remaining Hoole Lands"). "The new estimates further emphasize that the Hoole Lands are a significant asset and the recognition of reserves is an important milestone for Cavalier," stated William Roach, President and Chief Executive Officer of Cavalier.

The updated estimates and reclassification of Hoole Project volumes from economic contingent resources to probable reserves follows Cavalier's November 2012 regulatory applications to the Energy Resources Conservation Board and Alberta Environment and Sustainable Resource Development.

Subject to receipt of regulatory approvals, the Hoole Project schedule currently anticipates first steam in 2015 and the first full year of production in 2016. It is expected that the Hoole Lands could support a project of over 80,000 barrels per day by 2022.

"This is another positive step forward for Paramount and the Cavalier team," said Jim Riddell, President and Chief Operating Officer of Paramount.

Results of the updated evaluation of the Hoole Lands conducted by McDaniel & Associates Consultants Ltd. ("McDaniel"), effective as of December 31, 2012, are summarized below.


Hoole Project - Summary of Bitumen Reserves(1)                    
                                                                  
The evaluation ascribed total proved plus probable plus possible  
 reserves of 104 million barrels to the Hoole Project, implying a 
 recovery factor of approximately 65 percent in relation to the   
 assigned Discovered Exploitable Bitumen In Place(2) of 159       
 million barrels.                                                 
                                                            NPV of
                                                           Future 
                                                               Net
                                                        Revenue(7)
                                                       (discounted
                                           Reserves(6)     at 10%)
------------------------------------------------------------------
                                               (MMBbl)       ($MM)
Total Proved(3)                                      -           -
Probable Undeveloped(4)                             93         379
------------------------------------------------------------------
Total Proved Plus Probable                          93         379
Possible Undeveloped(5)                             11         146
------------------------------------------------------------------
Total Proved + Probable + Possible                 104         525
------------------------------------------------------------------
------------------------------------------------------------------
                                                                            
(1) The estimates of reserves and future net revenue for individual         
    properties may not reflect the same confidence level as estimates of    
    reserves and future net revenue for all properties, due to effects of   
    aggregation.                                                            
(2) Discovered Exploitable Bitumen In Place is the estimated volume of      
    bitumen, as of a given date, which is contained in a subsurface         
    stratigraphic interval of a known accumulation that meets or exceeds    
    certain reservoir characteristics, such as minimum continuous net pay,  
    porosity and mass bitumen content. For the Hoole Project, the presence  
    of these characteristics is considered necessary for the commercial     
    application of known recovery technologies. There is no certainty that  
    it will be commercially viable to produce any portion of the resources  
    from the Hoole Project.                                                 
(3) Proved reserves are those reserves that can be estimated with a high    
    degree of certainty to be recoverable. It is likely that the actual     
    remaining quantities recovered will exceed the estimated proved         
    reserves.                                                               
(4) Probable reserves are those additional reserves that are less certain to
    be recovered than proved reserves. It is equally likely that the actual 
    remaining quantities recovered will be greater or less than the sum of  
    the estimated proved plus probable reserves.                            
(5) Possible reserves are those additional reserves that are less certain to
    be recovered than probable reserves. There is a 10 percent probability  
    that the quantities actually recovered will equal or exceed the sum of  
    proved plus probable plus possible reserves.                            
(6) Working interest volumes, before the deduction of royalties.            
(7) NPV means net present value and represents Cavalier's share of future   
    net revenue, before the deduction of income tax, from reserves in the   
    Grand Rapids formation within the Hoole Project. The calculation        
    considers such items as revenues, royalties, operating costs,           
    abandonment costs and capital expenditures. Royalties have been         
    calculated based on Alberta's Royalty Framework applicable to oil sands 
    projects. The calculation does not consider financing costs and general 
    and administrative costs. NPVs were calculated assuming natural gas is  
    used as a fuel for steam generation. Revenues and expenditures were     
    calculated based on McDaniel's forecast prices and costs as of January  
    1, 2013. The estimated net present values disclosed in this press       
    release do not represent fair market value.                             
                                                                            
Remaining Hoole Lands - Summary of Bitumen Resources                        
                                                                      NPV of
                                                                     Future 
                                                                         Net
                                                        Economic  Revenue(6)
                                                      Contingent (discounted
Classification/Level of Certainty           DEBIP(4)Resources(5)     at 10%)
----------------------------------------------------------------------------
                                             (MMBbl)     (MMBbl)       ($MM)
High Estimate(1)                               1,656         903       2,982
Best Estimate(2)                               1,469         719       1,949
Low Estimate(3)                                1,167         511         946
----------------------------------------------------------------------------
                                                                            
(1) High Estimate is considered to be an optimistic estimate of the quantity
    of resource that will actually be recovered. It is unlikely that the    
    actual remaining quantities of resources recovered will meet or exceed  
    the high estimate. Those resources at the high end for the estimate     
    range have a lower degree of certainty (a 10 percent confidence level)  
    that the actual quantities recovered will equal or exceed the estimate. 
(2) Best Estimate is considered to be the best estimate of the quantity that
    will be actually recovered. It is equally likely that the actual        
    remaining quantities recovered will be greater or less than the best    
    estimate. Those resources that fall within the best estimate have a 50  
    percent confidence level that the actual quantities recovered will equal
    or exceed the estimate.                                                 
(3) Low Estimate is considered to be a conservative estimate of the quantity
    of resources that will actually be recovered. It is likely that the     
    actual remaining quantities recovered will exceed the low estimate.     
    Those resources at the low end of the estimate range have the highest   
    degree of certainty (a 90 percent confidence level) that the actual     
    quantities recovered will equal or exceed the estimate.                 
(4) Discovered Exploitable Bitumen In Place is the estimated volume of      
    bitumen, as of a given date, which is contained in a subsurface         
    stratigraphic interval of a known accumulation that meets or exceeds    
    certain reservoir characteristics, such as minimum continuous net pay,  
    porosity and mass bitumen content. For the Remaining Hoole Lands, the   
    presence of these characteristics is considered necessary for the       
    commercial application of known recovery technologies. There is no      
    certainty that it will be commercially viable to produce any portion of 
    the resources from the Remaining Hoole Lands.                           
(5) Contingent Resources are those quantities of bitumen estimated, as of a 
    given date, to be potentially recoverable from known accumulations using
    established technology or technology under development, but are         
    classified as a resource rather than a reserve due to one or more       
    contingencies, such as the absence of regulatory applications, detailed 
    design estimates or near term development plans. There is no certainty  
    that it will be commercially viable to produce any portion of the       
    contingent resources. For the Remaining Hoole Lands, contingencies which
    must be overcome to enable the reclassification of bitumen contingent   
    resources as reserves include the finalization of plans for the         
    development, submission of a regulatory application and management's    
    intent to proceed evidenced by a development plan with major capital    
    expenditures. Economic Contingent Resources are those contingent        
    resources that are economically recoverable based on specific forecasts 
    of commodity prices and costs (based on McDaniel's forecast prices and  
    costs as of January 1, 2013). Volumes presented are working interest,   
    before the deduction of royalties.                                      
(6) NPV means net present value and represents Cavalier's share of future   
    net revenue, before the deduction of income tax, from the economic      
    contingent resources in the Grand Rapids formation within the Remaining 
    Hoole Lands. The calculation considers such items as revenues,          
    royalties, operating costs, abandonment costs and capital expenditures. 
    Royalties have been calculated based on Alberta's Royalty Framework     
    applicable to oil sands projects. The calculation does not consider     
    financing costs and general and administrative costs. NPVs were         
    calculated assuming natural gas is used as a fuel for steam generation. 
    Revenues and expenditures were calculated based on McDaniel's forecast  
    prices and costs as of January 1, 2013. The estimated net present values
    disclosed in this press release do not represent fair market value.     

The pricing assumptions used in the McDaniel evaluation can be found at www.mcdan.com/pdf/20130101.pdf.

More information pertaining to Cavalier, including its latest corporate presentation, is available at the newly launched Cavalier website at www.cavalierenergy.com and may also be accessed via the Paramount website at www.paramountres.com.

Paramount is a Canadian oil and natural gas exploration, development and production company with operations focused in Western Canada. Paramount's Class A Common Shares are listed on the Toronto Stock Exchange under the symbol "POU".

For further information on the Hoole Project specifically, or Cavalier in general, please go to www.cavalierenergy.com or contact William Roach.

Advisory Regarding Forward-Looking Information:

This news release contains certain forward-looking information under applicable securities legislation. Forward-looking information typically contains statements with words such as "anticipate", "believe", "estimate", "expect", "plan", "intend", "propose", or similar words suggesting future outcomes or an outlook. Forward looking information in this news release includes, but is not limited to: Estimated reserves and resources and the discounted net present value of future net revenues from such reserves and resources (including the forecast prices, costs and the timing of expected production volumes and future development capital) and expected production volumes from the Hoole Lands and the timing thereof.

Such forward looking information is based on a number of assumptions which may prove to be incorrect. The following assumptions have been made, in addition to any other assumptions identified in this document:


--  Future crude oil, bitumen and natural gas prices and general economic
    and business conditions; 
--  The ability to obtain required capital to finance Cavalier's
    exploration, development and operations; 
--  The ability to obtain equipment, services, supplies and personnel in a
    timely manner to carry out its activities; 
--  The ability of Cavalier to successfully market its production; 
--  Estimates of input and labour costs for an oil sands project; 
--  Access to capital markets and other sources of funding; 
--  The ability to secure adequate product processing, transportation and
    storage; 
--  The ability to successfully apply oil sands technology and to capitalize
    on improvements thereto; 
--  The ability to achieve forecast production volumes, steam oil ratios,
    and capital and operating costs consistent with expectations; 
--  The timely receipt of required regulatory approvals and the scope of
    such approvals; 
--  Estimated timelines being met in respect of the development of the Hoole
    Lands; and 
--  Currency exchange and interest rates. 

Although Paramount and Cavalier believe that the expectations reflected in such forward-looking information are reasonable, undue reliance should not be placed on them as neither Paramount nor Cavalier can give any assurance that such expectations will prove to be correct. Forward-looking information is based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by Paramount and Cavalier and described in the forward-looking information. These risks and uncertainties include, but are not limited to:


--  Fluctuations in crude oil, bitumen and natural gas prices, foreign
    currency exchange rates and interest rates; 
--  The uncertainty of estimates and projections relating to future revenue,
    future production, costs and expenses and the timing thereof; 
--  The ability to secure adequate product processing, transportation and
    storage; 
--  The uncertainty and risks of exploration, development, drilling and the
    geology of bitumen; 
--  Operational risks in exploring for, developing and producing petroleum,
    and the timing thereof; 
--  The ability to obtain equipment, services, supplies and personnel in a
    timely manner; 
--  Potential disruption or unexpected technical difficulties in designing,
    developing and operating facilities; 
--  The uncertainty of reserves and resources estimates; 
--  The ability to obtain financing at an acceptable cost to meet current
    and future obligations including costs of anticipated projects; 
--  Potential lawsuits and regulatory actions; 
--  Changes to the status or interpretation of laws, regulations or
    policies; 
--  Changes in environmental laws including emission reduction obligations; 
--  The receipt, timing and scope of governmental or regulatory approvals; 
--  Changes in general business and economic conditions; 
--  Uncertainty regarding aboriginal land claims and co-existing with local
    populations; 
--  The effects of weather; 
--  The timing and cost of future abandonment and reclamation activities; 
--  Cleanup costs for business interruptions due to environmental damage and
    contamination; and 
--  The ability to enter into or continue leases. 

The foregoing list of risks is not exhaustive. Additional information concerning these and other factors which could impact Paramount and Cavalier are included in Paramount's most recent Annual Information Form. Although Paramount believes that the expectations reflected in such forward looking statements are reasonable, undue reliance should not be placed on them as Paramount cannot give any assurance that such expectations will prove to be correct. The forward-looking statements in this news release are made as of the date hereof and, except as required by applicable securities law, Paramount undertakes no obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.

Contacts:
Paramount Resources Ltd.
J.H.T. (Jim) Riddell
President and Chief Operating Officer
403.290.3600

Paramount Resources Ltd.
B.K. (Bernie) Lee
Chief Financial Officer
403.290.3600
www.paramountres.com

Contacts:
Cavalier Energy Inc.
William Roach
President & Chief Executive Officer
403.268.3940
www.cavalierenergy.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, drew together recent research and lessons learned from emerging and established compa...
"IoT is going to be a huge industry with a lot of value for end users, for industries, for consumers, for manufacturers. How can we use cloud to effectively manage IoT applications," stated Ian Khan, Innovation & Marketing Manager at Solgeniakhela, in this SYS-CON.tv interview at @ThingsExpo, held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
"Dice has been around for the last 20 years. We have been helping tech professionals find new jobs and career opportunities," explained Manish Dixit, VP of Product and Engineering at Dice, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"At ROHA we develop an app called Catcha. It was developed after we spent a year meeting with, talking to, interacting with senior citizens watching them use their smartphones and talking to them about how they use their smartphones so we could get to know their smartphone behavior," explained Dave Woods, Chief Innovation Officer at ROHA, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2017 New York. The 20th Cloud Expo and 7th @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Internet to enable us all to im...
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
We are always online. We access our data, our finances, work, and various services on the Internet. But we live in a congested world of information in which the roads were built two decades ago. The quest for better, faster Internet routing has been around for a decade, but nobody solved this problem. We’ve seen band-aid approaches like CDNs that attack a niche's slice of static content part of the Internet, but that’s it. It does not address the dynamic services-based Internet of today. It does...
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Dave McCarthy, Director of Products at Bsquare Corporation; Alan Williamson, Principal...
"ReadyTalk is an audio and web video conferencing provider. We've really come to embrace WebRTC as the platform for our future of technology," explained Dan Cunningham, CTO of ReadyTalk, in this SYS-CON.tv interview at WebRTC Summit at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
IoT solutions exploit operational data generated by Internet-connected smart “things” for the purpose of gaining operational insight and producing “better outcomes” (for example, create new business models, eliminate unscheduled maintenance, etc.). The explosive proliferation of IoT solutions will result in an exponential growth in the volume of IoT data, precipitating significant Information Governance issues: who owns the IoT data, what are the rights/duties of IoT solutions adopters towards t...
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
Unsecured IoT devices were used to launch crippling DDOS attacks in October 2016, targeting services such as Twitter, Spotify, and GitHub. Subsequent testimony to Congress about potential attacks on office buildings, schools, and hospitals raised the possibility for the IoT to harm and even kill people. What should be done? Does the government need to intervene? This panel at @ThingExpo New York brings together leading IoT and security experts to discuss this very serious topic.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, discussed recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model for ...