Bucking Horse Energy Inc. Announces Proved Reserves of 153 Bcfe and Files Annual Information Form
VANCOUVER, BRITISH COLUMBIA–(Marketwire – Mar 31, 2010) – Bucking Horse Energy Inc. (the “Company” or “Bucking Horse”) (TSX:BUC) is gratified to inform the year-end oil and gas pot antiquated Dec 31, 2009, rebuilt by eccentric inorganic substance consultants AJM Petroleum Consultants in Canada and Netherland Sewell and Associates in the United States. The pot report and interpretation epitomised next have been accessible in larger item in the Company’s Statement of Reserves Data and Other Oil and Gas Information (National Instrument 51-101: Forms 51-101F1, 51-101F2 and 51-101F3) for the year finished Dec 31, 2009. The Company additionally announces the filing of the Annual Information Form for the year finished Dec 31, 2009. These filings have been accessible for examination at www.sedar.com.
All listed currencies have been United States dollars (“US$”) unless differently indicated.
2009 YEAR END HIGHLIGHTS
- Net Proved pot totaled 153 billion cubic feet of healthy gas homogeneous (“Bcfe”)
- Net Proved and Probable pot totaled 297 Bcfe
- Net Proved and Probable and Possible pot totaled 492 Bcfe
RESERVES
The Dec 31, 2009 haven evaluations were rebuilt utilizing the methodology and definitions as set out underneath National Instrument 51-101 (“NI 51-101″) and standards contained in the Canadian Oil and Gas Evaluation Handbook. Under NI 51-101, valid haven assignments have been formed on a 90 percent luck that total quantities recovered will next to or surpass valid haven estimates. Proved and Probable pot have been the approaching box where there is an next to possibility that the Proved and Probable pot will be aloft or reduce than estimated. Possible Reserves have been those one more pot that have been reduction sure to be recovered than illusive reserves. There is a 10% luck that the quantities essentially recovered will next to or surpass the total of valid and illusive and probable reserves.
The year-end pot in effect Dec 31, 2009 presented embody association operative interests prior to and net after royalties regulating foresee cost and cost assumptions. Where amounts and volumes have been voiced on a gas homogeneous basis, liquids volumes have been converted to cubic feet of gas at a comparative measure of 6,000 cubic feet of gas per tub of oil (6 Mcf/bbl). A acclimatisation comparative measure of 6 Mcf healthy gas to one bbl oil is formed on an appetite equivalency acclimatisation process essentially germane at the burner tip and does not paint equivalency at the wellhead.
Summary of Company Interest Oil and Gas Reserves – Forecast Prices and Costs
Dec 31, 2009 Natural Gas Equivalent Condensate NGLs Natural Gas (6 Mcf : 1 bbl)
Company Net After Company Net After Company Net After Gross Royalties Gross Royalties Gross RoyaltiesReserves Category (Mbbl) (Mbbl) (MMcf) (MMcf) (MMcfe) (MMcfe)
Proved- Developed Producing 315 254 39,261 31,871 41,154 33,397- Developed Non- Producing – – – – – — Undeveloped 1,151 916 143,897 114,481 150,804 119,976Total Proved 1,467 1,170 183,159 146,351 191,958 153,373Probable 1,401 1,100 175,340 137,598 183,748 144,195Total Proved + Probable 2,868 2,270 358,499 283,949 375,706 297,568Possible 1,869 1,484 233,594 185,502 245,413 194,406Total Proved + Probable + Possible 4,737 3,754 592,093 469,451 620,513 491,974
Forecast product prices and acceleration used in the evaluations of the Company’s pot have been formed on cost forecasts published in effect Dec 31, 2009 by AJM Petroleum Consultants with adjustments for informal cost differentials.
Net Present Value of Reserves – Forecast Prices and Costs
Before Income Taxes ($000′s)Company Interest Discounted at (%/year)
0% 5% 10% 15% 20%Proved Producing 195,975 116,989 80,969 61,607 49,870Proved Non-producing – – – – -Proved Undeveloped 784,784 414,178 248,978 162,823 112,581Total Proved 980,759 531,167 329,947 224,430 162,451Probable 854,786 386,869 193,735 103,898 58,218Total Proved + Probable 1,835,545 918,036 523,683 328,328 220,668Possible 1,048,827 384,399 156,779 69,247 32,170Total Proved + Probable + Possible 2,884,372 1,302,435 680,461 397,575 252,839
Note: Totals might not supplement just due to rounding.
It should not be insincere that the ignored destiny net prolongation revenues paint the satisfactory marketplace worth of the reserves.
Included in the Net Present Value integrity have been undiscounted good desertion costs of $4.3 million for Proved reserves, $9.5 million for Proved + Probable reserves, and $19.7 million for Proved + Probable + Possible reserves.
About Bucking Horse Energy Inc.
Bucking Horse Energy is an eccentric oil and gas scrutiny and prolongation association focused in the Pinedale field, inside of the Green River Basin of southwestern Wyoming. The usual shares of the Company have been listed for trade on the Toronto Stock Exchange underneath the pitch “BUC”.
On interest of the Board of Directors:
Gordon Nielsen, President and CEO
Certain statements together with destiny training programs, destiny pot and alternative report enclosed herein consecrate “forward seeking statements” inside of the definition of germane laws or regulatory policies. Such brazen seeking statements engage good known and opposite risks, uncertainties and alternative factors that might means the tangible results, opening or achievements described herein to be materially opposite from any destiny formula or achievements voiced or pragmatic by such brazen seeking statements. In particular, calculating approximately pot involves fundamental engineering uncertainties as good as fundamental uncertainties about the destiny fluctuations in the cost of gas, that can means estimates of mercantile pot to be revised upwards or downwards. Other factors inspiring brazen seeking statements include, between others, the fundamental uncertainties compared with oil and gas exploration; legislative, environmental, judicial, regulatory, domestic and rival developments in areas in that Bucking Horse operates; and technological, automatic and operational difficulties encountered in tie with Bucking Horse’s activities. You should impute to the risk disclosures set out in the Annual Information Form, Management’s Discussion and Analysis and alternative avowal papers filed from time to time with the TSX and alternative regulatory authorities.
The Toronto Stock Exchange has not reviewed and does not accept shortcoming for the endowment or correctness of this headlines release.
