Delphi Energy increases year end 2011 reserves to over 40 million BOE with finding and development costs of $12.46 per BOE
Friday, Mar 02, 2012
Delphi Energy Corp. (TSX:DEE) ("Delphi" or the "Company") is pleased to report its crude oil and natural gas reserves information for the year ended December 31, 2011.
(1) Certain financial and operating information included in this press release for the quarter and year ended December 31, 2011, such as finding and development costs, production information, operating netbacks, recycle ratios and net asset value calculations are based on unaudited financial results for the year ended December 31, 2011 and are subject to the same limitations as discussed under forward-looking statements outlined at the end of this release. These estimate amounts may change upon completion of the audited financial statements for the year ended December 31, 2011 and those changes may be material.
GLJ Petroleum Consultants Ltd. ("GLJ"), the Company's independent petroleum engineering firm, has evaluated Delphi's crude oil, natural gas and natural gas liquids reserves as at December 31, 2011 and prepared a reserves report in accordance with National Instrument 51-101 "Standards of Disclosure for Oil and Gas Activities" and the "Canadian Oil and Gas Evaluation Handbook".
Following is summary information detailed in the GLJ reserves report at December 31, 2011 as compared to December 31, 2010.
(1) Delphi's reserves represent the operated and non-operated working interest share of reserves before deduction of royalties and include any royalty interests of the Company.
(2) Oil equivalent amounts have been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil (6:1).
Net Present Value of Reserves
In 2011, the value of the net reserve additions of 8.9 million boe largely offset the decrease in GLJ's forecast natural gas prices as of January 1, 2012 as compared to January 1, 2011. The estimated future net revenues associated with Delphi's reserves at December 31, 2011, based on the GLJ January 1, 2012 price forecast, are summarized in the following table.
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