CALGARY, ALBERTA — (Marketwire) — 03/14/13 — Crocotta Energy Inc. (“Crocotta”) (TSX: CTA) is pleased to announce its 2012 year-end reserves as independently evaluated by GLJ Petroleum Consultants Ltd., in accordance with National Instrument 51-101 (“NI 51-101”).
2012 Highlights
Reserves Summary
Crocotta–s December 31, 2012 reserves as prepared by the independent reserves evaluation firm GLJ Petroleum Consultants Ltd. (“GLJ”) and based on the GLJ (2013-01) future price forecast are as follows:
Reserves Values
The estimated future net revenues before taxes associated with Crocotta–s reserves effective December 31, 2012 and based on the GLJ (2013-01) future price forecast are summarized in the following table:
Price Forecast
The GLJ (2013-01) price forecast for the next 5 years is as follows:
Net Asset Value
Crocotta–s net asset value (“NAV”) as at December 31, 2012 and based on the GLJ (2013-01) future price forecast is as follows:
Finding and Development Costs
Crocotta–s capital program for 2012 was focused on its core properties located at Edson in west-central Alberta and in northeast British Columbia. Capital Expenditures for the year were $104.0 million. Crocotta has presented Finding and Development Costs below both including and excluding dispositions. While NI 51-101 requires that the effects of acquisitions and dispositions be excluded, Crocotta has included these items because it believes that acquisitions and dispositions can have a significant impact on the Company–s ongoing reserve replacement costs and that excluding these amounts could result in an inaccurate portrayal of Crocotta–s cost structure.
Reserve Life Index
The Company–s Reserve Life Index presented below is based on 2012 exit production of approximately 8,500 boepd.
Forward-Looking Information
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “may”, “will”, “should”, “believe”, “intends”, “forecast”, “plans”, “guidance” and similar expressions are intended to identify forward-looking statements or information.
More particularly and without limitation, this document contains forward looking statements and information relating to the Company–s oil, NGLs and natural gas production and reserves and reserves values, capital programs, and oil, NGLs, and natural gas commodity prices. The forward-looking statements and information are based on certain key expectations and assumptions made by the Company, including expectations and assumptions relating to prevailing commodity prices and exchange rates, applicable royalty rates and tax laws, future well production rates, the performance of existing wells, the success of drilling new wells, the availability of capital to undertake planned activities and the availability and cost of labour and services.
Although the Company believes that the expectations reflected in such forward-looking statements and information are reasonable, it can give no assurance that such expectations will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production, delays or changes in plans with respect to exploration or development projects or capital expenditures, the uncertainty of estimates and projections relating to production rates, costs and expenses, commodity price and exchange rate fluctuations, marketing and transportation, environmental risks, competition, the ability to access sufficient capital from internal and external sources and changes in tax, royalty and environmental legislation. The forward-looking statements and information contained in this document are made as of the date hereof for the purpose of providing the readers with the Company–s expectations for the coming year. The forward-looking statements and information may not be appropriate for other purposes. The Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
BOE Conversions
BOE–s may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 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.
Contacts:
Crocotta Energy Inc.
Robert Zakresky
President and Chief Executive Officer
(403) 538-3736
(403) 538-3735 (FAX)
Crocotta Energy Inc.
Nolan Chicoine
Vice President, Finance and Chief Financial Officer
(403) 538-3738
Crocotta Energy Inc.
700, 639 -5th Ave SW
Calgary, Alberta T2P 0M9
(403) 538-3737
(403) 538-3735 (FAX)