CALGARY, ALBERTA — (Marketwire) — 01/09/13 — 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.
The pricing assumptions used in the McDaniel evaluation can be found at .
More information pertaining to Cavalier, including its latest corporate presentation, is available at the newly launched Cavalier website at and may also be accessed via the Paramount website at .
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 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:
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:
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
Cavalier Energy Inc.
William Roach
President & Chief Executive Officer
403.268.3940