|By Marketwired .||
|January 9, 2013 09:15 PM EST||
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.
Paramount Resources Ltd.
J.H.T. (Jim) Riddell
President and Chief Operating Officer
Paramount Resources Ltd.
B.K. (Bernie) Lee
Chief Financial Officer
Cavalier Energy Inc.
President & Chief Executive Officer
Samsung promises to be one of the 800-pound gorillas of the IoT, if its success in recent years with Android devices and other consumer electronics is any guide. Showing its willingness to be a big IoT player, the company recently acquired SmartThings, a recent startup that's developed an open smarthome appliation that currently supports 1,000 devices and 8,000 apps. SmartThings will now work under the auspices of Samsung's Open Innovation Center (OIC). SmartThings Founder and CEO Alex Hawkinson...
Oct. 25, 2014 07:00 AM EDT Reads: 3,092
General Electric (GE) has been a household name for more than a century, thanks in large part to its role in making households easier to run. Starting with the light bulb invented by its founder, Thomas Edison, GE has been selling devices (“things”) to consumers throughout its 122-year history. Last week, GE announced that it is officially leaving that job to others. While the lighting division will stay, GE will now turn its attention to selling industrial machinery and analytics as a service t...
Oct. 24, 2014 10:00 PM EDT Reads: 2,904
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at Internet of @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, will discuss how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money! Speaker Bio: ...
Oct. 24, 2014 09:30 PM EDT Reads: 1,106
How do you know when a technology has become mainstream? A good clue may be when politicians start talking about it on the campaign trail and with mainstream media. David Cameron, the UK prime minister, was the latest, indicating that the world was now on “fast-forward” with the Internet of Things (IoT) ushering in the new industrial revolution. No mention of IoT targeted at the masses would be complete without the clichéd example of the communicating fridge. While it is easy to get caught up in...
Oct. 24, 2014 04:00 PM EDT Reads: 5,736
Machine-to-machine (M2M) technology and the resulting Internet of Things are leading us inexorably toward everything-as-a-service (XaaS). As more things get connected, the range of service opportunities expands. And as those services are presented online, they become available for use, re-use and re-purposing. At first thought, the idea of more connected devices suggests simply that there will be more devices around, and as such, more products for manufacturers to make and sell. That’s true, bu...
Oct. 24, 2014 08:15 AM EDT Reads: 6,703
Samsung VP Jacopo Lenzi, who headed the company's recent SmartThings acquisition under the auspices of Samsung's Open Innovaction Center (OIC), answered a few questions we had about the deal. This interview was in conjunction with our interview with SmartThings CEO Alex Hawkinson. IoT Journal: SmartThings was developed in an open, standards-agnostic platform, and will now be part of Samsung's Open Innovation Center. Can you elaborate on your commitment to keep the platform open? Jacopo Lenzi: S...
Oct. 23, 2014 11:45 PM EDT Reads: 2,594
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
Oct. 22, 2014 09:00 PM EDT Reads: 1,473
SAP is delivering break-through innovation combined with fantastic user experience powered by the market-leading in-memory technology, SAP HANA. In his General Session at 15th Cloud Expo, Thorsten Leiduck, VP ISVs & Digital Commerce, SAP, will discuss how SAP and partners provide cloud and hybrid cloud solutions as well as real-time Big Data offerings that help companies of all sizes and industries run better. SAP launched an application challenge to award the most innovative SAP HANA and SAP ...
Oct. 22, 2014 07:00 AM EDT Reads: 1,678
In her General Session at 15th Cloud Expo, Anne Plese, Senior Consultant, Cloud Product Marketing, at Verizon Enterprise, will focus on finding the right mix of renting vs. buying Oracle capacity to scale to meet business demands, and offer validated Oracle database TCO models for Oracle development and testing environments. Anne Plese is a marketing and technology enthusiast/realist with over 19+ years in high tech. At Verizon Enterprise, she focuses on driving growth for the Verizon Cloud pla...
Oct. 21, 2014 07:30 PM EDT Reads: 1,559
The Internet of Things (IoT) is going to require a new way of thinking and of developing software for speed, security and innovation. This requires IT leaders to balance business as usual while anticipating for the next market and technology trends. Cloud provides the right IT asset portfolio to help today’s IT leaders manage the old and prepare for the new. Today the cloud conversation is evolving from private and public to hybrid. This session will provide use cases and insights to reinforce t...
Oct. 21, 2014 05:15 PM EDT Reads: 1,624
As Platform as a Service (PaaS) matures as a category, developers should have the ability to use the programming language of their choice to build applications and have access to a wide array of services. Bluemix is IBM's open cloud development platform that enables users to easily build cloud-based, creative mobile and web applications without having to spend large amounts of time and resources on configuring infrastructure and multiple software licenses. In this track, you will learn about the...
Oct. 21, 2014 05:00 PM EDT Reads: 1,579
SYS-CON Events announced today that Verizon has been named "Gold Sponsor" of SYS-CON's 15th International Cloud Expo®, which will take place on November 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Verizon Enterprise Solutions creates global connections that generate growth, drive business innovation and move society forward. With industry-specific solutions and a full range of global wholesale offerings provided over the company's secure mobility, cloud, strategic network...
Oct. 21, 2014 09:30 AM EDT Reads: 1,666
SimpleECM is the only platform to offer a powerful combination of enterprise content management (ECM) services, capture solutions, and third-party business services providing simplified integrations and workflow development for solution providers. SimpleECM is opening the market to businesses of all sizes by reinventing the delivery of ECM services. Our APIs make the development of ECM services simple with the use of familiar technologies for a frictionless integration directly into web applicat...
Oct. 20, 2014 10:00 PM EDT Reads: 1,787
The only place to be June 9-11 is Cloud Expo & @ThingsExpo 2015 East at the Javits Center in New York City. Join us there as delegates from all over the world come to listen to and engage with speakers & sponsors from the leading Cloud Computing, IoT & Big Data companies. Cloud Expo & @ThingsExpo are the leading events covering the booming market of Cloud Computing, IoT & Big Data for the enterprise. Speakers from all over the world will be hand-picked for their ability to explore the economic...
Oct. 20, 2014 07:00 PM EDT Reads: 2,116
Cloudwick, the leading big data DevOps service and solution provider to the Fortune 1000, announced Big Loop, its multi-vendor operations platform. Cloudwick Big Loop creates greater collaboration between Fortune 1000 IT staff, developers and their database management systems as well as big data vendors. This allows customers to comprehensively manage and oversee their entire infrastructure, which leads to more successful production cluster operations, and scale-out. Cloudwick Big Loop supports ...
Oct. 20, 2014 05:45 PM EDT Reads: 1,758
Software AG helps organizations transform into Digital Enterprises, so they can differentiate from competitors and better engage customers, partners and employees. Using the Software AG Suite, companies can close the gap between business and IT to create digital systems of differentiation that drive front-line agility. We offer four on-ramps to the Digital Enterprise: alignment through collaborative process analysis; transformation through portfolio management; agility through process automation...
Oct. 20, 2014 03:45 PM EDT Reads: 1,801
Headquartered in Santa Monica, California, Bitium was founded by Kriz and Erik Gustavson. The 1,500 cloud-based application using Bitium’s analytics, app management, and single sign-on services include bug trackers, customer service dashboards, Google Apps, and social networks. The firm states website administrators can do multiple tasks online without revealing passwords. Bitium’s advisors include Microsoft’s former CMO and the former senior vice president of strategy, the founder and CEO of Li...
Oct. 20, 2014 03:00 PM EDT Reads: 1,840
Things are being built upon cloud foundations to transform organizations. This CEO Power Panel at 15th Cloud Expo, moderated by Roger Strukhoff, Cloud Expo and @ThingsExpo conference chair, will address the big issues involving these technologies and, more important, the results they will achieve. How important are public, private, and hybrid cloud to the enterprise? How does one define Big Data? And how is the IoT tying all this together?
Oct. 20, 2014 12:00 PM EDT Reads: 1,734
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Oct. 19, 2014 10:45 PM EDT Reads: 2,068
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, da...
Oct. 19, 2014 10:00 PM EDT Reads: 1,654