|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
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series dat...
Jan. 30, 2015 04:45 AM EST Reads: 3,109
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water,...
Jan. 30, 2015 04:30 AM EST Reads: 3,143
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.
Jan. 30, 2015 03:30 AM EST Reads: 3,088
SYS-CON Media announced that Splunk, a provider of the leading software platform for real-time Operational Intelligence, has launched an ad campaign on Big Data Journal. Splunk software and cloud services enable organizations to search, monitor, analyze and visualize machine-generated big data coming from websites, applications, servers, networks, sensors and mobile devices. The ads focus on delivering ROI - how improved uptime delivered $6M in annual ROI, improving customer operations by minin...
Jan. 30, 2015 03:30 AM EST Reads: 3,812
The true value of the Internet of Things (IoT) lies not just in the data, but through the services that protect the data, perform the analysis and present findings in a usable way. With many IoT elements rooted in traditional IT components, Big Data and IoT isn’t just a play for enterprise. In fact, the IoT presents SMBs with the prospect of launching entirely new activities and exploring innovative areas. CompTIA research identifies several areas where IoT is expected to have the greatest impac...
Jan. 30, 2015 03:00 AM EST Reads: 1,859
There is no doubt that Big Data is here and getting bigger every day. Building a Big Data infrastructure today is no easy task. There are an enormous number of choices for database engines and technologies. To make things even more challenging, requirements are getting more sophisticated, and the standard paradigm of supporting historical analytics queries is often just one facet of what is needed. As Big Data growth continues, organizations are demanding real-time access to data, allowing immed...
Jan. 30, 2015 03:00 AM EST Reads: 3,424
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 @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed 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!
Jan. 30, 2015 02:30 AM EST Reads: 3,003
In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect at GE, and Ibrahim Gokcen, who leads GE's advanced IoT analytics, focused on the Internet of Things / Industrial Internet and how to make it operational for business end-users. Learn about the challenges posed by machine and sensor data and how to marry it with enterprise data. They also discussed the tips and tricks to provide the Industrial Internet as an end-user consumable service using Big Data Analytics and Industrial C...
Jan. 30, 2015 01:00 AM EST Reads: 2,902
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happe...
Jan. 30, 2015 12:30 AM EST Reads: 3,045
The 4th International DevOps Summit, co-located with16th International Cloud Expo – being held June 9-11, 2015, at the Javits Center in New York City, NY – announces that its Call for Papers is now open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's large...
Jan. 29, 2015 10:00 PM EST Reads: 3,685
The adoption of the Internet Of Things (IoT) is growing and its growth is synonymous with the growth of cloud. As per predictions from IDC: IoT and the Cloud: Within the next five years, more than 90% of all IoT data will be hosted on service provider platforms as cloud computing reduces the complexity of supporting IoT "Data Blending." This means that any organization that wanted to transform themselves using IoT has to automatically embrace the cloud too, especially the public cloud. This b...
Jan. 29, 2015 06:15 PM EST Reads: 399
The Internet of Things (IoT) is rapidly in the process of breaking from its heretofore relatively obscure enterprise applications (such as plant floor control and supply chain management) and going mainstream into the consumer space. More and more creative folks are interconnecting everyday products such as household items, mobile devices, appliances and cars, and unleashing new and imaginative scenarios. We are seeing a lot of excitement around applications in home automation, personal fitness,...
Jan. 29, 2015 06:00 PM EST Reads: 3,043
Dale Kim is the Director of Industry Solutions at MapR. His background includes a variety of technical and management roles at information technology companies. While his experience includes work with relational databases, much of his career pertains to non-relational data in the areas of search, content management, and NoSQL, and includes senior roles in technical marketing, sales engineering, and support engineering. Dale holds an MBA from Santa Clara University, and a BA in Computer Science f...
Jan. 29, 2015 06:00 PM EST Reads: 3,289
“We help people build clusters, in the classical sense of the cluster. We help people put a full stack on top of every single one of those machines. We do the full bare metal install," explained Greg Bruno, Vice President of Engineering and co-founder of StackIQ, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 29, 2015 02:45 PM EST Reads: 2,496
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 29, 2015 02:30 PM EST Reads: 2,632
In this demo at 15th Cloud Expo, John Meza, Product Engineer at Esri, showed how Esri products hook into Hadoop cluster to allow you to do spatial analysis on the spatial data within your cluster, and he demonstrated rendering from a data center with ArcGIS Pro, a new product that has a brand new rendering engine.
Jan. 29, 2015 02:30 PM EST Reads: 1,706
Performance is the intersection of power, agility, control, and choice. If you value performance, and more specifically consistent performance, you need to look beyond simple virtualized compute. Many factors need to be considered to create a truly performant environment. In his General Session at 15th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, discussed how to take advantage of a multitude of compute options and platform features to make cloud the cornerstone of your onlin...
Jan. 29, 2015 02:15 PM EST Reads: 3,197
Hardware will never be more valuable than on the day it hits your loading dock. Each day new servers are not deployed to production the business is losing money. While Moore's Law is typically cited to explain the exponential density growth of chips, a critical consequence of this is rapid depreciation of servers. The hardware for clustered systems (e.g., Hadoop, OpenStack) tends to be significant capital expenses. In his session at Big Data Expo, Mason Katz, CTO and co-founder of StackIQ, disc...
Jan. 29, 2015 02:00 PM EST Reads: 3,205
Software Defined Storage provides many benefits for customers including agility, flexibility, faster adoption of new technology and cost effectiveness. However, for IT organizations it can be challenging and complex to build your Enterprise Grade Storage from software. In his session at Cloud Expo, Paul Turner, CMO at Cloudian, looked at the new Original Design Manufacturer (ODM) market and how it is changing the storage world. Now Software Defined Storage companies can build Enterprise grade ...
Jan. 29, 2015 02:00 PM EST Reads: 2,337
Since 2008 and for the first time in history, more than half of humans live in urban areas, urging cities to become “smart.” Today, cities can leverage the wide availability of smartphones combined with new technologies such as Beacons or NFC to connect their urban furniture and environment to create citizen-first services that improve transportation, way-finding and information delivery. In her session at @ThingsExpo, Laetitia Gazel-Anthoine, CEO of Connecthings, will focus on successful use c...
Jan. 29, 2015 01:30 PM EST Reads: 2,049