Welcome!

Big Data Journal Authors: Carmen Gonzalez, Liz McMillan, Yeshim Deniz, Elizabeth White, Paul Diamond

News Feed Item

Paramount Provides Update on Cavalier Energy Inc.: Probable Reserves Recognized for Hoole Project

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.

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
www.paramountres.com

Contacts:
Cavalier Energy Inc.
William Roach
President & Chief Executive Officer
403.268.3940
www.cavalierenergy.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@BigDataExpo Stories
DevOps Summit 2015 New York, 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 it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete...

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's

"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"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.
“We are a managed services company. We have taken the key aspects of the cloud and the purposed data center and merged the two together and launched the Purposed Cloud about 18–24 months ago," explained Chetan Patwardhan, CEO of Stratogent, 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.
The Internet of Things is a misnomer. That implies that everything is on the Internet, and that simply should not be - especially for things that are blurring the line between medical devices that stimulate like a pacemaker and quantified self-sensors like a pedometer or pulse tracker. The mesh of things that we manage must be segmented into zones of trust for sensing data, transmitting data, receiving command and control administrative changes, and peer-to-peer mesh messaging. In his session a...
"At our booth we are showing how to provide trust in the Internet of Things. Trust is where everything starts to become secure and trustworthy. Now with the scaling of the Internet of Things it becomes an interesting question – I've heard numbers from 200 billion devices next year up to a trillion in the next 10 to 15 years," explained Johannes Lintzen, Vice President of Sales at Utimaco, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in San...
As enterprises engage with Big Data technologies to develop applications needed to meet operational demands, new computation fabrics are continually being introduced. To leverage these new innovations, organizations are sacrificing market opportunities to gain expertise in learning new systems. In his session at Big Data Expo, Supreet Oberoi, Vice President of Field Engineering at Concurrent, Inc., discussed how to leverage existing infrastructure and investments and future-proof them against e...
"Desktop as a Service is emerging as a very big trend. One of the big influencers of this – for Esri – is that we have a large user base that uses virtualization and they are looking at Desktop as a Service right now," explained John Meza, Product Engineer at Esri, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the ...
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core...
SYS-CON Events announced today that Creative Business Solutions will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Creative Business Solutions is the top stocking authorized HP Renew Distributor in the U.S. Based out of Long Island, NY, Creative Business Solutions offers a one-stop shop for a diverse range of products including Proliant, Blade and Industry Standard Servers, Networking, Server Options and...
You use an agile process; your goal is to make your organization more agile. But what about your data infrastructure? The truth is, today's databases are anything but agile - they are effectively static repositories that are cumbersome to work with, difficult to change, and cannot keep pace with application demands. Performance suffers as a result, and it takes far longer than it should to deliver new features and capabilities needed to make your organization competitive. As your application an...
An effective way of thinking in Big Data is composed of a methodical framework for dealing with the predicted shortage of 50-60% of the qualified Big Data resources in the U.S. This holistic model comprises the scientific and engineering steps that are involved in accelerating Big Data solutions: problem, diagnosis, facts, analysis, hypothesis, solution, prototype and implementation. In his session at Big Data Expo®, Tony Shan focused on the concept, importance, and considerations for each of t...
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.
As the Internet of Things unfolds, mobile and wearable devices are blurring the line between physical and digital, integrating ever more closely with our interests, our routines, our daily lives. Contextual computing and smart, sensor-equipped spaces bring the potential to walk through a world that recognizes us and responds accordingly. We become continuous transmitters and receivers of data. In his session at @ThingsExpo, Andrew Bolwell, Director of Innovation for HP's Printing and Personal S...
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...
More and more file-based and machine generated data is being created every day causing exponential data and content growth, and creating a management nightmare for IT managers. What data centers really need to cope with this growth is a purpose-built tiered archive appliance that enables users to establish a single storage target for all of their applications - an appliance that will intelligently place and move data to and between storage tiers based on user-defined policies. In her session a...
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, addressed the big issues involving these technologies and, more important, the results they will achieve. Rodney Rogers, chairman and CEO of Virtustream; Brendan O'Brien, co-founder of Aria Systems, Bart Copeland, president and CEO of ActiveState Software; Jim Cowie, chief scientist at Dyn; Dave Wagstaff, VP ...
The emergence of cloud computing and Big Data warrants a greater role for the PMO to successfully manage enterprise transformation driven by these powerful trends. As the adoption of cloud-based services continues to grow, a governance model is needed to orchestrate enterprise cloud implementations and harness the power of Big Data analytics. In his session at Cloud Expo, Mahesh Singh, President of BigData, Inc., discussed how the Enterprise PMO takes center stage not only in developing the app...