CALGARY, ALBERTA -- (Marketwire) -- 02/06/13 -- Angle Energy Inc. ("Angle" or the "Company") (TSX: NGL) announces a significant increase to its 2012 year-end oil reserves and top tier capital efficiencies in its oil reserve additions. The Company also announces the addition of M. Scott Bratt, an experienced financial executive, to its Board of Directors.
2012 YEAR END RESERVES REPORT HIGHLIGHTS
The following highlights are calculated using the estimated and unaudited financial results of 2012, pro forma the Edson gas asset disposition which closed on January 9, 2013. Additional reserve information as required under NI 51-101 will be included in the Company's Annual Information Form which will be filed on SEDAR by March 31, 2013. GLJ Petroleum Consultants ("GLJ"), an independent reserve engineering firm, evaluated Angle's December 31, 2012 reserves.
-- Total proved plus probable reserves are 60.9 million barrels of oil equivalent, "boe", with an increase in light oil reserves of 113%, from 5.2 million barrels to 11.1 million barrels, as compared to December 31, 2011. Light oil and natural gas liquids now represent 55% of Angle's boe reserves.-- Proved plus probable reserve additions total 11.0 million barrels equivalent, of which 81% is light oil and natural gas liquids, and 19% is natural gas. These additions are substantially all from Angle's Cardium projects.-- Finding and development costs pro forma the Edson gas asset disposition, including future development capital, are $18.73/boe on proved plus probable reserve additions, and $23.11/boe on total proved reserve additions. The resulting corporate recycle ratios are 1.3 and 1.1, respectively, based on the Company's Q4 operating netback (pro forma the Edson gas asset disposition) of $24.92/boe.-- Cardium proved plus probable reserves have grown by 180% since December 31, 2011 bringing total Cardium proved plus probable reserves to 17.1 million boes, of which light oil reserves represent 9.6 million barrels. These bookings include 58 undrilled Cardium wells, which represents 20% of Angle's total undrilled Cardium inventory.-- Cardium finding and development costs are $18.09/boe on proved plus probable reserve additions, and $25.48/boe on total proved reserve additions. The recycle ratios related to the Cardium reserve additions on a proved plus probable basis, are 1.9 times based on a $34.41/boe operating netback in the full year 2012, and 2.3 times based on a $41.36/boe operating netback for Q4 2012.-- The net asset value ("NAV") of the Company is calculated to be $6.08 per diluted share on a 10% discounted proved plus probable reserve basis. This number is inclusive of $82 million of undeveloped land value, as evaluated at December 31, 2012 by Seaton-Jordan and Associates, a leading independent consulting firm in non-reserve oil and gas land evaluations.
"Angle's 2012 drilling program concentrated on Cardium light oil assets which provide recycle ratios of over 2.0 times." said Gregg Fischbuch, Chief Executive Officer. "This follows our strategy of focusing on more profitable production, with a barrel of oil currently being worth approximately five times more than a "barrel of oil equivalent" of natural gas."