CALGARY, ALBERTA -- (Marketwire) -- 02/08/13 -- Tuscany Energy Ltd. (TSX VENTURE: TUS) ("Tuscany" or the "Company") is pleased to provide a summary of the independent evaluation and estimate (the "McDaniel Report") of the Company's proved and probable reserves as at December 31, 2012 prepared by McDaniel and Associates Consultants Ltd. ("McDaniel").
2012 Reserves, no debt
Proved plus probable reserves were 1,520 MBOE as of December 31, 2012, an 11% reduction from the prior year. The estimated net present value of future net revenue attributable to the Company's reserves, before tax, using a 10% discount rate, decreased by 22% to $29.0 million (98% oil), compared with $37.0 million at December 31, 2011.
The Company has 119.9 million shares outstanding, no debt and an available bank line of $8.5 million.
The decrease in reserves resulted primarily from lower heavy oil prices used in the McDaniel Report compared with the prices used in the independent reserves report for the year ended December 31, 2011. Downward technical revisions to three of the Company's Evesham wells, two located to the west and one to the south of the Company's main Evesham property, were partially offset by extensions at the Company's Macklin property.
During the last nine months the Company focused on developing additional water disposal capacity at its Evesham and Macklin heavy oil fields with associated pipelines and pumping equipment. The Company plans to begin development drilling operations during the second quarter of 2013.
The Company's December 31, 2012 reserves were evaluated in accordance with the Canadian Oil and Gas Evaluation Handbook and National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities by McDaniel, a qualified reserves evaluator. The McDaniel Report is dated January 31, 2013 and effective December 31, 2012.
The following summary is based on the McDaniel Report.Summary of ReservesDecember 31, 2012 SUMMARY OF OIL AND GAS RESERVES AND NET PRESENT VALUES OF FUTURE NET REVENUE AS OF DECEMBER 31, 2012 FORECAST PRICES AND COSTS RESERVES ------------------------------------------------------------ LIGHT AND MEDIUM OIL HEAVY OIL NATURAL GASRESERVES Gross Net (i) Gross Net (i) Gross Net (i) CATEGORY (MBbl) (MBbl) (MBbl) (MBbl) (MMcf) (MMcf)----------------------------------------------------------------------------PROVED Producing 3.6 3.0 414.8 401.1 157.9 151.8 Non-producing - - 35.6 34.5 12.2 12.2 Undeveloped - - 289.9 284.0 - -----------------------------------------------------------------------------TOTAL PROVED 3.6 3.0 740.3 719.6 170.1 164.0PROBABLE 2.3 1.8 738.7 715.3 40.1 38.5----------------------------------------------------------------------------TOTAL PROVED PLUS PROBABLE 5.9 4.8 1,479.0 1,434.9 210.2 202.5---------------------------------------------------------------------------- ------------------------------------------------------------ NATURAL GAS LIQUIDS TOTAL TOTALRESERVES Gross Net (i) Gross Net (i) CATEGORY (MBbl) (MBbl) (MBOE) (MBOE)----------------------------------------------------------------------------PROVED Producing - - 444.7 429.4 Non-producing - - 37.6 36.5 Undeveloped - - 289.9 284.0----------------------------------------------------------------------------TOTAL PROVED - - 772.2 749.9PROBABLE - - 747.8 723.5----------------------------------------------------------------------------TOTAL PROVED PLUS PROBABLE - - 1,520.0 1,473.4----------------------------------------------------------------------------
