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