Cuda Oil and Gas Inc. Reports Significant Increases in Oil and Liquid Reserves
CALGARY, Alberta, Feb. 19, 2020 (GLOBE NEWSWIRE) — Cuda Oil and Gas Inc. (“Cuda” or the “Company”) (TSXV: CUDA) releases the results of its 2019 year-end oil and gas reserves evaluation for Wyoming and Alberta.
In 2019, Cuda made significant progress in maturing and developing its major asset, the Barron Flats Shannon Secondary Recovery Unit (“SRRU”) in the Powder River Basin of Wyoming. Milestones included all regulatory approvals, commissioning of the Central Delivery Point Gas Facility (the “CDP”), commencement of injection and completion of multiple injection lines, completion of source natural gas tap with Tallgrass at GlenRock, Wyoming and start-up of the nine (9) mile high pressure pipeline system to supply gas to the miscible gas flood at the SSRU. The Company has been successful in its execution of an eight (8) well infill program. The Company disposed of all its assets and liabilities in Quebec in 2019 inclusive of all contingent resources.Reserves Report HighlightsThe independent Reserves Report prepared by Ryder Scott is effective as of December 31, 2019 (“2019 Reserves Report”). All reserves information contained in this press release is based on the 2019 Reserves Report and includes reserves attributed to the BFU, the Cole Creek Unit and Alberta assets. Unless specifically indicated, all financial and operational information in this press release is based on estimates and is unaudited and accordingly, such financial information is subject to change based on the results of the Company’s audit.Proven Developed (“PDP”) and Proved Non-Producing (“PNP”) ReservesThe Company’s PDP + PNP reserves grew 108% over 2018 reserves to 3,189 Mboe (79% oil and liquids).NPV10 of $40.9 Million or $1.13 per basic common share.Reserve Life Index (“RLI”) based on 4th quarter, 2019 production of 12.2 years.Total Proved Reserves (“1P”)The Company’s 1P reserves grew 54% over 2018 reserves, to 7,599 Mboe (87% oil and liquids).NPV10 of $95.0 Million or $2.61 per basic common share.Future development costs of $50.3 Million.RLI of 29.1 years.Proved plus Probable Reserves (“2P”)The Company’s 2P reserves grew 2% over 2018 reserves, to 14,872 Mboe (89% oil and liquids).NPV10 of $178.2 Million or $4.90 per basic common share.Future development costs of $99.0 Million.RLI of 57.0 years.Oil and Gas ReservesThe 2019 Reserve Report represents Cuda’s oil and gas properties in Alberta and Wyoming and was prepared in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook and National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (“NI 51 – 101”) by Ryder Scott. The following table summarizes certain information contained in the 2019 Reserve Report:Reserves CategoryReserve Category