Athlone Energy Ltd.
TSX VENTURE : ATH

Athlone Energy Ltd.

March 07, 2008 13:05 ET

Athlone Energy Ltd.: January 31, 2008 Year End Reserves

CALGARY, ALBERTA--(Marketwire - March 7, 2008) - Athlone Energy Ltd. ("Athlone", the "Company") (TSX VENTURE:ATH) is pleased to announce the results of its year end reserves report prepared by Sproule Associates Ltd. ("Sproule") as of January 31, 2008. The reserve report was prepared for the purpose of evaluating the Company's Petroleum and Natural Gas Reserves according to the Canadian Oil and Gas Evaluation Handbook (COGEH) with reserve definitions consistent with National Instrument 51-101.

SUMMARY HIGHLIGHTS

Athlone is pleased to report the summary highlights of the Sproule Report at January 31, 2008 in comparison to the prior year:

- Total proven reserves increased from 578.9 MBoe to 1,008.2 MBoe an increase of 74%

- Proved and probable reserves increased from 898.8 MBoe to 1,659.5 MBoe an increase of 85%

- Value of before tax proved reserves (NPV 10%) increased from $10,625,000 to $20,340,000 an increase of 91%

- Value of before tax proved and probable reserves (NPV 10%) increased from $14,756,000 to $30,714,000 an increase of 108%

- Reserve Life Index (proved plus probable) of 6.5 years based on a January 31, 2008 exit production of 700 Boepd

This was the second consecutive year in which Athlone has posted a significant increase in both reserves and reserves value. Oil prices are forecast to remain strong particularly for heavy oil. Normally heavy oil is subject to seasonal pricing fluctuations with lower prices in the winter and higher prices in the summer however, heavy oil pricing in January and February 2008 was at record levels indicating a fundamental change that will positively impact heavy oil pricing. Current operations include the drilling of one oil well at Vermilion and two gas recompletions in the Lloydminster area.

Following is a summary table of the company gross and net (after royalty) reserves using forecast prices and costs:



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Athlone Energy Ltd. Summary of the Evaluation of the Company's P&NG
Reserves (As of January 31, 2008)
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Remaining Reserves Net Present Values
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Company Before Income Taxes (M$)
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At At At At
Gross Gross Net 0% 5.0% 10.0% 15.0%
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Light/Medium Oil (Mbbl)
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Proved
Developed
Producing 24.4 12.2 11.6 366 330 299 273
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Total Proved 24.4 12.2 11.6 366 330 299 273
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Total Probable 10.1 5.1 4.8 165 121 91 70
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Total 34.5 17.3 16.4 531 451 389 342
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Heavy Oil (Mbbl)
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Proved
Developed
Producing 693.8 693.8 627.2 19,431 17,605 16,131 14,917
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Proved
Undeveloped 283.1 283.1 254.1 5,284 4,373 3,653 3,074
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Total Proved 976.9 976.9 881.4 24,715 21,978 19,783 17,991
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Total Probable 639.9 639.9 573.7 16,764 12,877 10,192 8,272
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Total 1,616.9 1,616.9 1,455.0 41,479 34,856 29,975 26,263
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Pipeline Gas (MMcf)
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Proved
Developed
Producing 166 113 102 274 266 258 250
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Total Proved 166 113 102 274 266 258 250
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Total Probable 61 37 33 115 103 92 83
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Total 227 150 135 390 369 350 333
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Natural Gas Liquids (Mbbl) - values included with gas -
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Proved
Developed
Producing 1.7 0.2 0.1
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Total Proved 1.7 0.2 0.1
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Total Probable 0.8 0.1 0.1
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Total 2.5 0.3 0.2
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Grand Total (Mboe)
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Proved
Developed
Producing 747.6 725.1 655.8 20,072 18,201 16,687 15,440
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Proved
Undeveloped 283.1 283.1 254.1 5,284 4,373 3,653 3,074
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Total Proved 1,030.7 1,008.2 910.0 25,356 22,574 20,340 18,514
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Total Probable 661.0 651.3 584.0 17,045 13,101 10,375 8,424
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Total 1,691.7 1,659.5 1,494.0 42,400 35,675 30,714 26,938
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The term barrels of oil equivalent "boe" may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet (6 mcf) to one barrel (1 bbl) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

This information contains forward-looking statements (forecasts) under applicable securities laws. Forward-looking statements are necessarily based upon assumptions and judgments with respect to the future including, but not limited to, the outlook for commodity markets and capital markets, the performance of producing wells and reservoirs, and the regulatory and legal environment. Many of these factors can be difficult to predict. As a result, the forward-looking statements are subject to known or unknown risks and uncertainties that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements.

Athlone Energy Ltd. is an active junior oil and gas exploration company with core assets in Alberta and Saskatchewan.

Copyright (c) 2008 ATHLONE ENERGY LTD. (TSX-V:ATH) All rights reserved. For more information visit our website at http://www.athlone.com/ or send mailto:info@athlone.com.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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