Atikwa Resources Inc.
TSX VENTURE : ATK

June 27, 2011 12:18 ET

Atikwa Announces 1800% Increase in Proved Reserves

CALGARY, ALBERTA--(Marketwire - June 27, 2011) - Atikwa Resources Inc. ("Atikwa" or the "Company") (TSX VENTURE:ATK). Is pleased to announce that AJM, an independent engineering and geological consulting firm and a qualified reserves evaluator, has provided Atikwa with an independent NI 51-101 Compliant Reserve Evaluation and Contingent Resource Assessment (the "Report") for the Company's light oil and liquids rich natural gas assets. The Report, effective as at February 28, 2011, is in accordance with section 5.9 of National Instrument 51-101 ("NI 51-101") – "Standards of Disclosure for Oil and Gas Activities" and reports a "best estimate" of Contingent Resources, as defined in the Canadian Oil and Gas Evaluation Handbook (the "COGEH"). Net asset value (per share), NPV, future net revenue, do not necessarily represent fair market value. These filings are available for review under the Company's SEDAR profile at www.sedar.com. Sean Kehoe, President and CEO of Atikwa, commented "Building this resource Company has always been about creating real value with a view to sell to a larger oil Company at some point in the future. I believe that the year over year growth that we have been able to achieve clearly establishes that we have made significant progress towards that goal. Our next challenge is to communicate this message to the markets so that our stock price will more accurately reflect the value that has been created to date and the potential of our portfolio to create greater value in the future."

A Summary is included in the tables below: ATK has approximately 246,000,000 Shares.

Proved and Probable Reserves - 12 month comparison – WI BOEs (thousands of barrels)

As at 28 FEB 2010As at 28 FEB 2011
Proved (1P)Proved + Probable (2P)Proved (1P)Proved + Probable (2P)
PiersonMan00759.51,287.0
RoncottSask28.937.696.2221.7
FerrierAlta18.622.911.515.9
Total47.560.5867.11,524.7

Proved and Probable Reserves - 12 month comparison – Before Income Tax 10% NPV

As at 28 FEB 2010As at 28 FEB 2011
Proved (1P)Proved + Probable (2P)Proved (1P)Proved + Probable (2P)
PiersonMan$0$0$16,950,300$32,355,600
RoncottSask$297,500$638,500$1,198,400$3,820,600
FerrierAlta$340,100$419,900$183,600$254,700
Total$637,600$1,058,400$18,332,300$36,430,900

Contingent Resources (Net Working Interest)

As at 28 FEB 2010As at 28 FEB 2011
Contingent Resources (Sales Gas)Best (2C) Estimate (Billion cubic feet)Best (2C) Estimate
10% NPV
Best (2C) Estimate (Billion cubic feet)Best (2C) Estimate
10% NPV
Windfall(Alta)0$061.189$145,460,000
Porcupine Hills(Alta)0$036.134$ 77,230,000
Total0$097.323$222,690,000

In the Report, up to 90% of the acreage controlled by Atikwa was recognized by AJM as containing Contingent Resources. As these are liquid rich gas plays, the NPV calculation includes a sales gas liquids ratio of 29.4 barrels per million cubic feet at Windfall and 31.1 barrels per million cubic feet at Porcupine Hills.

With regard to the Contingent Resources, President Sean Kehoe stated; "I believe that this independent report will help our shareholders and the market, understand the potential magnitude of our Windfall and Porcupine Hills programs. The Company believes that these resource estimates evidence a significant opportunity for the Company to add substantive future production, reserves and value."

Required Disclosure regarding Contingent Resources;

While of higher inherent risk, Contingent Resources are an important component of overall recovery estimations for unconventional resource plays. It should be noted that given the early stages of development, the best estimate of Contingent Resources may change in the future with further exploration and development activity. Additional drilling, testing and development are expected to confirm economic development and ultimate recovery factors in the plays. The resource estimates provided herein are estimates only and the actual resources may be greater or less than the estimates provided herein.

The sums presented are an arithmetic sum of multiple estimates of Contingent Resources, which statistical principles indicate may be misleading as to volumes that may actually be recovered. Readers should give attention to the estimates of individual classes of Contingent Resources and appreciate the differing probabilities of recovery associated with each. The probability associated with the High estimate would be considered far less likely than P10, and conversely, the Low estimate would be expected to be much higher than the presented arithmetic sum. Probabilistic aggregation could have been performed, but given the lack of general acceptance in these procedures, COGEH (section 5.5.3) prefers that these values not be presented.

In the table above, AJM has also provided a resource net present value (NPV) estimation for one potential development scenario at each property that is consistent with the Company's development plans. These NPV values are not NI 51-101 compliant but do show considerable value based on the planned development scenario and would be incremental to the Reserve Evaluation.

This news release contains forward‐looking statements relating to the Company's plans and other aspects of the Company's anticipated future operations, strategies, financial and operating results and business opportunities. Forward‐looking statements typically use words such as "anticipate", "believe", "project", "expect", "plan", "intent" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future, or consists of statements regarding estimates of future production, operating costs or other expectations, beliefs, plans, objectives, assumptions or statements about future events or performance. Statements regarding reserves are also forward‐looking statements, as they reflect estimates as to the expectation that the deposits can be economically exploited in the future. Although the Company believes that the expectations represented in such forward‐looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. As a consequence, actual results may differ materially from those anticipated in the forward‐looking statements and you should not unduly rely on forward‐looking statements. The forward‐looking statements contained in this news release are made as the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward‐looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A conversion ratio for gas of 6 mcf: 1 boe is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Atikwa Resources Inc.
    Sean Kehoe
    President and CEO
    (403) 233-6073