Atikwa Resources Inc.
TSX VENTURE : ATK

December 22, 2010 14:28 ET

Atikwa Announces Increase in Reserves and Contingent Resources

CALGARY, ALBERTA--(Marketwire - Dec. 22, 2010) - 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 Canadian light oil and liquids rich natural gas assets. The Report, effective as at Nov 30, 2010, 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. A Summary is included in the tables below:

Proved and Probable Reserves - 9 month comparison – WI BOEs (thousands of barrels)

        As at 28 FEB 2010       As at 30 NOV 2010
        Proved (1P)   Proved + Probable (2P)       Proved (1P)   Proved + Probable (2P)
Pierson   Man   0   0       761.1   1,277.0
Roncott   Sask   28.9   37.6       96.8   222.6
Ferrier   Alta   18.6   22.9       12.3   16.5
Total       47.5   60.5       870.3   1,516.1

Proved and Probable Reserves -9 month comparison – Before Income Tax 10% Net Present Value

        As at 28 FEB 2010       As at 30 NOV 2010
        Proved (1P)   Proved + Probable (2P)       Proved (1P)   Proved + Probable (2P)
Pierson   Man   $0   $0       $10,985,200   $22,012,800
Roncott   Sask   $297,500   $638,500       $1,136,700   $3,849,800
Ferrier   Alta   $340,100   $419,900       $115,900   $191,700
Total       $637,600   $1,058,400       $12,237,800   $26,054,300

Contingent Resources (Net Working Interest)

        As at 30 NOV 2010
Contingent Resources    (Sales Gas)       Low (1C) Estimate  (Billion cubic feet)   Best (2C) Estimate (Billion cubic feet)   High (3C) Estimate (Billion cubic feet)       Best (2C) Estimate
10% NPV
Windfall                    Alta   44.346   61.189   84.428       $149,667,000
Porcupine Hills   Alta   27.153   36.134   48.084       $  78,432,000
Total       71.499   97.323   132.512       $228,099,000

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.

Sean Kehoe, President and CEO of Atikwa commented "Over the last nine months, with a budget of approximately nine million dollars, the Company has purchased, farmed in and drilled to earn an ownership in a portfolio of four very exciting oil and gas resource properties, which are all in varying stages of maturation. 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, at the end of the day all oil and gas companies are measured on their reserves and their potential to grow reserves. I believe that these numbers demonstrate very clearly that we have been successful on both counts." 

With regard to the Contingent Resources, President Sean Kehoe stated; "We are very pleased to provide our shareholders with an independent assessment of the potential magnitude of our Windfall and Porcupine Hills programs. These resource estimates demonstrate a significant opportunity for the Company to add future production, reserves and value. I believe that in terms of the current stock price, the market has not even begun to realize the full potential of this Company." 

Atikwa Resources Inc. is a technically focused oil and gas Company, which is currently concentrating on developing four significant resource opportunities from original geologic concept through operations, production and development. Atikwa is composed of a team of professionals that have a demonstrated track record of creating significant value in start-up junior oil and gas companies through a, hands on approach, which starts with a thorough understanding of the rocks and a view to establishing sustainable long term production.

Atikwa Shares trade on the TSX Venture Exchange under the symbol ATK. Atikwa currently has 218 Million common shares outstanding. For further information please contact the company at (403) 269-2636.

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.

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.

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 Corporation
    Sean Kehoe
    President and CEO
    (403) 233-6073