Crocotta Energy Inc.

Crocotta Energy Inc.

April 17, 2007 17:32 ET

Crocotta Energy Announces Year-End Reserves

CALGARY, ALBERTA--(CCNMatthews - April 17, 2007) - Crocotta Energy Inc. ("Crocotta") is pleased to announce its 2006 Year-end Reserves.

Crocotta's December 31, 2006 reserves as prepared by the independent reserve engineering firm GLJ Petroleum Consultants Ltd. ("GLJ") are as follows:



Natural gas Barrels of oil
Light Oil liquids Natural gas equivalent
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Company Company Company Company
Interest Net Interest Net Interest Net Interest Net
(Mbbl) (Mbbl) (Mbbl) (Mbbl) (Mmcf) (Mmcf) (Mboe) (Mboe)
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Proved
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Producing 28 22 30 20 561 476 151 121
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Non-producing 4 4 56 39 737 562 183 137
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Undeveloped 0 0 0 0 363 291 60 49
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Total proved 32 26 86 59 1,661 1,329 394 307
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Probable 27 25 72 54 1,408 1,078 333 258
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Total proved
& probable 59 51 157 113 3,070 2,407 728 565
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Notes:

(1) "Company Interest" reserves means, Crocotta's working interest
(operating and non-operating) share before deduction of royalties and
including any royalty interest of Crocotta.

(2) "Net" reserves means, Crocotta's working interest (operated and non-
operated) share after deduction of royalties, plus Crocotta's royalty
interest in reserves.

(3) Oil equivalent amounts have been calculated using a conversion rate of
six thousand cubic feet of natural gas to one barrel of oil.

(4) Numbers may not add due to rounding.


The estimated future net revenues associated with Crocotta's reserves effective December 31, 2006 and based on the GLJ (2007-01) future price forecast are summarized in the following table:



0% DCF 5% DCF 10% DCF 20% DCF
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Proved
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Producing 4,986 4,200 3,656 2,959
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Non-Producing 5,035 3,481 2,555 1,559
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Undeveloped 783 649 539 371
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Total Proved 10,804 8,330 6,750 4,889
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Probable 12,118 6,600 4,090 2,013
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Total proved & probable 22,922 14,930 10,840 6,902
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The GLJ (2007-01) price forecast for the next 5 years is as follows:

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Natural Gas
WTI @ Cushing Edmonton Light at AECO
Year ($US / Bbl) ($Cdn / Bbl) ($Cdn / Mmbtu)
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2007 62.00 70.25 7.20
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2008 60.00 68.00 7.45
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2009 58.00 65.75 7.75
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2010 57.00 64.50 7.80
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2011 57.00 64.50 7.85
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FORWARD-LOOKING STATEMENTS

This Press Release may contain forward-looking information that involves a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. For this purpose, any statements herein that are not statements of historical fact may be deemed to be forward-looking statements. Such risks and uncertainties include, but are not limited to: risks associated with the oil and gas industry (e.g. - operational risks in exploration, development and production; changes and/or delays in the development of capital assets; uncertainty of estimates and projections relating to production and costs; commodity price fluctuations; environmental risks; and industry competition).

The process of evaluating reserves is inherently complex. It requires significant judgements and decisions based on available geological, geophysical, engineering and economic data. As circumstances change and additional data becomes available, reserve estimates also change. Estimates are reviewed and revised, either upward or downward, as warranted by the new information. Revisions are often required due to changes in well performance, prices, economic conditions and governmental restrictions. Revisions to reserve estimates can arise from changes in year-end prices, reservoir performance and geologic conditions or production. These revisions can be either positive or negative.

BOE CONVERSIONS

Boe's may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 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.

Contact Information

  • Crocotta Energy Inc.
    Robert Zakresky
    President and Chief Executive Officer
    (403) 538-3736
    or
    Crocotta Energy Inc.
    Nolan Chicoine
    Vice President, Finance and Chief Financial Officer
    (403) 538-3738
    or
    Crocotta Energy Inc.
    700, 639 - 5th Ave SW
    Calgary, Alberta T2P 0M9
    (403) 538-3737
    (403) 538-3735 (FAX)