Diaz Resources Ltd.
TSX : DZR

Diaz Resources Ltd.

November 21, 2005 09:00 ET

Diaz Reports Updated Reserve Evaluation and Corporation's Net Present Value Summary

CALGARY, ALBERTA--(CCNMatthews - Nov. 21, 2005) - Diaz Resources Ltd. (TSX:DZR) today announced that an evaluation of the Company's oil and gas reserves effective September 30, 2005 has assigned total proved and probable reserves of 5,047 MBOE to the Company's properties, an increase of 4% from the December 31, 2004 evaluation. The reserves were assigned a net present value, before tax, of $118.5 million based on forecast prices and cost, using a 10% discount rate, an increase of 80% from December 31, 2004.

The most significant change in the Company's reserves was in the United States, as a result of activity during 2005. The reserves in the United States increased by 31%, to 1,871 MBOE and the net present value, before tax, based on forecast prices and cost using a 10% discount rate, increased by 134%, to $47.8 million ($40.6 million U.S. dollars).

Company Net Present Value

The net present value is based on the engineering evaluation prepared by AJM Petroleum Consultants with an effective date of September 30, 2005 (the "AJM Report"). The present value of the Company's reserves, presented in the table below, discounted at 10% before income tax and 5% after income tax, is extracted from the AJM Report. Seaton Jordan & Associates Ltd. has evaluated undeveloped acreage at September 30, 2005, in compliance with National Instrument 51-101 Standards of Disclosure (the "Seaton Jordan Report"), after tax rates for the land value, assuming the land is sold at the report date.

The Company's net debt is based on its interim financial statements as at September 30, 2005 and does not include liability for future net income tax or asset retirement obligation.

The number of shares outstanding at September 30, 2005 was 59,815,000. Net asset value per share has been fully diluted by 3,558,000 options to purchase common shares at an average price of $0.53 per share and the implied proceeds have been added to the net asset value.

It should not be assumed that net present value represents fair market value. Net present value is dependent upon a number of critical assumptions including the future price of commodities, the timing of production and the estimate of reserves.




NET PRESENT VALUE
EFFECTIVE SEPTEMBER 30, 2005
-----------------------------

Before Tax After Tax
(Millions) (Millions)
----------- ----------
Discount Rate:
RESERVES 10% 5%
----------- ----------
Proved $ 77.1 $ 65.3
Probable 41.4 36.0
----------- ----------
Total proved + Probable 118.5 101.3
UNDEVELOPED LAND(1) 6.3 4.0
NET DEBT (7.7) (7.7)
----------- ----------
TOTAL NET PRESENT VALUE $ 117.1 $ 97.6
----------- ----------
----------- ----------

----------- ----------
TOTAL NET PRESENT VALUE PER SHARE $ 1.88 $ 1.57
----------- ----------
----------- ----------

SHARES OUTSTANDING 59.8 59.8
OPTIONS 3.6 3.6
----------- ----------
TOTAL FULLY DILUTED 63.4 63.4
----------- ----------
----------- ----------

(1) In the Seaton Jordan Report, fair value is determined based on the
following factors:


1. the acquisition cost, provided that there have been no material changes in the unproved property, the surrounding properties, or the general oil and gas climate since the acquisition;

2. recent sales by others of interests in the same unproved property;

3. terms and conditions, expressed in monetary terms, of recent farm-in agreements;

4. terms and conditions, expressed in monetary terms, of recent work commitments
related to the unproved property; and

5. recent sales of similar properties in the same general area.

Reserves

The following tables summarize the oil, liquids and natural gas reserves of the Corporation and the net present values of future net revenue for these reserves using constant prices and costs and forecast prices and costs as derived from the AJM Report. The Reserves Data conforms to the requirements of National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101").

All of the Corporation's reserves are in Canada and the United States and, specifically, in the provinces of Alberta and Saskatchewan, in Canada and in the United States, in Texas.

It should not be assumed that the estimates of future net revenues, whether calculated before or after tax or with or without a discount rate, presented in the tables below represent the fair market value of the reserves. There is no assurance that the constant prices and costs assumptions and forecast prices and costs assumptions will be attained and variances could be material. The recovery and reserve estimates of reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. The actual reserves may be greater or less than the estimates provided herein.

For the purpose of presentation in certain tables that follow, US dollar amounts in the AJM Report have been converted to Canadian dollars, at AJM's forecast exchange rate of $0.85 US, unless otherwise stated.



Forecast Prices and Costs

SUMMARY OF OIL AND GAS RESERVES
AND NET PRESENT VALUES OF FUTURE NET REVENUE
AS OF SEPTEMBER 30, 2005
FORECAST PRICES AND COSTS

RESERVES
------------------------------------------------------
COMPANY TOTAL LIGHT AND NATURAL GAS
MEDIUM OIL HEAVY OIL NATURAL GAS LIQUIDS
------------ ------------ -------------- -------------
Gross Net Gross Net Gross Net Gross Net
RESERVES CATEGORY (MBbl)(MBbl) (MBbl)(MBbl) (MMcf) (MMcf) (MBbl)(MBbl)
----------------- ------------ ------------ -------------- -------------
PROVED
Developed
Producing 182 152 3 2 7,555 6,153 29 21
Developed
Non-producing - - - - 1,483 1,189 1 0
Undeveloped - - - - 6,889 5,955 13 10
----------------- ------------ ------------ -------------- -------------
TOTAL PROVED 182 152 3 2 15,927 13,297 43 31
PROBABLE 41 33 9 7 12,597 10,281 17 12
----------------- ------------ ------------ -------------- -------------
TOTAL PROVED
PLUS PROBABLE 223 184 11 9 28,524 23,578 59 43
----------------- ------------ ------------ -------------- -------------
----------------- ------------ ------------ -------------- -------------



NET PRESENT VALUES OF FUTURE NET REVENUE(1)
-----------------------------------------------------------
BEFORE INCOME AFTER INCOME
COMPANY TOTAL TAXES DISCOUNTED AT TAXES DISCOUNTED AT
(% per year) (% per year)
---------------------------- ------------------------------
RESERVES 0 5 10 15 20 0 5 10 15 20
CATEGORY (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$)
----------- ----------------------------- ------------------------------
PROVED
Developed
Producing 60.5 52.9 47.5 43.4 40.1 47.0 41.2 37.1 34.0 31.6
Developed
Non-
producing 10.0 8.6 7.4 6.5 5.9 6.3 5.3 4.7 4.2 3.7
Undeveloped 38.7 28.5 22.2 18.0 14.8 25.7 18.8 14.5 11.5 9.4
----------- ----------------------------- ------------------------------
TOTAL
PROVED 109.3 90.0 77.1 67.9 60.8 79.0 65.3 56.3 49.7 44.6
PROBABLE 80.1 55.9 41.4 32.3 26.0 51.9 36.0 26.7 20.5 16.5
----------- ----------------------------- ------------------------------
TOTAL
PROVED
PLUS
PROBABLE 189.4 145.9 118.5 100.1 86.8 130.9 101.3 82.9 70.2 61.1
----------- ----------------------------- ------------------------------
----------- ----------------------------- ------------------------------


SUMMARY OF OIL AND GAS RESERVES
AND NET PRESENT VALUES OF FUTURE NET REVENUE
AS OF SEPTEMBER 30, 2005
FORECAST PRICES AND COSTS (CDN $)

RESERVES
------------------------------------------------------
CANADIAN LIGHT AND NATURAL GAS & NATURAL GAS
PROPERTIES MEDIUM OIL HEAVY OIL SOLUTION GAS LIQUIDS
------------ ------------ -------------- -------------
Gross Net Gross Net Gross Net Gross Net
RESERVES CATEGORY (MBbl)(MBbl) (MBbl)(MBbl) (MMcf) (MMcf) (MBbl)(MBbl)
----------------- ------------ ------------ -------------- -------------
PROVED
Developed
Producing 182 152 3 2 4,508 3,837 17 12
Developed
Non-producing - - - - 507 439 1 0
Undeveloped - - - - 6,308 5,508 13 10
----------------- ------------ ------------ -------------- -------------
TOTAL PROVED 182 152 3 2 11,322 9,784 31 22
PROBABLE 41 33 9 7 6,054 5,288 15 11
----------------- ------------ ------------ -------------- -------------
TOTAL PROVED
PLUS PROBABLE 223 184 11 9 17,376 15,072 46 33
----------------- ------------ ------------ -------------- -------------
----------------- ------------ ------------ -------------- -------------


NET PRESENT VALUES OF FUTURE NET REVENUE
-----------------------------------------------------------
BEFORE INCOME AFTER INCOME
CANADIAN TAXES DISCOUNTED AT TAXES DISCOUNTED AT
PROPERTIES (% per year) (% per year)
---------------------------- ------------------------------
RESERVES 0 5 10 15 20 0 5 10 15 20
CATEGORY (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$)
----------- ----------------------------- ------------------------------
PROVED
Developed
Producing 38.9 33.4 29.6 26.8 24.6 33.1 28.6 25.6 23.3 21.6
Developed
Non-
producing 3.2 2.8 2.5 2.3 2.1 2.1 1.8 1.6 1.5 1.3
Undeveloped 36.1 26.3 20.2 16.1 13.2 24.2 17.4 13.2 10.3 8.3
----------- ----------------------------- ------------------------------
TOTAL
PROVED 78.2 62.6 52.3 45.1 39.8 59.4 47.8 40.3 35.1 31.2
PROBABLE 38.8 26.0 18.6 13.9 10.8 25.9 17.3 12.3 9.1 7.0
----------- ----------------------------- ------------------------------
TOTAL
PROVED
PLUS
PROBABLE 117.0 88.6 70.9 59.0 50.6 85.3 65.1 52.6 44.2 38.2
----------- ----------------------------- ------------------------------
----------- ----------------------------- ------------------------------




SUMMARY OF OIL AND GAS RESERVES
AND NET PRESENT VALUES OF FUTURE NET REVENUE
AS OF SEPTEMBER 30, 2005
FORECAST PRICES AND COSTS (U.S. DOLLARS)

RESERVES
------------------------------------------------------
U.S. PROPERTIES LIGHT AND NATURAL GAS
MEDIUM OIL HEAVY OIL NATURAL GAS LIQUIDS
------------ ------------ -------------- -------------
Gross Net Gross Net Gross Net Gross Net
RESERVES CATEGORY (MBbl)(MBbl) (MBbl)(MBbl) (MMcf) (MMcf) (MBbl)(MBbl)
----------------- ------------ ------------ -------------- -------------
PROVED
Developed
Producing - - - - 3,048 2,316 12 9
Developed
Non-producing - - - - 976 750 - -
Undeveloped - - - - 582 447 - -
----------------- ------------ ------------ -------------- -------------
TOTAL PROVED - - - - 4,605 3,513 12 9
PROBABLE - - - - 6,543 4,993 1 1
----------------- ------------ ------------ -------------- -------------
TOTAL PROVED PLUS
PROBABLE - - - - 11,148 8,506 13 10
----------------- ------------ ------------ -------------- -------------
----------------- ------------ ------------ -------------- -------------


NET PRESENT VALUES OF FUTURE NET REVENUE
-----------------------------------------------------------
U.S. BEFORE INCOME AFTER INCOME
PROPERTIES TAXES DISCOUNTED AT TAXES DISCOUNTED AT
(% per year) (% per year)
---------------------------- ------------------------------
RESERVES 0 5 10 15 20 0 5 10 15 20
CATEGORY (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$)
------------ ---------------------------- ------------------------------
PROVED
Developed
Producing 18.4 16.6 15.2 14.1 13.2 11.8 10.7 9.8 9.1 8.5
Developed
Non-
producing 5.8 4.9 4.2 3.6 3.2 3.6 3.0 2.6 2.3 2.0
Undeveloped 2.2 1.9 1.7 1.6 1.4 1.3 1.2 1.1 1.0 0.9
------------ ---------------------------- ------------------------------
TOTAL PROVED 26.3 23.4 21.1 19.3 17.8 16.8 14.9 13.5 12.3 11.4
PROBABLE 35.1 25.4 19.4 15.6 12.9 22.1 15.9 12.2 9.7 8.1
---------------------------- ------------------------------
TOTAL
PROVED
PLUS
PROBABLE 61.4 48.8 40.6 34.9 30.7 38.8 30.8 25.7 22.0 19.4
------------ ---------------------------- ------------------------------
------------ ---------------------------- ------------------------------


Constant Prices and Costs

SUMMARY OF OIL AND GAS RESERVES
AND NET PRESENT VALUES OF FUTURE NET REVENUE
AS OF SEPTEMBER 30, 2005
CONSTANT PRICES AND COSTS (CDN DOLLARS)

RESERVES
------------------------------------------------------
COMPANY TOTAL LIGHT AND NATURAL GAS
MEDIUM OIL HEAVY OIL NATURAL GAS LIQUIDS
------------ ------------ -------------- -------------
Gross Net Gross Net Gross Net Gross Net
RESERVES CATEGORY (MBbl)(MBbl) (MBbl)(MBbl) (MMcf) (MMcf) (MBbl)(MBbl)
----------------- ------------ ------------ -------------- -------------
PROVED
Developed
Producing 182 152 3 2 7,580 6,173 29 21
Developed
Non-producing - - - - 1,484 1,191 0 0
Undeveloped - - - - 6,904 5,960 14 10
----------------- ------------ ------------ -------------- -------------
TOTAL PROVED 182 152 3 2 15,968 13,324 42 31
PROBABLE 41 33 10 8 12,666 10,337 17 12
----------------- ------------ ------------ -------------- -------------
TOTAL PROVED PLUS
PROBABLE 223 185 12 10 28,633 23,661 59 43
----------------- ------------ ------------ -------------- -------------
----------------- ------------ ------------ -------------- -------------


NET PRESENT VALUES OF FUTURE NET REVENUE (1)
-----------------------------------------------------------
COMPANY TOTAL BEFORE INCOME AFTER INCOME
TAXES DISCOUNTED AT TAXES DISCOUNTED AT
(% per year) (% per year)
---------------------------- ------------------------------
RESERVES 0 5 10 15 20 0 5 10 15 20
CATEGORY (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$)
----------- ----------------------------- ------------------------------
PROVED
Developed
Producing 87.1 75.8 67.5 61.0 55.9 64.2 55.8 49.9 45.4 41.8
Developed
Non-
producing 15.9 13.4 11.4 10.3 9.1 10.1 8.5 7.4 6.5 5.8
Undeveloped 59.5 45.1 35.5 29.1 24.3 39.7 29.6 23.2 18.8 15.6
----------- ----------------------------- ------------------------------
TOTAL
PROVED 162.6 134.3 114.4 100.3 89.4 114.0 93.9 80.5 70.6 63.2
PROBABLE 126.3 89.5 67.4 53.0 43.2 81.6 57.5 43.1 33.7 27.4
----------- ----------------------------- ------------------------------
TOTAL
PROVED
PLUS
PROBABLE 288.9 223.8 181.7 153.3 132.6 195.6 151.4 123.6 104.3 90.6
----------- ----------------------------- ------------------------------
----------- ----------------------------- ------------------------------


SUMMARY OF OIL AND GAS RESERVES
AND NET PRESENT VALUES OF FUTURE NET REVENUE
AS OF SEPTEMBER 30, 2005
CONSTANT PRICES AND COSTS (CDN DOLLARS)


RESERVES
------------------------------------------------------
CANADIAN LIGHT AND NATURAL GAS & NATURAL GAS
PROPERTIES MEDIUM OIL HEAVY OIL SOLUTION GAS LIQUIDS
------------ ------------ -------------- -------------
Gross Net Gross Net Gross Net Gross Net
RESERVES CATEGORY (MBbl)(MBbl) (MBbl)(MBbl) (MMcf) (MMcf) (MBbl)(MBbl)
----------------- ------------ ------------ -------------- -------------
PROVED
Developed
Producing 182 152 3 2 4,532 3,857 17 12
Developed
Non-producing - - - - 508 441 0 0
Undeveloped - - - - 6,323 5,513 14 10
----------------- ------------ ------------ -------------- -------------
TOTAL PROVED 182 152 3 2 11,363 9,811 31 22
PROBABLE 41 33 10 8 6,123 5,344 16 11
----------------- ------------ ------------ -------------- -------------
TOTAL PROVED PLUS
PROBABLE 223 185 12 10 17,486 15,155 46 33
----------------- ------------ ------------ -------------- -------------
----------------- ------------ ------------ -------------- -------------


NET PRESENT VALUES OF FUTURE NET REVENUE
-----------------------------------------------------------
CANADIAN BEFORE INCOME AFTER INCOME
PROPERTIES TAXES DISCOUNTED AT TAXES DISCOUNTED AT
(% per year) (% per year)
---------------------------- ------------------------------
RESERVES 0 5 10 15 20 0 5 10 15 20
CATEGORY (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$)
----------- ----------------------------- ------------------------------
PROVED
Developed
Producing 52.2 44.5 39.1 35.0 31.8 41.9 35.9 31.8 28.8 26.4
Developed
Non-
producing 4.6 4.0 3.5 3.2 2.9 3.0 2.6 2.3 2.0 1.9
Undeveloped 54.6 40.5 31.4 25.2 20.8 36.5 26.8 20.6 16.4 13.4
----------- ----------------------------- ------------------------------
TOTAL
PROVED 111.4 89.0 74.0 63.4 55.5 81.4 65.3 54.7 47.2 41.6
PROBABLE 56.0 38.1 27.6 20.9 16.4 37.5 25.4 18.3 13.7 10.7
----------- ----------------------------- ------------------------------
TOTAL
PROVED
PLUS
PROBABLE 167.4 127.1 101.6 84.3 71.9 118.9 90.7 73.0 60.9 52.3
----------- ----------------------------- ------------------------------
----------- ----------------------------- ------------------------------

SUMMARY OF OIL AND GAS RESERVES
AND NET PRESENT VALUES OF FUTURE NET REVENUE
AS OF SEPTEMBER 30, 2005
CONSTANT PRICES AND COSTS (US DOLLARS)

RESERVES
------------------------------------------------------
U.S. PROPERTIES LIGHT AND NATURAL GAS
MEDIUM OIL HEAVY OIL NATURAL GAS LIQUIDS
------------ ------------ ------------- -------------
Gross Net Gross Net Gross Net Gross Net
RESERVES CATEGORY (MBbl)(MBbl) (MBbl)(MBbl) (MMcf) (MMcf) (MBbl)(MBbl)
----------------- ------------ ------------ ------------- -------------
PROVED
Developed
Producing - - - - 3,042 2,316 12 9
Developed
Non-
producing - - - - 976 750 - -
Undeveloped - - - - 582 447 - -
----------------- ------------ ------------ ------------- -------------
TOTAL PROVED - - - - 4,600 3,513 12 9
PROBABLE - - - - 6,543 4,993 1 1
----------------- ------------ ------------ ------------- -------------
TOTAL PROVED PLUS
PROBABLE - - - - 11,142 8,506 13 10
----------------- ------------ ------------ ------------- -------------
----------------- ------------ ------------ ------------- -------------


NET PRESENT VALUES OF FUTURE NET REVENUE
------------------------------------------------------------
BEFORE INCOME AFTER INCOME
U.S. TAXES DISCOUNTED AT TAXES DISCOUNTED AT
PROPERTIES (% per year) (% per year)
----------------------------- ------------------------------
RESERVES 0 5 10 15 20 0 5 10 15 20
CATEGORY (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$)
----------- ----------------------------- ------------------------------
PROVED
Developed
Producing 29.7 26.6 24.1 22.1 20.5 19.0 16.9 15.4 14.1 13.1
Developed
Non-
producing 9.6 8.0 6.7 6.0 5.3 6.0 5.0 4.3 3.8 3.3
Undeveloped 4.2 3.9 3.5 3.3 3.0 2.7 2.4 2.2 2.0 1.9
----------- ----------------------------- ------------------------------
TOTAL
PROVED 43.5 38.5 34.5 31.3 28.8 27.7 24.4 21.9 19.9 18.3
PROBABLE 59.8 43.7 33.8 27.3 22.8 37.5 27.3 21.1 17.0 14.2
----------------------------- ------------------------------
TOTAL
PROVED
PLUS
PROBABLE 103.4 82.2 68.3 58.6 51.5 65.1 51.8 43.0 36.9 32.5
----------- ----------------------------- ------------------------------
----------- ----------------------------- ------------------------------



Notes:

1. "Gross" means the Company's total working interest (operating and non-operating) share before deduction of royalties payable to others and without including any royalty interests of the Company. "Net" reserves means the total working interest (operating and non-operating) share after deduction of royalty obligations plus the Company's royalty interests in reserves. Other definitions, including reserve categories, are as defined in National Instrument 51-101.

2. Columns may not add due to rounding.

Pricing Assumptions

The following sets for the benchmark reference prices, as at September 30, 2005, reflected in the reserves information. These price assumptions were provided to the Corporation by AJM.



SUMMARY OF PRICING ASSUMPTIONS
AS OF SEPTEMBER 30, 2005
CONSTANT PRICES AND COSTS

OIL (1) NATURAL GAS (1)
------------------------------------ ----------------------
Edmonton
WTI Par Price
Cushing 40 degrees Hardisty AECO NYMEX
Oklahoma API Lloyd Blend Gas Price Gas Price
YEAR ($US/bbl) ($Cdn/bbl) ($Cdn/bbl) ($Cdn/Mcf) ($US/Mcf)
-------- ------------------------------------ ----------------------

2005(2)(3) 66.24 79.30 47.51 13.13 14.50
---------- ----------------------- ------------ ----------------------
---------- ----------------------- ------------ ----------------------


NGL's (1)
------------------------------------------
Edmonton Edmonton Edmonton
Par Price Par Price Par Price
Propane Butane Condensate
YEAR ($Cdn/bbl) ($Cdn/bbl) ($Cdn/bbl)
---------- ------------------------------------------
2005(2)(3) 63.44 51.54 83.26
---------- ------------------------------------------
---------- ------------------------------------------

Notes:

(1) These summary tables identify benchmark reference pricing schedules
that might apply to a reporting issuer.
(2) The exchange rate used to generate the benchmark reference prices
in these tables is 0.8613 $US/$Cdn.
(3) As at September 30.


SUMMARY OF PRICING AND INFLATION RATE ASSUMPTIONS
AS OF SEPTEMBER 30, 2005
FORECAST PRICES AND COSTS

OIL NATURAL GAS
------------------------------------ ----------------------
Edmonton
WTI Par Price
Cushing 40 degrees Hardisty AECO NYMEX
Oklahoma API Lloyd Blend Gas Price Gas Price
YEAR ($US/bbl) ($Cdn/bbl) ($Cdn/bbl) ($Cdn/Mcf) ($US/Mcf)
-------- ------------------------------------ ----------------------
Forecast
2005 65.00 75.60 50.60 12.00 12.00
2006 65.00 78.40 53.40 11.00 10.00
2007 64.25 77.50 52.50 10.00 9.20
2008 62.45 75.30 50.30 8.90 8.30
2009 61.55 74.20 49.20 9.20 8.50
2010 59.55 71.80 46.80 9.35 8.65
2011 55.25 66.50 41.50 9.60 8.85
2012 56.35 67.85 42.85 9.80 9.00
2013 57.45 69.20 44.20 10.00 9.20
2014 58.60 70.60 45.60 10.20 9.35
2015 59.80 72.05 47.05 10.45 9.55
2016 60.95 73.50 48.50 10.70 9.75
2017 62.20 75.00 50.00 11.00 9.95
2018 63.45 76.50 51.50 11.20 10.15
2019 64.65 78.00 53.00 11.40 10.35
2020 65.95 79.60 54.60 11.70 10.55
2021 67.30 81.25 56.25 12.00 10.80
2022 68.65 82.85 57.85 12.20 11.00
2023 70.00 84.50 59.50 12.40 11.20
2024 71.45 86.30 61.30 12.75 11.45
2025+ 2.0% 2.0% 2.0% 2.0% 2.0%
-------- ------------------------------------ ----------------------
-------- ------------------------------------ ----------------------


NGL's
-------------------------------------------
Edmonton Edmonton Edmonton
Par Price Par Price Par Price
Propane Butane Condensate
YEAR ($Cdn/bbl) ($Cdn/bbl) ($Cdn/bbl)
--------- -------------------------------------------
Forecast
2005 49.15 60.50 79.40
2006 50.95 62.70 82.30
2007 50.40 62.00 81.40
2008 48.95 60.25 79.05
2009 48.25 59.35 77.90
2010 46.65 57.45 75.40
2011 43.25 53.20 69.85
2012 44.10 54.30 71.25
2013 45.00 55.35 72.65
2014 45.90 56.50 74.15
2015 46.85 57.65 75.65
2016 47.80 58.80 77.20
2017 48.75 60.00 78.75
2018 49.75 61.20 80.35
2019 50.70 62.40 81.90
2020 51.75 53.70 83.60
2021 52.80 65.00 85.30
2022 53.85 66.30 87.00
2023 54.95 67.60 88.75
2024 56.10 69.05 90.60
2025+ 2.0% 2.0% 2.0%
--------- -------------------------------------------
--------- -------------------------------------------


Notes:

(1) Inflation rates (for forecasting prices and costs) increasing at the
rate of 2% per year.
(2) Exchange rates (used to generate the benchmark reference prices in
these tables) remaining constant at 0.85.


BOE Presentation

The term barrels of oil equivalent (BOE) 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. All BOE conversions in this press release are derived by converting gas to oil in the ratio of six Mcf of gas to one Bbl of oil.

Forward-looking statements - statements included in this press release that are not historical facts may be considered "forward-looking statements." All estimates and statements that describe the Company's objectives, goals or future plans are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties where actual results could differ materially from those currently anticipated.

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

Contact Information

  • Diaz Resources Ltd.
    Robert W. Lamond
    Chairman
    (403) 269-9889
    (403) 269-9890 (FAX)
    or
    Diaz Resources Ltd.
    Charles A. (Tony) Teare
    Executive Vice President
    (403) 269-9889
    (403) 269-9890 (FAX)
    Email: info@diazresources.com
    Website: www.diazresources.com