Elkwater Resources Ltd.
TSX VENTURE : ELW

May 02, 2011 19:04 ET

Elkwater Resources Ltd. Announces Filings Under National Instrument 51-101 for Year Ended December 31, 2010 and Provides Updated Reserves Incorporating Recent Acquisition

CALGARY, ALBERTA--(Marketwire - May 2, 2011) - ELKWATER RESOURCES LTD. ("Elkwater" or the "Company") (TSX VENTURE:ELW) announces that it has filed its audited Financial Statements and related Management's Discussion and Analysis, and its reserve data and other oil and gas information required under National Instrument 51-101 for the year ended December 31, 2010. All of these filings can be accessed on SEDAR at www.sedar.com.

As previously announced, subsequent to year end the Company closed an acquisition of producing oil and gas assets ("Acquired Properties") primarily located in the Lashburn and Suffield areas of Saskatchewan and the Pembina and Ewing Lake areas of Alberta. The acquisition had an effective date of December 1, 2010 and closed on March 9, 2011. These Acquired Properties are not included in the National Instrument 51-101 filings but are included in the following table that summarizes the total Company Interest reserves and present values of future net revenues, effective December 31, 2010, before income taxes, discounted at 10% per year, as prepared by GLJ Petroleum Consultants using their January 1, 2011 Price Forecast.

Total Company Interest, Post Acquisition, Including Acquired Properties

ReservesPresent Value
(MBOE)(M$)
Proved Producing56012,662
Total Proved74113,858
Total Proved plus Probable1,13019,348

The acquisition increases the Company's production to an estimated net 280 boepd, comprised of approximately 165 bopd oil and NGLs and 115 boepd natural gas, and approximately one half of the production is operated. Post closing of the acquisition, the Company's debt/working capital deficiency is estimated at $3.75 million. Elkwater currently has 14,138,965 shares outstanding.

This press release should be read in conjunction with the National Instrument Forms 51-101F1, F2 and F3 and the Company's audited financials and MD&A for the year ended December 31, 2010, and the Company's press releases of January 14 and March 17, 2011.

This press release contains "forward-looking information", within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to: reserve estimates; estimates regarding current or future production and revenue; estimates of debt and working capital deficiency; and the future financial and operating performance of the Company's assets.

Forward-looking information is frequently characterized by words such as "expect", "schedule", "estimate", "approximate", "intend", "anticipate", "believe", and other similar words. These statements are only predictions and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social risks and uncertainties; risks relating to oil and gas exploration and exploitation activities; oil and gas prices; acquisition risks; risks relating to greater resources, and delays in obtaining regulatory approvals. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

Disclosure provided herein in respect of 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.

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

  • Elkwater Resources Ltd.
    Don J. Brown
    President
    (403) 262-0242