Ember Resources Inc.
TSX : EBR

Ember Resources Inc.

March 30, 2007 14:15 ET

Ember Resources Inc. Reports Contingent Resources and Filing of Its Annual Information Form

CALGARY, ALBERTA--(CCNMatthews - March 30, 2007) -

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Ember Resources Inc. (TSX:EBR) ("Ember" or the "Company") provided today a summary of its contingent resource estimates as at December 31, 2006. Additional information concerning contingent resources in included in Ember's Annual Information Form ("AIF") and is available under Company filings at www.sedar.com. The AIF also contains details about the Company's reserves as required under NI 51-101.

Contingent Resource Estimate

In addition to conducting a reserve evaluation for the year ended December 31, 2006, the Company retained Sproule Associates Limited ("Sproule"), an independent engineering firm, to provide an estimate of CBM contingent resources for Ember's undeveloped lands. Due to technical and economic uncertainty these resources are categorized as contingent at this time. The contingencies in this classification include, but are not limited to: productivity, capital costs, operating costs, future gas prices and project timing. Ember's strategy is to convert these contingent resources into the reserve category by demonstrating their commercial viability.

In response to discussions with regulatory authorities, Sproule has made changes in its previously employed methodology used to estimate contingent resources. The intent of these changes is to provide a better representation of the range of contingent resources in the future.

Mannville Coals

Original gas-in-place ("OGIP") for each section was estimated volumetrically based on net pay from existing logs. Average gas content and coal density specific to each area was then applied to provide an OGIP estimation. Changes were made to the assignment of OGIP in the low, best and high cases based on the inclusion of individual coal seams.

The low case includes the net pay in the major seam of an area of potential development in the OGIP calculation. The recovery factor is then estimated based on engineering judgment for each area. The recovery factors assigned in the low case range from 5% - 40%.

The best case considers the net pay from the major and secondary coal seams where the development of the secondary coal seam was considered reasonable. The recovery factors assigned in the best case range from 20% - 45%.

The high case calculation of OGIP includes all coals seams greater than 0.9m in thickness. The recovery factors assigned in the high case range from 40% - 60%.

The report then estimates contingent resources based on calculated OGIP and assigned recovery factors.



The following table summarizes Sproule's contingent resource estimates as
at December 31, 2006:

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Company Gross Company Gross
Original Contingent
Gas-in-Place Resources-Raw
BCF BCF
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Area/Prospect Low Best High Low Best High
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Mannville Coals
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Fenn Big Valley 34.4 57.8 78.7 1.7 11.6 31.5
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Manola 189.1 317.9 402.1 75.6 143.1 241.2
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Rosalind 210.7 331.2 449.2 42.3 99.8 224.5
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Total Mannville 434.1 706.9 929.9 119.7 254.4 498.2
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Horseshoe Canyon Coals
Fenn Big Valley 5.8 5.8 5.8 2.2 3.0 3.4
----------------------------------------------------------------------------
Total 439.9 712.7 935.7 121.9 257.4 501.6
----------------------------------------------------------------------------
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In management's opinion it is too early to estimate the chance of success for the appraisal programs of the Mannville coal contingent resources. By NI 51-101 definitions, these resources do not have the certainty at this time to be classified as reserves. For this reason, the evaluation conducted by Sproule presents a range of technically recoverable resources for each area. While it appears that production is possible from these formations and the gas-in-place can be reasonably estimated, the production rates and recoveries are still undetermined and have, therefore, been estimated as low, best and high contingent resources as presented in the Sproule evaluation.

"Our contingent resource estimate provides additional information to shareholders of the upside potential of Ember. During 2006 we were successful in converting a portion of our resources into reserves as evidenced by our year-end reserve report. Total proved, probable and possible reserves increased by 159% or 24.9 Bcf to 40.6 Bcf. We see this as a continuing trend as we exploit our low risk Horseshoe Canyon resources and move closer to commercialization of our Mannville resources," said Doug Dafoe, Ember Chairman and CEO.

As referred to above, Ember's AIF, audited financial statements and related MD&A for the year ended December 31, 2006 can be located at www.sedar.com or www.emberresources.com. To the extent investors do not have access to the internet, copies of the audited financials and related MD&A can be obtained on request without charge by contacting Ember Resources Inc. at 403 270 0803.

Reader Advisory

FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements including future production, anticipated capital expenditures and development plans. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Actual results, performance or achievement could differ materially from those expressed in, or implied by, such forward looking statements and accordingly, no assurances can be given that any of the events anticipated by the forward looking statements will transpire or occur. Except as required by law, Ember undertakes no obligation to update or revise any forward looking statements. Additional information on these and other factors that could affect the Company's operations or financial results are included in the Company's reports on file with Canadian securities regulatory authorities.

BOE Disclosure: 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.

Ember Resources Inc. is a resource company specializing in coalbed methane (CBM) with extensive land and resource holdings in Alberta, Canada. Ember's shares are traded on the Toronto Stock Exchange under the trading symbol "EBR".

Contact Information

  • Ember Resources Inc.
    Mr. Douglas A. Dafoe
    Chairman & CEO
    (403) 270-0803
    (403) 270-2850 (FAX)
    or
    Ember Resources Inc.
    Mr. Terry S. Meek
    President & COO
    (403) 270-0803
    (403) 270-2850 (FAX)
    Website: www.emberresources.com