SOURCE: EnDevCo, Inc.

May 02, 2007 10:16 ET

EnDevCo Announces Short Junction Field Proved Reserves

HOUSTON, TX -- (MARKET WIRE) -- May 2, 2007 -- EnDevCo, Inc. (OTCBB: ENDE), the Energy Development Company, announced that the highly regarded petroleum consulting firm, DeGolyer and McNaughton (D&M), recently completed their proved reserves assessment for the Company's Short Junction Field (the Field) located in Cleveland County, Oklahoma. Historically the primary zone of interest for oil production in the Field has been the Hunton limestone formation. However, above the Hunton, the Bartlesville, Prue, Red Fork and Skinner sandstones along with the Pink Lime zones are present and appear to be productive on existing well logs.

The D&M proved reserves evaluation for the Field (all zones) as of December 31, 2006 is 27,281,645 barrels of oil equivalent (BOE) as follows:

Reserves Classification            Gross Oil (Bbl)     Gross Gas (Mcf)
-----------------------           --------------      --------------
Proved Developed Producing             1,147,226             965,803
Proved Developed Non-producing           142,115           6,777,181
Proved Undeveloped                    17,186,612          45,091,168
                                  --------------      --------------
Total:                                18,475,953          52,834,152
It is important to note that the Hunton formation is divided into the following four members: Bois d'Arc, Haragan, Henry House and Chimney Hill reservoirs. The D&M report focused primarily on the Bois d'Arc formation estimating reserves for 73 proved undeveloped (PUD) locations projected to produce an average of 164,400 barrels of oil (BO) and 486,000 thousand cubic feet (MCF) of gas per location. D&M estimated only 7 PUD locations for the Haragan/Henry House and 14 PUD locations for the Chimney Hill reservoirs. The Haragan/Henry House locations are projected to produce 164,000 BO and 312,000 MCF of gas, while the thicker Chimney Hill zone locations are projected to produce an average of 192,000 BO and 453,000 MCF of gas per location.

Since SEC reserve guidelines only allow for a single undeveloped location away from proved production, D&M was unable to estimate proved reserves for an additional 66 locations in the Haragan/Henry House and 59 locations in the Chimney Hill. However, once additional drilling is performed in the Field penetrating, logging and producing those zones, D&M will be able to estimate proved reserves for those locations. EnDevCo estimates that an additional 22,178,400 BO and 47,319,000 MCF of gas will eventually be added to the Field's gross proved reserves to increase the Field's total gross proved reserves to 57,346,545 BOE.

About DeGolyer & MacNaughton

DeGolyer and MacNaughton (D&M) is a geographically based petroleum consulting firm founded in 1936 by two extraordinarily gifted geo-scientists. Today, D&M professionals evaluate regions where they have applied expertise and in-depth knowledge. During seven decades, the firm has successfully performed studies on hundreds of thousands of petroleum properties in more than 100 countries. D&M has offices in Calgary, Dallas, Houston and Moscow supporting six divisions serving the oil and gas industry worldwide.

D&M performs a variety of services related to the upstream sector of the petroleum industry, including evaluation of the hydrocarbon potential of exploration areas, estimation and classification of reserves to be recovered from new discoveries, verification of hydrocarbon reserves, production forecasting, and appraisal of properties for prospective acquisition, divestiture, issuance of securities, or financing purposes.

DeGolyer and MacNaughton utilize an integrated team approach to reservoir evaluation. Each geographically based division includes among its staff petrophysicists, geophysicists, geologists, and petroleum engineers who have extensive experience in specific petroleum-producing regions. Such an approach encourages D&M's staff to capitalize on the efficiencies and synergies of shared knowledge.

For each project, a team is organized to best meet the needs of the client. The interdisciplinary team, led by a project manager, works closely with the client to ensure that the clearest understanding of the reservoir unit is achieved. D&M places considerable emphasis during project execution on communication with clients, both to maintain a clear project direction and to overcome any potential barriers to timely completion of the study.

In all their endeavors -- from annual reserve updates to multidimensional, multiphase models of complex reservoirs -- the staff of D&M are directed by a philosophy that values Knowledge, Integrity, and Service. For more information on DeGolyer and MacNaughton, please visit www.demac.com.

EnDevCo, Inc. is a dynamic and growing energy company, which maintains offices in Houston and Dallas, Texas. For more specific information on the estimated proved reserves assessment of the Company's Short Junction Field please contact EnDevCo's investor relations representatives or visit www.endevcoinc.com.

This press release includes certain "forward-looking statements." The forward-looking statements reflect the beliefs, expectations, objectives, and goals of EnDevCo, Inc. management with respect to future events and financial performance. They are based on assumptions and estimates, which are believed reasonable at the time such statements are made. However, actual results could differ materially from anticipated results. Important factors that may impact actual results include, but are not limited to commodity prices, political developments, legal decisions, market and economic conditions, industry competition, the weather, changes in financial markets and changing legislation and regulations. The forward-looking statements contained in this report are intended to qualify for the safe harbor provisions of Section 21E of the Securities and Exchange Act of 1934, as amended.

Contact Information

  • EnDevCo, Inc.
    Tom Cloutier
    Investor Relations Director
    (760) 832-2412
    tcloutier@endevcoinc.com

    Additional Investor Information and Assistance is available via:
    Equiti-trend Advisors LLC
    (800) 953-3350