Ecosse Energy Corporation
CNSX : ECS

August 30, 2012 13:58 ET

New 51-101 Reports Confirm Significant Prospective Resources and Valuation

TORONTO, ONTARIO--(Marketwire - Aug. 30, 2012) -

Key Highlights

  • Recently filed 51-101 reports confirm multi-prospect inventories and significant prospective resources identified on the Bengkulu PSC and Onshore on the Manokwari PSC
  • Reports identify a risked valuation (NPV 10%) of US$2 billion (arithmetic total using EMV)
  • In both PSCs, multi-prospect inventories have been confirmed with a best estimate unrisked 1.19 billion barrels of oil (US$15.4 billion NPV10%) and 3.1 Tcf (US$0.8 billion NPV 10%)
    • Onshore Bengkulu - 5 identified onshore oil prospects with a best estimate unrisked 206.1 million barrels prospective resources
    • Offshore Bengkulu - 12 identified offshore oil prospects with a best estimate unrisked 290.4 million barrels prospective resources
    • Onshore Manokwari - 6 identified onshore oil prospects with a best estimate unrisked 697.8 million barrels prospective resources
    • Onshore Manokwari - 6 identified onshore gas prospects with a best estimate unrisked 3.1 Tcf prospective resources
  • 8 well drilling programme proposed for 2012 and 2013
  • Process underway for a proposed Admission to trading on AIM

Ecosse Energy Corp. (CNSX:ECS) ("Ecosse Energy" or the "Company"), a company focused on oil and gas exploration in Indonesia, today announces that Chapman Petroleum Engineering Ltd ("Chapman") has completed an independent resource assessment of Ecosse Energy's interests in its 100% held Bengkulu PSC and its 100% held Monokwari PSC in Indonesia. The reports have been prepared in anticipation of the proposed Admission to trading of the Company's shares on the Alternative Investment Market ("AIM") on the London Stock Exchange. The Company announced on 23 May 2012 that it had appointed Fox-Davies Capital Limited ("Fox-Davies") as its Nominated Advisor ("NOMAD") and Broker for a proposed Admission to trading of the Company's shares on the Alternative Investment Market ("AIM") on the London Stock Exchange.

Summary of The Company's Oil & Gas Prospective Resources
(All figures in
MMbbl or Bscf)
Gross Net Attributable Risk Factor
Low Estimate Best Estimate High Estimate Low Estimate Best Estimate High Estimate POS
Geo (1)
POS
Comm (2)
Total
Oil & Liquids Prospective Resources (MMbbl)
Bengkulu - Onshore
Bengkulu - Offshore
Manokwari - Onshore
146.0
198.2
499.8
206.1
290.4
697.8
291.5
396.4
897.5
60.5
83.5
302.7
84.5
120.4
416.9
118.5
162.7
532.9
16%
10%
17%
75%
90%
90%
12%
9%
15%
Total for Oil & Liquids: 844.0 1,194.3 1,585.4 446.7 621.8 814.1
Gas Prospective Resources (Bscf)
Manokwari - Onshore 1,953.8 3,061.9 4,464.7 1,508.9 2,310.6 3,314.9 12% 80% 10%
Total for Gas: 1,953.8 3,061.9 4,464.7 1,508.9 2,310.6 3,314.9
Notes: (1) POS geo - Geological probability of success
(2) POS comm - Commerciality factor
Source: Chapman

An economic analysis was performed by Chapman for the Company's interest position.

Bengkulu PSC Net Value After Tax of Prospective Resources ($Million)

Onshore Oil (5 Prospects) Offshore Oil (12 Prospects)
Unrisked
(Arithmetic Average)
Risked (12%)
(Arithmetic Average)
Unrisked
(Arithmetic Average)
Risked (9%)
(Arithmetic Average)
Undiscounted 5,691 668 7,690 665
NPV 10% 2,638 302 3,684 304
Source: Chapman

Manokwari PSC Net Value After Tax of Prospective Resources ($Million)

Onshore Oil (6 Prospects) Onshore Gas (6 Prospects)
Unrisked
(Arithmetic Average)
Risked (15%)
(Arithmetic Average)
Unrisked
(Arithmetic Average)
Risked (10%)
(Arithmetic Average)
Undiscounted 21,170 3,149 1,706 142
NPV 10% 9,073 1,334 857 57
Source: Chapman

Chapman's resource evaluations have been conducted in accordance with Canadian National Instrument (NI) 51-101, Sec 5.9, pertaining to prospects and resources, utilizing forecast prices and costs with an effective date of July 1, 2012 and were prepared between July 10 and July 19, 2012.

The resource evaluation reports are available on the Company's website and SEDAR.

Alan Morrison, President and CEO of Ecosse Energy Corp. said:

"The resource assessments and resulting risked valuation performed by Chapman endorses the Company's strategy of focusing on our two exciting PSCs. The resource assessments present a compelling case in support of our planned 8-well drilling programme in 2012 and 2013. Our multi-prospect inventory and high-impact drill-ready targets provide the opportunity to unlock the value in the portfolio and transform Ecosse Energy for its shareholders."

About the Company

Ecosse Energy Corp. was incorporated under the Canada Business Corporations Act and is a reporting issuer in the Provinces of Alberta, British Columbia, Manitoba, and Ontario. Its wholly-owned subsidiaries - Ecosse Energy (Bengkulu) Pty Ltd ("EEB"); a private Australian company - and Ecosse Energy (Manokwari) Ltd ("EEM"); a private BVI company - both operate in Indonesia. EEB owns a 100% working interest in the Bengkulu PSC in Sumatra, Indonesia. The Bengkulu PSC covers 4,101 km2 (1,013,602 acres) and consists of both onshore and offshore portions. EEM owns a 100% working interest in the Manokwari PSC in Papua, Indonesia. The Manokwari PSC covers 3902 km2 (964,417 acres). Both the Bengkulu PSC and the Manokwari PSC are currently in the exploration phase with both PSCs planning to drill onshore wells in 2012.

Further information concerning the Company can be found at www.sedar.com and www.cnsx.ca.

Neither the Canadian National Stock Exchange nor its regulation services provider nor the Alternative Investment Market on the London Stock Exchange accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Ecosse Energy Corp.
    Alan W Morrison
    President & CEO
    +1 877 284 6848
    info@ecosseenergy.com

    Fox-Davies Capital Limited
    Daniel Fox-Davies / Simon Leathers / Richard Hail
    +44 (0) 20 3463 5000
    www.fox-davies.com