Petro One Energy Corp.

Petro One Energy Corp.

June 24, 2013 07:45 ET

Petro One Credited with 100,000 BBL of NI 51-101 Reserves

VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 24, 2013) - Petro One Energy Corp. (TSX VENTURE:POP) (PINKSHEETS:CUDBF) (FRANKFURT:C6K1) reports that an independent NI 51-101 reserve estimate has credited Petro One with a total of 100,000 barrels of oil classified as proved and probable reserves, as shown in the following table:

Reserve category Gross remaining reserves (bbl )
Proved / Producing 1,000
Probable 99,000
Total proved plus probable 100,000

6,500 barrels of developed probable reserves have been credited to the Company based on Petro One's interest in the farmed out J10 Quarter Section (March 5, 2013 news release), and 92,500 barrels of probable reserves remain in the undeveloped category on Petro One's 100% owned land adjacent to the farmout parcel. In addition to the 100,000 barrels of proved plus probable reserves, 53,800 barrels of possible reserves have also been estimated for the Bromhead property.

Petro One also reports that following the successful farm-out of the SW Quarter of Petro One's J10 Bromhead property and four months of economic production from the horizontal discovery well drilled on that property, the 3 month (90 day) initial production from that well has averaged 96.3 barrels of oil per day.

Petro One's farm-out partner has indicated its intention to drill two additional development wells on the Bromhead farmout land adjacent to the producing well under the same terms as the discovery well, although no time frame has been given for spudding those wells. The Company retains an option to convert its royalty interest in the Bromhead farmout well to a 30 per cent working interest after payout.

"We are very pleased with the ongoing cash flow, and the development potential of the rest of the Bromhead property that has been recognized by McDaniel & Associates, our independent reserve estimators," said Petro One President Peter Bryant. "Petro One looks forward to developing the 92,500 barrels of probable reserves that remain undeveloped on the 100% owned, three quarters of a section at Bromhead that was retained by the Company, as well as increasing our oil production through the recent transaction on Petro One's J11 Minton Red River Bakken property and development of an additional 3,656 hectares (14 sections) of strategically located, 100% owned land in Saskatchewan and Manitoba."

The Company has received notice from the Government of Saskatchewan of an Offset Obligation on its J19 property that would trigger significant advance royalty cash payments to the Government. After review of the risk/reward potential of the J19 property the Company has elected to relinquish this quarter section, reducing its land holdings by 64.75 hectares, from 3,721 to 3,656 hectares.


BOE means barrels of oil equivalent. It 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.

Oil production during a period is generally expressed in terms of "barrels per day" ("bbl" or "BBL"), which indicates the total oil produced during a period divided by the number of hours that the well was in production during that period. "Barrels per day" is indicative of flow rate while a well is in production and does not mean that such well was in constant production during such period.

Proved reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves.

Probable reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves.

Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves.

The estimates in this release have been prepared by independent qualified reserves evaluators in the form of a report (the "2013 Report") in Form 51-101F1 - "Statement of Reserves Data and Other Oil and Gas Information" - under National Instrument 51-101 ("NI 51-101") in accordance with the Canadian Oil and Gas Evaluation Handbook. The effective date of the estimate of reserves data in the 2013 Report was April 30, 2013. The 2013 Report has been filed on SEDAR concurrently with the dissemination of this news release in accordance with section 2.1 of NI 51-101 and may be viewed under the Company's profile at

The reserves evaluators having prepared the 2013 Report have consented in writing to the disclosure of information derived from the Reports and set out herein.

Pursuant to s. 5.2 of NI 51-101, the Company advises that the estimates have been made assuming the development of the J10 Bromhead property will occur, without regard to the likely availability to the Company of funding required for that development. Pursuant to s. 5.8 of NI 51-101, the Company advises that all of the Company's current reserves are credited to the Bromhead property and that the Company has other oil and gas properties, and, therefore, that the estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates of reserves for all properties, due to the effects of aggregation.


"Peter Bryant"

President & Director

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Neither 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.

Forward-Looking Statements

Certain statements contained herein constitute forward-looking statements or information (collectively "forward-looking statements") within the meaning of applicable securities legislation, including, but not limited to management's assessment of future plans and operations, including: drilling plans and potential locations; expected production levels; development plans; reserves growth; production and operating sales and expenses; reservoir characteristics; the results of applying certain operational development techniques; certain economic factors; and capital expenditures.

Forward looking statements are typically identified by words such as "anticipate", "estimate", "expect", "forecast", "may", "will", "project" and similar words suggesting future events or performance or may be identified by reference to a future date. In addition, statements relating to oil and gas reserves and resources are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the reserves or resources described, as the case may be, exist in the quantities predicted or estimated and can be profitably produced in the future. With respect to forward looking statements herein, the Company has made assumptions regarding, among other things; future capital expenditure levels; future oil and natural gas prices; ability to obtain equipment and services in a timely manner to carry out development activities; ability to market oil and natural gas successfully to current and new customers; the ability to obtain financing on acceptable terms; and the ability to add production and reserves through development and exploitation activities. Although the Company believes that the expectations reflected in the forward-looking statements contained herein, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included herein, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous risks and uncertainties that contribute to the possibility that the forward-looking statements will not occur, which may cause the Company's actual performance and financial results in future periods to differ materially from any estimates or projections. The forward-looking statements contained herein are made as of the date hereof. The Company does not undertake any obligation to, nor does it intend to, publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained herein are expressly qualified by this cautionary statement. In addition, readers are cautioned that historical results are not necessarily indicative of future performance.

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