Poplar Creek Resources Inc.
TSX VENTURE : PCK

April 16, 2012 10:39 ET

Poplar Creek Resources Inc. Increases Reserves

CALGARY, ALBERTA--(Marketwire - April 16, 2012) -

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

Poplar Creek Resources Inc. ("Poplar" or the "Corporation") (TSX VENTURE:PCK) is pleased to announce a 161% increase in its overall oil and natural gas reserves from December 31, 2010 to December 31, 2011 as evaluated by Sproule Associates Limited ("Sproule") in accordance with National Instrument 51-101 (Standards of Disclosure for Oil and Gas Activities) ("NI 51-101"). These results have been achieved through the Corporation's participation in the on-going development of the Sparky Heavy Oil property located at Warspite, Alberta. To date Poplar has participated in the drilling of three multi-leg horizontal wells and one single leg horizontal well. Through the participation at Warspite, Poplar has been able to transition its reserve base from 86% natural gas to 65% oil from 2010 to 2011. Poplar now has Total Proved plus Probable heavy oil reserves of 113,000 barrels representing a 1,100% increase from last year's reserves evaluation. Future drilling of the property will use quad-leg horizontal technology.

A summary of the Corporation's reserves volumes according to reserve category as at December 31, 2011 is set forth below. The reserves information represents Poplar's non-operated working interests of remaining reserves. These values have been estimated by Sproule.

Reserves Category Light and
Medium Oil
(Mbbl)
Heavy
Oil
(Mbbl)
Solution
Gas
(MMcf)
Natural
Gas
(MMcf)
Total Oil
Equivalent
(Mboe)
Proved
Proved Developed Producing 0 8.2 10 57 19.2
Proved Developed Non-Producing 0 0 0 71 11.8
Proved Undeveloped 0 31.5 38 0 37.9
Total Proved 0 39.7 48 128 68.9
Probable Developed Producing 0 3.2 4 24 7.8
Probable Developed Non-Producing 0 0 0 42 7
Probable Undeveloped 0 70.1 116 0 89.4
Total Probable 0 73.3 120 66 104.2
Total Proved plus Probable 0 113.0 168 194 173.1

A summary of Poplar's estimated future net revenues associated with the Corporation's reserves as at year end is provided in the following table. These values have been estimated by Sproule. Such estimated future net revenues do not represent fair market value.

Net Present Value
Before Income Taxes Discounted at (%/year)
0% 5% 10% 15% 20%
Reserves Category (M$) (M$) (M$) (M$) (M$)
Proved Developed Producing 615 530 470 425 390
Proved Developed Non-Producing 100 89 79 71 65
Proved Undeveloped 1,276 985 787 644 538
Total Proved 1,991 1,604 1,336 1,140 993
Probable Developed Producing 263 181 136 108 90
Probable Developed Non-Producing 110 89 74 63 54
Probable Undeveloped 3,404 2,412 1,815 1,424 1,149
Total Probable 3,777 2,682 2,025 1,595 1,293
Total Proved plus Probable 5,768 4,286 3,361 2,735 2,286

Poplar's current per share net asset value before income tax is estimated by the Corporation at a 10% discount rate to be approximately $0.086 per share based on basic outstanding shares of 38,791,261 and calculated on a Total Proved plus Probable basis.

The above estimated net asset values do not represent fair market value.

Poplar is an oil and gas company involved in the exploration, development and production of oil and natural gas in the Province of Alberta.

In this news release the calculation of barrels of oil equivalent (boe) is calculated at a conversion rate of 6 Mcf:1 Bbl is based on an energy equivalency conversion method primarily applicable to the burner tip and does not represent a value equivalency at the wellhead.

Forward Looking Statements:

This release includes certain statements that may be deemed "forward looking statements." All statements in this release, other than statements of historical facts, which address future activities including the closing of the financing, exploration drilling and activity, and events or developments that the Corporation intends, plans, anticipates, believes, estimates or expects are forward looking statements. Actual results may differ materially. Although the Corporation believes such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward looking statements. Factors that could cause results to differ materially from those in the forward looking statements include, but are not limited to: market conditions and difficulties of raising funds in this economic environment, availability and costing of exploration contractors; exploration success; continued availability of capital, government regulations, laws and charges; environmental developments; exploitation economics; and generally the economic, market, financial and business conditions in the present volatile and uncertain economic period. Investors are cautioned that any statements are not guarantees of future performance and actual results or developments may differ materially from those stated in the forward looking statements. The Corporation does not intend, and does not assume any obligation to update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Poplar Creek. This news release shall not constitute an offer to sell or the solicitation of any offer to buy securities in any jurisdiction.

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

  • Poplar Creek Resources Inc.
    John Carruthers
    CEO
    (403) 452-5428 or (403) 875-1821

    Poplar Creek Resources Inc.
    Richard Edgar
    President & CFO
    (403) 616-5387