Skope Energy Inc.
TSX : SKL

Skope Energy Inc.

May 26, 2011 20:22 ET

Skope Energy Inc. Announces March 31, 2011 Reserve Information and Provides Drilling Update

CALGARY, ALBERTA--(Marketwire - May 26, 2011) - Skope Energy Inc. ("Skope" or the "Company") (TSX:SKL) is pleased to announce the results of its independent reserve evaluation prepared by McDaniel & Associates Consultants Ltd. ("McDaniel") as at March 31, 2011. Additional information with respect to the Company's reserves will be included in the Company's Annual Information Form which is expected to be filed on SEDAR on or before June 29, 2011.

Skope was incorporated on June 23, 2010 and commenced active operations on September 30, 2010, following the acquisition of its petroleum and natural gas assets. Skope's owns high quality, long-term, low decline natural gas producing assets and associated tangibles and miscellaneous interests in southeast Alberta and southwest Saskatchewan.

McDaniel has prepared an independent evaluation on all of the Company's petroleum and natural gas reserves effective as at March 31, 2011. The gross reserves from the following tables represent Skope's working interest share before the deduction of royalties and before including the Company's royalty interests. Forecast prices used in the calculation of net present value of future net revenue are based on McDaniel's April 1, 2011 price forecast. The tables may not add due to rounding.

Reserves reflect the fact that very little capital was spent on the assets due in part to Skope's strategy of drilling in spring/summer and to exceptionally wet spring surface conditions. Skope expects to increase its capital program following spring break-up.

SUMMARY OF GROSS OIL AND NATURAL GAS RESERVES AS AT MARCH 31, 2011


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Reserve Category                        Natural Gas (MMcf) Equivalent (Mboe)
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PROVED                                                                      
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 Developed Producing                             41,971.6           6,995.3 
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 Developed Non-Producing                            501.6              83.6 
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 Undeveloped                                     14,295.0           2,382.5 
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TOTAL PROVED                                     56,768.3           9,461.4 
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PROBABLE                                         11,541.4           1,923.6 
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TOTAL PROVED + PROBABLE                          68,309.6          11,384.9 
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As at March 31, 2011, Skope owned no crude oil or natural gas liquids reserves.

SUMMARY OF NET PRESENT VALUES OF FUTURE NET REVENUE AS OF MARCH 31, 2011


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                              Before Income Tax Discounted at (% per year)  
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$ Millions                                0%              5%             10%
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Reserve Category                                                            
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PROVED                                                                      
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 Developed Producing                   83.1            73.0            64.6 
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 Developed Non-Producing               (1.3)           (1.0)           (0.9)
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 Undeveloped                           22.5            14.1             8.4 
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TOTAL PROVED                          104.2            86.0            72.1 
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PROBABLE                               43.4            30.4            22.3 
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TOTAL PROVED + PROBABLE               147.6           116.4            94.4 
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DRILLING UPDATE

Skope and its partner Spur Resources Ltd. have drilled two horizontal wells in the Pendor area of southern Alberta targeting the Second White Specks and Medicine Hat formations. Completion activities should commence shortly on both of these wells. Drilling proceeded as planned despite unusually wet spring weather conditions. A third horizontal well at Pendor targeting the Bow Island formation is planned for drilling this summer once surface conditions permit.

Management has identified a large inventory of work-over and recompletion prospects. These prospects will be exploited over a two-year period, and should contribute to relatively flat production with an on stream cost estimated at less than $10,000/boe/d. Most of these prospects are in the Pendor and Eagle Butte core areas.

FORWARD LOOKING STATEMENTS

This news release contains forward-looking statements relating to the Company's plans and other aspects of the Company's anticipated future operations, management focus, strategies, financial and operating results and business opportunities. Forward-looking statements typically use words such as "anticipate", "believe", "project", "expect", "goal", "plan", "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future. In particular, this press release contains forward-looking statements relating, but not limited to:


--  drilling and development plans including the timing of drilling and
    completion of wells; 
--  recompletion prospects and amounts therefrom; 
--  Skope's business strategy; 
--  Skope's future prospects for development and growth;
--  the timing of filing Skope's Annual Information Form; 
--  anticipated future production and operating costs. 

In addition, statements relating to reserves are deemed to be forward-looking as they involve an implied assessment, based on certain assumptions and estimates, that the reserves described can be properly produced in the future.

These forward-looking statements are based on various assumptions including: the outlook for petroleum and natural gas prices; estimated amounts and timing of capital expenditures; the timing, location and extent of future drilling operations; anticipated timing and results of capital expenditures; estimates of future production and operating costs; the state of the economy and the exploration and production business; results of operations; performance; business prospects and opportunities; future exchange and interest rates, Skope's ability to obtain equipment in a timely manner to carry out development activities, impact of increasing competition, ability to market oil and natural gas successfully and the ability of Skope to access capital.

While Skope considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties and other factors that contribute to the possibility that the predicted outcome will not occur, including, without limitation: risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation; loss of markets; volatility of commodity prices; currency fluctuations; imprecision of reserve estimates; environmental risks; competition from other producers; inability to retain drilling rigs and other services; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions; general economic conditions in Canada, the U.S. and globally; and ability to access sufficient capital from internal and external sources. Readers are cautioned that the foregoing list of factors is not exhaustive.

Although Skope believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements and you should not unduly rely on forward-looking statements. The forward-looking statements contained in this news release are made as the date of this new release and the company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

51-101 Advisory

In conformity with National Instrument 51-101, Standards for Disclosure of Oil and Gas Activities ("NI 51-101"), natural gas volumes have been converted to barrels of oil equivalent using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil. Readers are cautioned that the term "boe" may be misleading, particularly if used in isolation. This ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. The estimate of future net revenue presented in this press release does not represent fair market value.

About Skope Energy Inc.

Skope is in the business of oil and natural gas exploration, development and production in Western Canada with a focus on shallow natural gas. Skope was formed to acquire an 80% working interest in a package of high quality, long-term, low decline producing shallow gas assets, located in southeast Alberta and southwest Saskatchewan.

Skope's common shares are listed on the Toronto Stock Exchange under the symbol "SKL".

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