May 13 - Border Petroleum Announces 2013 Reserves and Corporate Update

Source Press Release
Company Border Petroleum Limited 
Tags Reserve Update, Financial & Operating Data
Date May 24, 2013

Border Petroleum Corp. announces the results of its 2013 year-end oil and gas reserves evaluation and provides shareholders with a corporate update.

Border's March 31, 2013 year-end reserves were evaluated in a report (the "Sproule Report") prepared by independent reserves evaluator Sproule & Associates Consultants Ltd. ("Sproule"). The evaluation of all of Border's oil and gas properties was done in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook") and National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). Additional information about Border's properties as required under NI 51-101 will be included in the Company's Annual Information Form which is expected to be filed on SEDAR in July 2013.

Summary of Reserves

As at March 31, 2013(1)

  Gross Company Reserves 
Description  Light Oil
Heavy Oil
Proved Producing  93.1  7.2  768  21.1  249.3 
Proved Non-Producing  465  13.3  90.8 
Proved Undeveloped  300.0  300.0 
Total Proved(2)  393.1  7.2  1,233  34.4  640.1 
Probable  826.4  3.9  760  21.4  978.6 
Total Proved plus Probable(2)  1,219.5  11.1  1,993  55.8  1,618.7 

(1) Based on Sproule's forecast prices as of March 31, 2013.
(2) Gross Company reserves are the Company's total working interest share before the deduction of royalties.
(3) A conversion ratio of 6 mcf of natural gas to 1 bbl of oil is used. See "Notes Regarding Oil and Gas Disclosure" below.

Summary of Before Tax Net Present Values

As at March 31, 2013(1)

  Before Tax Net Present Value ($MM) 
  Discount Rate 
Description  0%  5%  10%  15%  20% 
Proved Producing  3,460  3,101  2,820  2,595  2,412 
Proved Non-Producing  465  390  330  282  243 
Proved Undeveloped  6,111  3,424  1,707  567  -212 
Total Proved  10,036  6,915  4,857  3,444  2,443 
Probable  29,407  19,086  13,059  9,211  6,580 
Total Proved Plus Probable  39,443  26,001  17,916  12,655  9,023 

(1) Based on Sproule's forecast prices as of March 31, 2013.

Future Development Costs

As at March 31, 2013(1)

(000's)  Proved
Proved Plus
 Probable Future
2013  3,586 
2014  10,239  24,578 
Undiscounted Total  10,239  28,164 
Discounted @ 10%/yr  9,054  25,161 

(1) Future Development Costs shown are associated with booked reserves in the Sproule Report and do not necessarily represent the Corporation's full exploration and development budget.
(2) The numbers in this table may not add exactly due to rounding.

Corporate Update:

Border currently has a positive working capital balance of approximately $7.3 million and an unutilized bank line of $3.5 million. Border's current total production is approximately 230 boepd (26 percent liquids). Border's tax pool balance as at December 31, 2012 was approximately $32.1 million with an additional $17.5 million of successored pools primarily related to its Leduc properties. Further, after taking into account qualifying expenditures of approximately $1.0 million in the quarter ended March 31, 2013, the Company has approximately $2.0 million of outstanding obligations to incur Canadian Exploration Expenses.

Under the direction of the Special Committee, the financial advisors to the Special Committee and management have commenced populating the virtual data room to be used in connection with the previously announced strategic alternatives process and continue their build out of the information package that will be provided to interested parties. The data room and information package are anticipated to be complete within the next seven days.

Border does not intend to disclose developments with respect to the strategic review process unless and until the Board of Directors has approved a definitive transaction or strategic option, or unless otherwise required by law or disclosure of which is deemed appropriate. The Company cautions that there are no guarantees that the strategic review will result in a transaction or if a transaction is undertaken, as to its terms or timing.

Border currently has 332,978,953 common shares outstanding.

Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd