(MENAFN- ABN Newswire) Perth, Oct 23, 2017 AEST (ABN Newswire) - Incremental Oil and Gas Limited () () ("IOG" or "the Company") is pleased to report a 55% increase in proven (1P) certified reserves subject to completion of the acquisition of the Borie Oilfield in the prolific DJ Basin in Wyoming - announced on October 10, 2017.
Key Points
- Proven Certified Reserves to increase by 55% to 2.1 MBOE on close of Borie Field purchase
- Acquisition of Borie Oilfield will add 756 MBOE to 1P Reserves
- Development potential, three new proved undeveloped well locations
Borie Oilfield Reserves
Incremental's technical team have completed a full evaluation of historic data, and potential new well locations, which has resulted in reserves of 0.76 million barrels of oil for the Borie Field which have been independently certified. The proven producing reserves, and the PUD's (new well locations) substantiate the value of the acquisition and lift IOG's total 1P reserves (see Note 1 below) to 2.1 million BOE are shown below.
----------------------------------------------------------------------- 1P Reserve Category Existing Fields Borie Oilfield TOTAL (MBOE-see Note 2 below) (see Note 3 below) (see Note 4 below) Proved Developed Producing (PDP) 1,159 284 1,443 Proved Developed Not Producing (PDNP) 225 Nil 225 Proved Undeveloped (PUD) Nil 472 472 ----------------------------------------------------------------------- Total 1P Reserves (MBOE) 1,384 756 2,140 -----------------------------------------------------------------------
Reserves from the Borie Field are 100% oil. This acquisition will rebalance the proportion of hydrocarbons within the Group from gas weighted to majority oil reserves which gives IOG greater leverage to crude prices.
Permitting of the new wells will commence this quarter.
Notes:
1 Reserves are shown as net of royalty and non-working interests;
2 MBOE - thousands of barrels of oil equivalent (Gas volume (MCF - thousands of cubic feet) is converted to BOE at a ratio of 6 MCF of gas per barrel of oil.)
3 Silvertip Field (Wyoming), Sheep Springs Field (California) and Round Mountain Field (California). Values are based on certified reserves as at December 31, 2016 (as reported in IOG's 2016 Annual Report dated April 2, 2017) less production between January 1, 2017 and September 30, 2017. The estimate of oil and gas reserves for the Silvertip, Sheep Springs and Round Mountain Fields were prepared for Incremental Oil and Gas by Mr. Kent Lina, Petroleum Engineer (License No. 60897). In relation to these reserves, the report has been prepared in accordance with the guidelines set forth in the SPE/WPC/AAPG/SPEE Petroleum Resource Management System (2007).
4 See Reserves Disclosure (see link below)
To view tables and Reserves Disclosure, please visit:
About Incremental Oil And Gas Limited
() is an USA onshore focused oil and gas exploration and production company. The Company's strategy is to identify and acquire low risk, underperforming oil and gas fields and apply modern technology and expertise to increase production and enhance hydrocarbon recovery, while increasing net cash flow to grow the business.
Incremental has a portfolio of oil and gas producing projects in Wyoming and California, and a 10% working interest in an exploration joint venture in North Dakota, USA.
The Company is the operator of the Silvertip (WY), Sheep Springs (CA) and Round Mountain (CA) Fields with 100% of the working interest and NRI's between 78.5 - 87.5%.
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