Blog: Athabasca Oil Sands Corp. Announces Independent ReservesJune 24, 2011
Athabasca Oil Sands Corp. is pleased to announce its reserves and contingent resources have increased, the tests at Dover West are progressing and the board of directors has approved an increase to the budget for, and an acceleration of the appraisal and development program in, the Alberta Deep Basin.
Athabasca drilled 89 delineation wells at Hangingstone, Dover West, Birch and Grosmont during the 2010-2011 winter programs and increased its net resource volumes by approximately 10% to 9.672 billion barrels of contingent resource (best estimate) and 289 million barrels of probable reserves compared to the independent estimates at December 31, 2010. The third-party independent evaluation reports were prepared by GLJ Petroleum Consultants Ltd. (GLJ) and DeGolyer and MacNaughton Canada Limited (D&M) with effective dates of April 30, 2011.
Sveinung Svarte, president and CEO, says the increase in Athabasca's resources is a reflection of both the successful drilling program and the quality of its vast land base. "I am very pleased to see that we continue to add significant resources through organic growth. This demonstrates the technical excellence and capability of the organization as we move into the development stage of certain projects."
Based on the independent evaluation reports of GLJ and D&M and the assumptions made therein, the estimated before tax net present value (NPV) of future net revenue, discounted at 9.0%, of Athabasca's contingent resources (best estimate) ($31.3 billion) and probable plus possible reserves ($2.1 billion) is approximately $33.4 billion. Summary details regarding Athabasca's bitumen reserve and contingent resources and the associated NPV of future net revenues are included in the attached Schedule "A".