Cuda Oil and Gas Inc. has released the results of its 2018 year-end oil and gas reserves evaluation for Wyoming and Alberta.
In 2018, Cuda completed the merger with Junex Inc., a TSXV listed company and concurrently acquired a 27.75% working interest ("WI") in the Barron Flats Federal Deep Unit ("BFU") and subsequently 33.33% WI in the Cole Creek Unit both located in the Powder River Basin of Wyoming. Cuda participated in the drilling and completion of 11 gross (3.4 net) Shannon Sand conventional oil wells in the BFU.
Cuda invested significant capital into oil field development and associated infrastructure at BFU in 2018 to create liquids production and build out the facilities for a planned miscible flood in the Shannon formation.
Reserves Report Highlights
The independent Reserves Report prepared by Ryder Scott is effective as of December 31, 2018 ("2018 Reserves Report"). All reserves information contained in this press release is based on the 2018 Reserves Report and includes reserves attributed to the BFU, the Cole Creek Unit and Alberta assets. The 2018 Reserves Report did not attribute reserves to the Company's Quebec assets due to regulatory matters restricting production from those assets. Unless specifically indicated, all financial and operational information in this press release is based on estimates and is unaudited and accordingly, such financial information is subject to change based on the results of the Company's audit.
Proven Developed ("PDP") and Proved Non-Producing ("PNP") Reserves
- The Company's PDP + PNP reserves grew 112% over 2017 reserves to 1,534 Mboe (62% oil and liquids).
- NPV10 of $26.8 Million or $1.22 per basic common share.
Total Proved Reserves ("1P")
- The Company's 1P reserves grew 515% over 2017 reserves, to 4,949 Mboe (84% oil and liquids).
- NPV10 of $77.8 Million or $3.55 per basic common share.
- Future development costs of $40.6 Million.
- Reserve Life Index ("RLI") based on 4th quarter, 2018 production of 15.5 years.
Proved plus Probable Reserves ("2P")
- The Company's 2P reserves grew 1,239% over 2017 reserves, to 14,571 Mboe (84% oil and liquids).
- NPV10 of $191.6 Million or $8.74 per basic common share.
- Future development costs of $94.7 Million.
- RLI of 45.6 years.
Oil and Gas Reserves
The 2018 Reserve Report represents Cuda's oil and gas properties in Alberta and Wyoming and was prepared in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook and National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51 - 101") by Ryder Scott. The following table summarizes certain information contained in the 2018 Reserve Report.