FORT LAUDERDALE, Fla., Feb. 27, 2013 /PRNewswire/ -- Xtra Energy Corp. (Pinksheets: XTPT) is pleased to announce the results of a NI 51-101 Contingent Resource Report on estimated recoverable oil volumes on its Pasquia Hills oil shale permit.
Chapman Petroleum Engineering Ltd. www.chapeng.ab.ca has confirmed and updated prior estimates of recoverable oil distillate volumes and completed an NI 51-101 Engineering Evaluation Report of Contingent Resources and Commerciality Factors on Xtra Energy's Pasquia Hills oil shale permit located in northeastern Saskatchewan.
The resources estimates provided in the NI 51-101 Engineering Evaluation Report were evaluated by Chapman Petroleum Engineering Ltd., a certified reserves evaluator and auditor. The NI 51-101 Evaluation Contingent Resources and Commerciality Report (the "Resource Report"), used assumptions and methodology guidelines outlined in the Canadian Oil and Gas Handbook ("COGE Handbook") and in accordance with National Instrument 51-101 "Standards of Disclosure for Oil and Gas Activities" ("51-101").
The NI 51-101 Resource Report is intended to provide general information on the oil shale industry and to better inform and educate the public of the potential of Xtra Energy's identified oil shale deposit at Pasquia Hills. The Resource Report also includes a sensitivity analysis of the basic parameters for commerciality of a Shale-to-Liquids Plant Facility and project and to assist the Company in planning its future development activity.
Chapman Petroleum Engineering Ltd. has evaluated and reported the following estimates of gross contingent resources for Xtra Energy's Pasquia Hills oil shale permit and identified deposit:
- Best Estimate: 1,878 billion barrels oil (distillate product);
- High Estimate: 2,348 billion barrels oil (distillate product);
The geological mapping in the Resource Report confirms that the identified oil shale deposit covers and is present underlying 38,223 acres or 15,289 hectares, and has an average oil shale thickness of 22.96 meters (75 feet). Xtra Energy has a net 55% working interest in the Pasquia Hills oil shale permit and deposit.
Ms. Linda MacDonald, President of Xtra Energy stated; "We are very pleased with the positive results and oil resource volume estimates described in the NI 51-101 Resource Report as well as the test results from our recent core hole drilling program which is an important milestone for Xtra Energy and the development of the Pasquia Hills oil shale property. The NI 51-101 Resource Report has highlighted and confirms the success of the Company in acquiring and continuing to delineate a world class oil shale deposit. The commerciality factors presented in the Resource Report demonstrates that a commercial oil shale mining and production operation can be commercially viable on the Company's permits as the oil shale quality and oil distillate yields and product composition have been measured and geologically mapped and shown to be consistent over the identified oil shale deposit."
Xtra Energy's Pasquia Hills oil shale property consists of a total of 86,533 gross acres of oil shale exploration and development rights located in the Pasquia Hills region of northeastern Saskatchewan, Canada. Xtra Energy holds a 55% percent working interest in the oil shale permit SHP0008 through its recently purchased wholly-owned Canadian subsidiary Oilshale International Corp.
The NI 51-101 Resource Report will be available for viewing on the Company's website which will be completed by March 9, 2013.
About Xtra Energy Corp.
Xtra Energy Corp. is a publicly traded energy company focused on the acquisition and development of unconventional oil shale resources in North America. Xtra Energy's common shares trade on the Pinksheets under the symbol "XTPT."
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Ms Linda MacDonald
Xtra Energy Corp.
Fort Lauderdale, Florida
This news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended; such statements are subject to risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements. The Company may experience significant fluctuations in operating results due to a number of economic, competitive and other factors. These factors could cause operations to vary significantly from those in prior periods, and those projected in forward-looking statements. Information with respect to these factors, which could materially affect the Company and its operations, are included on certain forms the Company files with the Securities and Exchange Commission.
SOURCE Xtra Energy Corp.