Hydrocarb Estimates 2.9 Million of Oil Barrel Equivalent Reserves from its Newest Reserve Report with Proven Oil Reserves Up 97% From 2014
Full Report available as exhibit to Form 8-K filed with the SEC on October 22, 2015
HOUSTON, Oct. 28, 2015 /PRNewswire/ -- Hydrocarb Energy Corporation (OTCQB: HECC) announced that investors can view online its current Reserve Report prepared in accordance with SEC standards by petroleum engineers Ralph E. Davis Associates.
The report, dated September 11, 2015, which includes estimates as of July 31, 2015, indicates Hydrocarb currently has 2.017 million barrels of estimated oil in proven reserves (including producing, shut in, non-producing, behind pipe and undeveloped reserves), and an estimated 18.163 billion cubic feet of natural gas (including producing, shut in, non-producing, behind pipe and undeveloped reserves). Hydrocarb estimates that the gas equates to approximately 0.9 million barrels of oil equivalents (BOE) using a gas to oil conversion ratio of 20:1. The company uses this ratio currently to estimate the dollar value of gas in terms of barrels of oil and has assumed a $43 price for a barrel of oil and a $2.16 price per thousand cubic feet (MCF) of gas. Between the estimated oil and gas reserves reported, it is estimated that a total of 2.93 million BOE could be recoverable over the years covered by the report. This increase is an improvement of 97% year-over-year in estimated proven oil reserves, and a 51% increase in natural gas reserves year-over-year.
Investors and interested parties can access the full report at the following URL:
http://www.sec.gov/Archives/edgar/data/1425808/000121478215000179/ex99-2.htm
When asked to comment, Kent P. Watts, the company's Chief Executive Officer stated, "When we embarked on our 2014/15 workover and recompletion program, our estimated proven reserves increased as we moved probable reserves to the proved category and identified further proved undeveloped (PUD) drilling prospects. With 12 month trailing oil prices averaging approximately $71 per barrel the new report suggests a non-discounted $95 million of lease net cash flow potentially available to Hydrocarb before corporate G&A expenses.
"In addition, we are experiencing high levels of interest and activity in our 18,000 acres held by production in Galveston Bay. The current low price of oil has turned attention back to more traditional, lower cost oil sources. We believe that the significant increase in our estimated proven reserves and our status as one of only a few Texas P5 operators in Galveston Bay, along with our 20,000 barrels per day infrastructure capacity, makes us an attractive partner for entities seeking to develop lower cost sources of oil in Texas."
In 2016 and 2017 the company intends to increase production and improve revenues through recompletion of existing wells to other productive reservoirs and pursue drilling targets of the Frio formation reservoirs within the boundary of its leases, funding permitting.
About Hydrocarb: Hydrocarb Energy Corporation is a publicly-traded Domestic and International Energy Exploration and Production Company targeting major under-explored oil and gas projects in emerging, highly prospective regions of the world. With exploration concessions in Africa and domestic production in Galveston Bay, we maintain offices in Houston, Texas, and Windhoek, Namibia.
For further information: www.hydrocarb.com.
Forward-looking Statements
This news release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements give our current expectations, opinion, belief or forecasts of future events and performance. A statement identified by the use of forward looking words including "may," "expects," "projects," "anticipates," "plans," "believes," "estimate," "should," and certain of the other foregoing statements may be deemed forward-looking statements. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this news release. Forward-looking statements are subject to risks inherent in natural gas and oil drilling and production activities, including risks of fire, explosion, blowouts, pipe failure, casing collapse, unusual or unexpected formation pressures, environmental hazards, and other operating and production risks, which may temporarily or permanently reduce production or cause initial production or test results to not be indicative of future well performance or delay the timing of sales or completion of drilling operations; delays in receipt of drilling permits; risks with respect to natural gas and oil prices, a material decline which could cause the company to delay or suspend planned drilling operations or reduce production levels; risks relating to the availability of capital to fund drilling operations that can be adversely affected by adverse drilling results, production declines and declines in natural gas and oil prices; risks relating to unexpected adverse developments in the status of properties; risks relating to the absence or delay in receipt of government approvals or fourth party consents; and other risks described in the company's Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and other filings with the SEC, available at the SEC's website at www.sec.gov. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from those projected. The forward-looking statements in this press release are made as of the date hereof. The company takes no obligation to update or correct its own forward-looking statements, except as required by law, or those prepared by third parties that are not paid for by the company. The company's SEC filings are available at http://www.sec.gov.
Contact:
PCG Advisory Group, LLC
Chuck Harbey, +1-646-863-7997
Managing Director, Corporate Advisory
[email protected]
www.pcgadvisory.com
Contact:
Kent P. Watts, CEO
800 Gessner, Suite 375
Houston, Texas 77024
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SOURCE Hydrocarb Energy Corporation
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