SAN FRANCISCO, April 18, 2013 /PRNewswire/ -- Worthington Energy, Inc. (OTCQB: WGAS) ("Worthington" or the "Company"), an energy company engaged in the acquisition, exploration, development and drilling of oil and natural gas properties, takes this opportunity to provide its shareholders with a valuation update on the status of the Company's Vermillion Block 179 (VM179) asset.
Today, the Company reports that they have received the 2013 Reserve and Economic Evaluation on Vermilion Block 179, issued by James F Hubbard Petroleum Consultant ("JFH") in New Orleans, LA. At the request of Worthington Energy, JFH prepared a reserve and economic evaluation of Worthington's VM 179 lease located in the shallow waters of the Gulf of Mexico, offshore Louisiana, as of January 1, 2013. Worthington currently owns a 70% Leasehold Working Interest, with a Net Revenue Interest of 51.975% in 546.875 acres in the Vermilion 179. VM179 is adjacent to Exxon's producing VM164 #A9 well.
The 2013 Reserve Report shows Gross Proved Reserves of 784.3 Thousand Barrels (Mbbl) of Oil and 2,215.4 Million Standard Cubic Feet (MMSCF) of Gas, and Net Proved Reserves of 407.6 Mbbl Oil and 1,151.5 MMSCF Gas, with a Projected Future Net Revenue of $41.3 million and a Discounted Future Net Income of $24 million (PV-10), an increase of $4.6 million, or 12.5%, as compared to Projected Future Net Revenue of $36.7 million and an increase of $3.7 million, or 18.2%, as compared to Discounted Future Net Income of $20.3 million (PV-10) for 2012.
The 2013 Report also shows combined Gross Total Reserves for VM 179, both Proved and Probable, of 2,129.7 Mbbl Oil and 4,237.9 MMSCF Gas, and Net Total for all Reserves of 1,106.9 Mbbl Oil and 2,202.7 MMSCF Gas with a Projected Future Net Revenue of $108.5 million and a Discounted Future Net Income of $61.2 million (PV-10), an increase of $10.8 million, or 11.1%, over a Projected Future Net Revenue of $97.7 million and an increase of $6.1 million or 11.1% a Discounted Future Net Income of $55.1 million (PV-10) for 2012.
The Gross Reserves referenced above are to 100% working interest in the lease. No deductions have been made for royalties and overriding royalties. The Net Reserves and all income data are to the net interests owned by Worthington. Appropriate deductions have been made for royalties and overriding royalties.
Reserves are those quantities of petroleum (for the purpose of these definitions, the term petroleum refers to naturally occurring liquids and gases which are predominately comprised of hydrocarbon compounds) which are anticipated to be commercially recovered from known accumulations from a given date forward. All reserve estimates involve some degree of uncertainty. The relative degree of uncertainty may be conveyed by placing reserves into one of two principal classifications, either proved or unproved. Unproved Reserves are less certain to be recovered than Proved Reserves and may be further sub-classified as Probable and Possible Reserves to denote progressively increasing uncertainty in their recoverability. Probable reserves are those unproved reserves which analysis of geological and engineering data suggests are more likely than not to be recoverable.
Worthington engages in the acquisition, exploration, development and drilling of oil and natural gas properties. Worthington is an energy turnaround company whose strategy is to acquire cash flow producing properties with proved and probable reserves, develop the fields by reworking existing wells and drilling new wells. Worthington was founded in 2004 and is based in San Francisco, CA. More information about Worthington Energy, Inc. can be found by visiting the Company's website at www.wenergyinc.com.
Certain statements in this press release regarding strategic plans, expectations and objectives for future operations or results are "forward-looking statements" as defined by the Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ materially from the results contemplated by the forward-looking statements, including the risks discussed in the Company's annual report on Form 10-K and the Company's other filings with the Securities and Exchange Commission. Factors that could cause differences include, but are not limited to, history of losses; speculative nature of oil and natural gas exploration, particularly in the Mustang Island and Vermillion 179 formations on which the Company is focused; substantial capital requirements and ability to access additional capital; ability to meet the drilling schedule; changes in tax regulations applicable to the oil and natural gas industry; results of acquisitions; relationships with partners and service providers; ability to acquire additional leasehold interests or other oil and natural gas properties; defects in title to the Company's oil and natural gas interests; ability to manage growth in the Company's business; ability to control properties that the Company does not operate; lack of diversification; competition in the oil and natural gas industry; global financial conditions; oil and natural gas realized prices; ability to market and distribute oil and natural gas produced; seasonal weather conditions; government regulation of the oil and natural gas industry, including potential regulations affecting hydraulic fracturing and environmental regulations such as climate change regulations; uninsured or underinsured risks; and material weakness in internal accounting controls. The forward-looking statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not undertake any obligation to update the forward-looking statements as a result of new information, future events or otherwise.
Surety Financial Group, LLC
SOURCE Worthington Energy, Inc.