Zaca Field Extension Project
Summary of Netherland, Sewell & Associates, Inc. (NSAI) Report dated August 23, 2012
|
Contingent Oil Resources1 (MMbbl) |
| Gross (100 Percent) |
Company Gross2 |
|
Low Estimate
|
2.94
|
2.36
|
|
Best Estimate
|
15.42
|
12.34
|
|
High Estimate
|
43.9
|
35.1
|
|
Prospective Oil Resources3 (MMbbl) |
| Gross (100 Percent) |
Company Gross4 |
| Unrisked |
Risked |
Unrisked |
Risked |
|
Low Estimate
|
9.18
|
4.78
|
7.36
|
3.83
|
|
Best Estimate
|
46.24
|
23.21
|
37.68
|
18.75
|
|
High Estimate
|
204.77
|
94.03
|
171.13
|
77.20
|
|
Total Petroleum Initially-In-Place5 (MMbbl)
PIIP |
|
Low Estimate
|
242.54
|
|
Best Estimate
|
493.22
|
|
High Estimate
|
1,243.39
|
Notes:
- Contingent oil resources are the arithmetic sum of multiple probability distributions.
- Underground owns an 80 percent working interest in these properties.
- Prospective oil resources are the arithmetic sum of multiple probability distributions.
- Underground owns an 80 percent working interest in the Chamberlin Lease and a 100 percent working interest in all other leases.
- Total petroleum initially-in-place is the sum of undiscovered oil initially-in-place and discovered oil initially-in-place
Zaca and Burrel Assets
Summary of GLJ Report dated December 1, 2011
|
Gross(1)
|
Net(2)
|
| Reserves Category |
Mbbl(3) |
Mbbl(3) |
| Total Proved (1P) |
566 |
445 |
| Total Probable |
1,479 |
1,161 |
| Total Proved plus Probable (2P) |
2,045 |
1,606 |
| Total Possible |
2,116 |
1,662 |
| Total Proved plus Probable plus Possible (3P) |
4,161 |
3,268 |
Notes:
- "Gross" reserves means Underground's working interest (operating and non-operating) share before deduction of royalties and without including any royalty interest of Underground.
- "Net" reserves means Underground's working interest (operating and non-operating) share after deduction of royalty obligations, plus Underground's royalty interest in reserves.
- Totals for each category are reported on an "oil equivalent" basis which represents total light oil and heavy oil, in thousands of barrels of oil.
Asphaltea Asset
Summary of GLJ Report dated June 1, 2011
| Asphaltea Resources Estimates1 |
As of June 1,2011
@ Standard Conditions |
North Prospect
|
South Prospect |
|
Low
Estimate |
Best
Estimate |
High
Estimate |
Low
Estimate |
Best
Estimate |
High
Estimate |
Undiscovered Petroleum
Initially In Place - Oil (MMstb)2 |
319 |
632 |
1,050 |
629 |
1,705 |
3,205 |
Prospective Resources -
Oil (MMstb)3 |
10.9 |
28.1 |
62.2 |
21.1 |
73.2 |
170.2 |
Prospective Resources -
Gas (bcf)3 |
2.0 |
15.1 |
56.0 |
3.8 |
32.9 |
122.6 |
Prospective Resources -
Oil Equivalents (MMboe) |
11.2 |
30.6 |
71.5 |
21.7 |
78.7 |
190.6 |
Total Undiscovered Oil In-Place: 2,337 MMstb (P50 or "Best" Estimate)
Total Prospective Resources: 101.3 MMstb oil, 48 Bcf gas =109.3 MMboe
Implied Recovery Factory: 4.3% (without the application of facturing techniques)
Source: GLJ Petroleum Consultants, effective date June 1, 2011
Undiscovered petroleum initially in-place is that quantity of petroleum that is estimated, on a given date, to the contained in accumulations yet to be dicovered.
Prospective resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. There is no certainty that any portion of the prospective resources will be discovered and, if dicovered, there is no certainty that it will be commercially viable to produce any portion of those resources. Reported on an un-risked company working interest basis.