Razor Energy (“Razor” or the “Company”) (TSXV:RZE) is pleased to provide a summary of its 2016 year-end reserves evaluation.
The highlights and reserves summary below sets forth Razor’s gross reserves as at December 31, 2016, as evaluated by Sproule Associates Limited (“Sproule”) in an independent report (the “Sproule Report”). The figures in the following tables have been prepared in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook (the “COGE Handbook”) and the reserve definitions contained in National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (“NI 51-101”). Additional reserve information as required under NI 51-101 will be included in the Company’s annual information form which will be filed on SEDAR on or before April 30, 2017.
As quoted in the press release:
Net asset value, including estimated January 31, 2017 net cash ($12 million or $1.18 per basic share outstanding) and the term debt facility due January 31, 2021 ($30 million or $2.95 per basic share outstanding), excluding undeveloped land, tax pools, seismic, reclamation liabilities, and other corporate attributes (“NAV”), was $6.50/share on a proved developed producing basis (“PDP”) discounted at 10% (“NPV10”) and $9.77/share on a total proved plus probable basis (“2P”) NPV10.(2)
The Company’s gross year-end 2016 PDP reserves were 7,687 Mboe (74% oil and liquids). Total proved (“1P”) reserves were 10,130 Mboe and 2P reserves were 12,651 Mboe.
PDP reserves represent approximately 76% of 1P reserves and approximately 61% of 2P reserves.
The Company’s reserve life index is 7.2 years for PDP, 9.5 years for 1P and 11.9 years for 2P reserves based on February, 2017 average field-estimated production of 2,900 boepd.