Canamax Increases Proven plus Probable Reserves to 5.4 Million BOE

Canamax Energy Ltd. (TSXV:CAC) announced the results from its recently completed horizontal well at Wapiti, which increased proven plus probable reserve by 111 percent to 5.4 million barrels of oil equivalent.

As quoted in the press release:

During the 10-month period to December 31, 2014, Canamax drilled and completed 8 (net 8) successful vertical, Montney oil wells at Flood and one (net 0.7) successful horizontal, Cardium well at Wapiti. In addition, Canamax re-completed a number of existing wells (such wells obtained through acquisitions), including 3 (net 3) at Flood in the Montney and one (net 1) at Retlaw in the Glauconite. At Flood, the company completed the construction of a new gathering system and expanded its battery and water disposal infrastructure during the fourth quarter of 2014. During January 2015, all of the wells in the flood field were tied in to the gathering system, which provides for the transport of produced emulsion through a central pipeline to the battery and water disposal facilities. With this infrastructure in place, the company will see reductions in emulsion hauling and other operating costs going forward.

2014 reserve highlights for the 10 month period ending Dec 31, 2014:

• Increased Proven plus Probable (“2P”) reserves by 111 percent to 5.4 million barrels of oil equivalent (68 percent oil & NGL)
• Increased the value of 2P reserves by 73 percent to $67.0 million (NPV 10 percent before tax (“NPV10”)), despite a reduction in forecasted commodity prices.
• Increased Proven (“1P”) reserves by 105 percent to 3.2 million boe (65 percent oil & NGL)
• Increased the value of 1P reserves by 49 percent to $38.3 million NPV10
• Increased 2P reserve volumes by 37 percent and 1P reserve volumes by 32 percent on a per share basis (based on the shares outstanding at the respective period ends).

Click here to read the full Canamax Energy Ltd. (TSXV:CAC) press release.