Dec 23 2010
Atikwa Resources Inc. (TSX VENTURE:ATK). has announced that AJM, an independent engineering and geological consulting firm and a qualified reserves evaluator, has provided Atikwa with an independent NI 51-101 Compliant Reserve Evaluation and Contingent Resource Assessment for the Company's Canadian light oil and liquids rich natural gas assets.
The Report, effective as at Nov 30, 2010, is in accordance with section 5.9 of National Instrument 51-101 ("NI 51-101") – "Standards of Disclosure for Oil and Gas Activities" and reports a "best estimate" of Contingent Resources, as defined in the Canadian Oil and Gas Evaluation Handbook (the "COGEH"). Net asset value (per share), NPV, future net revenue, do not necessarily represent fair market value.
Contingent Resources (Net Working Interest)
In the Report, up to 90% of the acreage controlled by Atikwa was recognized by AJM as containing Contingent Resources. As these are liquid rich gas plays, the NPV calculation includes a sales gas liquids ratio of 29.4 barrels per million cubic feet at Windfall and 31.1 barrels per million cubic feet at Porcupine Hills.
Sean Kehoe, President and CEO of Atikwa commented "Over the last nine months, with a budget of approximately nine million dollars, the Company has purchased, farmed in and drilled to earn an ownership in a portfolio of four very exciting oil and gas resource properties, which are all in varying stages of maturation. Building this resource Company has always been about creating real value with a view to sell to a larger oil Company at some point in the future, at the end of the day all oil and gas companies are measured on their reserves and their potential to grow reserves. I believe that these numbers demonstrate very clearly that we have been successful on both counts."
With regard to the Contingent Resources, President Sean Kehoe stated; "We are very pleased to provide our shareholders with an independent assessment of the potential magnitude of our Windfall and Porcupine Hills programs. These resource estimates demonstrate a significant opportunity for the Company to add future production, reserves and value. I believe that in terms of the current stock price, the market has not even begun to realize the full potential of this Company."
Source: Atikwa Resources Inc.