Shiffoil Inc. Concludes 2018 Drilling Program and Provides Updated 51-101 Reserves Report
Monday, December 24, 2018 1:28 PM
TORONTO, ON / ACCESSWIRE / December 24, 2018 / Shiffoil Inc. (“Shiffoil” or the “Company”) is pleased to announce that it has successfully completed its 2018 drilling program in Pierson Manitoba as previously announced in its October 2, 2018 press release. Shiffoil also wishes to report reserves values effective November 30, 2018 for its Pierson and Sinclair-Daly Manitoba properties, based on an independent engineering evaluation conducted by Deloitte LLP (Calgary), prepared in accordance with National Instrument 51-101 and the Canadian Oil and Gas Evaluation Handbook.
In the 2018 drilling program, the three 100% working interest operated Spearfish wells and the three non-operated JV wells (two Spearfish and one Mission Canyon) came on production in August and November. The average IP30 per well for all five Spearfish wells was approximately 110 barrels per day of light oil which is consistent with management’s type curve estimate. Realized oil prices per barrel of light oil for the production in August, September, October and November was C$78.51, $77.56, $74.71 and $52.60 respectively, net of quality adjustment and tariffs.
As to the independent evaluation of the Company’s oil assets, Deloitte LLP (Calgary), included an estimate of reserves with an associated forecast of the pre-tax present value of future production income from the property using Deloitte September 30, 2018 forecast oil pricing. Key highlights of the report include:
- The Pierson Manitoba reserves represent 97% of the Company’s proved and probable reserves
- NPV 10 of total proved and probable reserves is C$57.7 million with total proved reserves of $34.8 million and proved developed producing reserves of C$7.4 million
- The Company’s total proved and probable reserves of 3.9 million barrels of light oil represents an increase of 117% compared to the Company’s February 2017 Deloitte LLP Reserve Report
- The Company now has 63 proved undeveloped drilling locations (PUDS) and 11 probable drilling locations assigned for 2019
The Company is analyzing a potential loan facility with a Calgary based lender and is evaluating acquisition opportunities as a regular course of business. The Company’s resource-related tax pools available to reduce future taxable income remain approximately C$9 million.
About Shiffoil Inc
Shiffoil is an Alberta-incorporated emerging light oil private company engaged in the operation, development, acquisition and production of light gravity crude oil in Manitoba, Canada. For further details, please refer to our Canadian regulatory filings on SEDAR at www.sedar.com.
For further information please contact:
Ruben Shiffman, PhD, MBA
CAUTIONARY STATEMENT: No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the Company’s objectives, goals or future plans, statements regarding the estimation of mineral resources, exploration results, potential mineralization, exploration and mine development plans, the availability of financing, the timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, failure to convert estimated mineral resources to reserves, capital and operating costs varying significantly from estimates including the costs of operations in remote mountainous environments, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
This news release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.
SOURCE: Shiffoil Inc.