Appointment of Chief Financial Officer
VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 1, 2012) - Thunderbird Energy Corp. (TSX VENTURE:TBD) (the "Company") today announced the completion of the evaluation of its Gordon Creek, Utah natural gas reserves. The evaluation was prepared by GLJ Petroleum Consultants of Calgary, Alberta effective January 31, 2012 in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas activities. Form 51-101F1, Form 51-101F2 - Report of Independent Qualified Reserves Evaluator, and Form 51-101F3 - Report of Management and Directors on Oil and Gas Disclosure have been filed with Canadian securities regulators. Copies of these documents may be viewed on the System for Electronic Document Analysis and Retrieval website at www.sedar.com.
The Company wishes to highlight a few aspects of the reserve evaluation:
- Proved Reserves increased 50% over the previous year from 7,457 Mmcf to 11,171 Mmcf.
- Probable Reserves increased 49% over the previous year from 18,515 Mmcf to 27,589 Mmcf.
- The discounted cash flow valuation (PV10) of the Company's proved plus probable reserves increased 84% over the previous year from $37.9 million to $69.9 million.
The GLJ report assigned reserves to approximately 3250 net acres that include the historical Gordon Creek wells as well as the 2 wells that were drilled and cased for production in the fall of 2011. Subsequent to the January 31, 2012 effective date of the GLJ report, the company drilled 6 new wells, situated at the extreme northwestern portion of the Gordon Creek lands, that evaluate an additional approximate 2200 net acres. A further 2,750 net contiguous acres remain undeveloped at this stage.
A complete suite of open hole logs was obtained on 4 of the 6 new wells and, the Company intends to run cased hole logs on the remaining 2 prior to initiating completion operations. Management continues to be encouraged by the sand and coal thicknesses and the sand porosities in the north-west Gordon Creek wells which, on average substantially exceed the thicknesses and porosities of the historical Gordon Creek wells. It is also significant that the north-western Gordon Creek wells are in an area of the project that is situated farthest from the existing production at Gordon Creek and at neighboring Drunkard's Wash.
The most recently drilled wells were also situated on the highest topography at Gordon Creek and resulted in some of the most challenging drilling conditions encountered to date, including increased drilling depths from surface, substantially increased fresh water inflows and other related drilling issues. As a result, the Company has adapted and modified its drilling protocols for future operations. The Company is also conducting a detailed review of its planned completion programs in order to incorporate recent drilling results as well as recent innovations in completion technologies, with a view to enhancing results and reducing costs.
In addition to drilling, the fall and winter program included the following:
- Designing and constructing a gas-fired power generation facility that will provide electrical power throughout the field.
- Completing a substantial work-over of the dual purpose GCU#1 well, in order to enhance gas production from the well and add water injection capacity to handle the anticipated water disposal requirements for the foreseeable future.
- Acquiring sufficient additional mineral interests to expand our Gordon Creek undrilled inventory to approximately 70 locations.
"We are extremely pleased with the growth in our reserves over the past year and are looking forward to future reserve evaluations that will incorporate the results of our calendar 2012 drilling and land acquisitions. Coal and sand pay thicknesses and porosities are also very encouraging and we are anxious to finalize and implement our completion programs," stated Rick Ironside, President of Thunderbird Energy. "However, one-time, front-end infrastructure costs that we have incurred, combined with start-up drilling issues, production delays and depressed natural gas prices have placed us in a much tighter cash position than we originally budgeted. Accordingly, we are currently evaluating a number of potential financing avenues so that we can complete the balance of our 2012 capital expenditure program and can fulfill our commitments under our previously announced agreement with Sandstorm Metals & Energy Ltd."
The Company is also pleased to announce the appointment of John Bell of Calgary, Alberta as Chief Financial Officer. Mr. Bell is a Chartered Accountant and has over 10 years experience serving in various accounting and financial roles in the oil and gas sector, most recently serving as CFO of Cirrus Energy Corporation prior to its +$100 million acquisition by Oranje-Nassau Energie B.V. in 2011. Mr. Bell replaces Barb Harwood who has served as the Company's CFO since 2009 and presently serves as the CFO of a Vancouver based film and television company. The Company would like to thank Ms. Harwood for her dedicated service and wish her well in her current and future endeavors.
Thunderbird Energy is a Canadian-based oil and gas exploration and production Company with interests in the US Rockies and mid-continent regions.
Caution Regarding Forward- looking information
Information in this news release respecting anticipated petroleum and natural gas reserves and valuations, as well as the Company's proposed development operations constitutes forward-looking information. Statements containing forward-looking information express, as at the date of this news release, the Company's plans, expectations, or beliefs as to future events or results are believed to be reasonable based on the information currently available to the Company. The Company does not undertake to update any such forward-looking statements unless required by applicable securities legislation.
Statements including forward-looking information involve known and unknown risks, uncertainties and other factors which may cause the actual results of the Company and its operations to be materially different from estimated costs or results expressed or implied by such forward-looking statements.
There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.
Rick J. Ironside, P. Eng MBA
President and COO
Thunderbird Energy Corp.
800 - 555 4th Ave SW
Calgary, AB T2P 3E7
Thunderbird Energy Corp.
Chief Executive Officer
Thunderbird Energy Corp.
401 - 533 Smithe Street
Vancouver, BC V6B 6H1