Sees 77% increase in assigned In-Place Gas Resources
PAN - TSXV
CALGARY, April 2 /CNW/ - PanTerra Resource Corp. (The "Company") wishes to report that it has received its 2007 Engineering Report by Sproule Associates Limited ("Sproule") of Calgary, Alberta and has SEDAR filed the 'Statement of Reserves Data' as per regulatory requirements.
Sproule has assigned 'Discovered (In-Place) Gas Resources' to the Company in compliance with Canadian Oil and Gas Evaluation Handbook definitions and is able to disclose such resources as in-place volumes. 'Discovered Resources' are defined in the COGE Handbook as, "those quantities of oil and gas estimated on a given date to be remaining in, plus those quantities already produced from, known accumulations. Discovered resources are divided into economic and uneconomic categories, with the estimated future recoverable portion classified as reserves and contingent resources, respectively".
On the effective date (December 31, 2007) of the Sproule report, not all the data supplied by the Company was completely evaluated thus not all of the properties the Company operates have been assigned in-place volumes at the time of our SEDAR filing.
Table S-2 Summary of Discovered (In-Place) Gas Resources Working Interest Gross Gas-in-Place Net Gas-in-Place Area % (Bcf Raw) (Bcf Raw) ------------------------------------------------------------------------- Moose Jaw, Saskatchewan 100 1,884 1,884 Foam Lake, Saskatchewan 100 none at this time none at this time Shell Lake, Saskatchewan 100 none at this time none at this time Total Unproved Properties 1,884 1,884 -------------------------------------------------------------------------
Although the Company has discovered gas resources in the Foam Lake and Shell Lake properties, those resources have not been recognized in this report because insufficient data is available to permit a quantitative estimate of the in-place volumes to be made at this time.
A 77% increase in 'discovered resources' (as defined above) has been assigned over what was reported in the Company's March 2, 2007 press release.
While the Sproule Report considers that "gas has been discovered" on the Company's holdings at Shell Lake and Foam Lake, more data for gas in-place estimates will have to be supplied by the Company.
The Company's principal targets of interest on the exploratory permits lie within the shales, siltstones and thinly bedded sands of the Milk River, First and Second White Speckled shale and Barons formations which are Upper Cretaceous in age and occur at shallow depths in the province of Saskatchewan. The Company is pursuing accumulations of 'biogenic gas' in these unconventional reservoirs.
Since acquiring these large land holdings, the Company (as Operator) has participated in the drilling of 36 wells, of which 3 were at Shell Lake, 17 at Foam Lake, 16 at Moose Jaw. The Company maintains a 100% working interest in all of its current holdings in the province of Saskatchewan. The Company lands are serviced by a complete infrastructure including sufficient pipeline capacity and all weather roads. There are currently no land expiry problems and the economic viability of gas projects are always at risk to gas market conditions.
Although the Company has completed 7 wells to date, it has not yet demonstrated that these resources are technically or economically viable to produce. Additional work is required to determine the quality and properties of the potential shale-gas reservoirs and investigate both the technical feasibility and economic viability of producing the Discovered Resources.
As of the effective date of this report, it is not possible to estimate what portion of the resources discovered on the Company's lands to date might be recoverable using technology under development, nor is it possible to estimate the portion that might be recoverable by future development projects. For these reasons, the resources have been classified simply as "Discovered Resources" and reported as "In-Place" volumes.
Although discovered resources are interpreted to exist on the Company's properties, there is no certainty that they will be economically viable or technically feasible to produce any portion of those discovered resources.
The Company also wishes to announce that it has voluntarily withdrawn its preliminary prospectus offering announced on November 19, 2007 due to market conditions.
PanTerra Resource Corp. is an Alberta-based resource company focused on the exploration and development of unconventional shallow and shale gas. The Company holds three exploration permits for a total of 1.1-million acres on three properties in Saskatchewan. PanTerra trades on the TSX Venture Exchange under the symbol "PAN". Further information can be found at www.panterraresource.com.
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the adequacy or accuracy of the contents of this news release.