Vanguard Energy Corporation Announces Increased Reserves
HOUSTON, TX, Nov 19, 2012 (Menafn - MARKETWIRE via COMTEX) --Vanguard Energy Corporation (otcqx:VNGE), an oil development andproduction company, today announced that as of September 30, 2012 thevalue of its proven oil reserves based on a PV-10 calculation hadrisen to 35.8 million, up 13% over the same date a year ago.
This PV-10 valuation is based on 620,000 barrels of proven reserves,which is an increase of approximately 3% over the comparable amountat September 30, 2011, and is after a year in which the Companyproduced approximately 48,500 barrels of oil from the field, givingit a reserve replacement rate of 125%. This growth in proved reservesdemonstrates the viability of both the Batson Dome Field and the newwell drilling program implemented by the Company. Further, itreported that production grew from 3,350 barrels per month in October2011 to 6,300 barrels in October 2012, a demonstration of the growthtrajectory of the Company.
Of the total 620,000 barrels of proven reserves, approximately 30% isconsidered PDP (proved developed producing), 12% is categorized asPDNP (proved developed non-producing) or behind pipe reserves and 58%is PUD (proved un-developed). This PUD component provides the Companywith substantial growth opportunity through a low-cost, low-riskdevelopment drilling program.
The Company recently announced that two new wells are scheduled to bedrilled before the end of the calendar year, which should not onlyfurther increase production, but also continue the trend of movingreserves to the Proved category. Of these new wells one will be thefirst well drilled at its recently acquired acreage at theHull-Daisetta Field. The current reserve report contains no reservesattributable to this field.
The Company engages an independent reservoir engineering company toevaluate its lease positions at the end of each fiscal year todetermine the economic value of its proven reserves, assuming theproduction over time of all recoverable oil that is proven to be inplace. Such calculation takes into consideration estimated future oilprices and the capital and operating costs that would be associatedwith such production, and then discounts those amounts at a 10%annualized rate. This industry standard report is prepared for SECreporting purposes. Although the amount of acreage reported on forthese purposes was no greater than that of the prior year, theincrease was due to the company's successful completion of new wellswhich demonstrated more extensively the presence of oil in theground. This is significant not only because of the amount of theincrease, but also after taking into consideration all of the oilthat had been taken from the reservoirs during the past year.
Management Comments
Mr. Warren Dillard, President of Vanguard Energy, said, "This reportis very gratifying as it confirms the overall success we have had infinding new oil and further validates that inherent value of ourcompany by industry-wide standards. When we started this Company wedid so with a focus on building shareholder value, and the fact thatwe were able to grow proven reserves by 125% of our annual productiondemonstrates that commitment. We continue to pursue our activedrilling program including on the recently acquired Hull-Daisettafield lease where success there will add further reserves to thesevalues."
About Vanguard Energy
Vanguard Energy is an oil drilling and production company with afocus on established oil fields in southeast Texas. Concentrating onoil properties in established areas with proven production history,Vanguard applies its managerial expertise to maximize productionwhile minimizing risk. Vanguard is focused on creating shareholdervalue by building cash flow and oil reserves through an aggressive,focused acquisition and development program in the prolific southeastTexas oil producing region. Vanguard's initial area of operation isin the famous Batson Dome Field where it controls 500 strategic acreswith substantial oil reserves. It has expanded its reach with theacquisition of a leasehold position in the Hull-Daisetta Field, about10 miles south of Batson, confirming its plans to expand to newfields as part of its growth strategy. For more information visit theCompany's web site at www.vanguardenergycorp.com
Safe Harbor
This press release and other statements Vanguard Energy may make inthe future contain forward-looking statements that relate toVanguard's plans, objectives and future estimates. Various risks,uncertainties and other factors could cause actual results to differmaterially from those expressed in any forward-looking statements.For a more detailed list of such risks, uncertainties and otherfactors, please refer to the Risk Factor section of Vanguard'sRegistration Statement on Form S-1 and in its periodic filings withthe Securities and Exchange Commission. Vanguard makes no commitmentto update any forward-looking statement, or to disclose any facts,events, or circumstances after the date of this release that mayaffect the accuracy of any forward-looking statement, except as maybe required by applicable law.
Investor Relations Contact:
Brad Holmes
EnergyIR
(713) 654-4009
Email Contact
1330 Post Oak Boulevard, Suite 1600
HOUSTON, TEXAS 77056
(713) 627-2500 (tel)
(713) 963-4663 (fax)
SOURCE: Vanguard Energy
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