Reef Resources Ltd. announced the results of a reserve evaluation on Reef's Ontario assets as of July 31, 2012, prepared by the company's independent reserve engineering firm, Deloitte & Touche LLP.
The current proven plus probable (P2) net present value at a 10% discount rate evaluation for the year-end July 31, 2012 is at $7,863,000, which represents a 98% increase over the July 31, 2011 value of $3,963,000. On an issued and outstanding per share basis the BTAX 10 value has gone from $0.071 per share to $0.142 per share based on the increased reserves.
Gross company P2 reserves have been increased by 85 % to 348,700 bbl of oil, gas and liquids (5% gas, 2% NGL, 93% oil) from 188,900 bbl of oil as reported last year.
The petroleum initially in place was estimated at 7,836,213 bbl.
The proven plus probable plus possible NPV BTAX 10 of the company was $13.49 million.
The reserve report includes five wells in the Ausable reef and two wells at the Airport field. Also included, is the drilling of four horizontal wells in the Ausable reef.