LONG BEACH, Calif., Nov. 10, 2005 (PRIMEZONE) -- Pacific Energy Resources Ltd. (TSX-V:PFE.S) is pleased to announce the company has received an updated reserve report for its producing properties located in Southern California. This report, prepared by DeGolyer and MacNaughton, gives a net present value (NPV) of recoverable proved reserves at US$152 million, using a 10% discount rate. Highlights of this report include:
Category Bbl(millions) NPV@10%(US $) -------- ------------ ------------- Proved Developed Producing Reserves 3.0 34.4 Proven Undeveloped Reserves 10.2 117.0 Probable Reserves 8.8 99.0 Total 22.0 250.4
This report is an evaluation of the company's reserves as of September 1, 2005, and is an 18% increase from the total net proved reserves previously reported in August 2004. This constant price case analysis was estimated using guidelines established by the Securities and Exchange Commission (SEC) and the Financial Accounting Standards Board (FASB). In addition, the reserve appraisal was prepared using reserve definitions consistent with those of the Canadian National Instrument 51-101. DeGolyer and MacNaughton are independent of Pacific Energy, with offices in Dallas, Houston, Moscow and Calgary.
Domestication and Change of Symbol
As a result of becoming a Delaware, U.S.-registered company, Pacific Energy is subject to the provisions of United States securities laws. The Company has not registered its common shares under certain United States securities laws and as such falls under the provisions of Regulations S. Toronto Venture Exchange identifies U.S. companies under Regulation S with a suffix ".S". As a consequence, the new trading symbol for the company is "PFE.S".
The domestication of Pacific Energy to the United States serves two business purposes: first it allows the tax-deferred consolidation of the California producing assets, a critical step in financing future developments; secondly, it is a requirement to becoming a qualified offshore operator in the Pacific Outer Continental Shelf (POCS).
Offshore Update
On October 14, 2005, Pacific Energy became "Qualified in the POCS Region", a distinction granted by the Minerals Management Services (MMS), the federal body governing the Outer Continental Shelf region. This is a necessary step in becoming a Qualified Operator in the POCS. In addition, Pacific Energy is continuing discussion with Aera Energy for the potential development of the Eureka Project, located in offshore California. This project was originally announced on February 22, 2005, with additional updates to follow as development occurs.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of the content of this news release.