CALGARY, Alberta, June 25, 2018 (GLOBE NEWSWIRE) -- Amherst Energy Inc. (Amherst) is a new private Calgary based oil and gas exploration company.
Amherst Energy Inc. commenced operations in February of 2017 with a business plan of acquiring acreage on low-risk oil prospects with large Total Petroleum Initially-In-Place and multiple drilling locations.
A principal objective was to acquire a substantial acreage inventory during a period of very low industry activity.
To date, Amherst has successfully acquired over 12,000 acres of mineral leases in six oil prospect areas, Morgan, Lloydminster, Leo, Thorsby and Provost in Alberta and Lashburn in Saskatchewan. The prospects are targeting a combination of heavy and light oil.
An independent evaluation conducted by Apex Global Engineering Inc., dated May 1, 2018, has estimated that there are 163.2 million barrels of Total Petroleum Initially-In-Place and 6.9 million barrels of primary recoverable oil on Amherst’s lands.
Amherst’s management have identified 111 potential locations on its existing holdings and the company plans to begin development operations in the fourth quarter of 2018.
Amherst presentations can be viewed on our website at: Amherst Energy
FOR FURTHER INFORMATION, PLEASE CONTACT:
Robert W. Lamond, Chairman & CEO
Amherst Energy Inc. Telephone: (403) 650-3252 Fax: (403) 452-0934
Donald K. Clark, President & COO
Amherst Energy Inc. Telephone: (403) 452-0447 Fax: (403) 452-0934
Forward Looking Statements
Certain statements included in this press release constitute forward looking statements or forward-looking information under applicable securities legislation. Such forward looking statements or information are provided for providing information about management's current expectations and plans. Readers are cautioned that reliance on such information may not be appropriate for other purposes, such as making investment decisions. Forward looking statements or information typically contain statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project" or similar words suggesting future outcomes or statements regarding an outlook. Forward looking statements or information in this press release include, but are not limited to, statements or information with respect to: business strategy and objectives of Amherst; characteristics of Amherst's oil and natural gas properties, including estimates of the oil and gas reserves and resources attributable thereto; and potential drilling locations.
Forward looking statements or information are based on several factors and assumptions which have been used to develop such statements and information, but which may prove to be incorrect. Although Amherst believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward looking statements because Amherst can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this press release, assumptions have been made regarding, among other things: the accuracy of geological and geophysical data and the interpretation of such data; estimated decline rates; the impact of increasing competition; the general stability of the economic and political environment in which Amherst operates; the timely receipt of any required regulatory approvals; the ability of Amherst to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects which Amherst has an interest in to operate the field in a safe, efficient and effective manner; the ability of Amherst to obtain financing on acceptable terms; production rates; the timing and costs of pipeline, storage and facility construction and expansion and the ability of Amherst to secure adequate product transportation; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Amherst operates; the reasonableness of third party reports and the inherent assumptions and other matters set forth therein; the assumptions further described elsewhere in this press release; and the ability of Amherst to successfully market its oil and natural gas products. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which have been used
Forward looking statements or information are based on current expectations, estimates and projections that involve several risks and uncertainties which could cause actual results to differ materially from those anticipated by Amherst and described in the forward-looking statements or information. These risks and uncertainties which may cause actual results to differ materially from the forward looking statements or information include, among other things: the ability of management to execute its business plan; general economic and business conditions; the risk of instability affecting the jurisdictions in which Amherst operates; the risks of the oil and natural gas industry, such as operational risks in exploring for, developing and producing crude oil and natural gas and market demand; the possibility that government policies or laws may change or governmental approvals may be delayed or withheld; risks and uncertainties involving geology of oil and natural gas deposits; the ability of Amherst to add production and reserves through acquisition, development and exploration activities; the inaccuracy of Amherst's cost estimates relating to its proposed activities; risk relating to the inaccuracy or incorrect interpretation of geological and geophysical data and the reliance on certain analogous information; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of estimates and projections relating to production (including decline rates), costs and expenses; fluctuations in oil and natural gas prices, foreign currency exchange rates and interest rates; risks inherent in Amherst's marketing operations, including credit risk; uncertainty in amounts and timing of royalty payments; health, safety and environmental risks; risks associated with existing and potential future law suits and regulatory actions against Amherst; uncertainties as to the availability and cost of financing; financial risks affecting the value of Amherst’s investments; and the ability to access sufficient capital from internal and external sources and the risk factors outlined under "Risk Factors" and elsewhere herein. The reserve and resource estimates provided herein are estimates only and there is no certainty that it will be commercially viable to produce any portion of the contingent resources. Therefore, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the foregoing list is not exhaustive of all possible risks and uncertainties.
Forward‑looking statements and other information contained herein concerning the oil and gas industry and the Corporation's general expectations concerning this industry are based on estimates prepared by management using data from publicly available industry sources as well as from reserve and resource reports, market research and industry analysis and on assumptions based on data and knowledge of this industry which the Corporation believes to be reasonable. However, this data is inherently imprecise, although generally indicative of relative market positions, market shares and performance characteristics. While the Corporation is not aware of any misstatements regarding any industry data presented herein, the industry involves risks and uncertainties and is subject to change.
The forward-looking statements or information contained in this press release are made as of the date hereof and Amherst undertakes no obligation to update publicly or revise any forward-looking statements or information, whether because of new information, future events or otherwise unless required by applicable securities laws. The forward-looking statements or information contained in this press release are expressly qualified by this cautionary statement.
Reserve Volume Estimates
The reserve information contained in this press release is a summary of the reserve and resource data contained in the independent engineering evaluation of Amherst’s properties prepared by Amherst's independent engineers, Apex Global Engineering Inc., in accordance with National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities. The evaluation is effective May 1, 2018.
The estimate of resources (including Total Petroleum Initially-In-Place and primary recoverable oil) provided in this press release are estimates only and there is no guarantee that the estimated resources will be recovered. Actual reserves may be greater or less than the estimates provided in this press release.
Total Petroleum-Initially-In–Place means that quantity of petroleum that is estimated to exist originally in naturally occurring accumulations. It includes the quantity of petroleum which is estimated, as of May 1, 2018, to be contained in known accumulations, prior to production, plus those estimated quantities in accumulations yet to be discovered.
Primary recoverable oil means the quantity of petroleum estimated to be recoverable, as at May 1, 2018, with current technology and without any secondary or tertiary recovery methods being deployed.
Drilling Locations
Disclosed herein are 111 potential un-booked drilling locations. Un-booked locations are internal estimates based on prospective acreage and an assumption as to number of wells that can be drilled per section based on industry practice and internal review. Un-booked locations do not have any attributed reserves or resources. Un-booked locations have been identified by management as an estimation of our future drilling activities based on an evaluation of applicable geological, seismic, engineering, production and reserves information. There is no certainty that we will drill all or any of the un-booked locations, and if drilled, there is no certainty that such locations will result in addition oil and gas reserves, resources or production. The drilling locations on which we drill wells will also be dependent upon the availability of capital, regulatory approvals, seasonal restrictions, commodity prices, costs, actual drilling results, additional reservoir information that is obtained and other factors. While certain of the un-booked drilling locations have been de-risked by the drilling by third parties of wells in relatively close proximity to such un-booked drilling locations , other un-booked drilling locations are farther away from such wells where management has less information about the characteristics of the reservoir therefore there is more uncertainty whether wells will be drilled in such locations and, if drilled, there is more uncertainty that such wells will result in additional reserves, resources or production.
