Coelacanth Announces 2023 Year-End Reserves
- Total Proved plus Probable reserves increased by 216% to 14.1 million boe from 4.5 million boe.
- Total Proved reserves increased by 426% to 10.5 million boe from 2.0 million boe.
- Total Proved plus Probable Reserve value (net present value discounted at 10%) increased by 192% to $93.9 million from $32.2 million.
- Coelacanth's RLI for Proved plus Probable Reserves is 41.4 and for Proved Reserves is 30.8.
- Capital expenditures in 2023 totaled $74.6 million, with significant allocations to drilling and completion activities.
- F&D costs for 2023 were $19.01/boe, while FD&A costs were $19.13/boe.
- Coelacanth's forward-looking information and detailed reserve reconciliation can be found in the Company's AIF filed on SEDAR+.
- None.
Calgary, Alberta--(Newsfile Corp. - April 18, 2024) - COELACANTH ENERGY INC. (TSXV: CEI) ("Coelacanth" or the "Company") is pleased to announce its 2023 year-end reserves as independently evaluated by GLJ Ltd. ("GLJ") effective December 31, 2023 (the "GLJ Report"), in accordance with National Instrument 51-101 ("NI 51-101") and the Canadian Oil and Gas Evaluation ("COGE") Handbook. All dollar figures are Canadian dollars unless otherwise noted.
Introduction
During 2023, Coelacanth completed successful Montney pad wells at both Two Rivers West and Two Rivers East. Longer wells and a new completion design was successfully executed on both pads resulting in materially improved productivity. Baseline productivity was established in the Upper Montney at Two Rivers West and the Lower and Basal Montney at Two Rivers East for future adjustments to completions and well designs.
While reserves booked in 2023 are significantly greater than in 2022, the aerial extent of the bookings comprise less than
Coelacanth's business plan for the Two Rivers Montney Project includes:
- Delineating and establishing production on multiple Montney zones over its extensive land base.
- Constructing facilities and pipelines to process production and connect to established egress in the area.
- Accelerate production through pad drilling once infrastructure is constructed.
Coelacanth is currently:
- Completing the permit process for its Two Rivers East facility and pipelines.
- Finalizing engineering design and procuring long lead items for facility construction at Two Rivers East.
- Preparing for future pad drilling in late 2024 and early 2025 to coincide with facility completion in late Q1 2025.
- Initiating a third-party resource study to aid in well spacing and completion design as well as future delineation.
- Completing a detailed review of Two Rivers West regarding both wellbore and completion design and future infrastructure requirements.
Coelacanth is excited to initiate its business plan to aggressively develop the property, establish the ultimate reserve recoveries and move the established recoverable resource from land to its established producing reserve base.
Reserve Highlights
Coelacanth is pleased to report material reserve and value:
- Increased Total Proved plus Probable reserves by
216% to 14.1 million boe from 4.5 million boe. - Increased Total Proved reserves by
426% to 10.5 million boe from 2.0 million boe. - Increased Total Proved plus Probable Reserve value (net present value discounted at
10% ) by192% to$93.9 million from$32.2 million .
Reserves Summary
Coelacanth's December 31, 2023 reserves as prepared by GLJ effective December 31, 2023 and based on the GLJ (2024-01) future price forecast are as follows: (1,4)
| Working Interest Reserves (2) | Tight Oil (Mbbl) | Shale Natural Gas (Mmcf) | NGLs (Mbbl) | Total Oil Equivalent (Mboe) (3) |
| Proved | ||||
| Producing | 503 | 8,550 | 135 | 2,063 |
| Developed non-producing | 1,094 | 20,975 | 339 | 4,929 |
| Undeveloped | 694 | 15,260 | 245 | 3,483 |
| Total proved | 2,291 | 44,784 | 720 | 10,475 |
| Probable | 746 | 15,647 | 250 | 3,604 |
| Total proved & probable | 3,038 | 60,432 | 970 | 14,080 |
Notes:
(1) Numbers may not add due to rounding.
(2) "Working Interest" or "Gross" reserves means Coelacanth's working interest (operating and non-operating) share before deduction of royalties and without including any royalty interest of Coelacanth.
(3) Oil equivalent amounts have been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil.
(4) Disclosure of Net reserves are included in Company's Annual Information Form ("AIF") dated April 16, 2024 filed on SEDAR+ at www.sedarplus.ca. "Net" reserves means Coelacanth's working interest (operated and non-operated) share after deduction of royalties, plus Coelacanth's royalty interest in reserves.
Reserves Values
The estimated future net revenues before taxes associated with Coelacanth's reserves effective December 31, 2023 and based on the GLJ (2024-01) future price forecast are summarized in the following table: (1,2,3,4)
| Discount factor per year | |||||
| ( | |||||
| Proved | |||||
| Producing | 37,396 | 32,305 | 28,473 | 25,533 | 23,224 |
| Developed non-producing | 37,036 | 16,271 | 2,718 | -6,510 | -13,021 |
| Undeveloped | 57,889 | 41,446 | 30,717 | 23,367 | 18,111 |
| Total proved | 132,321 | 90,022 | 61,908 | 42,390 | 28,315 |
| Probable | 79,630 | 48,378 | 32,031 | 22,701 | 16,945 |
| Total proved & probable | 211,950 | 138,400 | 93,939 | 65,091 | 45,260 |
Notes:
(1) Numbers may not add due to rounding.
(2) The estimated future net revenues are stated prior to provision for interest, debt service charges or general administrative expenses and after deduction of royalties, operating costs, estimated well abandonment and reclamation costs and estimated future capital expenditures.
(3) The estimated future net revenue contained in the table does not necessarily represent the fair market value of the reserves. There is no assurance that the forecast price and cost assumptions contained in the GLJ Report will be attained and variations could be material. The recovery and reserve estimates described herein are estimates only. Actual reserves may be greater or less than those calculated.
(4) The after-tax present values of future net revenue attributed to Coelacanth's reserves are included in Company's AIF dated April 16, 2024 filed on SEDAR+ at www.sedarplus.ca.
Price Forecast
The GLJ (2024-01) price forecast is as follows:
| Year | WTI Oil @ Cushing ($US / Bbl) | Edmonton Light Oil ($Cdn / Bbl) | AECO Natural Gas ($Cdn / Mmbtu) | Chicago Natural Gas ($US / Mmbtu) | Foreign Exchange (Cdn$/US$) |
| 2024 | 72.50 | 89.40 | 2.01 | 2.60 | 0.7550 |
| 2025 | 75.00 | 94.04 | 3.42 | 3.70 | 0.7550 |
| 2026 | 76.99 | 95.31 | 4.30 | 4.01 | 0.7650 |
| 2027 | 78.53 | 97.22 | 4.39 | 4.10 | 0.7650 |
| 2028 | 80.10 | 99.16 | 4.47 | 4.18 | 0.7650 |
| 2029 | 81.70 | 101.14 | 4.56 | 4.27 | 0.7650 |
| 2030 | 83.34 | 103.16 | 4.65 | 4.35 | 0.7650 |
| 2031 | 85.00 | 105.23 | 4.75 | 4.45 | 0.7650 |
| 2032 | 86.70 | 107.33 | 4.84 | 4.54 | 0.7650 |
| 2033 | 88.44 | 109.48 | 4.94 | 4.63 | 0.7650 |
| Escalate thereafter (1) |
Note:
(1) Escalated at two per cent per year starting in 2034 in the January 1, 2024 GLJ price forecast with the exception of foreign exchange, which remains flat.
Reserve Life Index ("RLI")
Coelacanth's RLI presented below is based on estimated Q4 2023 average production of 923 boe per day.
| Reserve Category | RLI |
| Proved plus Probable Reserves | 41.4 |
| Proved Reserves | 30.8 |
Reserves Reconciliation
The following summary reconciliation of Coelacanth's working interest reserves compares changes in the Company's reserves as at December 31, 2023 to the reserves as at December 31, 2022 based on the GLJ (2024-01) future price forecast: (1,2)
| Total Proved | Tight Oil | Shale Natural Gas | NGLs | Total Oil Equivalent |
| (Mbbl) | (Mmcf) | (Mbbl) | (Mboe) (3) | |
| Opening balance | 387 | 8,743 | 149 | 1,993 |
| Discoveries | - | - | - | - |
| Extensions and improved recovery | 1,882 | 35,190 | 568 | 8,315 |
| Technical revisions | 70 | 1,444 | 11 | 322 |
| Acquisitions | - | - | - | - |
| Dispositions | - | - | - | - |
| Economic factors | - | - | - | - |
| Production | (48) | (593) | (8) | (155) |
| Closing balance | 2,291 | 44,784 | 720 | 10,475 |
| Proved plus Probable | Tight Oil | Shale Natural Gas | NGLs | Total Oil Equivalent |
| (Mbbl) | (Mmcf) | (Mbbl) | (Mboe) (3) | |
| Opening balance | 907 | 19,284 | 328 | 4,450 |
| Discoveries | - | - | - | - |
| Extensions and improved recovery | 2,089 | 39,011 | 631 | 9,222 |
| Technical revisions | 89 | 2,729 | 19 | 563 |
| Acquisitions | - | - | - | - |
| Dispositions | - | - | - | - |
| Economic factors | - | - | - | - |
| Production | (48) | (593) | (8) | (155) |
| Closing balance | 3,038 | 60,432 | 970 | 14,080 |
Notes:
(1) Numbers may not add due to rounding.
(2) "Working Interest" or "Gross" reserves means Coelacanth's working interest (operating and non-operating) share before deduction of royalties and without including any royalty interest of Coelacanth.
(3) Oil equivalent amounts have been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil.
Capital Expenditures
Capital allocation by category is as follows:
| ( | 2023 | 2022 | | |||
| Undeveloped land | 1,006 | 1,164 | | |||
| Acquisitions | 1,006 | 1,164 | ||||
| Drilling and completion | 61,274 | 9,009 | ||||
| Facilities and related infrastructure | 12,094 | 3,689 | ||||
| Geological, geophysical and other | 239 | 42 | | |||
| Exploration and development expenditures | 73,607 | 12,740 | ||||
| | ||||||
| Total capital expenditures | 74,613 | 13,904 |
Finding and Development Costs ("F&D") and Finding, Development and Acquisition Costs ("FD&A")
Coelacanth has presented FD&A and F&D costs below:
| 2023 | 2022 | 2021 (3) | 3 Year Cumulative | |||||
| Proved & | Proved & | Proved & | Proved & | |||||
| ( | Proved | Probable | Proved | Probable | Proved | Probable | Proved | Probable |
| Exploration and development expenditures | 73,607 | 73,607 | 12,740 | 12,740 | 795 | 795 | 87,142 | 87,142 |
| Change in FDC (1) | 90,598 | 77,759 | 11,400 | 33,748 | 6,300 | 6,300 | 108,298 | 117,807 |
| F&D costs | 164,205 | 151,366 | 24,140 | 46,488 | 7,095 | 7,095 | 195,440 | 204,949 |
| Acquisitions | 1,006 | 1,006 | 1,164 | 1,164 | 542 |
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FAQ
What are Coelacanth Energy Inc.'s Total Proved plus Probable reserves for 2023?
Coelacanth Energy Inc.'s Total Proved plus Probable reserves for 2023 increased by 216% to 14.1 million boe from 4.5 million boe.
What is the Total Proved Reserve value for Coelacanth Energy Inc. in 2023?
Coelacanth Energy Inc.'s Total Proved Reserve value for 2023 increased by 426% to 10.5 million boe from 2.0 million boe.
What is the Reserve Life Index (RLI) for Coelacanth Energy Inc.'s Proved Reserves?
Coelacanth Energy Inc.'s Reserve Life Index (RLI) for Proved Reserves is 30.8.
How much were Coelacanth Energy Inc.'s capital expenditures in 2023?
Coelacanth Energy Inc.'s capital expenditures in 2023 totaled $74.6 million.
What were Coelacanth Energy Inc.'s Finding and Development (F&D) costs for 2023?
Coelacanth Energy Inc.'s Finding and Development (F&D) costs for 2023 were $19.01/boe.
COELACANTH ENERGY INC
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