News Releases
March
18, 2008
TSX:
“ISR”
Shares
Outstanding: 13,928,084
2007
YEAR-END RESERVES SUMMARY
International
Sovereign Energy Corp. (the “Company ”) is pleased
to provide the following summary information from its annual
independent reserve evaluation as prepared by Chapman Petroleum
Engineering Ltd. as at December 31, 2007 (“CPE Report”). CPE’s
Report is compliant with National Instrument 51-101 Standards
of Disclosure of Oil and Gas Activities (N1 51-101).
Highlights
(based on forecast prices and costs) are as follows:
•
Proved plus probably reserves increased 15.9% to 4,346
mboe from 3,748 mboe as at December 31, 2006.
•
The Net Present Value (NPV) of the Company’s estimated
future net revenue based on forecast prices and costs
discounted at 10% before tax is $62,801M a 12% increase
over December 31, 2006.
•
The Company’s proved plus probable reserves are comprised
of 75.5% gas, 20.8% oil and 3.7% natural gas liquids.
•
Proved plus probable reserve life index (RLI) 12.9 years.
The
following table provides summary information presented in
the CPE Report effective December 31, 2007. Detailed reserve
information will be presented in the Company’s year-end financial
results and in the Statement of Reserves Data Sector of the
Company’s Annual Information from which will be filed in due
course on SEDAR.
Summary
of Reserves
| |
Oil
|
Natural
Gas |
Natural
Gas |
Total
Oil Equivalent (mboe) |
| |
Oil
Gross
mstb
|
Gross
mmscf
|
Liquids
Gross
|
Gross
|
Proved
Producing |
439
|
6,466
|
47
|
1,564
|
Total
Proved |
439
|
6,466
|
47
|
1,564
|
Probable
|
465
|
13,212
|
115
|
2,782
|
Total
Proved Plus Probable |
904
|
19,678
|
162
|
4,346
|
Net
Present Discounted Values of Future Net Revenue
Based
on Forecast Prices and Costs
Before
Income Taxes ($000)
|
0%
|
5%
|
10%
|
Total
Proved |
$37,908
|
$30,819
|
$26,270
|
Probable
|
$71,184
|
$48,763
|
$36,531
|
Total
Proved Plus Probable |
$109,092
|
$79,582
|
$62,801
|
Notes:
•
Numbers in the tables are subject to rounding error.
•
Natural gas is converted to barrels of oil equivalent (boe)
at a ratio of six thousand standard cubic feet to one barrel
of oil (6 mcf: 1 bbl). Boe may be misleading if used in
isolation. A boe conversion of 6 mcf: 1bbl is based on an
energy equivalency conversion method applicable at the burner
tip and does not represent a value at the wellhead.
•
The net present values are of Future Net Revenue before
taxes and are based on forecast prices and costs. It should
not be assumed that the undiscounted and discounted future
net revenues estimated in the CPE Report represent the fair
market value of the reserves.
•
Royalties: Revisions to the Alberta Crown Royalties were
proposed in October, 2007 and the changes are scheduled
to be implemented in January, 2009. The changes are intended
to increase the Royalties for conventional oil and natural
gas, with sliding scale sensitivities to both commodity
prices and well productivity rates. As of December 31, 2007
the Government of Alberta had not introduced the enabling
legislation and discussions are continuing concerning the
application of the proposed revisions. The Chapman evaluation
has therefore been prepared under the existing Royalties
regulations, in accordance with advice from the ASC as recommended
by the Society of Petroleum Evaluation Engineers (“SPEE”).
Reserves
Committee of International Sovereign
The
Company has a Reserves Committee comprised of independent
board members that reviews the qualifications and appointment
of the independent reserve evaluators. The Reserves Committee
also reviews the process for providing information to the
evaluators and meets with the independent evaluators to discuss
the procedures used in the independent report to review major
property assessments and to discuss any areas of risk. The
evaluation in the CPE Report of the 2007 year-end reserves
of the Company was reviewed by the Reserves Committee and
approved by the Company’s Board of Directors.
Reader’s
Advisory
Forward-looking
statements: This news release contains certain forward-looking
statements, including management’s assessment of future plans
and operations, and capital expenditures and the timing thereof,
that involve substantial known and unknown risks and uncertainties,
certain of which are beyond the Company’s control. The Company’s
actual results, performance or achievements could differ materially
from those expressed in, or implied by, these forward-looking
statements and, accordingly, no assurance can be given that
any of these events anticipated by the forward-looking statements
will transpire or occur, or if any of them do so, what benefits,
including the amount of proceeds, that the Company will derive
there from. Additional information on the Company’s operations
and financial results are included
in
reports on file with Canadian securities regulatory authorities
and may be accessed through the SEDAR website ( www.sedar.com
). All subsequent forward-looking statements, whether written
or oral, attributable to the Company or persons acting on
its behalf are expressly qualified in their entirety by these
cautionary statements. Furthermore, the forward-looking statements
contained in this news release are made as at the date of
this news release and the Company does not undertake any obligation
to update publicly or to revise any of the included forward-looking
statements, whether as a result of new information, future
events or otherwise, except as may be required by applicable
securities laws.
International
Sovereign Energy Corp. is an oil and gas exploration development
and production company with offices in Vancouver, British
Columbia and Calgary, Alberta and is active in the exploration
and development of hydrocarbon reserves in Western Canada
and internationally.
For
further information, please contact:
Omair
Choudhry
Chief
Financial Officer
Tel:
(604) 684-7372
Fax:
(604) 684-2407
Or
visit our website at www.isove.com
The
Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
Certain information provided in this press release contains
forward-looking statements that by their nature are subject
to numerous risks and uncertainties and readers are cautioned
that actual results may vary considerably from those forecasted.
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