NOT FOR DISTRIBUTION IN THE UNITED STATES OR DISSEMINATION IN THE UNITED STATES
CALGARY, AB / ACCESSWIRE / July 25, 2024 / Tenth Avenue Petroleum Corp. (the "Company") (TSXV:TPC) is pleased to announce that it has completed the conversion of a new horizontal injection well 5-36, at it's 100% operated Murray Lake Mannville "A" Pool ("Murray Lake"), and that it has restored its previously curtailed production volumes, as discussed below.
As disclosed in the Company press releases dated April 23, 2024 and May 28, 2024, the Company had approximately 15 barrels of oil per day ("bbls/d") of oil production curtailed in Murray Lake located in southern Alberta, due to a water injection line failure that caused the Company to have to shut-in a vertical disposal well in September 2023. The Company took advantage of this situation to redesign and optimize the existing enhanced oil recovery ("EOR") program at Murray Lake as the new 5-36 horizonal injector is situated structurally lower in the Mannville zone than the vertical well was and the horizonal well is capable of injecting at higher rates. The Company estimates its water injection capacity has increased from 950 bbls/d in the vertical well to 1,600-1,900 bbls/d in the new 5-36 converted horizontal well. The increased injection capacity will enable the Company to potentially attract additional third-party processing revenue and more importantly accelerate pressure support in the reservoir which the Company believes will eventually lead to improved oil recovery and increased production.
Murray Lake Mannville "A" Pool has approximately 8.9 million barrels (Mbbls) of original oil in place ("OOIP") with approximately ~9% of that oil recovered to date. During 2023, the Company realized positive waterflood performance at Murray Lake which resulted in shallower production declines and an overall increase in recoverable reserves in the pool as disclosed in it's third-party reserve evaluation dated December 31, 2023. This increase in water injection capability will allow the Company to increase it's voidage replacement while accelerating pressure support which the Company believes may lead to recovery of an additional 5-10% of OOIP in this reservoir and lead to an increase of approximately 20-40 bbls/d of oil production in the pool over time.
Tenth Avenue Petroleum Corp. is a junior oil and gas exploration and production company with operations in Alberta.
Forward-looking Information and Statements
The information in this news release contains certain forward-looking statements. These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "approximate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "would" and similar expressions. These statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control, including: the inability of the Company to meet its commitments on its lands or on the lands it may acquire; the impact of general economic conditions; industry conditions; changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; fluctuations in commodity prices and foreign exchange and interest rates; stock market volatility and market valuations; volatility in market prices for oil and natural gas; liabilities inherent in oil and natural gas operations; uncertainties associated with estimating oil and natural gas resources and reserves uncertainties associated with recoveries and original oil in place, changes in income tax laws or changes in tax laws and incentive programs relating to the oil and gas industry; geological, technical, drilling and processing problems and other difficulties in producing petroleum reserves; and obtaining required approvals of regulatory authorities. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, such forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do, what benefits the Company will derive from them. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. The forward-looking statements in this news release are expressly qualified in their entirety by this cautionary statement. Except as required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statements. Investors are encouraged to review and consider the additional risk factors set forth in the Company's continuous disclosure documents which are available on SEDAR+ at www.sedarplus.ca.
Oil and Gas Advisories
Meaning of Boe
The term "boe" or barrels of oil equivalent may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent (6 Mcf: 1 bbl) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Additionally, given that the value ratio based on the current price of crude oil, as compared to natural gas, is significantly different from the energy equivalency of 6:1; utilizing a conversion ratio of 6:1 may be misleading as an indication of value.
Reserves Estimates
The estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates of reserves and future net revenue for all properties, due to the effects of aggregation.
Non-GAAP Measurements
The Company utilizes certain measurements that do not have a standardized meaning or definition as prescribed by International Financial Reporting Standards ("IFRS") and therefore may not be comparable with the calculation of similar measures by other entities, including but not limited to operating netback, cash flow and working capital. Readers are referred to advisories and further discussion on non-GAAP measurements contained in the Company's continuous disclosure documents. Operating netback is a non‐GAAP measure calculated as the average per boe of the Company's oil and gas sales, less royalties and operating costs.
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