Home Page
01:17:18 EDT Fri 25 Jul 2014
Enter Symbol
or Name
USA
CA



Porto Energy Corp
Symbol C : PEC
Shares Issued 198,954,653
Close 2013-01-31 C$ 0.045
Recent Sedar Documents

Porto's prospective resources at 636.9 mmboe in 2012

2013-01-31 18:27 ET - News Release

Mr. Heath Cleaver reports

PORTO ENERGY CORP. ANNOUNCES UPDATED RESOURCE ESTIMATES

Porto Energy Corp. has received an updated independent resource evaluation from Netherland, Sewell & Associates Inc. based in Dallas, Tex. This report was completed on each of the seven concessions in which the company maintains an interest. The updated report is dated Jan. 10, 2013, with an effective date of Dec. 31, 2012.

"We are pleased to announce that we have significantly increased our prospective resources in the Lower Jurassic Lias unconventional resource play as a result of the ongoing technical evaluation program with our joint venture partners," said Joseph Ash, president and chief executive officer of Porto Energy. "Despite reducing the prospective resources associated with the number of conventional Jurassic reef exploration targets, the reduction was more than offset by the increased geologic chance of success of finding hydrocarbon-bearing reservoirs in the Silves, which was confirmed by the ALC-1 well. Our ongoing joint venture initiatives will benefit from the updated report that augments the extensive technical analysis our team has performed to continually high-grade our exploration portfolio and narrow our focus to the Lias unconventional resource and Presalt conventional plays. In turn, this narrowed focus will help concentrate our farm-out efforts."

Comparing the updated report with the original NSAI report dated Aug. 31, 2012, prospective resources for the Lias increased from 95.4 million barrels of oil equivalent (best estimate) to 366.8 million boe (best estimate), an increase of 271.4 million boe or 284 per cent. Similarly, the low case increased from 2.2 million boe to 22.6 million boe, and the high case increased from 572.6 million boe to 1,399.4 million boe, or 927 per cent and 144 per cent, respectively.

Phase 1 work to characterize the Jurassic Lias resource play included finalized aeromagnetic data over the blocks, the drilling and analysis of 23 shallow wells, and the development of a Lias deposition model that greatly increased the company's understanding of the Lias marls in the central and northern blocks. This work underpinned the updated report by NSAI and points to a very prospective unconventional resource play that merits additional technical evaluation.

The Alcobaca No. 1 Presalt exploration well in the Aljubarrota-3 concession, onshore Portugal (as announced Nov. 1, 2012), helped to confirm gas-bearing reservoirs, despite being a subcommercial gas discovery. In turn, this well has significantly derisked other Presalt prospects due to a confirmation of source rock, reservoir-bearing sands and trapping mechanism in the Silves interval.

Comparing the updated report with the original NSAI report dated Aug. 31, 2012, P50-risked recoverable contingent resources remained relatively unchanged. Resources associated with the company's Jurassic reef and other exploration prospects, P50-risked resources, decreased by approximately 97.3 million boe; however, this was offset by an increase in the Lias potential of approximately 271.4 million boe and the Presalt Silves reservoir potential of approximately 23.9 million boe of P50-risked prospective resources.

Compared with the original NSAI report, P50-net-risked recoverable prospective resources increased 198 million boe, or 45 per cent, from 439 million boe to 637 million boe. In total, the updated report has a combined (contingent plus prospective) resource base composed of 47 per cent oil and 53 per cent natural gas.

The updated report provides the data in the attached total contingent and prospective resources table with respect to risked contingent and prospective resources.

                   TOTAL CONTINGENT AND PROSPECTIVE RESOURCES
                    (company's net interest -- mmboe) (1) (2)

                         Updated estimates                       Original estimates
                    Low         Best          High           Low         Best          High
               estimate     estimate      estimate      estimate     estimate      estimate

Contingent         15.6         43.8          76.5          15.6         43.8          77.0
Prospective        91.0        636.9       2,285.9         142.4        439.3       1,541.8

(1) The company's primary operating activities are carried out through
Mohave, which has the principal working interest in the Aljubarrota-3
(42 per cent), Torres Vedras-3 (100 per cent), Sao Pedro de Muel-2 (94
per cent), Cabo Mondego-2 (70 per cent), Rio Maior-2 (100 per cent), 
Zambujal (72 per cent) and Peniche (50 per cent) oil and gas 
concessions in Portugal. All of the company's concessions are located 
in the Lusitanian basin of Portugal.
(2) Barrels of oil equivalent include oil, solution gas, associated
gas and condensate. Boe may be misleading, particularly if used in
isolation. A boe conversion ratio of 6,000 cubic feet to one barrel 
has been used and is based on an energy equivalency conversion method 
primarily applicable at the burner tip and does not represent a value 
equivalency at the wellhead.

                            SELECTED DATA FROM UPDATED RESOURCE
                         (company's net interest -- mmboe) (1) (2)

Resource category                                      Updated estimates       Last estimates as of
                                                                                  Aug. 31, 2012
Concession                                           Low     Best     High      Low     Best     High
prospect                                        estimate estimate estimate estimate estimate estimate

Contingent
Aljubarrota                                         15.6     43.8     77.0     15.6     43.7     76.5
Torres Vedras (Lapaducos)                             --       --       --       --       --      0.5
Total contingent                                    15.6     43.8     76.5     15.6     43.8     77.0

Prospective
Aljubarrota concession
Aljubarrota Brenha and Lias                           --       --       --     17.1     31.5     49.1
Lias (formerly Basal Brenha)                        12.7    110.1    382.0      0.7     12.0     86.3
Alcobaca (Silves)                                     --       --       --     11.7     34.1     91.7
Cinnabar (Silves and Jurassic)                       5.9     25.5    127.3      5.9     25.5    127.3
Citrine (Silves)                                     0.7      2.7     10.1      0.7      2.7     10.1
Jasper (Jurassic)                                     --       --       --      1.2      4.6     16.9
Onyx (Jurassic)                                      2.1      6.0     16.4      2.1      6.0     16.4
Pyrope (Silves and Jurassic)                         6.6     19.3     66.4      6.6     19.3     66.4
Sphene (Silves and Jurassic)                         6.5     14.2     32.0      6.5     14.2     32.0
Tiger Eye (Silves and Jurassic)                      7.2     17.4     44.5      7.2     17.4     44.5
Zircon (Jurassic)                                    2.7      8.4     30.9      2.7      8.4     30.9

Cabo Mondego concession
Lias (formerly Basal Brenha)                         0.2     47.2    201.7      0.1     21.9    116.7
Moreia (Silves and Jurassic)                         3.2     16.2     47.1      1.1      2.9      7.0
Pargo Silves                                         2.5     13.9     43.1       --       --       --
Sapphire (Jurassic)                                  0.8      3.5     10.8      0.8      3.5     10.8
Sargo Silves (formerly Topaz)                        2.8     17.3     55.8      4.7     11.4     26.6

Peniche concession
Lias (formerly Basal Brenha)                         2.3     13.5     43.3       --      4.4     23.7

Rio Maior concession
Lias (formerly Basal Brenha)                         2.3     65.5    259.2      0.9     14.8    110.3

Sao Pedro de Muel concession
Lias (formerly Basal Brenha)                         1.0     59.6    238.5      0.1     15.9     84.5
Amethyst (Jurassic)                                  0.4      1.9      6.3      0.4      1.9      6.3
Bacalhau Silves (formerly Emerald)                   8.7     52.0    177.7     10.5     31.0    110.4
Besugo Silves (formerly Azurite)                     2.6     15.3     48.4     12.6     38.6    127.5
Turquoise (Jurassic)                                  --       --       --      7.0     14.5     28.9

Torres Vedras concession
Lias (formerly Basal Brenha)                         4.0     62.8    240.7      0.3      5.2     38.4
Abadia dome (Jurassic)                                --       --       --      1.9      5.5     23.0
Arruda Fan delta (Jurassic clastic)                  7.3     14.5     28.7      7.3     14.5     28.7
Cruz da Pedra (Jurassic)                              --       --       --      2.4      5.7     17.0
Hematite (Jurassic)                                   --       --       --       --       --      0.1
Lapaducos (Jurassic)                                  --       --       --      0.1      1.1      8.4
Limonite (Jurassic)                                   --       --       --      0.1      0.2      0.9
Moinho do Ceu (Jurassic)                              --       --       --      0.1      0.6      3.1
Montalegre (Jurassic)                                0.1      0.2      0.5      0.1      0.2      0.5
Olivine (Jurassic)                                    --       --       --      0.1      0.6      5.8
Eastern 2-D reefs                                     --       --       --     22.5     32.0     44.2
Western 2-D reefs                                     --       --       --      2.3      4.0      6.4
3-D reefs                                             --       --       --      1.2      2.8      5.8
Sao Juliao (Jurassic)                                 --       --       --      0.4      1.3      3.5
Sphalerite (Jurassic)                                 --       --       --       --      0.2      1.4
Turbidite                                             --       --       --      1.4      4.7     12.1
Aldeia (Jurassic)                                    0.2      1.2      5.6       --       --       --
Folgorosa (Jurassic)                                 0.1      0.5      2.7       --       --       --
Matacaes Silves                                      5.5     29.5     94.7       --       --       --
Moinho Velho (Jurassic)                              0.1      0.8      3.8       --       --       --
Torres Vedras Silves                                 1.5      3.0      5.5      1.5      3.0      5.5
Torres Vedras (Jurassic)                             0.1      1.2      5.6       --       --       --
Varatojo (Jurassic reef)                             0.5      3.5     14.5       --       --       --
Varatojo Norte (Jurassic reef)                       0.3      2.0      8.4       --       --       --

Zambujal concession
Lias (formerly Basal Brenha)                         0.1      8.1     34.1      0.1     21.2    112.7

Total prospective                                   91.0    636.9  2,285.9    142.4    439.3  1,541.8

(1) The company's primary operating activities are carried out through
Mohave, which has the principal working interest in the Aljubarrota-3
(42 per cent), Torres Vedras-3 (100 per cent), Sao Pedro de Muel-2 (94
per cent), Cabo Mondego-2 (70 per cent), Rio Maior-2 (100 per cent), 
Zambujal (72 per cent) and Peniche (50 per cent) oil and gas 
concessions in Portugal. All of the company's concessions are located 
in the Lusitanian basin of Portugal.
(2) Barrels of oil equivalent include oil, solution gas, associated
gas and condensate. Boe may be misleading, particularly if used in
isolation. A boe conversion ratio of 6,000 cubic feet to one barrel 
has been used and is based on an energy equivalency conversion method 
primarily applicable at the burner tip and does not represent a value 
equivalency at the wellhead.

The updated report was prepared by NSAI in accordance with the definitions, standards and procedures contained in the Canadian oil and gas evaluation handbook and National Instrument 51-101 (standards of disclosure for oil and gas activities). Investors should also refer to the company's most recent NI 51-101 F1 filing dated Dec. 14, 2012, available on SEDAR, for additional information, including the risks and uncertainty associated with the recovery of resources.

We seek Safe Harbor.

© 2014 Canjex Publishing Ltd. All rights reserved.