Corcel Regulatory News (CRCL)

Caracal Energy Inc. - Reserves & Resources Update Gross Lease 2P Reserves increase by 72%Gross Lease Mean Risked Prospective Resources increase by 171%Company 2P Net Present Value of US$1.4 billion CALGARY, July 15, 2013 /CNW/ - Caracal Energy Inc. (LSE:CRCL) ("Caracal" or the"Company") announced today the results of a reserves and resources evaluationprovided by McDaniel & Associates Consultants Ltd. ("McDaniel") as at June 30,2013 (collectively, the "McDaniel Report" or the "Report"). A statement of theReserves and Resources consistent with an NI 51-101F1 (defined below) can befound at www.caracalenergy.com or www.sedar.com, under Caracal's profile. The results of the McDaniel Report demonstrate a significant increase inreserves and resources as at June 30, 2013 as compared with previousindependent reports on reserves and resources with effective dates of December31, 2012, which were completed and issued in February 2013. Highlights: · Gross Lease Reserves · Proven ("1P") of 34.7 million barrels ("MMB"), an increase of 20% · Proved plus Probable ("2P") of 153.3 MMB, an increase of 72% · Proved plus Probable plus Possible ("3P") of 321.0 MMB, an increase of 60% · Caracal Net Entitlement Reserves · 1P of 12.9 MMB, an increase of 14% · 2P of 50.6 MMB, an increase of 59% · 3P of 89.8 MMB, an increase of 41% · Caracal's Net Present Value (discounted at 10% before tax) - all amounts in U.S. Dollars · 1P of $516 million · 2P of $1,413 million · 3P of $2,533 million · Gross Lease Prospective Resource · Mean unrisked Prospective Resource covering 80 prospects of 4,070 MMB, an increase of 219% · Mean risked Prospective Resource covering 80 prospects of 833 MMB, an increase of 171% Gary Guidry, Chief Executive Officer of Caracal, said: "We have invested significant capital over the past two years on appraisal,development and exploration with positive results. During the first 6 months of2013 we have been able to test new reservoir horizons at Badila, apply modern3D seismic techniques over both the Mangara and the Badila developments andsurrounding exploration opportunities, and undertake intensive analysis of theexploration portfolio opportunities. We expect significant further progress in the second half of 2013 as we arecurrently testing new horizons in the lower Cretaceous E sands at Mangara, andpreparing to spud several new exploration and appraisal wells." Notes: When compared with the independent report on reserves and contingentresources with effective date December 31, 2012, prepared in accordance withthe COGE Handbook and National Instrument 51-101 - Reserves Data and Other Oil& Gas Information ("NI 51-101") (the "COGE Report"), issued on June 28, 2013,and as included in the Company's final long-form prospectus as dated and filedwith the Alberta Securities Commission on July 2, 2013 (the "CanadianProspectus"), the McDaniel Report represents the following percentage increasesas compared to the COGE report: For Gross Lease Reserves: (i) 20% for 1P, (ii)87% for 2P, and (iii) 74% for 3P; and for Caracal Net Entitlement Reserves: (i)14% for 1P, (ii) 78% for 2P, and (iii) 58% for 3P. Unless otherwise specified, all dollar values are in millions of US dollars($MM). Summary of Oil Reserves and Resources: The tables below summarize certain information contained in the independentreserves and resources reports prepared by McDaniel with effective dates ofJune 30, 2013. The McDaniel Report was prepared in accordance with thedefinitions, standards and procedures contained in the Canadian Oil and GasEvaluation Handbook ("COGE") and National Instrument 51-101, Standards ofDisclosure for Oil and Gas Activities ("NI 51-101"). The Net Present Values included in the table below were based on oil priceforecasts, effective July 1, 2013, provided by McDaniel. SUMMARY OF CRUDE OIL RESERVES AS AT JUNE 30, 2013 Summary of Undeveloped Reserves (in MMB)(1) Gross (100%)(2)(5) Company's Net Company's net Participating entitlement(4)(5) Interest(3)(5) 1P 2P 3P 1P 2P 3P 1P 2P 3P Asset Mangara 18.9 61.9 131.0 9.5 31.0 65.5 8.1 21.7 38.1Field Badila 15.8 45.5 85.0 7.9 22.7 42.5 4.7 11.4 19.3Field Kibea - 45.9 105.0 - 23.0 52.5 - 17.5 32.5Field Total 34.7 153.3 321.0 17.4 76.7 160.5 12.9 50.6 89.8Reserves Notes: (1) All of the Company's proved, probable and possible reserves have been classified as light and medium crude oil. The Company has no heavy crude oil. Based on current market conditions in Chad, neither reserves or values have been attributed to gas or natural gas liquid volumes. However, the Company has rights to monetise gas volumes and is currently discussing and assessing this market potential for the future. (2) Gross is the total marketable reserves assigned to the Company's concessions. (3) The Government of Chad has elected to acquire a 25 percent participating interest in the Badila and Mangara EXAs and McDaniel has assumed, for the purposes of estimating the Company's participating interest in any future EXAs which may be granted under each PSC, that the Government of Chad will continue to elect to acquire a 25 percent participating interest in each EXA. Accordingly, the Company's participating interests have been assumed to be 50 percent of the gross lease interests. (4) Net reserves are the Company's share Cost Oil recovery and Profit Oil. Under the COGE Handbook, using the economic interest method, "Net" as depicted above is equivalent to "company net" and, in the particular case of the Company's PSCs, "company gross". (5) Columns may not add due to rounding. SUMMARY OF CRUDE OIL CONTINGENT RESOURCES AS AT JUNE 30, 2013 Summary of Contingent Resource (in MMB)(1) Gross (100%)(2) Company's Net (4) Participating Interest(3)(4) 1C 2C 3C 1C 2C 3C Asset Maku Field 0.3 2.2 4.7 0.2 1.1 2.3 Sako North 0.1 0.7 2.0 0.0 0.4 1.0Field Tega Field 0.2 1.3 3.6 0.1 0.6 1.8 Total 0.6 4.2 10.3 0.3 2.1 5.2 Notes: (1) All of the Company's contingent resources have been classified as light and medium crude oil. The Company has no heavy crude oil. Based on current market conditions in Chad, neither contingent resources or values have been attributed to gas or natural gas liquid volumes. However, the Company has rights to monetise gas volumes and is currently discussing and assessing this market potential for the future. (2) Gross is the total marketable contingent resources assigned to the Company's concessions. (3) The Government of Chad has elected to acquire a 25 percent participating interest in the Badila and Mangara EXAs and McDaniel has assumed, for the purposes of estimating the Company's participating interest in any future EXAs which may be granted under each PSC, that the Government of Chad will continue to elect to acquire a 25 percent participating interest in each EXA. Accordingly, the Company's participating interests have been assumed to be 50 percent of the gross lease interests. (4) Columns may not add due to rounding. SUMMARY OF GROSS LEASE PROSPECTIVE RESOURCESAS AT JUNE 30, 2013 Prospective Resources - Crude Oil (5) Property Gross Prospective Resources(3) # of Prospects/ Risked Leads (4) Unrisked Resources(1)(2) Resources Low Median Mean High Mean (MMB) (MMB) (MMB) (MMB) (MMB) Sub-Total DOB Block 18 32.1 143.3 286.1 666.0 84.3 Sub-Total DOI Block 15 76.7 293.7 550.3 1,267.9 90.4 Sub-Total DOH Block 8 34.9 149.4 318.3 738.7 66.3 Sub-Total Borogop Block 4 34.7 118.6 200.9 447.4 32.3 Sub-Total Doseo Block 35 548.1 1,747.0 2,714.8 5,839.4 559.7 Total (3) 80 726.6 2,452.0 4,070.4 8,959.5 833.0 Note: (1) There is no certainty that any portion of the prospective resources will be discovered. If discovered, there is no certainty that it will be economically viable or technically feasible to produce any portion of the resources. (2) These are partially risked prospective resources that have been risked for chance of discovery, but have not been risked for chance of development. (3) Total and Sub-Total based on the probabilistic aggregation of zones within a prospect and arithmetic aggregation of the individual prospects to the Total and Sub-Total level. (4) There are Prospective Resources recognized within entities that Caracal have declared as either EXAs or as Discoveries in zones that do not have Reserve nor Contingent Resource assignments. (5) Columns may not add due to rounding. Oil Reserves Evaluation Summary: SUMMARY OF CRUDE OIL RESERVESAS AT JUNE 30, 2013FORECAST PRICES AND COSTS Light & Medium Crude Oil(1) Gross Lease Participating Company's Net (2)(5) Interest(3) Entitlement(4)(5)(MB)(6)Reserves Category (MB)(6) (5) (MB)(6) Proved Undeveloped Mangara 18,941 9,470 8,149 Badila 15,784 7,892 4,710 Kibea - - - Total Proved 34,725 17,362 12,859 Probable Undeveloped Mangara 43,001 21,501 13,579 Badila 29,672 14,836 6,668 Kibea 45,916 22,958 17,464 Total Probable 118,589 59,295 37,711 Total Proved plus Probable 153,314 76,657 50,569 Possible Undeveloped Mangara 69,089 34,544 16,332 Badila 39,497 19,748 7,932 Kibea 59,127 29,564 14,998 Total Possible 167,713 83,856 39,262 Total Proved plus Probable 321,027 160,513 89,831plus Possible Notes: (1) All of the Company's proved, probable and possible reserves have been classified as light and medium crude oil. The Company has no heavy crude oil. Based on current market conditions in Chad, neither reserves or values have been attributed to gas or natural gas liquid volumes. However, the Company has rights to monetize gas volumes and is currently discussing and assessing this market potential for the future. (2) Gross lease are the total marketable reserves assigned to the Company's concessions. (3) The Government of Chad has elected to acquire a 25 percent participating interest in the Badila and Mangara EXAs and McDaniel has assumed, for the purposes of estimating the Company's participating interest in any future EXAs which may be granted under each PSC, that the Government of Chad will continue to elect to acquire a 25 percent participating interest in each EXA. Accordingly, the Company's participating interests have been assumed to be 50 percent of the gross lease interests. (4) Net reserves are the Company's share Cost Oil recovery and Profit Oil. Under the COGE Handbook, using the economic interest method, "Net" as depicted above is equivalent to "company net" and, in the particular case of the Company's PSCs, "company gross". (5) Columns may not add due to rounding. (6) "MB" refers to thousands of barrels. SUMMARY OF NET PRESENT VALUE OF FUTURE NET REVENUE (US$)AS AT JUNE 30, 2013FORECAST PRICES AND COSTS Before and AfterTaxes Unit Value Before Deducting Income Taxes Before and After Income Tax(1)(2)(3) DiscountedReserves Category Discounted at ($MM) at 10%/year 0% 5% 10% 15% 20% ($/boe) Proved Undeveloped Mangara 396 322 267 226 194 32.76 Badila 285 265 248 234 221 52.65 Kibea - - - - - - Total Proved 681 587 516 460 415 40.09 Probable Undeveloped Mangara 623 500 414 351 303 30.49 Badila 378 316 269 232 204 40.34 Kibea 513 334 215 133 75 12.31 Total Probable 1,513 1,150 898 716 582 23.80 Total Proved plus 2,195 1,737 1,413 1,176 997Probable 27.94 Possible Undeveloped Mangara 971 657 469 348 268 28.72 Badila 578 400 289 216 165 36.43 Kibea 852 543 363 251 178 24.20 Total Possible 2,402 1,601 1,120 815 611 28.52 Total Proved plusProbableplus Possible 4,596 3,338 2,533 1,990 1,608 28.20 Notes: (1) For the purposes of estimating the Company's net present value of future net revenue, McDaniel assumed that the Government of Chad will continue to elect to acquire a 25 percent participating interest in each EXA. Accordingly, the Company's participating interests have been assumed to be 50 percent of the gross lease interests. (2) Pursuant to the terms of the DOB/DOI PSC and the Doseo/Borogop PSC, the Government of Chad's Profit Oil allocation is inclusive of income tax. (3) Columns may not add due to rounding. TOTAL COMPANY FUTURE NET REVENUE (UNDISCOUNTED) (US$)AS AT JUNE 30, 2013FORECAST PRICES AND COSTS Future Future Net Net Future Net Capital and Revenue Revenue Revenue Operating Abandonment Before Tax After Discounted Revenue Costs Costs Tax (1) Tax @ 10%Category ($MM) ($MM) ($MM) ($MM) ($MM) ($MM) ($MM) ProvedReserves 1,095.2 286.1 127.9 681.2 - 681.2 515.6 Proved PlusProbableReserves 4,281.4 1,366.4 720.5 2,194.5 - 2,194.5 1,413.0 Proved PlusProbablePlus PossibleReserves 8,122.1 2,573.2 952.3 4,596.5 - 4,596.5 2,532.9 Note: (1) Pursuant to the terms of the DOB/DOI PSC and the Doseo/Borogop PSC, the Government of Chad's Profit Oil allocation is inclusive of income tax. FUTURE NET REVENUE BY PRODUCTION GROUP (US$)AS AT JUNE 30, 2013FORECAST PRICES AND COSTS Future Net Revenue Before Income Taxes (discounted Unit at 10% year) Value(1)Category Production Group(2) ($mm) ($/boe) Light and Medium Crude Oil (includingProved Reserves solution gas and other by-products) 515.6 40.09 Proved Plus Light and Medium Crude Oil (includingProbable Reserves solution gas and other by-products) 1,413.0 27.94 Proved Plus Light and Medium Crude Oil (includingProbable Reserves solution gas and other by-products)PlusPossible Reserves 2,532.9 28.20 Notes: (1) The unit values are based on the Company's net reserve volumes. (2) All of the Company's proved, probable and possible reserves have been classified as light and medium crude oil. The Company has no heavy crude oil. Based on current market conditions in Chad neither reserves or values have been attributed to gas or natural gas liquid volumes. However, the Company has rights to monetize gas volumes and is currently discussing and addressing this market potential for the future. PRICING ASSUMPTIONS The forecast cost and price assumptions assume changes in wellhead sellingprices and take into account inflation with respect to future operating andcapital costs. McDaniel has employed the following price and inflation rateassumptions as of July 1, 2013 where evaluating the Company's reserves data: Brent Reference Realized Price(1) Inflation Rates(2)Year Price(1) (US$/bbl) %/Year 2012 (historical) 111.60 N/A N/A 2013 102.50 87.82 2 2014 101.00 86.21 2 2015 101.40 86.39 2 2016 100.80 83.26 2 2017 100.10 80.49 2 2018 102.20 81.56 2 2019 104.20 82.99 2 2020 106.30 84.54 2 Thereafter +2%/year Notes: (1) McDaniel has assumed a reference price of Brent (in US$) and utilized the McDaniel July 1, 2013 Price Forecast. The realized price is forecast to be 95 percent of Brent minus the estimated pipeline transportation tariff of US$8/bbl and the variable ITA Badila/Mangara and ITA East Doseo tariffs. The realized price given is the average for all the properties in McDaniel's 2P case. There is no production history for any of the PSCs and therefore no realized price is quoted for 2012. (2) Inflation rates for forecasting expenditure prices and costs. Reserves & Resources - Definitions & Classifications: Reserves Classification The oil reserves estimates presented in this report have been based on theCanadian reserves definitions and guidelines prepared by the Standing Committeeon Reserves Definitions of the CIM (Petroleum Society) as presented in the COGEHandbook. A summary of those definitions is presented below. Reserves Categories Reserves are estimated remaining quantities of oil and natural gas and relatedsubstances anticipated to be recoverable from known accumulations, from a givendate forward, based on · analysis of drilling, geological, geophysical and engineering data; · the use of established technology; and · specified economic conditions, which are generally accepted as beingreasonable, and shall be disclosed. Reserves are classified according to the degree of certainty associated withthe estimates. · Proved reserves are those reserves that can be estimated with a highdegree of certainty to be recoverable. It is likely that the actual remainingquantities recovered will exceed the estimated proved reserves. · Probable reserves are those additional reserves that are less certainto be recovered than proved reserves. It is equally likely that the actualremaining quantities recovered will be greater or less than the sum of theestimated proved plus probable reserves. · Possible reserves are those additional reserves that are less certainto be recovered than probable reserves. It is unlikely that the actualremaining quantities recovered will exceed the sum of the estimated proved plusprobable plus possible reserves. Other criteria that must also be met for thecategorization of reserves are provided in the COGE Handbook. Development and Production Status Each of the reserves categories (proved, probable and possible) may be dividedinto developed and undeveloped categories: · Developed reserves are those reserves that are expected to berecovered from existing wells and installed facilities or, if facilities havenot been installed, that would involve a low expenditure (for example, whencompared to the cost of drilling a well) to put the reserves on production. Thedeveloped category may be subdivided into producing and non-producing. · Developed producing reserves are those reserves that are expected tobe recovered from completion intervals open at the time of the estimate. Thesereserves may be currently producing or, if shut-in, they must have previouslybeen on production, and the date of resumption of production must be known withreasonable certainty. · Developed non-producing reserves are those reserves that either havenot been on production, or have previously been on production, but are shut-in,and the date of resumption of production is unknown. · Undeveloped reserves are those reserves expected to be recovered fromknown accumulations where a significant expenditure (for example, when comparedto the cost of drilling a well) is required to render them capable ofproduction. They must fully meet the requirements of the reservesclassification (proved, probable, possible) to which they are assigned. · In multi-well pools it may be appropriate to allocate total poolreserves between the developed and undeveloped categories or to subdivide thedeveloped reserves for the pool between developed producing and developednon-producing. This allocation should be based on the estimator's assessment asto the reserves that will be recovered from specific wells, facilities andcompletion intervals in the pool and their respective development andproduction status. Levels of Certainty for Reported Reserves The qualitative certainty levels referred to in the definitions above areapplicable to individual reserves entities (which refers to the lowest level atwhich reserves calculations are performed) and to reported reserves (whichrefers to the highest-level sum of individual entity estimates for whichreserves estimates are presented). Reported reserves should target thefollowing levels of certainty under a specific set of economic conditions: · at least a 90 percent probability that the quantities actuallyrecovered will equal or exceed the estimated proved reserves. This category ofreserves can also be denoted as 1P; · at least a 50 percent probability that the quantities actuallyrecovered will equal or exceed the sum of the estimated proved plus probablereserves. This category of reserves can also be denoted as 2P; and · at least a 10 percent probability that the quantities actuallyrecovered will equal or exceed the sum of the estimated proved plus probableplus possible reserves. This category of reserves can also be denoted as 3P.Additional clarification of certainty levels associated with reserves estimatesand the effect of aggregation is provided in the COGE Handbook. Contingent Resources Classification The assessment of the contingent resources in this report were based on theresource definitions presented in the COGE Handbook Section 5 and are restatedbelow. Contingent resources are defined as those quantities of petroleum estimated, asof a given date, to be potentially recoverable from known accumulations usingestablished technology or technology under development, but which are notcurrently considered to be commercially recoverable due to one or morecontingencies. Contingencies may include factors such as economic, legal,environmental, political and regulatory matters, or a lack of markets. It isalso appropriate to classify as contingent resources the estimated discoveredrecoverable quantities associated with a project in the early evaluation stage.Contingent resources are further classified in accordance with the level ofcertainty associated with the estimates and may be sub-classified based onproject maturity and/or characterized by their economic status. Uncertainty Categories Estimates of resources always involve uncertainty, and the degree ofuncertainty can vary widely between accumulations/projects and over the life ofa project. Consequently, estimates of resources should generally be quoted as arange according to the level of confidence associated with the estimates. Anunderstanding of statistical concepts and terminology is essential tounderstanding the confidence associated with resources definitions andcategories. The range of uncertainty of estimated recoverable volumes may berepresented by either deterministic scenarios or a probability distribution.Resources should be provided as low, best and high estimates, as follows: · Low Estimate - This is considered to be a conservative estimate ofthe quantity that will actually be recovered. It is likely that the actualremaining quantities recovered will exceed the low estimate. If probabilisticmethods are used, there should be at least a 90 percent probability (P90) thatthe quantities actually recovered will equal or exceed the low estimate. · Best Estimate - This is considered to be the best estimate of thequantity that will actually be recovered. It is equally likely that the actualremaining quantities recovered will be greater or less than the best estimate.If probabilistic methods are used, there should be at least a 50 percentprobability (P50) that the quantities actually recovered will equal or exceedthe best estimate. · High Estimate - This is considered to be an optimistic estimate ofthe quantity that will actually be recovered. It is unlikely that the actualremaining quantities recovered will exceed the high estimate. If probabilisticmethods are used, there should be at least a 10 percent probability (P10) thatthe quantities actually recovered will equal or exceed the high estimate. Contingent Resource Categories For Contingent Resources, the general cumulative terms low/best/high estimatesare denoted as 1C/2C/3C respectively. No specific terms are defined forincremental quantities within Contingent Resources. Prospective Resources Classification The assessment of the prospective resources in this report were based on theresource definitions presented in the COGE Handbook Section 5 and are re-statedbelow: Prospective resources are defined as those quantities of petroleum estimated,as of a given date, to be potentially recoverable from undiscoveredaccumulations by application of future development projects. Prospectiveresources have both an associated chance of discovery and a chance ofdevelopment. Prospective resources are further subdivided in accordance withthe level of certainty associated with recoverable estimates assuming theirdiscovery and development and may be sub-classified based on project maturity. Uncertainty Categories Estimates of resources always involve uncertainty, and the degree ofuncertainty can vary widely between accumulations/projects and over the lifeof a project. Consequently, estimates of resources should generally be quotedas a range according to the level of confidence associated with the estimates.An understanding of statistical concepts and terminology is essential tounderstanding the confidence associated with resources definitions andcategories. The range of uncertainty of estimated recoverable volumes may be represented byeither deterministic scenarios or a probability distribution. Resources shouldbe provided as low, best and high estimates, as follows: · Low Estimate - This is considered to be a conservative estimate ofthe quantity that will actually be recovered. It is likely that the actualremaining quantities recovered will exceed the low estimate. If probabilisticmethods are used, there should be at least a 90 percent probability (P90) thatthe quantities actually recovered will equal or exceed the low estimate. · Best Estimate - This is considered to be the best estimate of thequantity that will actually be recovered. It is equally likely that the actualremaining quantities recovered will be greater or less than the best estimate.If probabilistic methods are used, there should be at least a 50 percentprobability (P50) that the quantities actually recovered will equal or exceedthe best estimate. · High Estimate - This is considered to be an optimistic estimate ofthe quantity that will actually be recovered. It is unlikely that the actualremaining quantities recovered will exceed the high estimate. If probabilisticmethods are used, there should be at least a 10 percent probability (P10) thatthe quantities actually recovered will equal or exceed the high estimate. Cautionary Statements Certain information contained in this press release constitutes forward-lookinginformation or statements including, without limitation, information andstatements respecting: drilling operations, anticipated cash flow, futureinvestment objectives, anticipated oil and gas pricing, expected inflation andfuture foreign exchange rates. Statements relating to "reserves" and"resources" are forward-looking information as they involve the impliedassessment, based on certain estimates and assumptions that, among others, thereserves and resources described exist in the quantities predicted orestimated. Forward-looking information and statements are often, but notalways, identified by the use of words such as "anticipate", "seek", "believe","expect", "hope", "plan", "intend", "forecast", "target", "project","guidance", "may", " might", "will", "should", "could", "estimate", "predict"or similar words or expressions suggesting future outcomes or languagesuggesting an outlook. By their very nature, forward-looking information andstatements involve inherent risks and uncertainties, both general and specific,and risks that predictions, forecasts, projections and other forward-lookinginformation and statements will not be achieved. We caution readers not toplace undue reliance on these statements as a number of important factors couldcause the actual results to vary materially from the forward-lookinginformation or statements. These factors include, but are not limited to: thevolatility of oil and gas prices; production and development costs; capitalexpenditures; the imprecision of reserve and resource estimates and estimatesof recoverable quantities of oil, natural gas and liquids; the Company'sability to replace and expand oil and gas reserves; environmental claims andliabilities; incorrect assessments of value when making acquisitions ordispositions; increases in debt service charges; the loss of key personnel;the marketability of production; defaults by third party operators; unforeseentitle defects; fluctuations in foreign currency and exchange rates; inadequateinsurance coverage; compliance with environmental laws and regulations; changesin tax and royalty laws; the Company's ability to access external sources ofdebt and equity capital; and the Company's ability to obtain equipment in atimely manner to carry out development activities. Further informationregarding these factors may be found under the headings "General Advisory","Reserves and Resources Advisory" and "Risk Factors" in the Company's finalCanadian prospectus dated July 2, 2013 available under the Company's profile onSEDAR (www.sedar.com) and the final UK prospectus dated June 28, 2013 availableon the Company's website (to non-Canadian viewers). Readers are cautioned thatthe foregoing list of factors that may affect future results is not exhaustive.When relying on these forward-looking statements to make decisions with respectto the Company, investors and others should also carefully consider informationset forth in the section "Forward-Looking Statements" of the Company'sprospectuses respecting the assumptions upon which the Company bases certainforward-looking information and the uncertainties inherent in such assumptions.The Company does not assume responsibility for the accuracy and completeness ofthe forward-looking information or statements and such information andstatements should not be taken as guarantees of future outcomes. Subject toapplicable securities laws, the Company does not undertake any obligation torevise this forward-looking information or these forward-looking statements toreflect subsequent events or circumstances. This cautionary statement expresslyqualifies the forward-looking information and statements contained in thispress release. The estimates of reserves and future net revenue for individualproperties may not reflect the same level of confidence as estimates ofreserves and future net revenue for all properties, due to the effects ofaggregation. SOURCE: Caracal Energy Inc. For further information: Enquiries: Caracal EnergyGary Guidry, Chief Executive OfficerTrevor Peters, Chief Financial Officer+1 (403) 724 7200 FTI Consulting (UK media)Ben BrewertonEdward Westropp+44 (0) 20 7831 3113CaracalEnergy.sc@fticonsulting.com Longview (Canadian media)Alan Bayless +1-604-694-6035Joel Shaffer +1-416-649-8006

(CRCL)