Corcel Regulatory News (CRCL)

Caracal Energy Inc. - Reserves & Resources Year-end Evaluation CALGARY, Feb. 26, 2014 /CNW/ - Caracal Energy Inc. ("Caracal" or the "Company")(LSE:CRCL) is pleased to announce today the results of its 2013 year-end oiland gas reserve and contingent resource evaluation. The independent reserves and resources evaluation was provided by McDaniel &Associates Consultants Ltd. ("McDaniel") and demonstrates a significantincrease in volumes from our prior year evaluation with an effective dateDecember 31, 2012. Highlights include : · Gross Lease Reserves · Proven ("1P") of 47.4 million barrels ("MMB"), an increase of 64% * · Proved plus Probable ("2P") of 179.6 MMB, an increase of 101% · Proved plus Probable plus Possible ("3P") of 388.6 MMB, an increase of 94% · Caracal Net Entitlement Reserves · 1P of 18.8 MMB, an increase of 67% · 2P of 64.3 MMB, an increase of 102% · 3P of 118.1 MMB, an increase of 85% · Caracal's Net Present Value attributable to Reserves (discounted at10% before tax) - all amounts in U.S. Dollars · 1P of $688 million, an increase of 24% · 2P of $1,722 million, an increase of 61% · 3P of $3,224 million, an increase of 71% *All comparisons above are relative to the Company's December 31, 2012 reservesand resources evaluation, provided by GLJ Petroleum Consultant Ltd. ("GLJ") ina statement of reserves and contingent resources effective December 31, 2012and included in the Company's United Kingdom prospectus. When compared withthe GLJ report on reserves and contingent resources with effective dateDecember 31, 2012, prepared in accordance with the Canadian Oil and GasEvaluation Handbook ("COGE Handbook") and National Instrument 51-101 - ReservesData and Other Oil & Gas Information ("NI 51-101") (the "COGE Report"), issuedon June 28, 2013, and as included in the Company's final long-form prospectusas dated and filed with the Alberta Securities Commission on July 2, 2013, the2013 year-end oil and gas reserve and contingent resource evaluation representsthe following percentage increases as compared to the COGE Report: For GrossLease Reserves: (i) 64% for 1P, (ii) 119% for 2P, and (iii) 111% for 3P; forCaracal Net Entitlement Reserves: (i) 67% for 1P, (ii) 127% for 2P, and (iii)107% for 3P; and for Net Present Value attributable to Reserves: (i) 24% for1P, (ii) 61% for 2P, and (iii) 75% for 3P. Gary Guidry, Chief Executive Officer of Caracal, said:"We are pleased to report another year of significant growth in oil reservevolumes on our Production Sharing Contracts ("PSC") in Chad. Since 2011 whenthe PSCs were awarded, we have grown gross lease 2P Reserves volumes by 439%.We look forward to delivering further growth as we continue to execute on ourextensive exploration, appraisal and development programs." The following tables summarize certain information contained in the independentreserves and resources report prepared by McDaniel & Associates ConsultantsLtd. ("McDaniel" as of December 31, 2013 (collectively, the "McDaniel Report"or the "Report"). The Report was prepared in accordance with definitions,standards and procedures contained in the COGE Handbook and NI 51-101.Additional reserve information as required under NI 51-101 will be included inthe Company's Annual Information Form which will be filed on SEDAR on or beforeMarch 31, 2014. Unless otherwise specified, all dollar values are in millions of US dollars($MM). Summary of Oil Reserves and Resources: 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 RESERVESAS AT DECEMBER 31, 2013 Summary of Reserves (in MMB)(1) Gross (100%)(2)(5) Company's Net Company's net Participating entitlement(4)(5) Interest(3)(5) PDP 1P 2P 3P PDP 1P 2P 3P PDP 1P 2P 3P Asset Mangara - 22.2 69.9 145.5 - 11.1 34.9 72.8 - 9.6 24.9 45.0Field Badila 9.1 21.3 44.7 95.3 4.5 10.6 22.4 47.6 3.8 7.5 14.1 25.3Field Krim Field - 3.9 19.0 42.7 - 1.9 9.5 21.4 - 1.8 7.7 15.2 Kibea Field - - 45.9 105.0 - - 23.0 52.5 - - 17.6 32.6 Total 9.1 47.4 179.6 388.6 4.5 23.7 89.8 194.3 3.8 18.8 64.3 118.1Reserves 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 initially elected to acquire a 25 percent participating interest in the Badila and Mangara EXAs before selling 10 percent to Glencore. 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 elect to acquire a 25 percent participating interest in each EXA. Accordingly, the Company's and Glencore's participating interests have been assumed to be 50 percent and 25 percent, respectively, of the gross lease interest in future developments. (4) Net reserves are the Company's share of Cost Oil recovery and Profit Oil. A portion of the reported reserves will increase as oil prices decrease (and vice versa) as the barrels necessary to achieve cost recovery change with prevailing oil prices. 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 RESOURCESAS AT DECEMBER 31, 2013 Summary of Contingent Resource (in MMB)(1) Gross (100%)(2)(4) Company's Net 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 Field 0.1 0.7 2.0 0.0 0.4 1.0 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 initially elected to acquire a 25 percent participating interest in the Badila and Mangara EXAs before selling 10 percent to Glencore. 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 elect to acquire a 25 percent participating interest in each EXA. Accordingly, the Company's and Glencore's participating interests have been assumed to be 50 percent and 25 percent, respectively, of the gross lease interest in future developments. (4) Columns may not add due to rounding. Oil Reserves Evaluation Summary: SUMMARY OF CRUDE OIL RESERVESAS AT DECEMBER 30, 2013FORECAST PRICES AND COSTS Light & Medium Crude Oil(1) Reserves Category Gross Lease(2) Participating Company's Net (5) Interest(3)(5) Entitlement(4) (5) (MB)(6) (MB)(6) (MB)(6) Proved Developed Producing Mangara - - - Badila 9,076 4,538 3,750 Krim - - - Kibea - - - Total Proved DevelopedProducing 9,076 4,538 3,750 Proved Undeveloped Mangara 22,217 11,109 9,559 Badila 12,204 6,102 3,749 Krim 3,886 1,943 1,783 Kibea - - - Total Proved Undeveloped 38,307 19,154 15,091 Total Proved 47,384 23,692 18,840 Probable Mangara 47,678 23,839 15,321 Badila 23,450 11,725 6,591 Krim 15,143 7,571 5,907 Kibea 45,916 22,958 17,640 Total Probable 132,187 66,093 45,459 Total Proved plus Probable 179,570 89,785 64,299 Possible Mangara 75,627 37,813 20,083 Badila 50,540 25,270 11,255 Krim 23,699 11,849 7,539 Kibea 59,127 29,564 14,927 Total Possible 208,993 104,497 53,805 Total Proved plus Probable 388,563plus Possible 194,282 118,104 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 initially elected to acquire a 25 percent participating interest in the Badila and Mangara EXAs before selling 10 percent to Glencore. 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 elect to acquire a 25 percent participating interest in each EXA. Accordingly, the Company's and Glencore's participating interests have been assumed to be 50 percent and 25 percent, respectively, of the gross lease interest in future developments. (4) Net reserves are the Company's share of 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$)AS AT DECEMBER 31, 2013FORECAST PRICES AND COSTS Before and After Taxes Before and After Income Tax(1)(2) Unit Value (3) Discounted at Before (millions of dollars) Deducting Income TaxesReserves Category Discounted at 10%/year 0% 5% 10% 15% 20% ($/boe) Proved Developed Producing Mangara - - - - - - Badila 222 208 196 185 176 52.30 Krim - - - - - - Kibea - - - - - - Total Proved Developed 222 208 196 185 176 52.30Producing Proved Undeveloped Mangara 411 337 281 237 202 29.42 Badila 224 203 185 170 157 49.36 Krim 44 33 25 20 15 14.29 Kibea - - - - - - Total Proved Undeveloped 679 573 492 427 375 32.59 Total Proved 901 782 688 612 551 36.51 Probable Mangara 805 616 484 389 319 31.62 Badila 346 296 258 227 203 39.13 Krim 195 142 104 78 59 17.65 Kibea 490 306 188 109 56 10.66 Total Probable 1,837 1,361 1,035 804 637 22.76 Total Proved plus Probable 2,738 2,143 1,723 1,416 1,188 26.79 Possible Mangara 1128 786 577 442 350 28.75 Badila 738 540 414 330 270 36.81 Krim 366 248 173 123 90 22.88 Kibea 836 518 337 228 158 22.60 Total Possible(3) 3,068 2,092 1,501 1,123 868 27.91 Total Proved plus Probableplus Possible(3) 5,806 4,235 3,224 2,539 2,056 27.30 Notes: (1) The Government of Chad initially elected to acquire a 25 percent participating interest in the Badila and Mangara EXAs before selling 10 percent to Glencore. 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 elect to acquire a 25 percent participating interest in each EXA. Accordingly, the Company's and Glencore's participating interests have been assumed to be 50 percent and 25 percent, respectively, of the gross lease interest in future developments. (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 DECEMBER 31, 2013FORECAST PRICES AND COSTS Capital and Future Future Future Net Net Net Operating Abandonment Revenue Income Revenue Revenue Revenue Costs Costs Before Tax After Discounted Tax Tax @ ($000's) ($000's) ($000's) ($000's) ($000's) 10%Category ($000's) ($000's) Proved 1,619,300 405,200 313,400 900,900 - 900,900 687,800Reserves ProvedPlus 5,416,100 1,516,200 1,162,300 2,737,600 - 2,737,600 1,722,400ProbableReserves ProvedPlusProbable 10,484,200 3,044,200 1,634,300 5,805,700 - 5,805,700 3,223,900PlusPossibleReserves Note: (1) Pursuant to the terms of the DOB/DOI PSC and the Doseo/Borogop PSC, the Government of Chad's Profit Oil allocation is inclusive of income tax. FUTURE NET REVENUE BY PRODUCTION GROUP (US$)AS AT DECEMBER 31, 2013FORECAST PRICES AND COSTS Future Net Revenue Before Income Taxes (discounted Unit Value at 10% year) (1)Category Production Group(2) ($000's) ($/boe) Light and Medium Crude Oil (including solution gas and otherProved Reserves by-products) 687.8 36.51 Light and Medium Crude Oil (including solution gasProved Plus Probable and otherReserves by-products) 1,722.4 26.79 Light and Medium CrudeProved Plus Probable OilReserves (including solution gasPlus Possible and otherReserves by-products) 3,223.9 27.30 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: Inflation Brent Reference Realized Rates(2)Year Price(1) (US$/bbl) Price(1) %/Year 2014 105.00 90.87 2 2015 102.50 88.91 2 2016 100.20 86.55 2 2017 97.70 82.00 2 2018 98.00 80.24 2 2019 96.60 81.11 2 2020 98.50 82.77 2 2021 100.50 83.82 2 Thereafter +2%/year Notes: (1) McDaniel has assumed a reference price of Brent (in US$) and utilized the McDaniel January 1, 2014 Price Forecast. The realized price is forecast to be 95 percent of Brent minus the estimated pipeline transportation tariff of US$7.09/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. (2) Inflation rates for forecasting expenditure prices and costs. Reserves & Resources - Additional Information: Reserves Classification The oil reserves estimates presented in this press release have been based onthe Canadian reserves definitions and guidelines prepared by the StandingCommittee on Reserves Definitions of the CIM (Petroleum Society) as presentedin the COGE Handbook. 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 press release were based onthe resource definitions presented in the COGE Handbook Section 5 and arerestated below. 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. Risks and Uncertainties The recovery of resources is subject to significant risk and uncertainty. Thereis no certainty that it will be commercially viable to produce any portion ofthe contingent resources reported herein. The contingent resource estimates inthis press release are not currently classified as reserves primarily due toeconomic considerations. In order to develop Kibea, Maku, Tega, and Sako Northconstruction of a pipeline of approximately 500 kilometres at an estimated costof US$381 million is required. BOE This press release includes references to BOEs. References to "BOE" may bemisleading, particularly if used in isolation. A BOE conversion ratio of sixthousand cubic feet of gas to one barrel of oil is based on an approximation ofenergy equivalence conversion method primarily applicable at the burner tip anddoes not represent a value equivalency at the well head. 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; themarketability 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. For more information about the Company including further risk factors, pleaseconsult Caracal's public filings at www.sedar.com and for certain foreigninvestors at Caracal's website www.caracalenergy.com SOURCE: Caracal Energy Inc. For further information: Caracal Energy Inc.Gary Guidry, President and Chief Executive OfficerTrevor Peters, Chief Financial Officer+1 403-724-7200 Longview Communications - Canadian Media EnquiriesAlan BaylessJoel Shaffer+1 604-694-6035+1 416-649-8006 FTI Consulting - UK Media EnquiriesBen Brewerton / Ed Westropp+ 44 (0) 207 8313 3113caracalenergy.sc@fticonsulting.com

(CRCL)