The following table outlines Surge's NAV per Basic and Fully Diluted Share (unaudited) using the Proved plus Probable reserve value at December 31, 2012 and forecast pricing and costs:

($MM except share amounts)  
Proved Plus Probable Reserve Value NPV10 BT
(incl. future capital)
732
Undeveloped Land (486,763acres @ approximately $150/acre) 74
Estimated Net Debt (unaudited) (220)
Option Proceeds 43
Total Net Assets (basic) 585
Total Net Assets (fully diluted) 628
Basic Shares Outstanding (000's) 71,217
Fully Diluted Shares Outstanding (000's) 77,957
Estimated NAV per Basic Share $8.21
Estimated NAV per Fully Diluted Share $8.05

 

The following table outlines Surge's reconciliation of estimated gross Proved plus Probable8 reserves as at December 31, 2012.

 

  Total Crude Oil
(mbbl)
NGLs
(mbbl)
Natural Gas
(mmcf)
Total Boe
(mboe)
December 31, 2011 16,816 2,378 78,078 32,207
Acquisition 5,124 - - 5,124
Disposition (205) - (21) (209)
Extensions 1,278 108 2,647 1,827
Improved Recovery 5,545 32 1,671 5,855
Infill 6,532 664 18,538 10,285
Technical Revision (3,494) (532) (9,585) (5,623)
Production (2,117) (155) (5,926) (3,259)
Economic Factor (52) (4) (151) (82)
December 31, 2012 29,426 2,490 85,251 46,125
  • Surge's Net Asset Value (NAV) is estimated at $8.21 per basic share based on Net Present Value discounted at 10 percent Before Tax ("NPV10 BT") Proved plus Probable (2P) reserves at December 31, 2012.
     
  • Surge's Net Asset Value (NAV) is estimated at $5.29 per basic share based on NPV10 BT Proved (1P) reserves at December 31, 2012.
     
  • Increased Proved plus Probable reserves by 43 percent to 46.1 million boe over December 31, 2011 reserves of 32.2 million boe.
     
  • Increased Proved plus Probable Reserves per share by 29 percent (fully diluted).
     
  • Increased Proved plus Probable Oil and NGLs reserves by 66 percent to 31.9 million barrels over December 31, 2011 reserves of 19.2 million barrels.
     
  • Oil and NGLs made up 69 percent of the Company's total Proved plus Probable reserves.
     
  • Achieved Proved plus Probable finding and development ("F&D") costs of $23.70 per boe, including the change in FDC.
     
  • Achieved Proved plus Probable FD&A costs of $23.32 per boe, including the change in FDC.
     
  • Proved plus Probable FDC of $257 million represents less than 2.4 times 2013 forecast average funds flow3.
     
  • Achieved a corporate recycle ratio of 1.5 with F&D costs of $23.70 per boe, including the change in FDC and based on Surge's estimated 2012 netback of $34.67 per boe4.
     
  • Surge achieved Proved plus Probable recycle ratios of 2.8, 2.6 and 2.2 at Valhalla, Silver Area and Nipisi, respectively5.
     
  • Approximately 82 percent of the Proved plus Probable reserves value (NPV10 BT) comes from Surge's three core areas of Valhalla, Silver Area and Nipisi.
     
  • Increased Net Present Value NPV10 BT of Proved plus Probable reserves by 25 percent to $732 million compared to $588 million as at December 31, 2011.  Overall, the positive corporate reserves and values were realized from strong reserve additions in these core areas (Valhalla, Silver Area and Nipisi) and were partially offset by significant technical revisions at Waskada and Windfall. In addition, the change in Sproule's forecast prices from the 2011 year-end independent reserves report negatively impacted the Proved plus Probable reserves value (NPV10 BT) by approximately nine percent.
     
  • Achieved a Proved plus Probable Reserve Life Index ("RLI") of 14.0 years based on the Company's 2012 fourth quarter average production rate of approximately 9,050 boe per day.
     
  • Achieved a Proved plus Probable reserves replacement ratio of 5.3 based on the Company's estimated 2012 average production for the year of 8,900 boe per day.

http://ca.finance.yahoo.com/news/surge-energy-inc-announces-significant-110000643.html