Calgary-based Devlan Exploration Inc. said Wednesday that its established reserves as of the first of the year were 5.27 million boe (gas converted at 6:1), an increase of 92% over the prior year. The evaluation conducted by Sproule Associates Limited showed the reserves consisted of 2.1 million barrels of oil and natural gas liquids plus 19.3 Bcf of natural gas.

The Sproule report added that Devlan’s proven reserves increased 116% on the year, with the addition of 1.9 million barrels of proven oil and natural gas liquids plus 3.9 Bcf of proven natural gas reserves.

Devlan said the valuation has a net present value at 10% of C$65,756,000, representing a 126% increase over last year, split 61% and 39% between natural gas and oil/natural gas liquids respectively. “The significant addition of light oil reserves from last year reflects Devlan’s conscious effort to have a more balanced production base with a natural gas priority,” the company said.

The publicly traded Canadian energy company said the “significant elevation” in reserves equates to a net asset value of $3.06/share based on 21.4 million common shares and a reserve value of $3.64/share.

Late last week, the company announced that it had entered into an agreement to acquire certain oil and gas holdings located in north central Alberta. The property produces net 256 boe/d consisting of 182 bbl/d of light oil and 445 Mcf/d of sweet gas and will become another new core area for the company.

Devlan noted that the acquisition is within an established field with existing infrastructure and 21 producing wells. This high working interest property covers 18,560 (net 15,515) acres in two contiguous blocks including 13,120 (net 11,560) undeveloped acres with a number of identified drilling opportunities.

A majority of the property is operated and is characterized by long life reserves of greater than 10 years, the company said. The field contains over 457,000 barrels and 784 MMcf of proven reserves based on a third-party engineering evaluation completed Jan. 1.

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