Jagercor Energy Corp. (JEM:CSE) (the "Company" or "Jagercor") is pleased to announce an operational update of the Catriel Oeste Development Project.
Since the first well started producing oil in October, 2014 until August 31, 2015, gross cumulative production of the three wells drilled in the Catriel Oeste field reached 33,256 barrels of crude oil , generating net proceeds estimated in CAD 1.63 million, which represents the 70% take that Jagercor received from the total sales of crude oil. The actual price of crude oil in Argentina is USD 77 per barrel.
During August, the Company received payment of CAD 32 thousand related to the extra 3 USD/Bbl from the Government’s Crude Oil Production Stimulus Program pursuant to Resolution 12/2015, accounting for the production of January to March of the year 2015.
Related to production, as maintenance interventions were needed in wells RCO_2003 and RCO_2009 and the change of the artificial lift systems in order to reduce the number of pulling interventions and production losses, during August these accounted for production losses of approximately 350 barrels of oil. Today all three wells are fully operational and producing.
As stated in the Development Agreement, the Company has the option to drill up to five more wells in the concession. This decision will be based on the production volume evolution of the first three wells and the Catriel Oeste Concession being extended by Central.
Edgardo Russo, CEO of Jagercor stated, "We are glad to confirm that our business model is proving. We continue to grow cash, today approximately CAD 0.65 million, while holding negotiations with two different companies in order to continue growing our business in Argentina".
About Jagercor Energy Corp.
Jagercor Energy is a diversified, upstream oil and gas services company with capabilities in reservoir development, production optimization and production management. The Company has a skillful technical and highly trained management team with many years of operational experience in the oilfield operation sector in Argentina.
On behalf of the Board of Directors
JAGERCOR ENERGY CORP.
President & CEO
This news release includes certain information, with management’s assessment of Jagercor’s future plans and operations, and contains forward-looking statements which may include some or all of the following: production from new wells and anticipated completion of wells drilled. By their nature, forward-looking statements are subject to numerous risks and uncertainties; some of which are beyond Jagercor’s control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, environmental risks, changes in environmental, tax and royalty legislation, competition from other industry participants, the lack of availability of qualified personnel or management, the inherent uncertainties and speculative nature associated with oil and gas exploration, development and production including drilling risks, geological risks and others, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The principal assumptions Jagercor has made includes security of land interests, drilling cost stability, royalty rate stability, oil and gas prices to remain in their current range, finance markets continuing to be receptive to financing the Company and industry standard rates of geologic and operational success. Actual results could differ materially from those expressed in, or implied by, these forward-looking statements. Jagercor disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Reserves and Other Oil and Gas Disclosure
Jagercor has no working interest in the Property and does not claim to report any reserves, resources other than reserves or measurements thereof. Jagercor´s interest is limited to a funding agreement in the form of the Agreement entered into with Central.
Any references in this news release to test rates, flow rates, initial and/or final raw test or production rates, early production, test volumes behind pipe and/or "flush" production rates are useful in confirming the presence of hydrocarbons, however, such rates are not necessarily indicative of long-term performance or of ultimate recovery. Readers are cautioned not to place reliance on such rates in calculating the aggregate production for Jagercor or its partners.
All calculations converting natural gas to barrels of oil equivalent ("boe") have been made using a conversion ratio of six thousand cubic feet (six "Mcf") of natural gas to one barrel of oil, unless otherwise stated. The use of boe may be misleading, particularly if used in isolation, as the conversion ratio of six Mcf of natural gas to one barrel of oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
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