FinancialNewsMedia.com News Alert: VANCOUVER, British Columbia, – (http://www.financialnewsmedia.com News Alert) – Molori Energy Inc. (OTCQB: MOLOF)(TSXV: MOL) (“Molori” or the “Company”) is pleased to provide an operational and National Instrument 51-101 reserve report (“NI 51-101″) update.
Molori currently owns a 25 percent working interest in certain leases located in the bifurcated Texas panhandle owned by Texas-based independent oil and gas producer Ponderosa Energy, LLC (“Ponderosa”). This latest NI 51-101 covers 66 of the leases in which Molori holds a working interest. Work is ongoing in a further 13 leases owned by Molori and Ponderosa, but not covered by this report. It is anticipated that the leases not covered by this report will constitute part of the next NI 51-101 presently being prepared on behalf of Ponderosa.
In summary, the initial projected average production was 40 barrels of oil equivalent per day (“BOEPD”)* in June 2016, when Molori made its first investment into Ponderosa. For the month of January 2017, production averaged 280 BOEPD, a 600% increase in daily average production. This production increase is due primarily to an aggressive work-over plan employing working capital committed by Molori to return non-producing wells to production, while keeping Lease Operating Expenses low due to tight cost controls and already established management. Read this and more news for Molori Energy at http://financialnewsmedia.com/profiles/molof.html
Further, the initial NI 51-101 dated April 1, 2016 resulted in US$5.15 million of 1P (Total Proven Reserves) consisting of US$1.25 million PDP (Proved Developed Producing) and US$2.89 million PDNP (Proved Developed non-Producing). The new updated NI 51- 101 dated March 08, 2017, effective January 2017 and prepared by Amiel David, Ph.D of PeTech Enterprises Inc, has resulted in US$26.9 million 1P (Total Proven Reserves), a 420% increase, including USD$16.26 million in PDP and US$10.65 million PDNP. The resulting increase is a result of a successful work-over plan, and the fact that Ponderosa had as many as 10 work-over rigs employed during much of that time.
The NI 51-101 was prepared in accordance with standards set out in the Canadian Oil and Gas Evaluation Handbook (the “COGE…