EMBER RESOURCES INC. ANNOUNCES 2007 YEAR END RESERVES AND CONTINGENT RESOURCES
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February 19, 2008 - Calgary, Alberta
Ember Resources Inc. ("Ember") today released its 2007 year-end reserve report together with its 2007 contingent resource report. Complete reserve and contingent resource disclosure based on National Instrument 51-101-Standards of Disclosure for Oil and Gas Activities (“NI 51-101”) will be included in Ember’s Annual Information Form (“AIF”) which will be filed on SEDAR in March 2008.
Reserve/Resource Highlights
• An 87% increase in proved plus probable reserves resulted from the acquisition of a coal bed methane (“CBM”) property at Acme, Alberta together with growth and reserve category reclassification from the drilling of 37.3 net wells. Proved plus probable reserves totaled 51.3 Bcf up from 27.4 Bcf in 2006. Proved developed producing reserves increased 77% to 14.5 Bcf. Proved plus probable reserves per share increased 58% from 2006.
• Unaudited capital expenditures are estimated at $29.6 million for 2007 including the $8.75 million acquisition cost for the Acme property. Ember’s total finding development and acquisitions costs, before changes in future capital, are estimated at $9.66/boe for proved reserves and $6.84/boe for proved plus probable reserves. Including changes in future capital, the finding and development and acquisition costs are estimated at $16.54/boe proved and $11.81/boe proved plus probable.
• Operating net backs for 2007 (unaudited) are estimated at $25.89/boe resulting in an estimated recycle ratio, including changes in future capital, of 1.6 for proved reserves and 2.2 for proved plus probable reserves. Ember’s low operating costs of $7.96/boe and low royalty rate of 7% contributed to the strong operating and recycle ratio performance despite a relatively weak gas price of $6.27/mcf experienced in 2007.
• Reserve life index is estimated at 5.6 years proved producing, 10.6 years total proved and 15.5 years for proved plus probable reserves. Substantially all of Ember’s reserves are derived from Horseshoe Canyon CBM reserves at Fenn Big Valley and Acme Alberta.
• Ember continues to be exposed to significant CBM resource upside in the Mannville coals. The Company’s share of technically recoverable natural gas is estimated in a range of 88-423 Bcf.
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FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements including expectations of future production, cash flow and earnings. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Additional information on these and other factors that could affect the Company’s operations or financial results are included in the Company’s reports on file with Canadian securities regulatory authorities.
Ember Resources Inc. is a resource company specializing in coal bed methane (CBM) with extensive land and resource holdings in Alberta, Canada. Ember’s shares are traded on the Toronto Stock Exchange under the trading symbol “EBR”.
FOR FURTHER INFORMATION PLEASE CONTACT
Mr. Douglas A. Dafoe
President & C.E.O.
Ember Resources Inc.
Telephone: 403 270-0803
Facsimile: 403 270-2850
Mr. Terry S. Meek
Executive Vice President & C.O.O.
Ember Resources Inc.
Telephone: 403 270-0803
Facsimile: 403 270-2850
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