Silverbirch Energy Corporation (TSXV:SBE)
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CALGARY, Feb. 8 /CNW/ --
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE
UNITED STATES/
TSX V Trading Symbol: SBE
CALGARY, Feb. 8 /CNW/ - SilverBirch Energy Corporation ("SilverBirch" or
the "Corporation") is pleased to announce an increase to its contingent
bitumen resource estimates following an independent review of the
bitumen resources attributable to its major oil sands projects, the
Frontier and Equinox Oil Sands Mining Projects.
Sproule Unconventional Limited ("Sproule") has prepared an independent
opinion of the contingent bitumen resources of SilverBirch effective as
of December 31, 2010. Sproule's work on the Frontier and Equinox
Projects included a geological evaluation and a technical review of the
mine, tailings and extraction plans of the Frontier and Equinox
Projects.
"We are very pleased to advise that the best estimate has increased from
1,450 to 2,449 million barrels for the Frontier Project and from 330 to
375 million barrels for the Equinox Project", announced Howard Lutley,
President and Chief Executive Officer of SilverBirch. "The total best
estimate of the Frontier and Equinox Projects is 2,824 million barrels
with 50% of that resource, or 1,412 million barrels owned by
SilverBirch. This equates to a 58% increase in the best estimate."
These increases reflect the culmination of a significant amount of work
over the last year to advance the Frontier and Equinox Projects to the
regulatory application stage, and indicate the maturity of the project
planning. Specifically, the factors contributing to the higher resource
totals include: the additional engineering recently completed for the
pre-feasibility study; the results from the 68 core holes drilled in
the resource infill drilling program in early 2010; additional
geotechnical data collection and analysis which was also conducted
during 2010; and an increase in the total volume to bitumen in place
ratio (TV:BIP) from 12:1 to 16:1 for the mine pit, which in the
Corporation's view is supported by the current economic environment and
resource conservation practices. The mine plan, as reviewed by Sproule
will form the basis of the Corporation's mine development plan and
regulatory application, which we anticipate will be submitted in the
third quarter of 2011.
SilverBirch Energy Corporation
Contingent Bitumen Resources(1)
as of December 31, 2010
_______________________________________________________________
| | Project 100% |SilverBirch's Gross Share|
| Project | (Millions of | (SilverBirch's 50% |
| | Barrels) | Working Interest) |
| | | (Millions of Barrels) |
|_______________|_____________________|_________________________|
| | Low |Best | High |Low|Best | High |
|_______________|_____|_____|_________|___|_____|_______________|
| Frontier |1,509|2,449| 2,743 |755|1,224| 1,371 |
|_______________|_____|_____|_________|___|_____|_______________|
| Equinox | 286 | 375 | 420 |143| 188 | 210 |
|_______________|_____|_____|_________|___|_____|_______________|
| Total | |2,824| | |1,412| |
|_______________|_____|_____|_________|___|_____|_______________|
(1)The term "contingent resources" is taken from the Canadian Oil and Gas
Evaluation Handbook ("COGE Handbook") as published by the Society of
Petroleum Evaluation Engineers (Calgary Chapter) and the Petroleum
Society of Canada. The volumes listed in the chart above entitled,
"Contingent Bitumen Resources" refer to potentially recoverable volumes
of asphaltene reduced bitumen resources. The volumes of contingent
bitumen resources in the above chart were calculated at the outlet of
the proposed extraction plant. There is no certainty that it will be
commercially viable to produce any portion of the contingent bitumen
resources.
Methodology
The preparation and disclosure of the reported resource estimates are
the responsibility of SilverBirch's management and require approval by
the Corporation's Audit and Reserves Committee and Board of Directors.
Sproule's responsibility is to express an opinion on the contingent
bitumen resources data based on the evaluation and review. Sproule
carried out the evaluation and review in accordance with standards
established by National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities. These standards require that the contingent resources estimates be
prepared in accordance with the COGE Handbook.
Contingent resources are defined in the COGE Handbook as those
quantities of petroleum estimated, as of a given date, to be
potentially recoverable from known accumulations using established
technology or technology under development, but which are not currently
considered to be commercially recoverable due to one or more
contingencies. Contingencies may include factors such as economic,
legal, environmental, political and regulatory matters or a lack of
markets. It is also appropriate to classify as ''contingent resources''
the estimated discovered recoverable quantities associated with a
project in the early project stage.
There is no certainty that either the Frontier Project or the Equinox
Project will produce any portion of the volumes currently classified as
"contingent resources". The primary contingencies which currently
prevent the classification of the contingent resources disclosed in the
table above as reserves consist of: current uncertainties around the
specific scope and timing of the development of each of the Frontier
and Equinox Projects; lack of regulatory approvals for such projects;
the uncertainty regarding marketing plans for production from the
subject areas; improved estimation of project costs; commodity price
fluctuations, timing, costs estimates and final Board of Directors
approval of each of SilverBirch and Teck Resources Limited.
The Frontier Project is one of the largest remaining undeveloped
mineable oil sands projects. It is adjacent to Shell's Pierre River
Prospect and across the Athabasca River from the Fort Hills Project.
While the leases are in an area of proposed active oil sands
development, it should be noted that currently ground access is only
available during the winter months. Provision of year round access,
utility and product transport infrastructure is being incorporated into
the current engineering studies and the costs for such infrastructure
will be included in future capital cost estimates.
Contingent resources do not constitute, and should not be confused with,
reserves. There is no certainty that it will be commercially viable to
produce any portion of the contingent resources on any of the above
mentioned properties.
For further information including risk factors, please see SilverBirch's
Management Discussion and Analysis for the period ended September 30,
2010 which was filed on SEDAR at www.sedar.com and the Corporation's website at www.silverbirchenergy.com.
About SilverBirch
SilverBirch Energy Corporation is a pre-production oil sands company
headquartered in Calgary, Alberta, Canada. SilverBirch has a rich
portfolio of mining and in situ oil sands properties, including 50%
ownership of the Frontier and Equinox Projects. To learn more, please
visit www.silverbirchenergy.com.
FORWARD-LOOKING INFORMATION: This news release contains
"forward-looking information" within the meaning of applicable
securities laws. Forward-looking information is frequently
characterized by words such as "plan", "expect", "project", "intend",
"believe", "anticipate", "estimate" and other similar words, or
statements that certain events or conditions "may" or "will" occur.
The forward-looking information in this news release relates,, but is
not limited to, statements with respect to the Corporation's
anticipated regulatory application and the development of the
Corporation's properties. In addition information relating to
"resources" is forward-looking information, as it involves the implied
assessment, based on estimates and assumptions, that the resources
described exist in the quantities predicted or estimated, and can be
profitably produced in the future.
The forward-looking information set out in this news release, is based
on certain expectations and assumptions regarding, among other things,
the exploration, delineation and development of the Frontier and
Equinox Projects' geological and engineering estimates; the geography
of the areas in which SilverBirch will be exploring; and the
sufficiency of budgeted capital expenditures in carrying out planned
activities. These expectations and assumptions are based on certain
factors and events that are not within the control of SilverBirch and
there is no assurance they will prove to be correct.
Forward-looking information is subject to known and unknown risks and
uncertainties and other factors which may cause actual results, levels
of activity and achievements to differ materially from those expressed
or implied in such forward-looking information. Such risks,
uncertainties and factors include, among others, the risk that the
regulatory application in respect of the Frontier and Equinox Projects
will not be submitted in the timeframe or on the terms expected or at
all; risks relating to the early stage of development of SilverBirch
and the Frontier and Equinox Projects; and the general risks associated
with exploring for, developing and producing bitumen. In addition,
there are numerous uncertainties inherent in estimating bitumen,
including many factors beyond the Corporation's control, and no
assurance can be given that the indicated level of bitumen or the
recovery thereof will be realized. In general, estimates of bitumen are
based upon a number of factors and assumptions made as of the date on
which the resource estimates were determined, such as geological and
engineering estimates, certain TV:BIP ratios and pit boundaries, which
have inherent uncertainties. Additional risks relating to the business
and operations of SilverBirch are set forth in the Corporation's
continuous disclosure documents filed under the Corporation's profile
on SEDAR at www.sedar.com.
SilverBirch undertakes no obligation to update forward-looking
information if circumstances or management's estimates or opinions
should change except as required by law. The reader is cautioned not
to place undue reliance on forward looking information.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER
(AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE)
ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
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pHoward Lutley, President and Chief Executive Officer, at 403-538-7030/p