US-based Vanguard Energy’s proven oil reserves value has increased to $35.8m based on a PV-10 calculation as of 30 September, a 13% rise compared to the same period last year.
With the calculation based on 620,000 barrels of proven reserves, the rise is about 3% over the amount during the same time last year.
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Of the total 620,000 barrels of proven reserves, about 30% is considered as PDP (proved developed producing), 12% is categorised as PDNP (proved developed non-producing) and 58% is considered as PUD (proved un-developed).
The company gets significant growth opportunity with a low-cost, low-risk development drilling programme with the PUD factor.
Vanguard produced about 48,500 barrels of oil from the field and achieved a reserve replacement rate of 125%.
The company also reported that its production increased from 3,350 barrels per month in October 2011 to 6,300 barrels in October 2012.
Vanguard intends to drill two new wells at the end of 2012 which will increase the production as well as carry on the company’s plan to move reserves to the proved category.
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By GlobalDataOf these two drilling wells, one is from recently acquired acreage at the Hull-Daisetta field.
Vanguard Energy president Warren Dillard said that the report is satisfying as it is validating the inherent value of the company by industry-wide standards.
"When we started this company we did so with a focus on building shareholder value, and the fact that we were able to grow proven reserves by 125% of our annual production demonstrates that commitment," said Dillard.
"We continue to pursue our active drilling programme, including on the recently acquired Hull-Daisetta field lease where success there will add further reserves to these values."
