Return Energy announces significant increase in 2P reserves

Reader AdvisoriesInformation Regarding Disclosure on Oil and Gas Reserves. Actual crude oil, natural gas and natural gas liquids reserves may be greater than or less than the estimates provided in the Reserve Report.  The forecast cost and price assumptions used in the Reserve Report assume increases in wellhead selling prices and take into account inflation with respect to future operating and capital costs and are net of the associated royalties, operating costs, development costs, and abandonment and reclamation costs and are stated prior to provision for interest and general and administrative expenses.  Light crude oil, conventional natural gas and natural gas liquids benchmark reference pricing, inflation and exchange rates utilized by Sproule in the Reserve Report were Sproule’s forecast as at December 31, 2018.  Net present values have been presented on a before tax basis. Net present value of reserves do not represent fair market value.

Forward-Looking Statements.  This news release contains forward-looking statements and information. More particularly, this document contains statements and information concerning the timing of drilling, pipeline installations and general field operations. Forward-looking information is frequently characterized by words such as “anticipate”, “plan”, “expect”, “project”, “intend”, “will”, “believe”, “anticipate”, “estimate”, “scheduled”, “potential”, or other similar words, or statements that certain events or conditions “may”, “should” or “could” occur.  Use of the word “vertical” in describing a wellbore may include wells that are deviated slightly as opposed to wellbores that are horizontal. The forward-looking statements and information are based on certain key expectations and assumptions made by Return, including expectations and assumptions concerning availability of equipment, available funds and receipt of required regulatory approval. Although Return believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Return can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks that required regulatory approvals are not obtained and that specific equipment is delayed or not available. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by the Company at the time of preparation, may prove to be incorrect and readers are cautioned not to place undue reliance on forward-looking information, which speaks only as of the date hereof. The Company does not undertake any obligation to release publicly any revisions to forward-looking information contained herein to reflect events or circumstances that occur after the date hereof or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

BOE Presentation. References herein to “BOE” mean barrels of oil equivalent derived by converting gas to oil in the ratio of six thousand cubic feet (mcf) of gas to one barrel (bbl) of oil. BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 bbl is based on an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. In addition, given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

SOURCE Return Energy Inc