Hello Shareholders
This message provides an explanation of the most recent press release, ANGKOR RESOURCES’ ANNUAL RESERVE REPORT 51-101f1 ON SASKATCHEWAN OIL & GAS PROJECT STATES INCREASED PROVED AND PROBABLE RESERVES | Angkor Resources Corp. , which is a summary on the Evesham Canadian oil/gas/water project in Saskatchewan.
As part of the regulatory requirements, Angkor needs to complete an independent 51-101 Reserve report on our Canadian oil and gas holdings each year. There are a series of assumptions made with these reports, but the main ‘’takeaway’ from our first annual report is that there is a significant increase in the value on the property, as we continue to add water injection wells and inject water into the formation.
To recap, Angkor, with its subsidiary EnerCam Exploration Ltd. (Canada) had an independent valuation done in October and November 2023 before we bought out 40% interest to determine a price and value of the 30-well field at Evesham. That value came in at $11 million CAD for the entire project, making 40% of that worth $4.4 million CAD. That figure was a ‘before-tax’ value and had a 10% discount applied to the project.
The project has a high ‘watercut’, meaning some of the wells have as much as 83% water today. Therefore, producing 200 barrels of oil every day means we have 800 barrels of water daily as well. The field was produced by a previous operator between 2004-2018, who removed over 30 million barrels of fluids from the field, and a good portion of that was water. Unfortunately, they did not reinject the water, so it decreased the pressure on the oil in the reservoir, leaving quantities of oil in the reservoir with low recovery levels.
Our teams looked for solutions to enhance recovery of the oil by increasing the pressure. They completed a test well for water injection well; they started trucking in water from other producers. Therefore, if 200 barrels of oil came out, and 800 barrels of water came out, then the team not only replaced 1000 barrels of liquids with injection well, but they added another 600 barrels of water per day. With proof that the result was increased pressure and increased oil production, the Operators then applied for permission from the province of Saskatchewan to convert up to 13 wells to water injection and the province approved that application.
Although not a perfect science, increasing the water injection fills the void underground and pressure is eventually increased, and gradually, additional oil recovery becomes possible.
This press release expressed the result of all this – namely, the 40% interest from Ankgor was increased with its Reserves value of $4.4 million to $8.3 million CAD based on a 10% discount and a ‘before-tax’ calculation within eight months of purchasing.
Now, be aware that to realize the gain, we need to invest in further well conversions from to water injection wells, and some conversions take significant funds. However, the long-term game is what matters. We can enhance recovery We can take a field that may have had a production life of 10 years and extend it to 20 years. We can also take water from other producers that need to get rid of production water and increase the water downhole in our Evesham field.
On other oil-related items, in Cambodia the Environmental Impact Assessment for Block VIII is complete and in the Ministry of Environment for approval. The application for seismic with the scoping study and various bids has been submitted and approved by the Ministry of Mines and Energy.
Next major step is to bring in the seismic contract and begin the 350-line kilometers of seismic. Exciting times…. proving Cambodia’s onshore oil and gas!
Another interview that might interest you – Angkor Resources’ ($ANK) Dual Focus on Resource Development & ESG | Top Shelf Commodities Expo 2025. I am attending this conference this week to extend our story, seek new investors, and attract partners to Angkor.
Stay tuned.
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DELAYNE WEEKS, ANGKOR RESOURCES CORP.
“Every day Make a Choice; Seek Solutions and Build Value!”
Canada Office: +1 780 568 3801 Cell: +1 780 831 8722
Cambodia: +855 015 828 266 Email: info@angkorresources.com
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