Mineral Hill Industries Announces Proven Reserves Estimates with PV-10 and Commencement of Rework Well Program in Oklahoma
VANCOUVER, July 10, 2018 - Mineral Hill Industries ("Mineral Hill") is pleased to announce the incorporation of a wholly owned subsidiary MHI Resources Corp ("MHIR") in Oklahoma under registration number 1912682349 (jointly referred to as "Company") with its operating offices at 4133 N Lincoln Blvd, Oklahoma City, OK, 7310. MHIR will hold the Leasehold Estate assets as announced on April 27, 2018. The associated acreage positions are within the Scoop-Stack shale and located in Beaver, Creek, Canadian, Garvin, Garfield, Harper, Kingfisher, Major, Okmulgee, Muskogee, Culton, Milligan, Fuller, and Woodward Counties.The approved independent appraisal, effective May 1, 2018, evaluates the Leasehold Estate's Proved Developed Producing (PDP), Proved Non-Producing (PDNP), Proved Undeveloped (PUD), Probable Producing (PrDP), and Probable Undeveloped (PrUD) reserves. The appraisal also confirms the in the USA typically reported value known as "PV-10" which defines the present value of the estimated future oil and gas revenues, reduced by direct expenses and discounted at an annual rate of 10%.
2018 Reserves Update reported by an independent qualified person for Mineral Hill Industries as of May 1, 2018 are as follows:
Reserve Category PV 10%, Expressed in US$;
| PDP | 1,204,460 |
| PDNP | 4,905,290 |
| PUD | 3,428,100 |
| Total Proved | 9,537,850 |
| PrDP | 4,169,700 |
| PRUD | 1,470,190 |
| Total Probable | 5,639,890 |
| Total Proved + Probable | 15,177,740 |
The present value of the proved reserves, discounted at 10% ("PV-10"), is US$9.537 million.
Mineral Hill is very pleased that its longtime directors Andrew von Kursell, P.Eng, Grant Hendrickson, P.Geo, and Rafael Pinedo agreed to serve as directors of MHIR. All three gentlemen are very experienced within the resource and exploration business and the Company's Board of Directors supported unanimously the election of Rafael Pinedo as President of MHIR due to his special local knowledge and experience within the Oil & Gas industry.
As previously announced, the Company has recently received its reserve report prepared by an independent and qualified petroleum reserves and resources evaluator, MKM Engineering Oil and Gas Consulting Services, Inc., which updated and confirmed the Leasehold Estate's proved reserves as of May 1, 2018. The report investigated a total of 12 PDP, 21 PDNP, and 16 PUD properties and was prepared in accordance with the Canadian Oil & Gas Engineering Handbook and NI 51-101.
MHI insiders provided over $200,000 of working capital to cover the ongoing production maintenance and development payments as well as the initial interest payments to the vendor. The initial development funds have been used for rework and development of certain wells including the Silver Red Fork Sand Unit Lease in order to start and increase production immediately.
The Company will continue to evaluate all wells of the to be acquired Leasehold Estate as it intends to develop multi-formation pads in this area of its acreage."
The Company seeks Safe Harbor
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.
The securities being offered have not been, nor will be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to U.S. persons without registration or applicable exemption from the registration requirement of such Act. This release does not constitute an offer for sale of such securities in the United States of America.
SOURCE Mineral Hill Industries Ltd.
Contact
Dieter Peter, President & CEO, Phone: (604) 617-6794