OKLAHOMA CITY, Feb. 28, 2001 (PRIMEZONE) -- Canaan Energy Corporation (Nasdaq:KNAN) today announced that the December 31, 2000 proved oil and gas reserves totaled 106 Bcfe, comprised of 95 Bcf of natural gas and 2 million barrels of oil. These quantities include the reserves of eight affiliated limited partnerships and Indian Oil Company, a privately held oil and gas company based in Oklahoma City, all acquired by Canaan in October 2000.
Proved reserve quantities by category were as follows:
Oil Gas Gas Equivalent
(MMbbls) (Bcf) (Bcfe)
Proved Developed 1.7 72.4 82.7
Proved Undeveloped 0.3 22.2 23.7
Total Proved 2.0 94.6 106.4
Using methods prescribed by the SEC, including year-end prices of $9.54 per Mcf for natural gas and $26.10 per barrel for oil, the estimated future net revenues before income taxes of the proved reserves were $765.3 million, with a present value (using a 10% discount rate) of $374.2 million. Due to year-end prices being higher than current prices, we do not expect that our reserves will actually yield these values as prescribed for disclosure by the SEC.
Production for 2000 was 5.0 Bcfe, comprised of 4.1 Bcf of natural gas and 143,000 Bbls of oil, which includes production for Canaan and the affiliated partnerships for the entire twelve months and Indian Oil Company production since October 23, 2000.
Currently, Canaan's daily production is 20.9 MMcfe, consisting of 18.0 MMcf of natural gas and 492 Bbls of oil.
Canaan Energy Corporation is an independent oil and gas exploration and production company headquartered in Oklahoma City. Canaan trades on the NASDAQ NMS under the symbol KNAN.
This press release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of Section 27(a) of the Securities Act of 1933, as amended, and Section 21(e) of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts included in the press release that address activities, events or developments that the company expects, believes or anticipates will or may occur in the future, including drilling of wells, reserves estimates, future production of oil and gas, future cash flows and other such matters, are forward-looking statements. These statements are based on certain assumptions and analyses made by the company in the light of its experience and perception of historical trends, current conditions, expected future developments and other factors it believes appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements.