HONG KONG, Oct. 7, 2014 /PRNewswire/ -- Brightoil Petroleum (Holdings) Limited ("Brightoil Petroleum" or the "Group"; stock code: 933.HK) is pleased to announce that DeGolyer and MacNaughton ("D&M"), an authorized independent firm of professional valuer based in the US, was appointed to conduct a regular update evaluation of the reserves at the Dina 1 and Tuzi Gas Fields after the 2014 Financial Year. The evaluation results show a substantial increase in the Proved plus Probable ("2P") gas and oil reserves of Dina 1 Gas Field and Tuzi Gas Field, with an especially substantial increase in the former. These results indicate that Brightoil Petroleum has once again achieved new breakthroughs in its oil and gas reserves as well as its resource value.
According to the report issued by D&M, 2P reserves at Dina 1 Gas Field as at 31 August 2014 recorded a remarkable 77% increase of more than 9 million barrels of oil equivalent ("boe") to 20.75 million boe from 11.70 million boe. Meanwhile, 2P reserves of Tuzi Gas Field amounted to 31.15 million boe, up 2.45 million boe, or 8.5%, from 28.70 million boe. The total 2P reserves of the Group's two gas fields increased by 11.5 million boe, or 28.5%. Together with the Group's 2P reserves of 42 million boe at the Caofeidian Project in Bohai Bay, the Group's aggregate 2P reserves have reached 93.9 million boe.
The Group believes that the remarkable increase in its 2P reserves at Dina 1 Gas Field was primarily due to: (1) production of the three producing wells in Dina 1 Gas Field has been far better than expected, and (2) D&M has taken into consideration to adopt new factors and data into their valuation work in regarding to the special natural environment of Dina 1.
According to the D&M report, interest from the Net Present Value ("NPV") of Dina 1 Gas Field and that of Tuzi Gas Field entitled to the Group increased from US$141.8 million and US$239.7 million to US$358.73 million and US$539.13 million, respectively, as at 31 August 2014, representing a total growth rate of more than 135%.
The substantial growth of the Group's interest in NPV of both gas fields was mainly due to the increase in their reserves, higher natural gas prices as expected and preferential tax rate obtained by the company.
Dina 1 and Tuzi Gas Fields are operated by Win Business Petroleum Group Limited and Win Business Petroleum (Grand Desert) Limited, respectively, which are the subsidiaries of the Company, in partnership with China National Petroleum Corporation ("CNPC"). The two subsidiaries own 49% stakes in the Dina 1 and Tuzi Gas Fields, respectively.
Both Dina 1 Gas Field and Tuzi Gas Field are located in the Tarim Basin in the Xinjiang Uygur Autonomous Region. Dina 1 Gas Field commenced natural gas production in October 2011, while Tuzi Gas Field commenced natural gas production in December 2013.
Dr. SIT Kwong Lam, Chairman of Brightoil Petroleum, said, "The latest reserve evaluation conducted by D&M clearly shows that both Dina 1 Gas Field and Tuzi Gas Field possess abundant natural gas resources with good investment value. Together with the Caofeidian project, which we had acquired earlier, the Group currently owns three high-quality producing oil and gas fields. These assets are expected to bring us considerable profit and cash flow. Looking ahead, we will continue to expand our oil and gas reserves and output through organic growth and acquisitions. We are devoted to developing Brightoil Petroleum into a resource-focused international oil and gas enterprise."
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About Brightoil Petroleum
Brightoil Petroleum (Holdings) Limited is a resource-based energy enterprise focusing on upstream oil and gas resources exploration, along with further developments midstream and downstream. The Group is principally engaged in the exploration, development and production of Upstream Oil and Gas Fields, Marine Transportation, Oil Storage and Terminal Facilities and International Trading and Bunkering Business.
The Group has three oil and gas field projects in its portfolio, including Dina 1 Gas Field, Tuzi Gas Field and Caofeidian Field in Bohai Bay. The Company's interest in 2P storage is expected to reach approximately 93.9 million barrels of oil equivalent. When all these three areas are in operation, Dina 1, Tuzi and Bohai will reach a daily net production of approximately 25,000 barrels of oil equivalent, and an annual net production of approximately 9 million barrels of oil equivalent.
The Group currently operates four Aframax Oil Tankers and five VLCCs, and has a total capacity exceeding 2 million tonnes.
The Group's oil storage facility on Waidiao Island in Zhoushan, with a total capacity of 3.16 million cubic meters, is under construction. The facility will be equipped with 13 berths which can accommodate vessels from 1,000 to 300,000 deadweight tonnage. Meanwhile, the Group's oil storage facility on Changxing Island in Dalian, with a total capacity of 7.19 million cubic meters, is also under construction. The facility will be equipped with 13 berths to accommodate vessels from 1,000 to 300,000 deadweight tonnage.
The Group is one of the largest marine bunkering service providers in China with services expanded to global ports. The Group's tradable range of products is diversified into fuel oil, crude oil, gas oil, as well as petrochemical and the related petroleum products.
The Group will continue to develop its upstream business by stretching its tentacles into the exploration, development and production of oil fields with a view to becoming one of the leading resources-based energy conglomerates in the world.
For additional information about Brightoil, please visit the Company's website at www.brightoil.com.hk
