America Resources Exploration Inc (OTCMKTS:AREN) reported that it has obtained the results of a reserves estimate assessment for its recently bought Harris leases in Texas. They performed volumetric calculations for reserves and Original-Oil-In-Place for reservoirs in the Harris A, B and C Leases based in Callahan County, Texas.
The highlights
The company stated that it is one of the widely used methods within the petroleum industry. It is based on sound engineering practices and principles. Seabourn Oil Company provided the geologic and rock properties, which were determined by assessing several existing wellbores in the pressing area. America Resources stated that three reservoirs that were evaluated are Strawn, Cross Plains and Cisco. A low case and High Case were assessed for each reservoir. There was a difference in the cases and that is a variation in porosity value.
Reserve estimator
The assessment process was conducted by Randy Chillion who has been a Petroleum Engineer for more than thirty-five years. He was associated with Amoco/BP where he served as a “Certified Reserve Estimator.” It indicates that Chillion has adequate training, expertise and experience to utilize the reserve estimates he measured as the company’s official reserves projections to reporting groups like the SEC.
The estimator has also worked on several field development projects which included calculating reserves and identifying drilling locations. Huang Yu, the CEO said that they are pleased with the recent results of initial assessment of the Harris Leases and the team looks forward to implementing a plan to maximize the utmost potential of recent acquisition.
In last trading session, the stock price of America Resources Exploration Inc (OTCMKTS:AREN) declined more than 22% to close the trading session at $0.449. The decline came at a share volume of 1.44 million compared to monthly average share volume of 2.09 million. Following the sharp decline, the market cap of company plunged to 75.05 million.
