CALGARY, ALBERTA--(Marketwire - June 21, 2012) - Atikwa Resources Inc. ("Atikwa" or the "Company") (TSX VENTURE:ATK) is pleased to announce that Deloitte & Touche LLP ("AJM Deloitte"), an independent engineering and geological consulting firm and a qualified reserves evaluator, has provided Atikwa with an independent NI 51-101 Compliant Reserve Evaluation (the "AJM Valuation"). The estimated discounted net present value of the Company's reserves does not necessarily represent their fair market value. These filings are available for review under the Company's SEDAR profile at www.sedar.com. Sean Kehoe, President and CEO of Atikwa, commented "The good news is that the Company has continued to build on a strong core of valuable light oil assets. The bad news is that we continue to be challenged by the task of communicating that message to the markets so that our stock price might more accurately reflect the current value and the potential of our portfolio to create greater value in the future. Having said that we remain committed to that task and thank our shareholders for their patience and continued support."
A summary of the AJM Valuation is included in the tables below:
-- Proved plus Probable reserves have a before tax net present value,
discounted at 10% (NPV 10) of $33,502,200 or approximately $0.12 per
-- The AJM Valuation does not include any land value associated with the
Windfall, Porcupine Hills, or certain Roncott assets.
-- In the fourth quarter the Company generated a 575% quarter over quarter
increase in production.
-- Over the full year the Company generated a 205% year over year increase
-- In the fourth quarter of fiscal 2012 the Company realized revenue of
$1.5 million vs. the fourth quarter of the previous year of $134,000.
This represents an increase of 1,009% quarter over quarter.
-- Net income for the fiscal year was $2.4 million vs. a previous fiscal
year loss of ($2.4 Million). This represents a change in net income of
-- Earnings per share was 1 cent vs a previous year loss of (1 cent).
-- Operating costs on a per boe basis declined 38% in the fourth quarter
vs. the prior year's fourth quarter.
-- General and Administrative costs declined 90% on a per boe basis in the
fourth quarter vs. the prior year's fourth quarter.
-- Atikwa has identified in excess of 35 gross (21 net) undeveloped
locations in Manitoba and plans to announce it's summer drilling
-- In March, 2012, the Company secured a credit facility of up to
$3,000,000 in debt financing. This facility has allowed the Company to
continue to strengthen its balance sheet and move forward with the
development of its oil properties.
-- Atikwa sold a section of land in the Company's 100% owned Windfall
property for $250,000. The Company still maintains a 7 section block of
contiguous land in the area that it is in the process of selling or
This news release contains forward-looking statements relating to the Company's plans and other aspects of the Company's anticipated future operations, strategies, financial and operating results and business opportunities. Forward-looking statements typically use words such as "anticipate", "believe", "project", "expect", "plan", "intent" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future, or consists of statements regarding estimates of future production, operating costs or other expectations, beliefs, plans, objectives, assumptions or statements about future events or performance. Statements regarding reserves are also forward-looking statements, as they reflect estimates as to the expectation that the deposits can be economically exploited in the future. Although the Company believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements and you should not unduly rely on forward-looking statements. The forward-looking statements contained in this news release are made as the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A conversion ratio for gas of 6 mcf: 1 boe is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.