(Kelowna, BC: January 29, 2014) – Lexaria Corp. (the “Company” or “Lexaria”) is pleased to announce an increase in oil reserves at the Belmont Lake oil field located in Mississippi.
Compared to one year earlier, Lexaria increased:
…..Proved barrels of oil by 5,010; or 3.6%
…..Possible Undeveloped barrels of oil by 29,880 or 100%
Oil production (net to Lexaria) for the fiscal year ending Oct 31, 2013 was 15,876 barrels, compared to 22,527 barrels in 2012 and 11,506 barrels in 2011. Production rates in 2013 were lower than the record-high rate of the previous year due to natural decline rates and production challenges due to sand migration.
“Despite producing nearly 16,000 barrels of oil net during the year, Lexaria has more proved barrels of oil in the ground now than we did a year ago,” said Chris Bunka, President. “We also have nearly 30,000 barrels in a new Possible Undeveloped category that we hope to convert in whole or in part into Proved barrels.”
Proved barrels at Oct 31, 2013 stood at 144,050 barrels, compared to 139,040 barrels one year earlier.
Lexaria remains impressed with the quality of the Belmont Lake oil reservoir. In December 2013 a new well, the PPF-12-7, was drilled, logged and cased, and is awaiting completion. Drilling and completion costs for the PPF-12-7 are prefunded. Data received in the drilling of this well indicates areas of a higher quality reservoir than was earlier known. It is hoped and expected that production from this well will lead to higher overall production rates for 2014.
Lexaria will continue to strategically position itself to maximize cash flows from operations and build shareholder value in every way.