Highlights include:
— The net present value of Stealth Ventures anticipated future net revenue based on forecast prices and costs, discounted at 10% before tax, is about $29 million. This represents, a 111% raise year over year, and on the existing issued and outstanding share position represents about 32 cents per share.
— From exploration play in 2006 to a year over year proved plus probable (2P) in the previous year reserves up 74% to 3.23 MBOE (gas only) exclusively through the drill bit
— The 2008 average production was 1.54mmcf/d, a 233% raise compared to 2007
— 2P economic reserve life index (RLI) of about 12.1 years based on Stealth Ventures 2008 annual production as reported in the December 31, 2008
— Concluded the year holding 126 sections of shale land, equaling 384 further drilling sites (four wells per section downspacing)
— Decline in 2008 full cycle (drill, complete and tie-in) capital expenditures from $373,000 to $300,000/well, a 20% decrease year over year
Stealth Ventures has experienced an extremely positive 2008 and it is carrying out its 2009 business strategy. The company has demonstrated excellent production and reserve growth and an ability to decrease capital costs, critical in making the Cretaceous Colorado shales a considerable resource play now and in the future.
Stealth Ventures has extended its inventory of potential reserves through the exploitation of lower shale horizons in the Wildmere area, decreasing development risk. A constant development program in Alberta promises to raise reserves and production. It will remain the key corporate focus for growth in 2009 and beyond.
