Lexaria Corp has reported a significant increase in proved oil reserves at the Belmont Lake oil field located in Mississippi.
Lexaria achieved a year over year increase of 81% in proved reserves, cash flows discounted at 10%.
The company also shifted its proved reserves to 100% oil, from a 2009 mix of 21% natural gas and 79% oil.
This shift in strategy has allowed the company to enjoy stronger cash flows as a result of the high oil prices as compared to lower natural gas prices.
Lexaria president Chris Bunka said that the value of its proved reserves alone is now significantly greater than its entire market cap.
"Lexaria’s strategy of concentrating on those assets that are most likely to deliver a meaningful increase to our balance sheet is paying off," Bunka said.
"And, this of course completely discounts the value of our 130,000 acre land package."