Vanguard Energy Corporation reported that as of September 30, 2012 the value of its proven oil reserves based on a PV-10 calculation had risen to $35.8 million, up 13% over the same date a year ago.

This PV-10 valuation is based on 620,000 barrels of proven reserves, which is an increase of approximately 3% over the comparable amount at September 30, 2011, and is after a year in which the Company produced approximately 48,500 barrels of oil from the field, giving it a reserve replacement rate of 125%. This growth in proved reserves demonstrates the viability of both the Batson Dome Field and the new well drilling program implemented by the Company. Further, it reported that production grew from 3,350 barrels per month in October 2011 to 6,300 barrels in October 2012, a demonstration of the growth trajectory of the Company.

Of the total 620,000 barrels of proven reserves, approximately 30% is considered PDP (proved developed producing), 12% is categorized as PDNP (proved developed non-producing) or behind pipe reserves and 58% is PUD (proved un-developed). This PUD component provides the Company with substantial growth opportunity through a low-cost, low-risk development drilling program.

Tags: Vanguard Energy Corporation