EX-99 50 ex99-47form40_f.txt EXHIBIT 99.47 EXHIBIT 99.47 ------------- -------------------------------------------------------------------------------- [GRAPHIC OMITTED] [ADVANTAGE LOGO OMITTED] -------------------------------------------------------------------------------- ADVANTAGE ENERGY INCOME FUND - NEWS RELEASE FEBRUARY 24, 2005 ADVANTAGE ANNOUNCES YEAR END 2004 RESERVES -------------------------------------------------------------------------------- CALGARY, ALBERTA - Advantage Energy Income Fund ("Advantage" or the "Fund") (TSX: AVN.UN) is pleased to announce the results of its year end reserve evaluation which is based on an independent engineering study conducted by Sproule Associates Limited ("Sproule") prepared in accordance with National Instrument 51-101.
RESERVE HIGHLIGHTS (WORKING INTEREST RESERVES USING SPROULE PRICE AND COST FORECASTS) December 31, 2004 December 31, 2003 --------------------------------------------------------------------------------------------------------------------------- Proved plus probable reserves (mboe) 82,951 53,271 Proved reserves (mboe) 55,375 38,998 Present Value at 10%, proved plus probable ($000) $ 885,094 $ 520,050 Net Asset Value per Unit at 10% $ $11.04 (1)(2) $ 9.69 Reserve Life Index (proved plus probable - years) (3) 9.9 9.1 Reserves per Unit (proved plus probable) 1.28 (1) 1.24 Debt per boe of reserves $ $2.25 (2) $ 2.29
(1) Based on fully diluted Units outstanding at December 31, 2004 plus 6.0 million Units issued subsequent to year end (2) Bank debt and working capital net of proceeds related to the issuance of 5.25 million Units on February 9, 2005 (3) Based on year end exit rate production o Proved plus probable reserves increased by 56% to 83.0 mmboe. o Reserve additions from the Fund's 2004 capital expenditure program were 8.2 mmboe at a cost of $13.18 per boe which replaced 116% of production. o Reserve additions from the acquisitions of the Anadarko assets and Defiant Energy Corporation were 29.1 mmboe at a cost of $13.05 per boe. o Total net reserve additions for the year were 36.8 mmboe with a net cost for finding, development and acquisitions of $13.12 per boe.
WORKING INTEREST RESERVES SUMMARY AS AT DECEMBER 31, 2004 USING SPROULE PRICE AND COST FORECASTS Natural Oil Light & Medium Oil Heavy Oil Gas Liquids Natural Gas Equivalent (mbbl) (mbbl) (mbbl) (mmcf) (mboe) --------------------------------------------------------------------------------------------------------------------------- PROVED Developed Producing 11,714.2 1,562.4 2,601.3 186,137 46,901 Developed Non-producing 490.8 0.0 134.8 9,494 2,207 Undeveloped 3,262.6 0.0 376.7 15,764 6,267 TOTAL PROVED 15,467.6 1,562.4 3,112.8 211,395 55,375 --------------------------------------------------------------------------------------------------------------------------- Probable 11,318.6 624.1 1,874.1 82,552 27,576 TOTAL PROVED + PROBABLE 26,786.2 2,186.5 4,986.9 293,946 82,951 ---------------------------------------------------------------------------------------------------------------------------
PRESS RELEASE ADVANTAGE ENERGY INCOME FUND Page 2 of 4 --------------------------------------------------------------------------------
PRESENT VALUE OF FUTURE NET REVENUE USING SPROULE PRICE AND COST FORECASTS ($000) Before Income Taxes Discounted at 0% 5% 10% --------------------------------------------------------------------------------------------------------------------------- PROVED Developed Producing $ 984,488 $ 739,592 $ 613,438 Developed Non-producing 38,209 30,840 25,880 Undeveloped 83,899 62,320 44,808 TOTAL PROVED 1,106,596 832,752 684,126 --------------------------------------------------------------------------------------------------------------------------- Probable 563,512 302,457 200,968 TOTAL PROVED + PROBABLE $ 1,670,108 $ 1,135,209 $ 885,094 ---------------------------------------------------------------------------------------------------------------------------
SPROULE PRICE FORECASTS The present value of future cash flow at December 31, 2004 was based upon crude oil and natural gas pricing assumptions prepared by Sproule Associates Limited effective December 31, 2004. These forecasts are adjusted for reserve quality, transportation charges and the provision of any applicable sales contracts. The price assumptions used over the next five years are summarized in the table below:
WTI Edmonton Light Alberta Plantgate Henry Hub Exchange Crude Oil Crude Oil Natural Gas Natural Gas Rate Year ($US/bbl) ($Cdn/bbl) ($Cdn/mmbtu) ($US/mmbtu) ($US/$Cdn) --------------------------------------------------------------------------------------------------------------------------- 2005 $ 44.29 $ 51.25 $ 6.76 $ 6.74 $ 0.84 2006 $ 41.60 $ 48.03 $ 6.45 $ 6.48 $ 0.84 2007 $ 37.09 $ 42.64 $ 6.00 $ 6.08 $ 0.84 2008 $ 33.46 $ 38.31 $ 5.55 $ 5.70 $ 0.84 2009 $ 31.84 $ 36.36 $ 5.21 $ 5.41 $ 0.84 WORKING INTEREST RESERVES RECONCILIATION USING SPROULE PRICE AND COST FORECASTS Light & Heavy Natural Gas Natural Oil Medium Oil Oil Liquids Gas Equivalent PROVED DEVELOPED PRODUCING (mbbl) (mbbl) (mbbl) (mmcf) (mboe) --------------------------------------------------------------------------------------------------------------------------- OPENING BALANCE DEC. 31, 2003 5,614 5 1,575 155,000 33,027 Extensions 796 0 190 2,255 1,362 Improved recovery 0 0 0 0 0 Discoveries 0 0 0 0 0 Economic factors 175 65 12 1,365 481 Technical revisions 408 358 162 13,910 3,246 Acquisitions 6,372 1,255 965 44,941 16,082 Dispositions (196) 0 (7) (86) (217) Production (1,455) (121) (296) (31,248) (7,080) --------------------------------------------------------------------------------------------------------------------------- CLOSING BALANCE AT DEC. 31, 2004 11,714 1,562 2,601 186,137 46,901 ---------------------------------------------------------------------------------------------------------------------------
PRESS RELEASE ADVANTAGE ENERGY INCOME FUND Page 3 of 4 --------------------------------------------------------------------------------
Light & Heavy Natural Gas Natural Oil Medium Oil Oil Liquids Gas Equivalent PROVED (mbbl) (mbbl) (mbbl) (mmcf) (mboe) --------------------------------------------------------------------------------------------------------------------------- OPENING BALANCE DEC. 31, 2003 6,415 5 1,841 184,423 38,998 Extensions 2,178 0 427 4,855 3,414 Improved recovery 0 0 0 0 0 Discoveries 0 0 0 0 0 Economic factors 249 65 15 1,845 637 Technical revisions 256 358 80 940 850 Acquisitions 8,021 1,255 1,053 50,666 18,773 Dispositions (196) 0 (7) (86) (217) Production (1,455) (121) (296) (31,248) (7,080) --------------------------------------------------------------------------------------------------------------------------- CLOSING BALANCE AT DEC. 31, 2004 15,468 1,562 3,113 211,395 55,375 --------------------------------------------------------------------------------------------------------------------------- Light & Heavy Natural Gas Natural Oil Medium Oil Oil Liquids Gas Equivalent PROVED + PROBABLE (mbbl) (mbbl) (mbbl) (mmcf) (mboe) --------------------------------------------------------------------------------------------------------------------------- OPENING BALANCE DEC. 31, 2003 11,053 6 2,638 237,441 53,271 Extensions 3,364 0 733 8,795 5,563 Improved recovery 0 0 0 0 0 Discoveries 0 0 0 0 0 Economic factors 341 92 25 2,648 900 Technical revisions 87 694 296 3,887 1,723 Acquisitions 13,838 1,516 1,608 72,651 29,071 Dispositions (442) 0 (17) (227) (497) Production (1,455) (121) (296) (31,248) (7,080) --------------------------------------------------------------------------------------------------------------------------- CLOSING BALANCE AT DEC. 31, 2004 26,786 2,187 4,987 293,947 82,951 --------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE USING SPROULE PRICE AND COST FORECASTS ($000, except per Unit amounts) 5% 10% --------------------------------------------------------------------------------------------------------------------------- Present value proved and probable reserves $ 1,135.2 $ 885.1 Undeveloped acreage and seismic (1) (19.2) (19.2) Working capital (deficit) net of cash distributions payable to Unitholders (27.4) (27.4) Bank debt (2) (159.1) (159.1) --------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE $ 967.9 $ 717.8 --------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE PER UNIT (3) $ 14.88 $ 11.04 ---------------------------------------------------------------------------------------------------------------------------
(1) Land at $50 per acre (2) Net of proceeds related to the issuance of 5.25 million Units on February 9, (2005) (3) Based on fully diluted Units outstanding at December 31, 2004 plus 6.0 million Units issued subsequent to year end PRESS RELEASE ADVANTAGE ENERGY INCOME FUND Page 4 of 4 --------------------------------------------------------------------------------
WORKING INTEREST RESERVES SUMMARY AS AT DECEMBER 31, 2004 USING SPROULE CONSTANT PRICE ASSUMPTIONS Natural Oil Light & Medium Oil Heavy Oil Gas Liquids Natural Gas Equivalent (mbbl) (mbbl) (mbbl) (mmcf) (mboe) --------------------------------------------------------------------------------------------------------------------------- PROVED Developed Producing 11,880.9 1,456.2 2,628.9 189,026 47,470 Developed Non-producing 491.0 0.0 134.8 9,497 2,209 Undeveloped 3,271.1 0.0 376.5 15,813 6,283 TOTAL PROVED 15,643.0 1,456.2 3,140.2 214,335 55,962 --------------------------------------------------------------------------------------------------------------------------- Probable 11,501.6 597.1 1,897.7 85,562 28,257 TOTAL PROVED + PROBABLE 27,144.6 2,053.3 5,037.9 299,897 84,219 --------------------------------------------------------------------------------------------------------------------------- NET PRESENT VALUE OF FUTURE NET REVENUE USING SPROULE CONSTANT PRICE ASSUMPTIONS ($000) Before Income Taxes Discounted at 0% 5% 10% --------------------------------------------------------------------------------------------------------------------------- PROVED Developed Producing $ 1,146,393 $ 843,443 $ 684,199 Developed Non-producing 47,966 37,858 31,125 Undeveloped 112,906 79,814 56,660 TOTAL PROVED 1,307,265 961,115 771,984 --------------------------------------------------------------------------------------------------------------------------- Probable 654,920 361,057 240,150 TOTAL PROVED + PROBABLE $ 1,962,185 $ 1,322,172 $ 1,012,134 ---------------------------------------------------------------------------------------------------------------------------
SPROULE CONSTANT PRICE ASSUMPTIONS Crude Oil: Edmonton Par $ 46.51 /bbl Hardisty Bow River 24.9o API $ 24.15 /bbl Natural Gas: Alberta AECO-C $ 6.78 /mmbtu B.C. Westcoast Station 2 $ 6.68 /mmbtu Natural Gas By-Products: Propane $ 36.11 /bbl Butane $ 39.78 /bbl Pentanes Plus $ 51.80 /bbl The information in this news release contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond Advantage's control, including: the impact of general economic conditions, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, fluctuations in commodity prices and foreign exchange and interest rates, stock market volatility and obtaining required approvals of regulatory authorities. Advantage's actual results, performance or achievement could differ materially from those expressed in, or implied by, such forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do, what benefits that Advantage will derive from them. For further information contact: Mr. Gary F. Bourgeois, VP Corporate Development Phone: (416) 945-6636 Toll free: 1-866-393-0393 ADVANTAGE ENERGY INCOME FUND 3100, 150 - 6th Avenue SW Calgary, Alberta T2P 3Y7 Phone: (403) 261-8810 Fax: (403) 262-0723 Web Site: www.advantageincome.com E-mail: advantage@advantageincome.com