COSTA MESA, CA--(Marketwire - 02/07/11) - Force Fuels Inc. (OTC.BB:FOFU - News) announces results of Oil Proven Reserves Report and land valuation. Independent study performed by Warpath Energy Inc, places proven Present Value on the Company's Kansas properties at $4,797,917.
The Force Fuels property consists of 13 contiguous properties oil and gas leases that make up approximately 2500 acres. There are 54 wells, mostly drilled to the Redd Sands formation.
Oscar Luppi, CEO of Force Fuels Inc., commented on the report: "Based on this report, the discounted net present value of the property, as stated in our yearly audited report is approximately 4.7 million dollars proving the validity of our acquisition and its potential. We expect our planned drilling program to drastically increase the reserves figures and property value."
Tom Hemingway, Interim CFO and Director of the company, explains: "We wanted to be extremely conservative in our Net Present Value calculation, so we took the industry mandated formulas and applied traditional well spacing parameters to make sure that values would not be overstated. We stand behind Warpath Energy Inc's calculations as both conservative and realistic."
The basis for estimating the proved producing reserves was the exploration of historical production. Analogy to adjacent Redd Sands wells was used for forecasting properties where sufficient production data were present for decline exploration.