| ||August 07, 2007|
Thunderbird Completes the Purchase of Gordon Creek, Utah Natural Gas Field Doubles Gas 2P Reserves to over 20 BCF
| ||Vancouver, British Columbia, August 7, 2007- Thunderbird Energy Corp. (TSX-V: TBD) (the "Company") today announced that it has completed the purchase of the remaining 50% interest in the Gordon Creek natural gas project (the "Gordon Creek Project") pursuant to an agreement announced June 4, 2007.|
Thunderbird now owns a 100% working interest in the Gordon Creek Project, which comprises 5,953 gross acres (4,879 net acres) in Carbon County, Utah. Gordon Creek is adjacent to the Drunkards Wash natural gas field which is owned by Conoco/Phillips. Drunkards Wash, which is Utah's largest natural gas discovery, was originally developed in the early 1990's and continues to produce over 4.5 Billion cubic feet (Bcf) of gas per month.
There are currently 8 existing wells on the Gordon Creek Project, 4 of which are currently producing and 4 of which are shut in. Gordon Creek also includes an associated gas gathering system consisting of 10 km of pipeline and a scaleable compression facility that services the project as well as adjacent production. Gas is marketed into a transmission pipeline operated by Questar Gas Resources that crosses the project acreage.
There is extensive undeveloped acreage at Gordon Creek and Thunderbird has prepared a preliminary development plan that includes workovers on the producing and shut in wells, as well as plans to drill an initial 6 development wells, all of which have been permitted. Drilling will commence once the State of Utah has processed the transfer of the permits, which is expected to occur within the next 4 to 6 weeks. Workovers will be conducted over the next 60 days.
MHA Petroleum Consultants of Denver, Colorado recently prepared a reserve evaluation for Thunderbird as at January 31, 2007 in accordance with NI 51-101. MHA estimated that Thunderbird's existing 50% interest in Gordon Creek contained proven and probable (2P) reserves of approximately 10.3 BCF of natural gas. MHA assigned a PV10 valuation to Thunderbird's 2P reserves of US$19.3 million, approximately 10% of which are attributable to the Company's Kansas oil project and 90% of which are attributable to the initial 50% interest in Gordon Creek.
The current acquisition will double Thunderbirds 2P natural gas reserves to 20 Bcf of gas and will nearly double the PV10 valuation, providing Thunderbird with a fully diluted Net Asset Value (NAV) of roughly $0.70 per share.
It should be noted that the reserve valuations are restricted to the current Gordon Creek acreage as described above. Thunderbird has recently announced an agreement to further extend its Gordon Creek land holdings by acquiring a 50% interest in an additional 5000 acres located immediately North of the Gordon Creek Project. Legal and technical due diligence is ongoing with regard to this acreage. Thunderbird is continuing to look at opportunities to add land in the area and to acquire minority interests on existing acreage.
Thunderbird funded the cash portion of the acquisition through the exercise of warrants ($1.65 million) issued in connection with the 2 year convertible debentures issued in March 2006. The holders of the debentures also agreed to convert their debentures into equity thereby strengthening the Company's balance sheet by a further $1.85 million and reducing ongoing interest expenses.
"In addition to doubling our gas reserves and land position, we now have sole operatorship of the entire Gordon Creek Project," stated Cam White, President of Thunderbird Energy. "We are also very pleased that we were able to complete the acquisition and strengthen our balance sheet, without incurring any further dilution to our shareholders."
Thunderbird also has an agreement to acquire up to a 75% interest in a 19,000 acre, high impact, oil and gas exploration project on the north-eastern flank of the Powder River Basin in Wyoming. Although due diligence has not yet been completed, the Company feels that this project is highly prospective for oil and will be a strong addition to Thunderbird's project portfolio.
Thunderbird Energy is a Canadian based oil and gas company with offices in Calgary and Vancouver that is focused on acquiring and developing untapped oil and natural gas opportunities, primarily in the United States. Thunderbird's current production mix is approximately 90% natural gas and 10% oil. In addition to the Gordon Creek natural gas project Thunderbird presently owns a 50% interest in a producing light oil project in Rush County, Kansas. Thunderbird's other holdings include a New Brunswick oil and gas exploration project adjacent to the Stoney Creek field.
For more information, contact:
President and CEO
THUNDERBIRD ENERGY CORP.
847 Hamilton Street
Vancouver, B.C. V6B 2R7
The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy or the adequacy of this press release.
Caution Regarding Forward- looking information
Information in this news release respecting the reserves valuations, expected production levels, prices and anticipated total oil and gas recoveries constitutes forward-looking information. Statements containing forward-looking information express, as at the date of this news release, the Company's plans, expectations, or beliefs as to future events or results are believed to be reasonable based on the information currently available to the Company. The Company does not undertake to update any such forward-looking statements.
Statements including forward-looking information involve known and unknown risks, uncertainties and other factors which may cause the actual results of the Company and its operations to be materially different from estimated costs or results expressed or implied by such forward-looking statements.
There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.
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