Bald Eagle Energy Receives Petroleum Geologist’s Report on Alaskan Projects
Bald Eagle Energy Inc. (OTCBB:BEEI) (hereafter “Bald Eagle”) is pleased to announce that it has received positive feedback in a new third-party petroleum geologist’s report completed on May 12, 2008 by LAPP Resources Inc. Authored by LAPP President, David W. Lappi, the report assessed Bald Eagle’s six Alaskan North Slope leases totaling 18,418 acres stating a potential for up to 90 million barrels of oil (MMBO).
The report stated economic viability of the properties throughout the levels of expected production, including its lowest estimate of 5 million barrels of oil (MMBO), where the prospect was still economically sound. Analyzing three discounted cash flow net present value of development economics, using a present-day dollar value of $80/barrel, Lappi stated, “I have used the high case (90 MMBO), a mid case (30 MMBO), and a low case (5 MMBO). The NPV analysis confirms that in all cases, the hypothetical discovery is economic using the assumptions listed.”
Also mentioned in the report was the favourable proximity of Bald Eagle’s leases to the Dalton Highway and to the Trans Alaska Pipeline, making the development possibilities clear. The export of oil is aided by the Trans Alaska Pipeline, while natural gas liquid production is still a work in progress. A development proposal for gas liquids production is pending State approval, with gas production awaiting the eventual construction of a natural gas export pipeline. The state of Alaska is currently negotiating terms of a gas-pipeline construction deal with Conoco-Phillips, BP and Trans Canada. The report states that Alaska’s development plan for a new large-diameter gas pipeline for the sale of North Slope gas through Canada and to the Lower-48 markets is set to run along the Alaska Highway. Bald Eagle’s proximity to this new pipeline upon its approval and further development could prove to be beneficial. The report also infers: “In addition, the potential revenue from gas sales could be approaching the point where it will be higher than the increased revenue gained from increased oil production due to gas re-injection into oil reservoirs. Governor (Sarah) Palin and the State Legislature are considering a variety of fiscal and regulatory measures that would help make the gas line a reality.”
Alvaro Vollmers, Bald Eagle’s Chief Financial Officer (CFO), responded to the report, stating: “We are pleased to have received a report that can more clearly estimate the potential of our properties in Alaska’s North Slope region. It’s very encouraging for us to see that we’ve been given a 90 million barrel potential to strive for, while being reassured that even with a low estimate of 5 million barrels our program will remain economical at a conservative price point for oil of $80 per barrel. We are pleased with our positioning in the region due to the potential it has for production, and the proximity to important infrastructure.”
Shareholders and interested parties are invited to visit the company’s website at www.baldeagleoil.com or contact corporate communications toll free at (888) 254-2262 for further information.
About Bald Eagle Energy Inc.
Bald Eagle Energy Inc. was formed in response to America’s oil crisis with the purpose of working toward American energy independence.
As a publicly traded Oil and Gas exploration company (NASDAQ OTC BB: BEEI) based in Dallas, Texas, Bald Eagle is also focused on building company and shareholder value with an eye on long-term growth.
Our business model stresses reduced capital expenditures through a minimized team of experienced management, retaining the consulting services of industry experts only when needed, and utilizing third party drilling companies to limit equipment and operating expenses.
At Bald Eagle, we maintain that America can do better than producing 5.1 million barrels of oil per day (MMBOPD) while consuming 20.7 MMBOPD for a daily petroleum shortfall of 15.6 million barrels. That is why we are committed to decreasing our nation’s petroleum shortfall – and dependence on foreign oil – through the vast energy resources found in Alaska.
Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management, including, but not limited to, the Company’s belief that we can increase the Company’s assets and increase shareholder value by focusing on oil and gas exploration; It is important to note that actual outcomes and the Company’s actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include the uncertainty of the requirements demanded by environmental agencies, the Company’s ability to raise financing for operations, breach by parties with whom we have contracted, inability to maintain qualified employees or consultants, competition for equipment, inability to obtain drilling permits, potential delays or obstacles in drilling operations and interpreting data, and the likelihood that no commercial quantities of gas are found or recoverable. Additional information on risks for the Company can be found in filings on Edgar of other junior oil and gas exploration companies with the US Securities and Exchange Commission.
Forward Looking statements in this news release include: Bald Eagle’s production potential for its North Slope properties being up to 90 million barrels of oil; that production is economical even with the low estimate of potential for 5 million barrels of oil; that production of gas liquids is pending State approval; that a natural gas pipeline is in development to deliver to the lower-48 states