Calgary, Alberta (FSCwire) - Front Range Resources Ltd. (“Front Range” or the “Company”) (TSXV: FRK) reports the results of its December 31, 2017 Reserves Assessment and Evaluation of its oil and gas properties, as evaluated by GLJ Petroleum Consultants Ltd. (“GLJ”) in accordance with National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities and the COGE Handbook.

A summary of the Company’s reserves volumes according to reserve category as at December 31, 2017 is as provided in the following table.  Unless otherwise stated, the reserves information included in this release is stated on a “company interest” basis, which represents Front Range’s working interest (operated and non-operated) share of remaining reserves before deduction of royalties and including any royalty interests.  Numbers presented in table may not add exactly due to rounding.

COMPANY SHARE OF MARKETABLE RESERVES (GROSS)

A summary of the Company’s estimated future net revenues associated with Front Range’s reserves as at December 31, 2017 based on the GLJ January 1, 2018 price forecast is provided in the following table.  It should not be assumed that the net present values estimated by GLJ represent the fair market value of the reserves.  Numbers presented in table may not add exactly due to rounding.

Relevant portions of the GLJ January 1, 2018 price forecast used in the Company’s evaluation are as follows:

The tables above include the Company’s interest in the Wilson Creek, Fir and Pepper, Alberta properties.  The Company’s entire interest in the Wilson Creek property was disposed of subsequent to December 31, 2017 for cash consideration of $360,000 (subject to certain customary adjustments) with an effective date of December 1, 2017.  Total Proved, Total Proved plus Probable, Marketable Reserves and Net Present Value associated with the Company interest at Wilson Creek are as follows:

About Front Range

Front Range currently has 54,855,063 common shares issued and outstanding, no debt and estimated positive working capital of approximately $2.9 million – excluding net proceeds received from the sale of Wilson Creek.

The Company is evaluating various options to continue to advance its top-tier Montney resource at its 56 section (35,840 acres/14,336 ha) 100% W.I. Pepper, Alberta property and to boost overall shareholder value. Such options may include farm-outs/farm-ins, acquisitions, dispositions and/or exchange of assets, recapitalization or mergers with other companies. Except as required by law, Front Range does not intend to disclose developments in this respect until the board of directors of the Company has approved a definitive agreement/transaction. The Company cautions that there are no guarantees that an agreement/transaction will be undertaken.

Further information relating to Front Range is also available on its website at www.frrl.ca.

For further information, please contact Gordon Mayr, P.Eng., Chief Operating Officer.

Telephone:  (403) 237-5700      Email: info@frrl.ca

ADVISORY ON FORWARD-LOOKING STATEMENTS

Certain information set forth in this news release contains forward-looking statements or information (“forward-looking statements”), including statements regarding the Company’s future net revenues and the Company’s consideration of options to advance its Montney resource and the boost of overall shareholder value. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Front Range’s control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, operational risks in exploration and development, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and the ability to access sufficient capital from internal and external sources. Although Front Range believes that the expectations in our forward-looking statements are reasonable, our forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward looking information. As such, readers are cautioned not to place undue reliance on the forward looking information, as no assurance can be provided as to future results, levels of activity or achievements.  The risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our Annual Information Form and other documents available at www.sedar.com. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, Front Range does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.  This news release shall not constitute an offer to sell or the solicitation of any offer to buy securities in any jurisdiction.

All evaluations and reviews of future net revenue are stated prior to any provision for interest costs or general and administrative costs and after the deduction of estimated future capital expenditures for wells to which reserves have been assigned.  There is no assurance that such price and cost assumptions will be attained and variances could be material.  The recovery and reserve estimates of the reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered.  Actual reserves may be greater than or less than the estimates provided herein.

The estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates of reserves and future net revenue for all properties, due the effects of aggregation.

Where amounts are expressed on a barrel of oil equivalent (“BOE”) basis, natural gas volumes have been converted to oil equivalence at six thousand cubic feet per barrel. The term BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.  References to oil in this discussion include light and medium crude oil and natural gas liquids (“NGLs”). NGLs include condensate, propane, butane and ethane. References to gas in this discussion include natural gas.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.

To view the associated document to this release, please click on the following link:
public://news_release_pdf/FrontRange02052018.pdf

To view the original release, please click here

Source: Front Range Resources Ltd. (TSX Venture:FRK, OTC Bulletin Board:CSTPF, FWB:C1JS)

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