Publish date: 03/01/2016

Calgary, Alberta, March 1, 2016.

Tuscany Energy Ltd. (TUS-TSXV) is pleased to announce the results of the independent evaluation of the Company’s oil and natural gas reserves, effective December 31, 2015, which was prepared by McDaniel and Associates Consultants Ltd. (the “McDaniel Report”).

Tuscany reports that its total proved plus probable reserve volumes decreased only marginally for the year ended December 31, 2015, compared with 2014. This is despite the fact that the Company only drilled one horizontal heavy oil well in the Winter area during the year. Reserve volumes in Saskatchewan increased as a result of the discovery well at Winter and better than estimated production performance of higher quality Dina wells drilled at the end of 2014, which resulted in improved recovery factors and increased reserves attributed to the wells.

The value of Tuscany’s proved plus probable reserves declined by 29% as a result of lower future commodity price estimate used in the McDaniel Report.

2015 Highlights

  • 5% increase in proved and probable heavy oil reserves in Saskatchewan to 2.61 MMBO compared with 2.49 MMBO in 2014.
  • 3% decrease in total Company proved plus probable reserves to 2.77 MMBOE, compared with 2.86 MMBOE in 2014.
  • 7% decrease in total proved reserves to 1.48 MMBOE, compared with 1.60 MMBOE in 2014.
  • 29% decrease in the estimated net present value of future net revenue, before tax, attributable to the Company’s proved plus probable reserves, discounted at 10% to $43.7 MM, compared with $61.9 MM in 2014.
  • Based on Tuscany’s 2015 production of 709 BOEd, the Company’s reserve life index is 5.7 years for proved reserves and 10.7 years for proved plus probable reserves.

2015 Reserves

The McDaniel Report shows 5% year-over-year growth in heavy oil reserves in Saskatchewan. The increase in Saskatchewan heavy oil reserves was primarily due to increased reserve estimates in the two Dina oil pools located at Evesham and Macklin along with the new well at Winter. Proved heavy oil reserves at Evesham and Macklin were revised upward by a total of 141 MBO (111 MBO net), as a result of the improved production performance of wells drilled in the areas in 2014. Tuscany’s new pool discovery at Winter added 124 MBO of proved heavy oil reserves and 288 MBO of proved plus probable heavy oil reserves. These additions more than offset 203 MBO of heavy oil production from Saskatchewan during 2015.

The increase in Tuscany’s Saskatchewan heavy oil reserves was offset by a decrease in the Company’s oil and natural gas reserves in Alberta, due to reserves associated with these assets becoming uneconomic at lower commodity prices.

Tuscany’s proved plus probable reserves totaled 2.77 MMBOE as of December 31, 2015, a 3% decrease from the prior year. The estimated net present value of future net revenue, before tax, attributable to the Company’s proved plus probable reserves, discounted at 10%, decreased by 29% to $43.7 million, compared with $61.9 million at December 31, 2014.

The decrease in net present value was primarily due to significantly reduced price forecasts used in the McDaniel Report.

The McDaniel Report assigns proved reserves to 17 undrilled locations (14.2 net locations) and probable reserves to a further 15 undrilled locations (13.4 net locations) on the Company’s Saskatchewan heavy oil properties.

The Company’s December 31, 2015 reserves were evaluated by McDaniel and Associates Consultants Ltd., a qualified reserves evaluator in accordance with the Canadian Oil and Gas Evaluation Handbook and National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities. The McDaniel Report is dated February 23, 2016 and effective December 31, 2015.

The following summary is based on the McDaniel Report:

2015 Reserves Summary Tables

It should not be assumed that the estimates of net present value of future net revenue attributable to the Company’s reserves presented above represent the fair market value of the reserves. The recovery and reserve estimates of the Company’s oil, NGL, and natural gas reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Further there is no assurance that the forecast prices and costs assumptions will be attained and variances could be material.

Detailed reserve information will be contained in the Company’s Statement of Reserves Data and Other Oil and Gas Information which will be available in the Company’s Annual Information Form at www.sedar.com when it is filed.

Please refer to Tuscany’s website at www.tuscanyenergy.com for more information on the Company’s Evesham and Macklin fields and other prospects in Alberta and Saskatchewan.



Robert W. Lamond, President & CEO


Donald K. Clark, Vice President Operations


Telephone: (403)269-9889

Fax: (403) 269-9890



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