Calgary, Alberta--(Newsfile Corp. - May 25, 2026) - International Frontier Resources Corporation (TSXV: IFR) ("IFR") and Kinjal Corporation ("Kinjal") are pleased to provide an update to the comprehensive news release dated May 4, 2026 in respect of the proposed reverse takeover of IFR by Kinjal (the "RTO Transaction"), the proposed brokered private placement of subscription receipts of Kinjal for aggregate gross proceeds of up to C$37,000,000 (the "Concurrent Financing"), and the proposed Mexican asset transactions described therein (the "Proposed Mexican Asset Transactions").
Completion of the RTO Transaction is subject to a number of conditions as set forth in the Definitive Agreement and summarized below, including, without limitation, all required Mexican regulatory approvals including from the Secretary of Energy of Mexico ("SENER"), TSX Venture Exchange (the "TSXV") acceptance; shareholder approvals; completion of the Concurrent Financing and execution and closing of definitive agreements in respect of the Proposed Mexican Asset Transactions. Where applicable, the RTO Transaction cannot close until the required shareholder approvals have been obtained.
Binding Terms on an up to US$30 Million Debt Facility with Summit Ridge Capital Partners
Kinjal continues to advance documentation in respect of the previously announced US$30 million debt facility and has now entered into a binding term sheet with Summit Ridge Capital Partners ("Summit Ridge"), a well-recognized Latin American focused lender based in Chile to fund the acquisition of the working interest and operatorship of the Misión asset ("Misión Field") as part of its acquisition of Servicios Múltiples de Burgos, S.A. de C.V. ("SMB"). The debt facility is subject to the execution of a final definitive credit agreement to be entered into between Kinjal and Summit Ridge.
Update on Misión Field and Tonalli Transactions; Planned 3rd Party Resource Report Post Close
Kinjal continues to advance definitive transaction documentation in respect of the Proposed Mexican Asset Transactions, including the proposed acquisition of an interest in Tonalli Energía, S.A.P.I. de C.V. ("Tonalli") and the proposed acquisition of SMB, which holds the Misión Field. Kinjal and the relevant counterparties have made significant progress on the definitive share purchase agreements and related transaction documentation for Tonalli and SMB with ongoing sessions being held in Mexico and Argentina to finalize drafting of the definitive agreements. Completion of each transaction remains subject to execution of definitive agreements, satisfaction or waiver of applicable closing conditions, required regulatory approvals and other customary closing matters.
In connection with the proposed Tonalli transaction, the parties expect that all indebtedness currently outstanding in respect of Tonalli will be eliminated at closing as part of the transaction structure.
Following the completion of the Proposed Mexican Asset Transactions and RTO Transaction, Kinjal plans to commence a companywide 3rd party resource report on its portfolio of assets, which includes the Misión Field, the high impact Kinkan discovery on the CS.06 Block, the A10.CS Block, and the Tecolutla block in Tonalli. Kinjal plans to prepare a consolidated reserve report across all of these assets and has engaged internationally recognized reserve auditors to complete the work.
Board and Governance Update
Kinjal and IFR are pleased to announce the addition of two board members with Ignacio Quesada joining the board of directors of IFR, effective June 1, 2026 and Ms Guadalupe Rodriguez joining the board of Kinjal on completion of the RTO.
Dr. Ignacio Quesada re-joins the Board of Directors IFR, bringing his extensive energy sector expertise and a deep understanding of Mexico's regulatory landscape. Ignacio has over 20 years of experience leading operational and financial performance improvement programs, including restructuring initiatives for energy services companies. He is expected to serve as an independent director and will assist IFR and Kinjal in maintaining appropriate governance and board composition as the parties continue to advance the RTO Transaction. Ignacio is a former Partner at McKinsey & Company, where he led the Mexico Transformation Practice until 2025. He was Managing Director at Alvarez & Marsal from 2013 to 2019. From 2008 to 2013, Ignacio served as Chief of Staff to the Minister at Mexico's Treasury Ministry, the Ministry of Social Development and served as the Chief Financial Officer and a Board Council member of Petróleos Mexicanos (Pemex) where he oversaw budget management, treasury, capital markets, and investor relations. He holds a PhD in Chemical Engineering and Operations Research from Carnegie Mellon University and a BSc in Chemical Engineering from the Universidad Nacional Autónoma de México.
Guadalupe Catarina Rodriguez is a global investment executive, strategist, and governance advisor operating at the intersection of private capital, geopolitics, and institutional leadership. She currently serves as Chief Strategy Officer of Talipot Holdings, a global single-family office with investments across venture capital, private equity, infrastructure, technology, media, energy transition, and strategic cross-border opportunities. Rodriguez specializes in long-term capital allocation, governance architecture, and geopolitical risk analysis, with a particular focus on how shifts in global power, technology, regulation, security, and economic policy shape institutional resilience and investment strategy. She is Founder and Chairman of the Good Governance Institute, an independent platform focused on governance, leadership, institutional trust, and the evolving role of private capital in global society. Her work and writing examine the intersection of finance, democracy, technological transformation, and geopolitical stability. Rodriguez is an active participant in leading global forums and policy dialogues, including the Milken Institute, international family office summits, institutional investor conferences, the Aspen Institute and cross-sector convenings focused on finance, security, innovation, and economic transformation.
Kinjal and IFR are excited to welcome Ignacio back to the Board of Directors and Guadalupe to the Board as we become Kinjal Gas, the largest independent onshore gas producer in Mexico. IFR also announces that Steve Hanson has resigned from the board of directors of IFR, effective 1 June, 2026. IFR thanks Mr. Hanson for his service and contributions to IFR.
In addition, IFR and Kinjal continue to finalize the proposed board of directors and management team of the resulting issuer upon completion of the RTO Transaction. The proposed board of the resulting issuer is expected to include Ignacio Quesada and Lupe Rodriguez, together with the individuals previously disclosed in IFR's May 4, 2026 news release. Further details regarding the proposed board and management team of the resulting issuer will be provided in the filing statement that is currently being prepared in connection with the RTO Transaction and in subsequent disclosure, as required.
Kinjal and Concurrent Financing
Kinjal has been formed to focus on the development of natural gas assets in Mexico. Kinjal is in the process of acquiring interests in four fields, anchored by a gas complex in the northern Burgos basin and additional assets that have development and exploration upside with fully funded anticipated growth from 30 MMcf/d - 90 MMcf/d (5,000 to 14,000 boepd).
As previously announced and in connection with the RTO Transaction, Kinjal intends to complete the Concurrent Financing of subscription receipts of Kinjal (the "Subscription Receipts") at a price of C$0.80 per Subscription Receipt. The Concurrent Financing is being led by Research Capital Corporation as the lead agent and sole bookrunner, on behalf of a syndicate of agents, including Canaccord Genuity Corp. and ATB Cormark Capital Markets (the "Agents"). For further details on the Concurrent Financing, please refer to the comprehensive news release dated May 4, 2026.
Pro Forma Production & EBITDA
As previously disclosed, the following table presents selected pro forma production estimates (the "Pro Forma Production Estimates"), valuation metrics and reserves in respect of the assets that are the subject of the Proposed Mexican Asset Transactions, assuming completion of both the RTO Transaction and the Proposed Mexican Asset Transactions. The estimates in the table below now include forecasted EBITDA from the assets of the Proposed Mexican Asset Transactions. The Pro Forma Production Estimates included in this news release are modelled forward-looking estimates based on internal engineering and economic analysis and are not reserves or resource data and are based on assumed timing for the closing of the transaction and forward looking estimates for market pricing of natural gas and oil. The valuation metrics shown below illustrate the implied value of IFR and Kinjal relative to current and forecast production.
| (C$ millions, unless otherwise specified) | Pro Forma(1)(2)(3)(4)(5)(6)(7) | Metrics |
| Pro Forma Enterprise Value | C$58.7 | |
| Production | ||
| At Closing | 5,103 boe/d | C$11,509 per boe/d |
| Exit 2026e | 8,088 boe/d | C$7,261 per boe/d |
| Exit 2027e | 14,172 boe/d | C$4,144, per boe/d |
| EBITDA | ||
| Exit 2026e Annualized | C$35.1 | 1.67x |
| Exit 2027e Annualized | C$66.5 | 0.88x |
RTO Transaction Metrics - Pre-Money Basis
| (C$ millions, unless otherwise specified) | Pro Forma(1)(2)(3)(4)(5)(6)(7) | Metrics |
| Pre-Money Valuation (Kinjal & RTO Vehicle) | C$24.5 | |
| Production | ||
| At Closing | 5,103 boe/d | C$4,801 per boe/d |
| Exit 2026e | 8,088 boe/d | C$3,029 per boe/d |
| Exit 2027e | 14,172 boe/d | C$1,729 per boe/d |
| EBITDA | ||
| Exit 2026e Annualized | C$35.1 | 0.70x |
| Exit 2027e Annualized | C$66.5 | 0.37x |
Notes:
1. The Pro Forma Production Estimates presented above are forward-looking information and represent modelled estimates based on internal engineering and economic analysis, including assumptions regarding capital expenditures, drilling and development plans, well performance, decline rates, facility construction, commodity prices, exchange rates, timing of completion of the Proposed Mexican Asset Transactions and other factors. These figures are not reserves or resources as defined under National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101").
2. The "per boe" metrics, EBITDA multiples, Pro Forma Enterprise Value and the Pre-Money Valuation (Kinjal and IFR) presented in this news release are non-GAAP, non-standard or supplementary financial oil and gas metrics, as applicable, and do not have standardized meanings under applicable securities laws. Such metrics are derived from internal estimates and are provided for contextual and comparative purposes only. Readers are cautioned that such metrics should not be used to make comparisons with other issuers.
3. The "per boe" metrics are calculated by dividing the applicable enterprise value or pre-money valuation by the applicable production or reserves metric, as applicable. The EBITDA multiples are calculated by dividing the applicable enterprise value or pre-money valuation by the applicable forecast annualized EBITDA amount.
4. EBITDA is a non-GAAP financial measure and does not have a standardized meaning under applicable securities laws and may not be comparable to similar measures presented by other issuers. EBITDA is calculated as earnings before interest, taxes, depreciation and amortization. The forecast EBITDA amounts presented above are forward-looking and are based on assumptions regarding production, commodity prices, operating costs, development timing, capital expenditures, exchange rates and completion of the Proposed Mexican Asset Transactions.
5. The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. Per boe amounts have been calculated by using the conversion ratio of six thousand cubic feet (6 Mcf) of natural gas to one barrel (1 bbl) of crude oil. The boe conversion ratio of 6 Mcf to 1 bbl 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 equivalent of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
6. The reserves information presented above relates to natural gas reserves only for the Misión Field. Volumes are presented on a barrel of oil equivalent ("boe") basis using a conversion ratio of 6 Mcf of natural gas to 1 bbl of oil equivalent. The reserves presented are gross reserves. The reserves were evaluated by Ryder Scott, an independent qualified reserves evaluator, with an effective date of December 31, 2025, in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook and National Instrument 51-101 Standards for Disclosure for Oil and Gas Activities. There is no assurance that the forecast prices and costs assumptions will be attained and variances could be material.
7. Possible reserves contained in 3P reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves.
Actual results may differ materially from the estimates and projections set out above, and no assurance can be given that the forecast Pro Forma Production Estimates or valuation metrics will be achieved.
Investment Highlights
Misión Field - Cash-Flowing Core Assets with Low-Risk Development Upside
Largest privately operated natural gas field on land in Mexico, currently producing approximately 65 MMcf/d gross with condensate volumes.
Mature, long-life, non-associated gas asset with decades of production history and established regional infrastructure.
Clear near-term development upside, with potential to restore production toward ~120 MMcf/d gross through drilling and field optimization with facilities in place to manage up to ~140 MMcf/d.
CS.06 / A10.CS Assets - Kinkan Southern Mexico Gas Development Provides Significant Development and Exploration upside
Farm-in across two Tabasco blocks with staged earn-in up to an 80% working interest.
Kinkan discovery tested at over 5 MMcf/d from a single zone but has multi zone potential.
Management estimate 2C contingent resource of approximately 200 Bcf (~33 MMboe net to Kinjal) adjacent to pipeline where natural gas is premium priced up to $8/mcf to local end users. The company expects to complete a tie in to the pipeline which once completed would allow the sale of gas significantly above the currently modelled local market price of ~$5/mcf.
Peak production expected at approximately 40 MMcf/d gross, or ~32 MMcf/d net at 80% working interest.
Further Information & Other Disclosures
Kinjal and IFR intend to provide additional information in subsequent news releases and/or the information circular to be prepared in relation to the meetings for the shareholder approval of RTO Transaction.
Completion of the transaction is subject to a number of conditions, including but not limited to, TSXV acceptance and if applicable, disinterested shareholder approval. Where applicable, the transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of IFR should be considered highly speculative.
The TSXV has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this news release.
Neither the 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 release.
Trading Halt
In accordance with the policies of the TSXV, trading in the shares of IFR will remain halted pending receipt and review of acceptable documentation regarding the RTO Transaction.
About Kinjal
Kinjal is a private oil and gas company incorporated under the laws of Ontario and focused on Mexican upstream oil and gas opportunities. Kinjal intends to pursue the Proposed Mexican Asset Transactions described above.
About International Frontier Resources Corporation
International Frontier Resources Corporation is a Canadian publicly traded oil and gas company focused on the acquisition and development of energy assets. Through its Mexican subsidiary, Petro Frontera S.A.P.I. de C.V., IFR has been advancing petroleum and natural gas assets in Mexico.
IFR's shares are listed on the TSXV under the symbol IFR.
For further information contact:
Kinjal Corporation - Warren Levy, wlevy@kinjalgas.com
International Frontier Resources - Tony Kinnon, tkinnon@internationalfrontier.com; (403) 607-6591
Cautionary Note Regarding Forward Looking Information
This news release contains forward-looking statements and forward-looking information (collectively "forward-looking information") within the meaning of applicable securities laws. Any statements that are contained in this press release that are not statements of historical fact may be deemed to be forward-looking information. Forward-looking information is often identified by terms such as "may", "should", "anticipate", "will", "estimates", "believes", "intends" "expects" and similar expressions which are intended to identify forward-looking information. More particularly and without limitation, this news release contains forward looking information concerning: the RTO Transaction, the potential terms and conditions in relation to the RTO Transaction, the potential completion of the RTO Transaction and date for completion of the RTO Transaction, the effect of the completion of the RTO Transaction, the length of the continued halt in relation to the RTO Transaction and timing for the commencement of trading of the shares of IFR; Kinjal, the assets of Kinjal and the Proposed Mexican Asset Transactions, including the completion of the Proposed Mexican Asset Transactions, the reasons for the formation of Kinjal including the objective of contributing to the country's energy priorities by supporting domestic natural gas production which will assist in strengthening energy security and complementing broader national development objectives, the increase in Mexican production as a result of the formation of Kinjal, the potential of the Proposed Mexican Asset Transactions, including development upside, production growth and a stable long life production platform of such assets and the Proposed Mexican Asset Transactions being a high impact growth project with development and exploration upside that management believes can be advanced within internally generated cash flow, supporting disciplined growth and long-term value creation, the ability to sell gas from the Proposed Mexican Asset Transactions outside of the Pemex system, the positioning Misión as the portfolio's core cash-flow generator and backbone while offering low-risk, development-led upside, the proposed development plan for Kinkan and management's belief that Kinkan will be a large-scale development opportunity for the Resulting Issuer, Tonalli offering low-cost reactivation potential in the Tampico-Misantla Basin and serving as a strategic complement for the Resulting Issuer, Kinjal's strategy to use the Misión Field to build the largest private gas producer in Mexico, and the ability to increase production at the Misión Field to approximately 120 MMcf/d gross (~59 MMcf/d net) by early 2028; the Resulting Issuer, including the pro forma ownership of Resulting Issuer, the proposed management and board of the Resulting Issuer, production of the Resulting Issuer providing stable cash flows and the Resulting Issuer being fully funded and the anticipated growth of the Resulting Issuer, including increasing production to over 14,000 BOEPD and the potential oil and gas reserves of the Resulting Issuer; the Concurrent Financing, including the completion of the Concurrent Financing, the description of the securities being offered under, the Closing Date of, and the size of the Concurrent Financing, the significant indications of interest and the lead indications of interest in respect of the Concurrent Financing and the size of the lead indications of interest in relation to the Concurrent Financing, the Escrow Release Conditions in respect of the Concurrent Financing, and the potential use of proceeds of the Concurrent Financing; and the Pro Forma Production Estimates, forecast EBITDA, EBITDA multiples and Implied Combined Pre-Financing Equity Value of IFR and Kinjal disclosed in the news release. IFR cautions that all forward-looking information is inherently uncertain. There can be no assurance that such forward-looking information will prove to be accurate. Actual results and future events could differ materially from those anticipated in such forward-looking information. This forward- looking information reflects IFR's current beliefs and is based on information currently available to IFR and on assumptions IFR believes are reasonable. These assumptions include, but are not limited to: assumptions with respect to the Definitive Agreement and its terms; the ability to obtain IFR shareholder approval and the timing and results of a meeting in respect of the same; TSXV acceptance of the RTO Transaction, the Concurrent Financing and other items disclosed in this news release; the terms of, and completion of, the Concurrent Financing and the Proposed Mexican Asset Transactions, including the completion of the Concurrent Financing in respect of the lead indications of interest disclosed in this news release; assumptions in relation to the Pro Forma Production Estimates, forecast EBITDA, EBITDA multiples and Implied Combined Pre-Financing Equity Value of IFR and Kinjal; market acceptance of the Concurrent Financing and the successful completion and timing of the Concurrent Financing; the satisfaction or waiver of any conditions to the RTO Transaction, contained in the Definitive Agreement or the Escrow Release Conditions; shareholder approval of the RTO Transaction, and any other required approvals in relation to the same; regulatory approval in relation to the RTO Transaction and the Proposed Mexican Asset Transactions, including SENER approval; successful execution and completion of any ancillary agreements described in this news release, or necessary or desirable for the completion of the RTO Transaction ;oil and gas information in relation to the Proposed Mexican Asset Transactions, and financial information and financial statements of Kinjal, being accurate and as disclosed to IFR and its directors and officers; the timing of filing regulatory applications and the expected results thereof; the impact of governmental controls and regulations on IFR's and the Resulting Issuer's operations; the timing of receipt of required approvals and permits from regulatory authorities, including but not limited to any approvals and notices that may be required under the Investment Canada Act, if applicable; Kinjal's and the Resulting Issuer's assets, liabilities, financial resources, financial position and growth prospects; the anticipated benefits from the Proposed Mexican Asset Transactions and the Concurrent Financing; and expectations regard prevailing commodity prices, access to premium-priced domestic gas markets, exchange rates, interest rates, applicable royalty rates and tax laws. Forward looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance, or achievements of IFR, and the potential completion of the transactions disclosed in this news release, to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: general business, economic, competitive, political and social uncertainties; general capital market conditions and market prices for securities; delay or failure to receive board or regulatory approvals, including TSXV acceptance and SENER approval in relation to the Proposed Mexican Asset Transactions; the actual results of future operations; difficulties in obtaining financing and risks relating to the completion of the Concurrent Financing; risks inherent in oil and natural gas operations; fluctuations in the price of oil and natural gas, interest and exchange rates; the risks of the oil and gas industry, such as operational risks and market demand; governmental regulation of the oil and gas industry, including environmental regulation; actions taken by governmental authorities, including increases in taxes and changes in government regulations and incentive programs; geological, technical, drilling and processing problems; the uncertainty of resource and reserves estimates and reserves life; unanticipated operating events which could reduce production or cause production to be shut-in or delayed; hazards such as fire, explosion, blowouts, cratering, and spills, each of which could result in substantial damage to wells, production facilities, other property and the environment or in personal injury; encountering unexpected formations or pressures, premature decline of reservoirs and the invasion of water into producing formations; failure to obtain industry partner and other third party consents and approvals, as and when required; competition; the timing and availability of external financing on acceptable terms; and lack of qualified, skilled labour or loss of key individuals. A description of additional risk factors that may cause actual results to differ materially from forward-looking information can be found in IFR's disclosure documents on the SEDAR+ website at www.sedarplus.ca. Although IFR has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Readers are cautioned that the foregoing list of factors is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions, or expectations upon which they are placed will occur. Forward-looking information contained in this news release is expressly qualified by this cautionary statement. The forward-looking information contained in this news release represents the expectations of IFR as of the date of this news release and, accordingly, is subject to change after such date. However, IFR expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.
Cautionary Statement Regarding Financial Outlooks
The Pro Forma Production Estimates, forecast EBITDA and certain metrics presented in this news release may constitute financial outlooks within the meaning of applicable securities laws. Such information has been prepared to provide readers with an understanding of the potential production profile and associated metrics of the assets comprising the Proposed Mexican Asset Transactions and may not be appropriate for other purposes. Such financial outlooks have been approved by management of IFR as of the date hereof. This information is based on a number of material assumptions, including assumptions regarding the timing of completion of the RTO Transaction and the Proposed Mexican Asset Transactions, capital expenditures, development schedules, drilling results, facility completion, well performance, decline rates, commodity prices, exchange rates and regulatory approvals. The Pro Forma Production Estimates, particularly the longer-dated estimates, are inherently uncertain and subject to significant business, economic, operational and competitive risks and contingencies. Actual results may differ materially from those expressed or implied by such information, and there can be no assurance that such estimates will be achieved.
Oil & Gas Advisories
All reserve references in this press release are to gross reserves. Gross reserves are the total working interest reserves before the deduction of any royalties and including any royalty interests. The recovery and reserve estimates of crude oil, natural gas liquids and natural gas reserves provided in this news release are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual crude oil, natural gas and natural gas liquids reserves may be greater than or less than the estimates provided in this news release. The reserves data set forth in this news release in respect of the Misión Field was evaluated by Ryder Scott, an independent qualified reserves evaluator, with an effective date of December 31, 2025, in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook and National Instrument 51-101 Standards for Disclosure for Oil and Gas Activities. There is no assurance that the forecast prices and costs assumptions will be attained and variances could be material.
"reserves" are estimated remaining quantities of oil and natural gas and related substances anticipated to be recoverable from known accumulations, as of a given date, based on (a) analysis of drilling, geological, geophysical, and engineering data; (b) the use of established technology; and (c) specified economic conditions, which are generally accepted as being reasonable and shall be disclosed. Reserves are classified according to the degree of certainty associated with the estimates being "proved reserves", "probable reserves" and "possible reserves".
In this press release "1P" means "proved reserves", those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves.
In this press release "2P" means "proved plus probable reserves", probable reserves being additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves.
In this press release "3P" means "proved plus probable plus possible reserves", possible reserves being those additional reserves that are less certain to be recovered than probable reserves. Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves.
The estimates of reserves for individual properties may not reflect the same confidence level as estimates of reserves for all properties, due to the effects of aggregation.
The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. Per boe amounts have been calculated by using the conversion ratio of six thousand cubic feet (6 Mcf) of natural gas to one barrel (1 bbl) of crude oil. The boe conversion ratio of 6 Mcf to 1 bbl 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 equivalent of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
This news release refers to drilling locations that have not been assigned reserves under NI 51-101, including 19 potential drilling locations in the Kinkan development plan. The drilling locations on which Kinjal may actually drill wells depend on the availability of capital, regulatory approvals, seasonal restrictions, commodity prices, costs, actual drilling results and other factors. There is no certainty that any portion of the unbooked drilling locations will be drilled. If drilled, there is no certainty that such locations will result in additional oil and gas reserves, resources or production. The drilling locations have been identified by management as an estimate of future multi-year drilling opportunities based on evaluation of applicable geoscience and engineering data.
Any references to initial production rates in this news release, including the Kinkan discovery test rate of 5.1 MMcf/d, are useful in confirming the presence of hydrocarbons; however, such rates are not determinative of the rates at which such wells will continue to produce and decline thereafter and should not be relied upon for an indication of future production. Such rates may also include recovered "load" fluids from well stimulation operations and may not be representative of longer-term production.
Other Cautionary Statements
THIS PRESS RELEASE, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL ANY OF THE SECURITIES OF THE ISSUER IN THE UNITED STATES. THE SECURITIES OF THE ISSUER HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES OF AMERICA.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/298743
Source: International Frontier Resources
