Bald Eagle Energy Receives Petroleum Geologists Report on Alaskan Projects

Bald Eagle Energy Receives Petroleum Geologists Report on Alaskan Projects

Monday, August 18th 2008

Bald Eagle Energy Inc. 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.”

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