November 19, 2012 - 7:45 AM EST
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Vanguard Energy Corporation Announces Increased Reserves
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HOUSTON, TX -- (Marketwire) -- 11/19/12 -- Vanguard Energy Corporation (OTCQX: VNGE), an oil development and production company, today announced that as of September 30, 2012 the value of its proven oil reserves based on a PV-10 calculation had risen to $35.8 million, up 13% over the same date a year ago.

This PV-10 valuation is based on 620,000 barrels of proven reserves, which is an increase of approximately 3% over the comparable amount at September 30, 2011, and is after a year in which the Company produced approximately 48,500 barrels of oil from the field, giving it a reserve replacement rate of 125%. This growth in proved reserves demonstrates the viability of both the Batson Dome Field and the new well drilling program implemented by the Company. Further, it reported that production grew from 3,350 barrels per month in October 2011 to 6,300 barrels in October 2012, a demonstration of the growth trajectory of the Company.

Of the total 620,000 barrels of proven reserves, approximately 30% is considered PDP (proved developed producing), 12% is categorized as PDNP (proved developed non-producing) or behind pipe reserves and 58% is PUD (proved un-developed). This PUD component provides the Company with substantial growth opportunity through a low-cost, low-risk development drilling program.

The Company recently announced that two new wells are scheduled to be drilled before the end of the calendar year, which should not only further increase production, but also continue the trend of moving reserves to the Proved category. Of these new wells one will be the first well drilled at its recently acquired acreage at the Hull-Daisetta Field. The current reserve report contains no reserves attributable to this field.

The Company engages an independent reservoir engineering company to evaluate its lease positions at the end of each fiscal year to determine the economic value of its proven reserves, assuming the production over time of all recoverable oil that is proven to be in place. Such calculation takes into consideration estimated future oil prices and the capital and operating costs that would be associated with such production, and then discounts those amounts at a 10% annualized rate. This industry standard report is prepared for SEC reporting purposes. Although the amount of acreage reported on for these purposes was no greater than that of the prior year, the increase was due to the company's successful completion of new wells which demonstrated more extensively the presence of oil in the ground. This is significant not only because of the amount of the increase, but also after taking into consideration all of the oil that had been taken from the reservoirs during the past year.

Management Comments

Mr. Warren Dillard, President of Vanguard Energy, said, "This report is very gratifying as it confirms the overall success we have had in finding new oil and further validates that inherent value of our company by industry-wide standards. When we started this Company we did so with a focus on building shareholder value, and the fact that we were able to grow proven reserves by 125% of our annual production demonstrates that commitment. We continue to pursue our active drilling program including on the recently acquired Hull-Daisetta field lease where success there will add further reserves to these values."

About Vanguard Energy

Vanguard Energy is an oil drilling and production company with a focus on established oil fields in southeast Texas. Concentrating on oil properties in established areas with proven production history, Vanguard applies its managerial expertise to maximize production while minimizing risk. Vanguard is focused on creating shareholder value by building cash flow and oil reserves through an aggressive, focused acquisition and development program in the prolific southeast Texas oil producing region. Vanguard's initial area of operation is in the famous Batson Dome Field where it controls 500 strategic acres with substantial oil reserves. It has expanded its reach with the acquisition of a leasehold position in the Hull-Daisetta Field, about 10 miles south of Batson, confirming its plans to expand to new fields as part of its growth strategy. For more information visit the Company's web site at www.vanguardenergycorp.com

Safe Harbor

This press release and other statements Vanguard Energy may make in the future contain forward-looking statements that relate to Vanguard's plans, objectives and future estimates. Various risks, uncertainties and other factors could cause actual results to differ materially from those expressed in any forward-looking statements. For a more detailed list of such risks, uncertainties and other factors, please refer to the Risk Factor section of Vanguard's Registration Statement on Form S-1 and in its periodic filings with the Securities and Exchange Commission. Vanguard makes no commitment to update any forward-looking statement, or to disclose any facts, events, or circumstances after the date of this release that may affect the accuracy of any forward-looking statement, except as may be required by applicable law.

Investor Relations Contact:
Brad Holmes
EnergyIR
(713) 654-4009
Email Contact

1330 Post Oak Boulevard, Suite 1600
HOUSTON, TEXAS 77056

(713) 627-2500 (tel)
(713) 963-4663 (fax)


Source: Marketwired (November 19, 2012 - 7:45 AM EST)

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