Proceeds from Angkor Resources' Evesham Project Increases Substantially
GRANDE PRAIRIE, May 8, 2024 - Angkor Resources Corp. (TSXV: ANK and OTCQB: ANKOF) ("ANGKOR" or the "Company") announces its subsidiary, EnerCam Exploration Ltd. ("EnerCam") realized an increase in net proceeds as the price differential dropped for Canadian crude oil sold into the US. EnerCam holds a 40 % interest in the Evesham project and Eyehill Creek Exploration Ltd. ("Eyehill") and a third party hold the remaining 60%. Using analyst reports from TD Economics, (May 4, 2024), the sale price of Canadian oil production is determined by several factors including a 'price differential', caused in part by a lack of sales channels for Canadian product. The differential is a deduction for the conversion of a posted pricing benchmark using the West Texas Index ("WTI") to a base of Western Canadian Select ("WCS") with further discounts for product type, quality, quantity, and finally an exchange from USD converted to Canadian dollars.
Between December 2023 and February 2024, the discount narrowed from $26 to $15 per barrel. As a result, the deposit for EnerCam's 40% of proceeds from February production was $87,265.89 compared to less than $50,000 from December. (Final sales proceeds are reported about 60 days after month end.)
Glenn Thunberg, President of Eyehill, explains the impact, "For an operation like Evesham, the differential has a huge impact. For example, the change in WTI to WCS differentials since December used in proceeds of oil sales to Eyehill combined with a modest increase in the WTI benchmark has resulted in more than a 40% increase in realized pricing. This has a material impact for small producers like Enercam and Eyehill. With Trans Mountain in operation, we should see differentials remain relatively stable for the foreseeable future."
Mike Weeks, President of EnerCam adds, "Most of the oil production in Western Canada has been sold into the Midwest USA, which has limits on how much and what it can take, and results in us selling Canadian product at a discount. There is strong demand for light-to heavy oil for refineries in Europe and Asia and Canadian product can easily fill that void. Expanding the Trans Mountain Pipeline, which runs from Edmonton, Alberta to Burnaby, BC, is forecast to triple volumes from 300,000 barrels per day to 890,000 barrels per day (BOE Report, May 6, Will Gibson)" .
May 1 2024, marked the commercial commencement date for the project, and tankers will be able to load at Westridge Marine Terminal in the Port of Vancouver by mid-May.
Weeks continued, "We anticipate TMX will help keep the differentials low and will position Canada to have multiple buyers at more competitive prices. Ultimately, TMX brings Canada a huge opportunity to reach other export markets in the energy sector. "
ABOUT ANGKOR RESOURCES CORPORATION:
Angkor Resources Corp. is a public company, listed on the TSX-Venture Exchange, and is a leading resource optimizer working towards mineral and energy solutions across Canada and Cambodia. Angkor's carbon capture and gas conservation project in Saskatchewan, Canada is part of its long-term commitment to Environmental and Social projects and cleaner energy solutions across expanding jurisdictions. The company holds three mineral exploration licenses in Cambodia, Andong Meas license and Oyadao North license in Ratanakiri Province and Andong Bor license straddling Oudar Meanchey and Banteay Meanchey Provinces. Angkor's subsidiary, EnerCam Resources, was granted an onshore oil and gas license of 7300 square kilometers in the southwest quadrant of Cambodia.
CONTACT: Delayne Weeks - CEO
Email: info@angkorresources.com Website: angkorresources.com
Telephone: +1 (780) 831-8722
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The information in this press release contains certain forward-looking statements, including within the meaning of applicable securities laws. These statements relate to future events or our future intentions or performance. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "continue", "demonstrate", "expect", "may", "can", "will", "believe", "would" and similar expressions and include statements relating to, among other things, Angkor's position, strategy and development plans and the benefits to be derived therefrom; the Corporation's anticipated annual production growth and annual capital spending for the next three years; that the focus of the Corporation's development activities during the remainder of 2023; expectations of when the transaction is completed; the anticipated focus of Angkor's operations in 2024; the Corporation's anticipated 2024 average production; and the Corporation's expectations that it will continue to deliver clean, reliable, sustainable energy, contributing to a reduction in global emissions by displacing high-carbon fuels. Angkor's actual decisions, activities, results, performance or achievement could differ materially from those expressed in, or implied by, such forward-looking statements and accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do, what benefits that Angkor will derive from them.