News: Marion Energy holds gas reserves steady at Utah project

Marion Energy (ASX:MAE) has received an update from MHA Petroleum Consultants confirming that Reserves at its Clear Creek gas project in Utah have remained stable.

Proved Reserves were estimated at 126 billion cubic feet (Bcf) of gas while Probable Reserves are 68.5Bcf.

In addition, the gas Reserves have future discounted net cash flow of US$246 million despite lower gas prices and the 10.5% Net Operating Profits Agreements to a financier and a financial advisor.

This is due to improving economics of operating the field.

Operations are underway to achieve stable production levels at a number of wells in the Clear Creek Field.

This follows the successful refurbishment of existing wells and infrastructure.

Marion had also in the June 2014 quarter signed a mandate with corporate advisory firm 333 Capital to:

-    Manage its relationship with Castlelake, LP, the current lender to its wholly owned US subsidiary, Marion Energy Inc;
-    Exploring the option of re-financing of the facility provided by Castlelake; and
-    Managing the potential sale of the Clear Creek asset.

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