Ness Energy Announces Significant Increases in Reserves
WILLOW PARK, TEXAS, U.S.A./NETANYA, ISRAEL: March 27, 2006/PR Newswire-First Call/ Ness Energy International, Inc. (OTC Bulletin Board: NESS) reported the Company achieved a substantial increase in proved reserves for the calendar year 2005.
Ness continues to expand its proved reserve base. According to an annually required and recently completed third-party reserve analysis report, total proved reserve value for the year ended December 31, 2005 was calculated as $246,358,000 (PV-10), before income taxes. This is an increase of approximately 203% from the 2004 reserves.
Ness President and CEO Sha Stephens commented “These positive results for 2005 reflect the success of one of the aspects of the Company’s continuing efforts of increasing shareholder value by building a strong asset base. Our business model continues to prove to be an effective strategy and we plan more of the same for 2006.”
When the tax effect is applied to this future potential income, it represents a potential real dollar value to Ness of approximately $209,690,000 (see table below).
2005
2004
Future cash inflows
$
630,581,000
$
209,942,000
Future production costs
(82,544,000
)
(27,930,000)
Future development costs
(24,425,000
)
(4,326,000)
Future income tax
(144,115,000
)
(30,151,000)
Future net cash flows
379,497,000
147,535,000
10% annual discount
(169,807,000
)
(78,293,000)
Standardized measure of discounted future net cash flows
$209,690,000
$69,242,000
About Ness – The Vision
Ness Energy is an aggressive, emerging oil and gas company building on deals that make sense. Ness energy operates interests in the Ft. Worth Basin and the Coastal Plains regions of Texas. Ness is also a very active player in the energy industry in Israel, carrying out The Vision of the Company. Ness Energy is building at a high-speed pace through mergers, acquisitions, drilling, re-work and re-entry.
Certain Information
The information contained in this press release must be read in conjunction with the Company’s recently filed 10-KSB (not true???) and does not constitute a full and complete report of the Company’s financial condition.
Certain statements above are forward-looking based on management’s expectations or estimates, subject to change. Words like “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates” and similar identify them. They are not guarantees of performance or otherwise and are subject to risks, uncertainties and other factors, some beyond the Company’s control and difficult to predict. Therefore, outcomes may differ materially from these statements. Do not place undue reliance on them. Unless legally required, the Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are referred to the documents filed by Ness Energy International, Inc. with the SEC, including the Company’s most recent report on Form 10-KSB for 2004, which identifies important risk factors that could cause actual results to differ from those contained in the forward-looking statements.
CONTACT:
Ness Energy International, Inc
Tina Sbriglia – Investor Relations
(817) 341-1477 or info@nessenergy.com
Visit us on the web at www.nessenergy.com
