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Par Petroleum Corporation Reports 2012 Estimated Proved Reserves

Par Petroleum Corporation (“Par”) (OTCBB: PARR) filed its Annual Report on Form 10-K with the US Securities and Exchange Commission (SEC) for the fiscal year ending December 31, 2012, reporting total estimated proved natural gas and oil reserves as of that date. The estimates, which include the Company’s share of the estimated proved reserves of Piceance Energy, LLC (“Piceance Energy”), were 167.9 Bcfe, consisting of 123.1 billion cubic feet (Bcf) of natural gas, 6.3 million barrels (MMBbls) of natural gas liquids (NGLs) and 1.1 MMBbls of oil. Par’s primary asset is a 33.34% non-operated equity interest in Piceance Energy. Piceance Energy’s primary area of activity is in the Piceance Basin in western Colorado.

The pre-tax present value of estimated proved reserves at December 31, 2012, discounted at 10%, and based on average beginning of the month prices during 2012 (the “SEC Case”), was approximately $80.0 million. An alternate price scenario (the “Alternate Case”), which is described in more detail below, applies the hedgeable NYMEX forward strip price as of December 31, 2012 and results in estimated proved reserves of 433.4 Bcfe with a PV-10 value of approximately $291.6 million. See disclosures at the end of this release for a reconciliation of PV-10 to the standardized measure of discounted future net cash flows.

Reserves and Cash Value

The following tables present the estimated proved reserves and PV-10 that Par directly owns and indirectly owns through Piceance Energy as of December 31, 2012:
2012 2012

SEC Case
Alternate Case
Natural Gas (Bcf) 123.1 319.7
NGL (MMbbl) 6.3 16.6
Oil (MMbbl) 1.1 2.3
Total (Bcfe) 167.9 433.4
2012 2012

SEC Case
Alternate Case
($ millions)
PDP PV-10 $ 47.1 $ 78.1
PDNP PV-10 $ 13.0 $ 24.3
PUD PV-10 $ 19.9 $ 189.3
Total Proved PV-10 $ 80.0 $ 291.6

For the SEC Case, total estimated proved reserves and PV-10 are based on a historical first-of-month, 12-month average posted price of $85.87 per Bbl for WTI oil, $34.66 per Bbl for natural gas liquids and a spot price of $2.30 per MMBtu for CIG natural gas, in each case adjusted for differentials, contractual deducts and similar factors.

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