Financial and Operational Highlights include:
•Achieved significant growth in both revenue and funds flow in the first quarter of 2014. Revenue increased 114% compared to Q4-2013. Funds flow from operations before transaction costs were
Financial and Operational Highlights
Three months ended
Financial(000's except share amounts and net wells drilled)
Oil and natural gas sales (1)
Funds flow from operations (2)
Per share - basic and diluted
Funds flow from operations excluding transaction costs
Per BOE excluding transaction costs
Per share - basic and diluted
Asset acquisitions including non-cash consideration
Dispositions - proceeds
Net wells drilled
Net debt (3)
Weighted average basic and diluted shares outstanding
Daily sales volumes
Oil (bbls per day)
Heavy Oil (bbls per day)
NGL's (bbls per day)
Natural Gas (mcf per day)
Total (boe per day)
% Oil and NGL's
Average realized prices
Heavy Oil ($/bbl)
Natural Gas ($/mcf)
Opex and transportation ($/boe)
Field operating netbacks
See Non-GAAP measurements
Net debt is calculated as current assets less current liabilities, excluding commodity contracts and flow-through share premiums.
FIRST QUARTER 2014 FINANCIAL AND OPERATING RESULTS
Marquee achieved significant increases in a number of financial and operating categories quarter over quarter as a result of the Company's second-half 2013 and Q1-2014 drilling programs, together with the acquisition of the Sonde assets which closed on
•Production increased to 4,024 boe/d (48% oil and NGLs), a 78% increase from 2,266 boe/d in Q1-2013. •Revenue more than doubled to
Field operating netbacks increased to
The Company incurred
•Three Michichi horizontal oil wells. •Two
In Q1-2014, the Company drilled and tied-in three gross (three net) horizontal oil wells. The Company also tied in the last two horizontal wells from the Q4-2013 drilling program. The three new wells are in the process of being optimized. Including recent acquisitions, Marquee now has approximately 3,800 boe/d of production in the greater Michichi area.
The Company plans to resume drilling immediately following spring break-up in the vicinity of recent successes and within reach of 100% owned infrastructure.
Evaluation of lands and wellbores acquired in both recent transactions is underway. A program of workovers and recompletions on these assets has commenced.
The Company drilled two gross (two net) vertical heavy oil wells and recompleted two additional heavy oil wells at
The Company expects to drill up to four heavy oil wells in the remainder of the year, with operations expected to commence after spring break-up.
Marquee will continue to evaluate optimum drilling and completion programs and delineate reservoir development in the Michichi area during 2014. 3D seismic has proven to be an important tool in predicting areas of enhanced
The 2014 capital budget is designed to focus on oil opportunities in Marquee's two core areas, Michichi and
Marquee also intends to devote a portion of the 2014 Capital Budget to infrastructure improvements at Michichi which are expected to reduce area operating costs. The Company has completed the second phase of modifications to its gas gathering system at Michichi which connects all Sonde wells into the Marquee gas gathering system and gas plant. Operating cost reductions and production efficiency improvements are expected. Almost a third of the Company's oil production from Michichi is now being processed at its
The Company continues to evaluate non-core asset disposition opportunities.
The Company is holding its annual shareholders meeting this morning at
This press release contains certain measures, including "funds from operations", "funds flow from operations" and "field operating netbacks" that do not have standardized meaning as prescribed by IFRS and, therefore, are considered non-GAAP measures. Readers are cautioned that this press release should be read in conjunction with Marquee's disclosure under "Non-GAAP Measures" included at the end of the MD&A at www.sedar.com.
Forward looking Statements or Information
Certain statements included or incorporated by reference in this news release may constitute forward looking statements under applicable securities legislation. Such forward looking statements or information typically contain statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", or similar words suggesting future outcomes or statements regarding an outlook. Forward looking statements or information in this news release may include, but are not limited to:
•2014 capital budget and expenditures;•business strategies, objectives and outlook;•petroleum and natural gas sales;•future production levels (including the timing thereof) and rates of average annual production growth;•exploration and development plans;•acquisition and disposition plans and the timing and the anticipated benefits thereof;•anticipated cash flows;•expected cost reductions and production efficiencies derived from recently acquired assets;•number and quality of future potential drilling locations future drilling plans;•expected debt levels;.•operating and other expenses; •royalty and income tax rates; and•the timing of regulatory proceedings and approvals.
Such forward-looking statements or information are based on a number of assumptions all or any of which may prove to be incorrect. In addition to any other assumptions identified in this document, assumptions have been made regarding, among other things:
•the ability of the Company to obtain equipment, services and supplies in a timely manner to carry out its activities;•the ability of the Company to market crude oil, natural gas liquids and natural gas successfully to current and new customers;•the ability to secure adequate product transportation;•the timely receipt of required regulatory approvals;•the ability of the Company to obtain financing on acceptable terms;•interest rates; •regulatory framework regarding taxes, royalties and environmental matters;•future crude oil, natural gas liquids and natural gas prices; and•Management's expectations relating to the timing and results of development activities
Forward-looking information is based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by the Company and described in the forward-looking information. The material risk factors affecting the Company and its business are contained in Marquee's Annual Information Form which is available under Marquee's issuer profile on SEDAR at www.sedar.com.
The forward-looking information contained in this press release is made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward looking information contained in this press release is expressly qualified by this cautionary statement.
Boes are presented on the basis of one Boe for six Mcf of natural gas. Disclosure provided herein in respect of Boe may be misleading, particularly if used in isolation. A Boe conversion ratio of 6 Mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.