ENP Newswire -
Release date- 14082014 -
Exall's public filings can all be found at www.exall.com or www.sedar.com
A second quarter 2014 production average of 772 boe per day for a 6 month production average of 866 boe per day,
Production was negatively affected by the shut in of producing wells due to AER mandated pressure surveys and water injection well downtime due to workovers and a metering error. All of the operating wells are back on production or injection and productions is coming back to pre-shut in levels,
A second quarter 2014 field net back of
A second quarter 2014 cash flow for operations of
Exall's production for the three month period ended
All of the operating wells are back on production or injection and production is coming back to pre-shut in levels. Production for the six month period ended
These decreases were primarily the result of well cleanout operations performed during the first quarter of 2014, casing gas compressor issues resulting from the severe cold weather experienced during the first quarter of 2014 and the battery maintenance and well build up reporting requirements for the AER that were performed during the second quarter of 2014, which resulted in three weeks of lost production time.
While Exall continues to seek debt restructuring alternatives, and will maintain this focus until completed, the Capital Expenditure Program for 2014 has been deferred to the second half of 2014. Once resumed the Capital Expenditure Program is slated to continue to explore and develop the North Waterflood Gilwood channel extension of the Central Waterflood channel.
Successful drilling on the Central Waterflood / North Waterflood channel extension in the second half of 2014 is expected to add 320 boepd net (based on an average working interest of 71.5 percent). It is a tribute to the quality of the Gilwood reservoir that Exall has been able to maintain the level of production it has today utilizing a modest amount of maintenance capital.
Capital expenditures through the second half 2014 will continue to focus on the 'low-hanging fruit' (LHF) opportunities. Short term focus of capital will be firstly waterflood implementation and secondly the lowest-risk, lowest-cost infill wells in the North Waterflood area.
Two water injector conversions are to be implemented through the third quarter of 2014. Exall plans to drill up to 3 gross development wells in the third and fourth quarters of 2014 with a further 5 gross development wells and 1 gross exploration well in 2015, subject to cash flow from operations.
These wells are all high-impact, low risk locations identified through previous drilling and could have a significant impact on the Company's production if successful. Continued drilling success on the North Waterflood channel extension will drive production growth on an annual basis through 2014 and 2015.
Based on the
Exall's current debt level is approximately
To date, the facility review for 2014 has not been finalized. The balance of the debt is a
Exall is a light oil-weighted company with high operating margins. Starting from a modest production base of light oil and gas, the Company has historically, excluding the 2013 Reservoir conformance challenges in the south waterflood, shown itself capable of setting and achieving ambitious production and cash flow targets, production growth that currently translates to 25.3 percent compounded annually from 2007. Exall will continue to focus on organic growth through exploitation and expansion of its existing oil producing properties.
Exall's average daily production for the three month period ended
Results of Operations
Oil and gas exploration and development expenditures were
This is the result of 1) the 13 percent increase in commodity prices received for the three months ended
Operating netbacks for the six month period ended
This is the result of 1) the 13 percent increase in commodity prices received for the six months ended
Corporate netbacks for the three month period ended
This is the result of 1) the operating netback increase of 1 percent on a second quarter over second quarter basis, 2) the realized loss on financial contracts from the Canadian
Corporate netbacks for the six month period ended
This is the result of 1) the operating netback decrease of 7 percent on a second quarter over second quarter basis, 2) the realized loss on financial contracts from the Canadian
Net income, as a result, for the second quarter of 2014 was negative
The purchase price for the working interest disposition is
Exall is a junior oil and gas company active in its business of oil and gas exploration, development and production from its properties in
This news release contains forward-looking statements, which are subject to certain risks, uncertainties and assumptions, including those relating to results of operations and financial condition, capital spending, financing sources, commodity prices and costs of production. By their nature, forward-looking statements are subject to numerous risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, actual results may differ materially from those predicted.
A number of factors could cause actual results to differ materially from the results discussed in such statements, and there is no assurance that actual results will be consistent with them. Such factors include fluctuating commodity prices, capital spending and costs of production, and other factors described in the Company's most recent Annual Information Form under the heading 'Risk Factors' which has been filed electronically by means of the System for Electronic Document Analysis and Retrieval ('SEDAR') located at www.sedar.com.
Such forward-looking statements are made as at the date of this news release, and the Company assumes no obligation to update or revise them, either publicly or otherwise, to reflect new events, information or circumstances, except as may be required under applicable securities law.
For the purposes of calculating unit costs, natural gas has been converted to a barrel of oil equivalent (boe) using 6,000 cubic feet equal to one barrel (6:1), unless otherwise stated. The boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method and does not represent a value equivalency; therefore boe may be misleading if used in isolation. This conversion conforms to the Canadian Securities Regulators' National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities.
President & CEO
Tel: (416) 644-2020
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