LGX spud the first well (15-25-8-24W4) of a budgeted two well horizontal drilling program on
As a result of the above developments, the Company now expects average production of approximately 1,000 Boe per day for 2014 with exit production of 1,500 Boe per day (exit production is approximately 67 percent higher than 2013 exit production guidance). To account for the increase in working interest as well as additional scope in the completions of the wells, the Company now expects capital spending in 2014 to be approximately
To fund this program, LGX has entered into a new banking facility with the Alberta Treasury Branch consisting of a
LGX is a uniquely positioned, technically driven, junior oil and natural gas company with a proven management team committed to aggressive, cost-effective growth of light oil reserves and production combined with high impact exploration potential in southern Alberta. LGX's common shares trade on the
Forward-Looking Information - This press release contains forward-looking statements. More particularly, it contains forward-looking statements concerning: (i) the fact that LGX anticipates securing a 100% working interest in the second well of its 2014 drilling program, (ii) the anticipated timing of the spudding of the second well of the 2014 drilling program, (iii) the anticipated timing of first production from the wells drilled in the 2014 drilling program, (iv) the anticipated 2014 average and exit rates of production and (v) anticipated capital spending in 2014.
The forward-looking statements contained in this press release are based on certain key expectations and assumptions made by LGX, including expectations and assumptions concerning: (i) whether LGX's partner in the second well of its 2014 drilling program will elect to participate in the well, (ii) the timing of the drilling and completion of the two wells in the 2014 drilling program, (iii) the success and performance of the two wells to be drilled in 2014, (iv) the performance of existing wells, (v) the application of the previously announced emergency order for the protection of the Greater Sage-Grouse (the "Emergency Order") and the Species at Risk Act (
Although LGX believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because LGX can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risk that one or both of the wells in the 2014 drilling program will not be successfully drilled and completed or will not perform as expected, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), constraint in the availability of services, constraint in the availability of capital, commodity price and exchange rate fluctuations, adverse weather or break-up conditions, uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures, uncertainties as to the application and impact of the Emergency Order, and uncertainties as to the outcome of efforts by LGX to quash or amend the Emergency Order or to obtain compensation for losses related to the Emergency Order. These and other risks are set out in more detail in LGX's Annual Information Form for the year ended
The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Meaning of Boe - Boe means barrel of oil equivalent. All Boe conversions in this report are derived by converting natural gas to oil equivalent at a ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent. Boe may be misleading, particularly if used in isolation. A Boe conversion rate of 1 Boe: 6 Mcf 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 of oil compared to natural gas based on currently prevailing prices is significantly different than the energy equivalency ratio of 1 Boe : 6 Mcf, utilizing a conversion ratio of 1 Boe : 6 Mcf may be misleading as an indication of value.
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