ENP Newswire -
Release date- 22082014 -
The Company's financial statements and Management's Discussion and Analysis ('MD&A') for the three and six months ended
Financial and Operational Highlights include:
Achieved significant growth in both revenue and funds flow from operations in the second quarter of 2014. Revenue increased 19% to
Increased production to average 5,035 boe/d (43% oil and NGLs) in the quarter, a 25% improvement over Q1-2014 and 138% higher than Q4-2013.
The Company incurred
Drilled one horizontal oil well and spud a second well in June at Michichi. Both wells are now on production.
Subsequent to the end of the quarter, entered into a syndicated credit facility agreement with two Canadian chartered banks that provides total credit availability of
The Company's net-debt at the end of the second quarter was
Financial and Operational Summary
Financial and operational details for the three and six month periods ended
SECOND QUARTER 2014 FINANCIAL AND OPERATING RESULTS
For the second consecutive quarter, Marquee achieved significant increases in a number of financial and operating categories as a result of the Company's recent drilling programs, together with the acquisitions of the Sonde assets on
Production in Q2-2014 was 5,035 boe/d (43% oil and NGLs), a 122% increase from 2,268 boe/d in Q2-2013.
Revenue from oil and natural gas sales was
Funds flow from operations was
Net general and administrative expense ('G&A') was
Field operating netbacks decreased slightly in the quarter to
The Company incurred
Drilled one Michichi horizontal oil well, and spud a second well.
Recompletion and workover program in the greater Michichi/
Targeted land acquisition in the Michichi area.
The Company closed a common share bought-deal financing, including a 15% over-allotment option for net proceeds of
Marquee has drilled eight horizontal wells at Michichi in 2014. The first three wells have been on production for five months and are now producing at stabilized levels. For the first 90 days, the average production from each of these wells was 143 boe/d (IP90), 76% oil and liquids. The next three wells have been on production for less than a month. Initial results indicate that production from these wells should meet or exceed Marquee's published type curve expectations for Michichi.
The seventh well has been hydraulically fractured ('fracked') and is scheduled to be on production before the end of August. Drilling operations recently concluded on the eighth well which is being prepared for completion operations. An additional four wells are planned for the remainder of 2014 as part of the Company's 2014 drilling program of twelve new
Construction of a multi-well battery has been completed to support recent drilling activity which will lead to reduced equipping and operating costs. Equipping costs for wells connected by flowline to the battery are expected to decrease by approximately
The Company completed tie-in of all Sonde wells acquired at Michichi into owned gas gathering infrastructure in the second quarter. Production in the Michichi area averaged 3,665 boe/d in Q2-2014 or 73% of corporate production.
The Company has drilled one gross (one net) vertical heavy oil well and one gross (one net) horizontal heavy oil well at
Marquee has built an extensive, contiguous, operated high working interest land position in its core area of Michichi. The Company further expanded its land holdings, infrastructure and drilling inventory through its strategic acquisitions completed earlier in 2014. The evolution of the Company's technical and operating knowledge at Michichi continues, and is reflected in improved well performance and cost efficiencies.
Further consolidation of lands will occur on a targeted basis, and the growth of company owned and operated infrastructure is underway to further reduce operating costs and improve netbacks. Marquee expects to reach its forecast guidance of 5,600 boe/d by the end of the year through completion of its planned twelve
Average production for the year is expected to be approximately 5,000 boe/d. Production growth in late Q2 and early Q3 was affected by spring breakup and access issues at
The Company expects to fund its capital program for the remainder of 2014 out of cash flows from operations and its existing credit facilities. Subsequent to the quarter, the Company closed the disposition of a non-core asset for proceeds of
The Company will be participating in the upcoming Peters & Co. 2014
An updated presentation and additional information about Marquee may be found on its website www.marquee-energy.com and in its continuous disclosure documents filed with Canadian securities regulators on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.
This press release contains certain measures, including 'funds flow from operations', 'net debt' 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.
President & Chief Executive Officer
Tel: (403) 817-5561
Tel: (403) 817-5568
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;
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.
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OCTOBER 31, 2014
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