ENP Newswire -
Release date- 29082014 -
Selected financial and operational information is outlined below and should be read in conjunction with
SECOND QUARTER 2014 HIGHLIGHTS
The Acquisition included proved plus probable reserves of 6,513 Mboe at
Q2 - 2014 production was 1,569 boe/d - including the six day contribution from the Acquisition;
Current production is approximately 4,700 - 4,800 boe/d (75% oil & NGLs) net to
Operating netbacks continue to improve and averaged
Operating costs in
Well positioned with a strong balance sheet, exiting the quarter with
Established a capital budget for the second half of 2014 of
OUTLOOK FOR SECOND HALF OF 2014
The Company's current production is approximately 4,700 - 4,800 boe/d and with the execution of the second half capital budget of
At the end of 2014, the Company expects to be in a positive working capital position with no debt and a strong balance sheet with financial flexibility.
Operational Update -
Industry activity near
The Company's Sierras Blancas horizontals, in which the Company has a 35% working inrest, continue to exceed expectations.
The second horizontal (CAN-15h) is producing 430 Bbls/d and 480 Mcf/d sales gas (510 boe/d gross) and has cumulative gross production of 44,300 Bbls of oil to the end of July (three months on production). Current water cut for these wells are approximately 10 and 15% respectively.
The third Sierras Blancas horizontal (CAN-18h) is currently running intermediate casing prior to drilling out and commencing the build section of the horizontal. It is anticipated to finish drilling in September with production expected for
Production from this well is expected prior to year end.
On the Coiron Amargo South block
Puesto Morales (100% WI)
Curamhuele (90% WI)
Most of the regulatory approvals have been received and the Company anticipates commencing operations late 2014 or early 2015.
Cortadera (37.8% WI)
Prior to the end of the year,
Operational Update -
President and Chief Executive Officer
Tel: (403) 262-1901
Chief Financial Officer
Tel: (403) 262-1901
Forward Looking Information
The information in this news release contains certain forward-looking statements. These statements relate to future events or our future performance, including, without limitation, with respect to the expected timing and details of operational activities, including drilling, completion, re-entry, evaluation and seismic activities, anticipated financial condition and metrics and anticipated production levels. All statements other than statements of historical fact may be forward-looking statements.
Forward-looking statements are often, but not always, identified by the use of words such as 'seek', 'anticipate', 'plan', 'continue', 'estimate', 'approximate', 'expect', 'may', 'will', 'project', 'predict', 'potential', 'targeting', 'intend', 'could', 'might', 'should', 'believe', 'would' and similar expressions. In particular, this news release contains forward-looking statements pertaining to planned operational activities to be conducted by the Company.
In addition, statements relating to 'reserves' or 'resources' are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated and can be profitably produced in the future.
These statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control, including: the impact of general economic conditions; industry conditions; changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; fluctuations in commodity prices and foreign exchange and interest rates; stock market volatility and market valuations; volatility in market prices for oil and natural gas; liabilities inherent in oil and natural gas operations; uncertainties associated with estimating oil and natural gas reserves; competition for, among other things, capital, acquisitions, of reserves, undeveloped lands and skilled personnel; incorrect assessments of the value of acquisitions; changes in income tax laws or changes in tax laws and incentive programs relating to the oil and gas industry; geological, technical, drilling and processing problems and other difficulties in producing petroleum reserves and obtaining required approvals of regulatory authorities.
The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, such forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do, what benefits the Company will derive from them.
These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements.
The forward-looking statements in this news release are expressly qualified in their entirety by this cautionary statement. Except as required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statements. Investors are encouraged to review and consider the additional risk factors set forth in the Company's Annual Information Form, which is available on SEDAR at www.sedar.com
Reserves and Other Oil and Gas Disclosure
Any references in this news release to test rates, flow rates, initial and/or final raw test or production rates, early production, test volumes behind pipe and/or 'flush' production rates are useful in confirming the presence of hydrocarbons, however, such rates are not necessarily indicative of long-term performance or of ultimate recovery. Such rates may also include recovered 'load' fluids used in well completion stimulation. Readers are cautioned not to place reliance on such rates in calculating the aggregate production for
In addition, the Vaca Muerta shale is an unconventional resource play which may be subject to high initial decline rates. All calculations converting natural gas to barrels of oil equivalent ('boe') have been made using a conversion ratio of six thousand cubic feet (six 'Mcf') of natural gas to one barrel of oil, unless otherwise stated.
The use of boe may be misleading, particularly if used in isolation, as the conversion ratio of six Mcf of natural gas to one barrel of oil 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.
Certain information in this document may constitute 'analogous information' as defined in National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ('NI 51-101'), including, but not limited to, information relating to areas, assets, wells and/or operations that are in geographical proximity to or believed to be on-trend with lands held by
However, management cannot confirm whether such analogous information has been prepared in accordance with NI 51-101 and the Canadian Oil and Gas Evaluation Handbook and
Such information is also not an estimate of the reserves or resources attributable to lands held or to be held by
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OCTOBER 30, 2014
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