Expected results in the first half of 2013 from the capital expenditure program are as follows, with specific focus on the Cardium drilling program at Harmattan, Ferrier and Edson:
Cardium Light Oil Angle Corporate ProjectsGross Wells 20.0 15.0Net Wells 16.9 11.9Capital Expenditures $75 - $85MM $52 - $57MMCash Flow $43 - 49MM $21.5 - $24.5MMH1 2013-End Debt $200 - $215MMH1 2013 Average Production 11,300 - 11,500 boe/d 3,700 - 3,900 boe/dH1 2013 Average Production % Gas 46 31Exit H1 2013 Production 11,500 - 12,000 boe/d 4,100 - 4,300 boe/dExit H1 2013 Production % Gas 44 30Commodity Pricing Assumptions H1 2013Gas ($/GJ) $3.10WTI ($/bbl) $90.00Differential to Edmonton Light ($/bbl) -$6.00Edmonton Light ($/bbl) $84.00C3% of WTI 29%C4% of WTI 69%C5% of WTI 105%
RETIREMENT ANNOUNCEMENT
Stuart Symon, Vice President Finance and CFO, will be retiring from Angle Energy at the end of the first quarter of 2013. As well as assisting in the year end financial preparations, Stuart will aid in the transition to a successor and ensure continuity for Angle's shareholders. Angle's board and management wish to thank Stuart for his contributions to the Company's success and wish him all the best in the future.
SUMMARY
Angle's business plan is to continue to focus on cash flow per share growth, and proving up its extensive Cardium light oil drilling inventory. Angle is a major Cardium land holder in Alberta, with over 212 net sections (135,680 acres) of undeveloped Cardium land in its portfolio which is estimated to be the fifth largest land position in the Cardium. Additionally, Angle has a high quality drilling inventory in liquids-rich gas plays in the Mannville, and exposure to the prospective Duvernay shale play. The Company is also focused on maintaining the right degree of leverage within its corporate structure and pursuing growth alongside rate of return. We look forward to reporting the Company's year end 2012 reserves and financial results within the next two months.
ABOUT ANGLE
Angle Energy Inc. is a Calgary based public oil and gas exploration and development company that was incorporated in 2004. Angle's goal is to grow our high quality, focused asset base through a combination of drilling and strategic acquisitions. Angle's proven and dedicated team of industry specialists are focused on identifying and developing high quality assets in the Western Canadian Sedimentary Basin, with an emphasis in west central Alberta. Common shares of Angle are listed for trading on the Toronto Stock Exchange under the symbol "NGL."
Basis of Presentation
Production information is commonly reported in units of barrel of oil equivalent ("boe"). For purposes of computing such units, natural gas is converted to equivalent barrels of crude oil using a conversion factor of six thousand cubic feet of gas to one barrel of oil. This conversion ratio of 6:1 is based on an energy equivalent conversion for the individual products, primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Such disclosure of boes may be misleading, particularly if used in isolation.
Future Outlook and Forward-Looking Information
Information set forth in this press release contains forward-looking statements and are made as of January 9, 2013 and based on assumptions as of that date. Forward looking statements include 2013 expectations of drilling locations, capital allocation, production growth, increases in oil production, asset mix, and cash flow. In addition to commodity price assumptions, the forward looking statements have also been made based on assumptions relating to past drilling results, well performance and past operations on the drilled areas including access and lack of disruption at facilities and infrastructure. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Angle's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserves estimates, environmental risks, reservoir quality, inability to drill, complete, and tie-in wells on schedule due to land surface issues, the a lack of oilfield services being available on a cost efficient basis, mechanical failure, poor weather or inability to access infrastructure and facilities, unplanned processing issues, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources.
The drilling plans and expected costs and results of drilling are subject to all the aforementioned risks and uncertainties, as well as those risk factors identified by Angles' most recent MD&A and Annual Information Form..
Readers are cautioned that the assumptions and factors discussed in this press release are not exhaustive and that the assumptions used in the preparation of such information, including the commodity price assumptions, although considered reasonable at the time of preparation, may prove to be imprecise, and as such, undue reliance should not be placed on forward-looking statements. Angle's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements, and accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Angle will derive there from. Unless required by law, Angle disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward looking statements are expressly qualified by these cautionary statements.
Contacts:
Angle Energy Inc.
Heather Christie-Burns
President and Chief Operating Officer
(403) 263-4534
(403) 263-4179 (FAX)
Angle Energy Inc.
Gregg Fischbuch
Chief Executive Officer
(403) 263-4534
(403) 263-4179 (FAX)
Angle Energy Inc.
Stuart Symon
Chief Financial Officer
(403) 263-4534
(403) 263-4179 (FAX)
Angle Energy Inc.
Suite 700
324 Eighth Avenue SW
Calgary, Alberta T2P 2Z2
www.angleenergy.com
