2013 OUTLOOK
Cardium light oil is now Angle's dominant asset and has become so in only one year. The Company is a large undeveloped land holder in the Cardium play, and has only 20% of its undrilled inventory booked in the 2012 report.
The higher weighting of light oil in total production will be directly reflected in expected increases to the cash flow per share for 2013. The sale of the Edson gas assets in December 2012 reduced Angle's near term debt to less than 2.0 times debt to cash flow. Angle is committed to maintaining risk-appropriate leverage and has a corporate directive of managing its debt to cash flow ratio for the overall 2013 capital program to under 2.0 times on a fourth quarter annualized basis.
Angle plans to release its 2012 year end financials on March 20, 2013, and will provide an operations update on first quarter drilling activities subsequent to this release in late March or early April.
SCOTT BRATT JOINS ANGLE'S BOARD OF DIRECTORS
Noralee Bradley, Chairman of the Board of Angle Energy Inc., is pleased to announce that Mr. M. Scott Bratt, B. Comm, CA, CFA, has joined the Board of Directors, effective immediately. Mr. Bratt has 18 years of experience in the capital markets, primarily with FirstEnergy Capital Corp, where he recently retired as Managing Director and Co-Head of Corporate Finance. Mr. Bratt has significant experience in mergers, acquisitions, valuations and financings, and has been a trusted advisor to numerous boards and senior management teams.
Mr. Bratt said, "Angle's genuine commitment to building shareholder value is compelling. The Company's transition from natural gas to light oil in a very short time frame is on track. Angle's Cardium assets are attractive and their successful organic development highlights the Company's differentiation as adept drillers and low cost operators. The entire Board is focused on the gap between the trading price of the stock and intrinsic NAV. I look forward to working with the Board and Angle Management to find ways to increase value for the benefit of shareholders, particularly as the gas to oil transition strategy continues to prove itself."
2012 YEAR END CORPORATE RESERVES
Angle's December 31, 2012 reserves were evaluated by the Company's independent reserve engineering firm, GLJ Petroleum Consultants ("GLJ"). The evaluation of all of Angle's petroleum and natural gas reserves was conducted pursuant to National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101") and the Canadian Oil and Gas Evaluation Handbook ("COGEH") reserves definitions. Additional reserve information as required under NI 51-101 will be included in the Company's Annual Information Form which will be filed on SEDAR by March 31, 2013.
The December 31, 2012 Angle reserve assessment, pro forma the sale of the Edson gas assets, yielded the following results:
----------------------------------------------------------------------------December 31, 2012 Reserves Summary(Pro Forma Edson Natural Gas Asset Disposition, Company interest before royalties)----------------------------------------------------------------------------(January 1, 2013 escalated price Natural Crude Oil forecast) Gas Oil NGLs Equivalent---------------------------------------------------------------------------- (Bcf) (Mbbls) (Mbbls) (Mboe) (6:1)----------------------------------------------------------------------------Proved developed producing 50.7 2,528 7,126 18,108----------------------------------------------------------------------------Proved undeveloped 35.0 2,483 4,715 13,028----------------------------------------------------------------------------Total Proved 90.5 5,195 12,457 32,735----------------------------------------------------------------------------Probable 73.7 5,902 9,966 28,154----------------------------------------------------------------------------Total Proved plus Probable 164.2 11,096 22,423 60,890----------------------------------------------------------------------------(Columns may not add due to rounding)----------------------------------------------------------------------------December 31, 2012 Net Present Values ("NPV") Summary(Pro Forma Edson Natural Gas Asset Disposition, Company interest before royalties)---------------------------------------------------------------------------- Net(January 1, 2013 escalated Present value of cash Future Undeveloped price forecast) flows before-tax ($MM) Capital Wells Booked---------------------------------------------------------------------------- 0% 10% 15% ($MM)----------------------------------------------------------------------------Proved developed producing $367.0 $267.0 $231.3 $4.9----------------------------------------------------------------------------Proved undeveloped $226.9 $73.6 $40.4 $176.6 53.8----------------------------------------------------------------------------Total Proved $628.0 $358.6 $285.9 $190.1 53.8----------------------------------------------------------------------------Probable $696.2 $225.7 $147.8 $188.9 53.3----------------------------------------------------------------------------Total Proved plus Probable $1,324.2 $584.3 $433.6 $379.0 107.1----------------------------------------------------------------------------(Columns may not add due to rounding)
