Advertisement
Financial Position and Land Holdings
Kelt estimates 2013 year-end bank debt, net of working capital, will be approximately $42.0 million. Kelt has established a demand operating loan facility with the National Bank of Canada with an authorized borrowing limit of $40.0 million. The Company expects to increase its authorized borrowing limit during the year, as new production and reserves are added.
Kelt's current land holdings include 195,703 gross (105,915 net) acres of land, of which 130,153 gross (70,084 net) acres are undeveloped. The following table summarizes the Company's Triassic Montney and Doig rights in its core areas at Inga, British Columbia and Karr, Alberta:
----------------------------------------------------------------------------Property Gross Acres Net Acres Average WI Net Sections----------------------------------------------------------------------------Inga - Doig 39,207 15,023 38% 22.8----------------------------------------------------------------------------Inga - Montney 49,493 19,797 40% 30.0----------------------------------------------------------------------------Karr - Montney 17,280 16,960 98% 26.5----------------------------------------------------------------------------
Kelt has entered into several farm-in arrangements whereby the Company has committed to drill 3.75 net wells. In doing so, Kelt will earn an additional 8.45 net sections (5,408 net acres) of Montney land rights.
Common Share Information
Kelt current has approximately 67.1 million common shares issued and outstanding, of which approximately 14.2 million (21.1%) are held by officers and directors of the Company.
Kelt's Board of Directors have also determined to approve, subject to all necessary regulatory approvals, the grant of 1.5 million restricted share units under its Restricted Share Unit Plan and 2.1 million stock options under its Stock Option Plan, to certain directors, officers and employees of the Company, all in accordance with the terms and conditions of those plans. The foregoing grants of restricted share units and stock options are expected to represent approximately 5.3% of Kelt's issued and outstanding common shares as at the date hereof.
About Kelt
Kelt is a Calgary, Alberta, Canada-based oil and gas company focused on exploration, development and production of crude oil and natural gas resources, primarily in west central Alberta and northeastern British Columbia. Kelt's land holdings are located in three core areas: (a) a natural gas property at Grande Cache, Alberta; (b) a liquids-rich natural gas property at Inga, British Columbia; and (c) an oil prospect at Karr, Alberta.
Cautionary Statement on Forward-Looking Statements and Information
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. In particular, forward-looking statements and information in this press release include, but are not limited to: the ongoing operations of Kelt.
The forward-looking statements and information contained in this press release are based on certain key expectations and assumptions made by Kelt. Although Kelt believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because there can be no assurance that they will prove to be correct.
