Cardinal Energy Ltd. 2013 Year End Reserves Results and Drilling Update
28 Marzo 2014 - 2:30AM
Marketwired Canada
Cardinal Energy Ltd. ("Cardinal" or the "Company") (TSX:CJ) is pleased to report
its year end 2013 reserves results and to provide an update of the production
results from its first two horizontal wells in Bantry.
Reserve Highlights
-- Year over year, proved developed producing reserves increased to 12,500
Mboe (86% oil) an increase of 67% per fully diluted share.
-- Total proved reserves increased to 13,748 Mboe (86% oil) or 79% per
fully diluted share as compared to December 31, 2012.
-- Total proved plus probable reserves increased to 21,163 Mboe (86% oil)
an increase of 111% per fully diluted share.
-- Total proved plus probable producing reserves now make up 86% of
Cardinal's reserve base.
-- Finding, development and acquisition ("FD&A") costs (including change in
future development capital of $32.4 MM) were $14.99 per boe on a total
proved and probable reserve basis (2012 $18.00 per boe.) Finding and
development costs ("F&D") (including future development capital) were
$15.77 in 2013 as compared to $16.56 in 2012, based on actual amounts
the Company spent in 2012 and 2013.
-- Cardinal's reserve life index is 6.4 years on its total proved reserves
and 9.9 years on its total proved plus probable reserves, based on 5,850
boe/d of production.
Drilling Update
Cardinal drilled two Glauconitic horizontal wells in the first quarter of 2014.
Both wells were fracture stimulated and brought on production as flowing oil
wells.
The 2-15-17-12W4 well has produced an average of 222 boe/day to date in the
month of March. However, management believes the well is still cleaning up and
anticipates that production rates from the well will improve over time.
The 2-35-16-12W4 well commenced production and flowed without pumping equipment
at an average rate of 335 boe/day. Cardinal made a decision to shut down the
well and equip it with pumping equipment to fully understand the capabilities of
the well. The well has been on production with pumping equipment for 13 days
(312 hours) and has produced at an average rate of 740 boe/day, 732 barrels of
oil per day and 134 mcf/day of solution gas. While we are pleased with the
initial drilling results, readers are cautioned that the Sproule type curve for
the area anticipates an initial production rate of 300 boe/day with 70%
production decline in the first year of production.
Cardinal is currently drilling its third horizontal well at Bantry and
management is continuing to evaluate the number of additional Glauconitic
horizontal wells to be drilled in 2014 to manage the Company's overall decline
rate.
The following tables summarize information from the independent reserve
evaluation (the "Sproule Report") completed by Sproule Associates Ltd.
("Sproule") as of December 31, 2013 in accordance with the definition, standard
and procedures contained in the Canadian Oil and Gas Evaluation Handbook and
National Instrument 51-101 "Standards of Disclosure for Oil and Gas Activities"
of the Canadian Securities Administrators ("NI 51-101"). Additional reserve
information will be included the Company's Annual Information Form which will be
filed on SEDAR on or before March 31, 2014. See "Advisory Regarding Oil and Gas
Information" for additional cautionary language.
SUMMARY OF OIL AND NATURAL GAS RESERVES
AND NET PRESENT VALUES OF FUTURE NET REVENUE
AS OF DECEMBER 31, 2013
FORECAST PRICES AND COSTS
RESERVES
----------------------------------------------------------------
LIGHT AND NATURAL GAS
MEDIUM OIL HEAVY OIL NATURAL GAS LIQUIDS
----------------------------------------------------------------
RESERVES Gross Net Gross Net Gross Net Gross Net
CATEGORY (Mbbls) (Mbbls) (Mbbls) (Mbbls) (MMcf) (MMcf) (Mbbls) (Mbbls)
----------------------------------------------------------------------------
PROVED:
Developed
Producing 4,561 4,166 6,171 5,555 10,298 8,605 51 41
Developed
Non-
Producing 73 71 68 59 100 120 0 1
Undeveloped 731 560 208 197 831 660 13 10
----------------------------------------------------------------
TOTAL PROVED 5,365 4,797 6,447 5,811 11,229 9,386 65 53
PROBABLE 3,536 3,030 2,657 2,388 7,058 5,892 47 38
----------------------------------------------------------------
TOTAL PROVED
PLUS
PROBABLE 8,901 7,827 9,103 8,199 18,287 15,278 112 90
----------------------------------------------------------------
Notes:
(1) "Gross" reserves means the total working and royalty interest share of
remaining recoverable reserves owned by Cardinal before deductions of
royalties payable to others.
(2) "Net" reserves means Cardinal's gross reserves less all royalties
payable to others.
(3) Approximately 80% of Cardinal's gross oil reserves have an API of 20
degrees or greater.
NET PRESENT VALUES OF FUTURE NET REVENUE
BEFORE INCOME TAXES DISCOUNTED AT (%/year)
------------------------------------------------------
Unit Value
Before Income
Tax
Discounted at
0% 5% 10% 15% 20% 10% per Year
RESERVES CATEGORY ($000s) ($000s) ($000s) ($000s) ($000s) $/Boe
----------------------------------------------------------------------------
PROVED:
Developed Producing 344,616 306,713 264,931 232,027 206,682 23.66
Developed Non-
Producing 5,171 4,325 3,691 3,204 2,821 24.57
Undeveloped 26,006 20,387 16,254 13,133 10,720 18.51
------------------------------------------------------
TOTAL PROVED 375,794 331,424 284,876 248,365 220,224 23.30
PROBABLE 256,547 159,137 110,403 82,063 63,891 17.15
------------------------------------------------------
TOTAL PROVED PLUS
PROBABLE 632,341 490,561 395,278 330,428 284,115 21.18
------------------------------------------------------
Notes:
(1) All evaluations and summaries of future net revenue are stated prior to
any provisions for interest costs or general and administrative costs and
after the deduction of estimated future capital expenditures for wells to
which reserves have been assigned.
(2) Unit values are based on net reserve volumes.
(3) Pricing inflation and exchange rates are based on the published Sproule
December 31, 2013 price deck.
About Cardinal Energy Ltd.
Cardinal is a junior Canadian oil focused company built to provide investors
with a stable platform for dividend income and growth. Cardinal's operations are
focused in all season access areas in Alberta.
Advisory Regarding Forward-Looking Statements
In the interest of providing Cardinal's shareholders and potential investors
with information regarding Cardinal, including management's assessment of
Cardinal's future plans and operations, certain statements in this press release
are "forward-looking statements" within the meaning of applicable Canadian
securities legislation. In some cases, forward-looking statements can be
identified by terminology such as "anticipate", "believe", "continue", "could",
"estimate", "expect", "forecast", "intend", "may", "objective", "ongoing",
"outlook", "potential", "project", "plan", "should", "target", "would", "will"
or similar words suggesting future outcomes, events or performance. The
forward-looking statements contained in this press release speak only as of the
date thereof and are expressly qualified by this cautionary statement.
Specifically, this press release contains forward-looking statements relating
to: our business strategies, plans and objectives; expected production rates and
decline rates and our reserve life index. In addition, information and
statements relating to reserves are deemed to be forward-looking statements, as
they involve implied assessment, based on certain estimates and assumptions,
that the reserves described exist in quantities predicted or estimated, and that
the reserves can be profitably produced in the future.
These forward-looking statements are based on certain key assumptions regarding,
among other things: petroleum and natural gas prices and pricing differentials;
well production rates and reserve volumes; estimated operating costs; our
ability to market our oil and natural gas successfully; our ability to add
production and reserves through our exploration and development activities;
capital expenditure levels; the receipt, in a timely manner, of regulatory and
other required approvals for our operating activities; the availability and cost
of labour and other industry services; the availability and cost of financing
and our ability to access capital; the amount of future cash dividends that we
intend to pay; interest and foreign exchange rates; the continuance of existing
and, in certain circumstances, proposed tax and royalty regimes; our ability to
develop our crude oil and natural gas properties in the manner currently
contemplated; and current industry conditions, laws and regulations continuing
in effect (or, where changes are proposed, such changes being adopted as
anticipated). The reader is cautioned that such assumptions, although considered
reasonable by Cardinal at the time of preparation, may prove to be incorrect.
Actual results achieved during the forecast period will vary from the
information provided herein as a result of numerous known and unknown risks and
uncertainties and other factors. Such factors include, but are not limited to:
declines in oil and natural gas prices; risks related to the accessibility,
availability, proximity and capacity of gathering, processing and pipeline
systems; variations in interest rates and foreign exchange rates; access to
external sources of capital; risks associated with the exploitation of our
properties and our ability to acquire reserves; increases in operating costs;
changes in government regulations that affect the oil and gas industry; changes
to royalty or mineral/severance tax regimes; risks relating to hydraulic
fracturing; changes in income tax or other laws or government incentive
programs; uncertainties associated with estimating petroleum and natural gas
reserves; changes in environmental, health and safety regulations; competition
in the oil and gas industry for, among other things, acquisitions of reserves,
undeveloped lands, skilled personnel and drilling and related equipment; or key
personnel and information systems; risks associated with the ownership of our
securities, including the discretionary nature of dividend payments and changes
in market-based factors; and other factors, many of which are beyond the control
of Cardinal.
The above summary of assumptions and risks related to forward-looking statements
in this press release has been provided in order to provide shareholders and
potential investors with a more complete perspective on Cardinal's current and
future operations and such information may not be appropriate for other
purposes. There is no representation by Cardinal that actual results achieved
during the forecast period will be the same in whole or in part as those
forecast and Cardinal does not undertake any obligation to update publicly or to
revise any of the included forward-looking statements, whether as a result of
new information, future events or otherwise, except as may be required by
applicable securities law.
Advisory Regarding Oil and Gas Information
Where applicable, oil equivalent amounts have been calculated using a conversion
rate of six thousand cubic feet of natural gas to one barrel of oil. BOEs may be
misleading, particularly if used in isolation. A boe conversion ratio of six
thousand cubic feet 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 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 Mcf: 1 Bbl, utilizing a conversion
ratio at 6 Mcf: 1 Bbl may be misleading as an indication of value.
With respect to finding and development costs, the aggregate of the exploration
and development costs incurred in the most recent financial year and the change
during that year in estimated future development costs generally will not
reflect total finding and development costs related to reserve additions for
that year. Expenditures do not include capitalized general and administrative
costs and related share based compensation or non-cash expenditures for the
decommissioning obligation or fair value adjustments on acquisitions.
This press release contains estimates of the net present value of our future net
revenue from our reserves. Such amounts do not represent the fair market value
of our reserves. There is no assurance that the forecast prices and cost
assumptions will be attained and variances could be material. The recovery and
reserve estimates of our crude oil, natural gas liquids and natural gas reserves
provided herein are estimates only and there is no guarantee that the estimated
reserves will be recovered. Actual crude oil, natural gas and natural gas
liquids reserves may be greater than or less than the estimates provided herein.
Reserves included herein are stated on a company gross basis (working interest
before deduction of royalties without including any royalty interests) unless
noted otherwise.
References herein to short-term production rates are useful in confirming the
presence of hydrocarbons, however such rates are not determinative of the rates
at which such wells will commence production and decline thereafter and are not
indicative of long term performance or of ultimate recovery. While encouraging,
readers are cautioned not to place reliance on such rates in calculating
aggregate production for us. A pressure transient analysis or well-test
interpretation has not been carried out in respect of all wells. Accordingly, we
caution that the test results should be considered to be preliminary.
FOR FURTHER INFORMATION PLEASE CONTACT:
Cardinal Energy Ltd.
M. Scott Ratushny
Chief Executive Officer and Chairman
(403) 216-2706
Cardinal Energy Ltd.
Douglas Smith
Chief Financial Officer
(403) 216-2709
Cardinal Energy Ltd.
(403) 234-8681
(403) 234-0603 (FAX)
info@cardinalenergy.ca
Grafico Azioni Cardinal Energy (TSX:CJ)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Cardinal Energy (TSX:CJ)
Storico
Da Lug 2023 a Lug 2024
