CALGARY, Feb. 4, 2015 /CNW/ - Marquee Energy Ltd.
("Marquee" or the "Company") (TSXV: "MQL") is pleased to announce
the results of its independent reserve evaluation as of
December 31, 2014, which includes a
39% increase in proved developed producing reserves. The Company's
core assets at Michichi and Lloydminster now comprise more than 90% of its
total proved reserves on a 10% discounted before tax net present
value basis ("NPV10").
Reserve Report Highlights(1)
- Increased proved developed producing ("PDP") reserves by 39% to
8.9 mmboe (41% oil and NGLs), proved ("1P") reserves by 12% to 12.8
mmboe (51% oil and NGLs), and proved plus probable ("2P") reserves
by 16% to 20.0 mmboe (55% oil and NGLs).
- Increased the NPV10 of its PDP reserves value by 34% to
$129.9 million, 1P reserves value by
26% to $173.6 million and 2P reserves
value by 23% to $257.9 million.
- Net of acquisitions, dispositions and production, 1P reserves
increased by 3.7 mmboe and 2P reserves increased by 6.0 mmboe, due
to successful drilling programs at Michichi and Llyodminster.
- Marquee's 2014 Capital program added 1P reserves at a cost of
$21.90 per boe and 2P reserves at a
cost of $19.70 per boe including
future development capital ("FDC").
- Finding, development and acquisition costs, including the
increase in FDC are $14.76 per boe on
a 1P basis, and $14.12 per boe on a
2P basis.
- The 1P and 2P reserves additions, net of acquisitions and
dispositions replaced 2014 production by 2.1X and 3.4X,
respectively.
- Increased reserve life index ("RLI") to 11.7 years using 2P
reserves and Sproule forecast 2P 2015 average production rate.
- PDP reserves comprise 70% of the 1P reserves and 1P reserves
represent 64% of 2P reserves as at December
31, 2014.
- Michichi now represents 74% of Marquee's 1P NPV10.
2014 YEAR END RESERVES
Marquee's year end reserves for 2014 are based on the Sproule
Associates Limited ("Sproule") independent evaluation of the
Company's reserves dated effective December
31, 2014 which were conducted pursuant to NI 51-101 and the
Canadian Oil and Gas Evaluation Handbook ("COGE Handbook").
Additional reserves information required under NI 51-101 will be
included in Marquee's Annual Information Form to be filed on SEDAR
on or before March 31, 2015.
Sproule is using a price forecast of US$65 WTI and US$80
WTI for light oil for 2015 and 2016 respectively, and $3.32 per MMBtu and $3.71 MMBtu for AECO natural gas in 2015 and 2016
respectively.
Summary of Reserves
As at December 31, 2014(1)
|
|
|
Gross Company
Reserves (2)(3)
|
Description
|
Light and Medium
Oil (Mbbl)
|
Heavy Oil
(Mbbl)
|
Natural Gas
(MMcf)
|
NGL (Mbbl)
|
Total
(Mboe)
|
Proved
producing
|
2,529
|
858
|
31,678
|
277
|
8,944
|
Proved
non-producing
|
|
|
1,003
|
1
|
168
|
Proved
undeveloped
|
2,025
|
712
|
5,459
|
79
|
3,726
|
Total
proved
|
4,554
|
1,570
|
38,137
|
358
|
12,838
|
Probable
|
3,414
|
883
|
16,224
|
177
|
7,178
|
Total proved plus
probable
|
7,967
|
2,454
|
54,363
|
535
|
20,016
|
(1)
|
Based on Sproule
December 31, 2014 forecast prices
|
(2)
|
Gross Company
reserves are the Company's total working interest share before the
deduction of royalties.
|
(3)
|
Totals may not add
due to rounding
|
Summary of Before Tax Net Present Values
As at
December 31, 2014(1)
|
|
|
Before Tax Net
Present Value of Future Revenue ($M)
|
|
Discount
Rate
|
Description
|
0%
|
5%
|
10%
|
15%
|
20%
|
Proved
producing
|
199,749
|
156,775
|
129,912
|
111,532
|
98,167
|
Proved
non-producing
|
1,051
|
675
|
406
|
211
|
68
|
Proved
undeveloped
|
89,864
|
61,686
|
43,312
|
30,830
|
22,044
|
Total
proved
|
290,664
|
219,136
|
173,631
|
142,572
|
120,279
|
Probable
|
191,100
|
122,606
|
84,311
|
60,732
|
45,200
|
Total proved plus
probable
|
481,764
|
341,742
|
257,942
|
203,305
|
165,480
|
Per Basic
Share
|
$4.01
|
$2.84
|
$2.14
|
$1.69
|
$1.38
|
(1)
|
Based on Sproule
December 31, 2014 forecast prices
|
Reconciliation of Reserves
|
|
|
2014 Reserves
Reconciliation
|
Description
(mboe)
|
December
31, 2013
|
Acquired
(Sold)
|
Production
|
Additions,
revisions
|
December
31, 2014
|
Total
proved
|
11,461
|
(584)
|
(1,772)
|
3,733
|
12,838
|
Probable
|
5,727
|
(769)
|
0
|
2,220
|
7,178
|
Proved plus
probable
|
17,188
|
(1,353)
|
(1,772)
|
5,953
|
20,016
|
Finding, Development and Acquisition Costs
Marquee incurred capital expenditures of $59.6 million in 2014 (2013 - $33.3 million; 2012 - $45.1 million), of which $51.4 million (2013 - $28.1 million; 2012 – 38.0 million) was spent on
exploration and development and $8.2
million (2013- $5.2 million;
2012 - $6.4 million) was spent on
land and seismic. Costs related to reserve acquisitions in 2014 are
$11.8 million (2013 - $34.8 million; 2012 – $22.2 million), and includes the announced
purchase price of acquisitions including any estimated working
capital deficit or surplus rather than the amounts allocated to
property, plant and equipment for accounting purposes. The
following table summarizes Marquee's Finding, Development and
Acquisition costs including changes in Future Development
Costs.
|
|
|
|
|
Including the
Change in Future Development Costs(1)
|
Description
|
2014
|
2013
|
2012
|
3 Year Weighted
Average
|
Total proved
($/boe)
|
|
|
|
|
|
F&D
costs(2)
|
$21.90
|
$23.03
|
$17.92
|
$21.17
|
|
FD&A
costs(3)
|
$14.76
|
$16.66
|
$18.35
|
$16.13
|
|
FDC
|
$74
Million
|
$91
million
|
$58
million
|
|
Proved plus probable
($/boe)
|
|
|
|
|
|
F&D
costs(2)
|
$19.70
|
$24.60
|
$8.82
|
$17.08
|
|
FD&A
costs(3)
|
$14.12
|
$14.21
|
$10.38
|
$13.50
|
|
FDC
|
$152
million
|
$133
million
|
$109
million
|
|
(1)
|
Future development
costs excludes capitalized administration costs
|
(2)
|
F&D costs include
actual expenditures during the year including the change in FDC
divided by the increase in reserves, excluding acquisitions
and dispositions
|
(3)
|
FD&A costs
include acquisitions and actual expenditures during the year
including the change in FDC divided by the increase in reserves,
excluding dispositions
|
Information Regarding Disclosures on Oil and Gas Reserves
and Operational Information
Estimates of future net revenues presented do not represent
the fair market value of the reserves. There is no assurance that
the forecast prices and cost assumptions will be attained and
variances could be material. The recovery and reserves estimates of
Marquee's 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.
The aggregate of the exploration and development costs
incurred during 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
reserves additions for that year.
Forward looking Statements or Information
Certain statements included or incorporated by reference in
this news release may constitute forward looking statements under
applicable securities legislation. Such forward looking
statements or information typically contain statements with words
such as "anticipate", "believe", "expect", "plan", "intend",
"estimate", "propose", or similar words suggesting future outcomes
or statements regarding an outlook. Forward looking
statements or information in this news release may include, but are
not limited to:
- 2014 capital budget and expenditures;
- business strategies, objectives and outlook;
- petroleum and natural gas sales;
- future production levels (including the timing thereof) and
rates of average annual production growth;
- exploration and development plans;
- acquisition and disposition plans and the timing and the
anticipated benefits thereof;
- reserves and net present value of future net revenue of
reserves;
- anticipated cash flows;
- expected cost reductions and production efficiencies derived
from recently acquired assets;
- number and quality of future potential drilling locations
future drilling plans;
- expected debt levels;.
- operating and other expenses;
- royalty and income tax rates; and
- the timing of regulatory proceedings and approvals.
Such forward-looking statements or information are based on a
number of assumptions all or any of which may prove to be
incorrect. In addition to any other assumptions identified in
this document, assumptions have been made regarding, among other
things:
- the ability of the Company to obtain equipment, services and
supplies in a timely manner to carry out its activities;
- the ability of the Company to market crude oil, natural gas
liquids and natural gas successfully to current and new
customers;
- the ability to secure adequate product
transportation;
- the timely receipt of required regulatory
approvals;
- the ability of the Company to obtain financing on acceptable
terms;
- interest rates;
- regulatory framework regarding taxes, royalties and
environmental matters;
- future crude oil, natural gas liquids and natural gas
prices; and
- Management's expectations relating to the timing and results
of development activities
Forward-looking information is based on current expectations,
estimates and projections that involve a number of risks and
uncertainties which could cause actual results to differ materially
from those anticipated by the Company and described in the
forward-looking information. The material risk factors affecting
the Company and its business are contained in Marquee's Annual
Information Form which is available under Marquee's issuer profile
on SEDAR at www.sedar.com.
The forward-looking information contained in this press
release is made as of the date hereof and the Company undertakes no
obligation to update publicly or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, unless required by applicable securities laws. The
forward looking information contained in this press release is
expressly qualified by this cautionary statement.
Additional Advisories
Boes are presented on
the basis of one Boe for six Mcf of natural gas. Disclosure
provided herein in respect of Boe may be misleading, particularly
if used in isolation. A Boe conversion ratio of 6 Mcf:1 bbl 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.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Marquee Energy Ltd.