Long Run Exploration Ltd. Announces Reserves, Financial and Operating Results for the Year Ended December 31, 2014
(firmenpresse) - CALGARY, ALBERTA -- (Marketwired) -- 03/04/15 -- Long Run Exploration Ltd. ("Long Run" or the "Company") (TSX: LRE) announces reserves, financial and operating results for the year ended December 31, 2014.
2014 ANNUAL HIGHLIGHTS
SUMMARY OF FOURTH QUARTER & ANNUAL RESULTS
2014 YEAR END RESERVES
Long Run's 2014 year end reserves were evaluated by independent reserves evaluator Sproule Associates Limited ("Sproule"). Reserve estimates were prepared in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101") and the summary below represents Long Run's gross reserves, which are the Company's interest before deduction of royalties and without including any of our royalty interests. The reserve estimates set forth below are based upon the Sproule reserve report dated March 4, 2015. Long Run's successful drilling program in 2014 combined with the strategic Deep Basin acquisitions executed over the course of the year contributed to substantial reserve growth for our shareholders.
Additional information with respect to the Company's reserves as at December 31, 2014 will be contained in the Company's annual information form for the year ended December 31, 2014 which will be filed on SEDAR at on or about March 4, 2015.
Reserves Pricing
Forecast prices, inflation, and exchange rates utilized by Sproule in its evaluation were an average of the forecast prices, inflation and exchange rates as published by Sproule, GLJ Petroleum Consultants Ltd., and McDaniel & Associates Consultants Ltd., as at December 31, 2014.
Summary of Before Tax Net Present Values of Future Net Revenue (1)
Finding and Development ("F&D") and Finding, Development and Acquisition ("FD&A")
FOURTH QUARTER FINANCIAL UPDATE
FOURTH QUARTER OPERATIONAL UPDATE
2015 FINANCIAL UPDATE
2015 OPERATIONS UPDATE
ADVISORIES
Non-GAAP Measures
The press release contains terms commonly used in the oil and gas industry, such as funds flow from operations and net debt. These terms are not defined by International Financial Reporting Standards ("IFRS") and should not be considered an alternative to, or more meaningful than, cash provided by operating activities as determined in accordance with IFRS as an indicator of Long Run's performance. These measures are commonly used in the oil and gas industry and by Long Run to provide shareholders and potential investors with additional information regarding the Company's liquidity and its ability to generate funds to finance its operations. Long Run's determination of these measures may not be comparable to that reported by other companies. Funds flow from operations is calculated as cash flow from operating activities before changes in non-cash working capital and abandonment expenditures. Net debt is calculated as bank debt plus working capital deficiency and principal amount of outstanding convertible debentures. Long Run has provided information on how these measures are calculated in the Management's Discussion and Analysis for the year ended December 31, 2014, which is available under the Company's SEDAR profile at .
Barrels of Oil Equivalent
Barrels of oil equivalent may be misleading, particularly if used in isolation. A Boe conversion ratio of six thousand cubic feet of natural gas to one barrel of crude 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 that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency conversion ratio of 6:1, utilizing a conversion on a 6:1 basis is misleading as an indication of value.
Initial Production Rates
Initial production rates disclosed herein are not determinative of the rates at which the well will continue to produce and decline thereafter and are not necessarily indicative of long-term performance or ultimate recovery.
Netbacks
Netbacks are calculated by subtracting royalties, transportation costs and operating costs from revenue.
Reserve Life index
Reserve life index is calculated using the midpoint of Long Run's 2015 annual production guidance.
Forward Looking Statements
This press release contains forward-looking information within the meaning of applicable securities laws relating to the Company's plans and other aspects of Long Run's anticipated future operations, management focus, objectives, strategies and priorities including 2015 capital expenditure budget and nature of expenditures, 2015 forecast annual production, 2015 estimated operating and general and administrative costs, plans to strengthen Long Run's balance sheet and to reduce debt primarily through reduced capital spending, dispositions, and the suspension of Long Run's monthly dividend, the expectation that cash flows generated by additional disposition proceeds, cost savings initiatives and commodity price improvements will be first directed toward further debt reduction, hedging plans for 2015, the expectation that third party outages will be materially reduced with completion of facilities, plans to reduce first quarter 2015 capital expenditures as a result of increased expenditures in fourth quarter 2014 and plans to revisit capital spending plans in the second half of the year if commodity prices further deteriorate. Forward-looking information typically uses words such as "anticipate", "believe", "project", "expect", "goal", "plan", "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future. The forward-looking information is based on certain key expectations and assumptions made by Long Run's management, including expectations and assumptions concerning commodity prices, exchange rates, interest rates, applicable royalty rates and tax laws; future production rates and estimates of operating costs and general and administrative costs; performance of existing and future wells; reserve volumes; anticipated timing and results of capital expenditures; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; the timing, location and extent of future drilling operations; the state of the economy and the exploration and production business; results of operations; performance; business prospects and opportunities; the availability and cost of financing, labor and services; the impact of increasing competition; ability to market oil and natural gas successfully; and Long Run's ability to access capital, and obtaining the necessary regulatory approvals; and Long Run's ability to dispose of assets to reduce debt.
Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Long Run can give no assurance that they will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature they involve inherent risks and uncertainties. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, the forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that the Company will derive there from. Management has included the above summary of assumptions and risks related to forward-looking information provided in this press release in order to provide a more complete perspective on Long Run's future operations and such information may not be appropriate for other purposes.
Readers are cautioned that the foregoing lists of factors are not exhaustive. Additional information on these and other factors that could affect our operations or financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website ().
These forward-looking statements are made as of the date of this press release and Long Run disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
ABBREVIATIONS
Contacts:
Long Run Exploration Ltd.
William E. Andrew
Chair and Chief Executive Officer
(403) 261-6012
Long Run Exploration Ltd.
Corine Bushfield
Senior Vice President and Chief Financial Officer
(403) 261-6012
Long Run Exploration Ltd.
Lauren Kimak
Investor Relations
(403) 716-3222 / (888) 598-1330
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Datum: 04.03.2015 - 23:22 Uhr
Sprache: Deutsch
News-ID 376299
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contact information:
Town:
CALGARY, ALBERTA
Kategorie:
Oil & Gas
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