|By Marketwired .||
|January 20, 2014 05:23 PM EST||
CALGARY, ALBERTA -- (Marketwired) -- 01/20/14 -- Raging River Exploration Inc. ("Raging River" or the "Company") (TSX: RRX) is pleased to report that estimated daily production reached a record of 9,000 boe/d (96% oil) during the second half of December 2013. Further, based on field estimates the Company's fourth quarter 2013 average production increased 37% from the third quarter average to 7,700 boe/d (96% oil) which is 5% ahead of our previous fourth quarter guidance of 7,300-7,400 boe/d.
Raging River exited 2013 with 16 net wells awaiting completion and is off to a solid start in the first quarter with 17 gross (15.5 net) wells drilled since January 1, 2014. With production averaging above 9,000 boe/d in the first two weeks of January, we anticipate achieving our 2014 average production level of 9,500 boe/d in early February. Production is expected to be strong through the first quarter followed by a modest reduction in the second quarter due to breakup and we are reaffirming our average 2014 production guidance of 9,500 boe/d.
The Company is also pleased to report its 2013 year-end oil and gas reserves. 2013 proven plus probable reserves of 42.7 mmboe represent a 148% increase from 2012. Finding, development and acquisition costs were reduced by 26% from 2012 to $19.40/boe demonstrating the quality of the Company's continuously expanding drilling inventory.
Reserve Report Highlights:
-- Increased proved plus probable reserves by 148% to 42.7 mmboe (96.2% oil) and proven reserves by 171% to 31.3 mmboe (96.2% oil). -- Net asset value per fully diluted share calculated on a present value before tax of 10% ("PVBT10") increased 133% to an estimated $6.42 per share at December 31, 2013 inclusive of an internal land value of $108 million. -- Finding, development and acquisition costs, including the change in future development capital of $260 million are $19.40 per boe on a proven plus probable basis. -- Finding, development and acquisition costs, including the change in future development capital of $298 million are $26.29 per boe on a total proven basis. -- Total proven reserves represent 73.4% of proven plus probable reserves as at December 31, 2013. -- The FD&A recycle ratio was 3.0 times based on our estimated 2013 corporate netback of $57.25 per boe. -- The reserves life index increased to 13.0 years based on current production of 9,000 boe/d. -- Reserve additions replaced 2013 production by greater than 9 times on a proved basis and 12 times on a proved plus probable basis. -- Reserves per fully diluted share increased by 125% to 218 boe per 1,000 shares from 97 boe per 1,000 shares. -- Raging River's development drilling inventory has increased to 2,000+ risked locations as at January 1, 2014 of which approximately 75% are currently unbooked. -- Average estimated ultimate recovery ("EUR") per horizontal well drilled in 2013 increased by 27% to 47.5 mstb per well from an average of 37.5 mstb per well for those drilled to the end 2012.
The following tables summarize certain information contained in the independent reserves report prepared by Sproule Associates Ltd. ("Sproule") as of December 31, 2013. The report was prepared in accordance with definition, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook and National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). Additional reserve information as required under NI 51-101 will be included in the Company's Annual Information Form which will be filed on SEDAR by March 31, 2014.
December 31, 2013 Future Net Reserves Category Oil BTAX PV Development Undeveloped Gross Working Oil Gas Equivalent 10% Capital Wells Interest Mbbl MMcf mBOE M$'s M$'s Booked ---------------------------------------------------------------------------- Proved Developed Producing 11,450 3,244 12,004 440,021 - - Proven Undeveloped 18,653 3,948 19,372 403,879 481,851 525.8 ---------------------------------------------------------- Total Proven 30,103 7,192 31,376 843,900 481,851 525.8 Probable Developed Producing 4,673 1,336 4,904 138,715 - - Probable Undeveloped 6,216 1,282 6,450 209,169 3,640 4.5 ---------------------------------------------------------- Total Proven Plus Probable 40,993 9,810 42,729 1,191,785 485,491 530.3 ---------------------------------------------------------- ----------------------------------------------------------
1. Gross Company reserves are the Company's total working interest share before the deduction of any royalties and without including any royalty interests of the Company. 2. Based on Sproule's December 31, 2013 escalated price forecast. 3. It should not be assumed that the present worth of estimated future net revenue presented in the tables above represents the fair market value of the reserves. There is no assurance that the forecast prices and costs assumptions will be attained and variances could be material. The recovery and reserves estimates of Raging River'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. 4. All future net revenues are stated prior to provision for interest, general and administrative expenses and after deduction of royalties, operating costs, estimated abandonment costs and estimated future capital expenditures. Future net revenues have been presented on a before tax basis. Estimated values of future net revenue disclosed herein do not represent fair market value. 5. Finding and development costs both including and excluding acquisitions and dispositions have been presented below. While NI 51-101 requires that the effects of acquisitions and dispositions be excluded, FD&A costs have been presented because acquisitions and dispositions can have a significant impact on the Company's ongoing reserve replacement costs and excluding these amounts could result in an inaccurate portrayal of the Company's cost structure. 6. 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 reserves additions for that year. 7. Figures are subject to audit. 8. The capital expenditures include the announced purchase price of corporate acquisitions rather than the amounts allocated to property, plant and equipment for accounting purposes. The capital expenditures also exclude capitalized administration costs. 2013 FD&A Costs ($000's) Proved Proved plus Probable Development 172,000 172,000 Net Acquisitions 104,000 104,000 Change in FDC 298,429 259,940 Total Capital 574,429 535,940 2013 Reserve Additions Mboe Acquisitions 3,492 4,726 Additions/Revisions 18,359 22,893 Total 21,851 27,619 2013 FD&A ($/boe) 26.29 19.40
Raging River is in the midst of another active quarter in which we anticipate drilling 60 net horizontal wells. We currently have two drilling rigs operational and have drilled 17 gross (15.5 net) wells this quarter at a 100% success rate. With completion operations well under way a new well is being placed on production every day and it is expected that trend will continue throughout the quarter.
To date this quarter we have successfully tested four previously undrilled sections at Beadle with expectations that an additional 12-15 previously undrilled sections will be tested this quarter.
In the recently acquired Forgan area, the operations team has been actively working towards obtaining our first drilling licenses in the area and it is now expected that we will be able to drill up to four wells testing previously undrilled sections in this area during the first quarter.
Raging River continues to be active on adding additional lands in the Viking light oil fairway. Since early December 2013, 15 additional sections of land have been added in the greater Beadle area. Our total prospective Viking light oil land holdings are now in excess of 215 net sections.
Raging River's team remains dauntless in its pursuit of operational and executional excellence to continue delivering per share production, reserves and value growth to our shareholders while maintaining a pristine balance sheet.
FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements. More particularly, this press release contains forward looking statements relating to: expectations as to drilling and completion activity in the first quarter of 2014, including the timing thereof, expectations of achieving certain production levels in the first quarter of 2014, expectations as to Raging River's drilling inventory, estimates of future development capital associated with the Company's reserves, expectations about drilling and testing plans in the Beadle and Forgan areas, and, Raging River's intent to deliver per share production, reserves and value growth to its shareholders while maintaining a pristine balance sheet . Statements relating to "reserves" are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions that the resources and reserves described can be profitably produced in the future. In addition, the use of any of the words "guidance", "initial, "scheduled", "can", "will", "prior to", "estimate", "anticipate", "believe", "potential", "should", "unaudited", "forecast", "future", "continue", "may", "expect", "project", and similar expressions are intended to identify forward-looking statements.
The forward-looking statements contained herein are based on certain key expectations and assumptions made by the Company, including but not limited to the success of optimization and efficiency improvement projects, the availability of capital, current legislation, receipt of required regulatory approval, the success of future drilling and development activities, the performance of existing wells, the performance of new wells, the ability of the Company to effectively manage price differentials, Raging River's growth strategy, general economic conditions, availability of required equipment and services and prevailing commodity prices. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; as the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations, changes in legislation affecting the oil and gas industry and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Refer to Raging River's most recent annual information form dated March 20, 2013 on SEDAR at www.sedar.com and risks contained therein.
The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Finding, Development and Acquisition ("FD&A") Costs: Finding and development costs including acquisitions and dispositions have been presented herein. While NI 51-101 requires that the effects of acquisitions and dispositions be excluded, FD&A costs have been presented because acquisitions and dispositions can have a significant impact on the Company's ongoing reserve replacement costs and excluding these amounts could result in an inaccurate portrayal of the Company's cost structure. The Company's finding and development costs, excluding the effects of acquisitions and dispositions, for 2013 were $25.62/boe on a proved basis and $18.87/boe on a proved plus probable basis. The Company's finding and development costs, excluding the effects of acquisitions and dispositions, for 2012 were $31.02/boe on a proved basis and $26.36/boe on a proved plus probable basis (the additions to reserves used for the 2012 finding and development costs represent a comparison to the opening reserves balance which were the reserves acquired from Wild Stream Exploration Inc. by Raging River on March 16, 2012). The average finding and development costs over the last three years have not been presented herein because the Company only began active operations in March 2012. 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 reserves additions for that year.
Net Asset Value per Share: Net asset value per share as presented herein is based on the PVBT10 of proven plus probable reserves as at December 31, 2013 of $1,192 million, an internal estimate of Raging River's undeveloped land value of $108 million, estimated 2013 year end net debt of $101 million, dilutive securities proceeds of $55 million for total net asset value of $1,254 million and with 195.2 million shares outstanding on a fully diluted basis a net asset value per share of $6.42/share
Meaning of Boe: When used in this press release, Boe means a barrel of oil equivalent on the basis of 1 Boe to 6 thousand cubic feet of natural gas. Boe per day means a barrel of oil equivalent per day. Boe's may be misleading, particularly if used in isolation. A Boe conversion ratio of 1 Boe for 6 thousand cubic feet of natural gas is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. As the value ratio between natural gas and crude oil based on the current prices of natural gas and crude oil 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.
Non-IFRS Measures: The Company uses terms in this press release that are not measures recognized by International Financial Reporting Standards ("IFRS") and do not have standardized meanings prescribed by IFRS, including "net debt" and "operating netback". Therefore, they may not be comparable to performance measures presented by others. For additional information relating to these measures and how the Company calculates these measures, see management's discussion and analysis for the period ended September 30, 2013, which is available on the SEDAR website at www.sedar.com.
Raging River Exploration Inc.
Mr. Neil Roszell
President and CEO
(403) 387-2951 (FAX)
Raging River Exploration Inc.
Mr. Jerry Sapieha, CA
Vice President, Finance and CFO
(403) 387-2951 (FAX)
Ixia (Nasdaq: XXIA) has announced that NoviFlow Inc.has deployed IxNetwork® to validate the company’s designs and accelerate the delivery of its proven, reliable products. Based in Montréal, NoviFlow Inc. supports network carriers, hyperscale data center operators, and enterprises seeking greater network control and flexibility, network scalability, and the capacity to handle extremely large numbers of flows, while maintaining maximum network performance. To meet these requirements, NoviFlow in...
Jul. 26, 2016 02:00 PM EDT Reads: 509
As companies gain momentum, the need to maintain high quality products can outstrip their development team’s bandwidth for QA. Building out a large QA team (whether in-house or outsourced) can slow down development and significantly increases costs. This eBook takes QA profiles from 5 companies who successfully scaled up production without building a large QA team and includes: What to consider when choosing CI/CD tools How culture and communication can make or break implementation
Jul. 26, 2016 02:00 PM EDT Reads: 1,620
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
Jul. 26, 2016 01:45 PM EDT Reads: 1,989
Redis is not only the fastest database, but it is the most popular among the new wave of databases running in containers. Redis speeds up just about every data interaction between your users or operational systems. In his session at 19th Cloud Expo, Dave Nielsen, Developer Advocate, Redis Labs, will share the functions and data structures used to solve everyday use cases that are driving Redis' popularity.
Jul. 26, 2016 12:30 PM EDT Reads: 1,578
UpGuard has become a member of the Center for Internet Security (CIS), and will continue to help businesses expand visibility into their cyber risk by providing hardening benchmarks to all customers. By incorporating these benchmarks, UpGuard's CSTAR solution builds on its lead in providing the most complete assessment of both internal and external cyber risk. CIS benchmarks are a widely accepted set of hardening guidelines that have been publicly available for years. Numerous solutions exist t...
Jul. 26, 2016 11:45 AM EDT Reads: 549
"We're bringing out a new application monitoring system to the DevOps space. It manages large enterprise applications that are distributed throughout a node in many enterprises and we manage them as one collective," explained Kevin Barnes, President of eCube Systems, in this SYS-CON.tv interview at DevOps at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 26, 2016 10:45 AM EDT Reads: 1,719
Choosing the right cloud for your workloads is a balancing act that can cost your organization time, money and aggravation - unless you get it right the first time. Economics, speed, performance, accessibility, administrative needs and security all play a vital role in dictating your approach to the cloud. Without knowing the right questions to ask, you could wind up paying for capacity you'll never need or underestimating the resources required to run your applications.
Jul. 26, 2016 10:37 AM EDT Reads: 294
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
Jul. 26, 2016 10:15 AM EDT Reads: 1,179
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle. In his session at 18th Cloud Expo, ...
Jul. 26, 2016 10:00 AM EDT Reads: 988
The competitive landscape of the global cloud computing market in the healthcare industry is crowded due to the presence of a large number of players. The large number of participants has led to the fragmented nature of the market. Some of the major players operating in the global cloud computing market in the healthcare industry are Cisco Systems Inc., Carestream Health Inc., Carecloud Corp., AGFA Healthcare, IBM Corp., Cleardata Networks, Merge Healthcare Inc., Microsoft Corp., Intel Corp., an...
Jul. 26, 2016 09:45 AM EDT Reads: 942
SYS-CON Events announced today the Kubernetes and Google Container Engine Workshop, being held November 3, 2016, in conjunction with @DevOpsSummit at 19th Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA. This workshop led by Sebastian Scheele introduces participants to Kubernetes and Google Container Engine (GKE). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, students learn the key concepts and practices for deploying and maintainin...
Jul. 26, 2016 09:45 AM EDT Reads: 768
StackIQ has announced the release of Stacki 3.2. Stacki is an easy-to-use Linux server provisioning tool. Stacki 3.2 delivers new capabilities that simplify the automation and integration of site-specific requirements. StackIQ is the commercial entity behind this open source bare metal provisioning tool. Since the release of Stacki in June of 2015, the Stacki core team has been focused on making the Community Edition meet the needs of members of the community, adding features and value, while ...
Jul. 26, 2016 09:45 AM EDT Reads: 336
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
Jul. 26, 2016 09:30 AM EDT Reads: 1,086
Is your aging software platform suffering from technical debt while the market changes and demands new solutions at a faster clip? It’s a bold move, but you might consider walking away from your core platform and starting fresh. ReadyTalk did exactly that. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, will discuss why and how ReadyTalk diverted from healthy revenue and over a decade of audio conferencing product development to start an innovati...
Jul. 26, 2016 09:15 AM EDT Reads: 1,011
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
Jul. 26, 2016 09:02 AM EDT Reads: 248