Click here to close now.



Welcome!

News Feed Item

Painted Pony Petroleum Announces Record Production, Provides Montney Operations Update and Initiates Hedging Program

CALGARY, ALBERTA -- (Marketwired) -- 01/23/14 -- Painted Pony Petroleum Ltd. ("Painted Pony" or the "Company") (TSX:PPY) is pleased to provide the following update. Highlights include:


--  field estimated production volumes in November and December 2013
    averaged a record 9,970 barrels of oil equivalent per day ("boe/d"),
    weighted 86% towards natural gas; 
--  estimated production volumes in the fourth quarter of 2013 averaged a
    record 9,350 boe/d, weighted 84% towards natural gas; 
--  construction has begun on the Company's 25 million cubic feet per day
    ("MMcf/d") gas dehydration and condensate stabilization facility at
    Townsend, with completion of the plant expected by the end of the first
    quarter of 2014; 
--  Painted Pony has commissioned an engineering study for a refrigeration
    and gas plant facility with capacity of up to 190 MMcf/d, which is
    expected to be built in 2015; 
--  Painted Pony continues to evaluate opportunities on its light oil assets
    in southeast Saskatchewan, including exploration opportunities in the
    Torquay/Three Forks formations at Flat Lake; and 
--  the Company has initiated a natural gas hedging program through the
    first quarter of 2015 on up to 19.0 MMcf/d of natural gas production at
    an average fixed AECO price ranging from $3.99 CDN/thousand cubic feet
    ("Mcf") to $4.10 CDN/Mcf of natural gas.

PRODUCTION

Painted Pony is pleased to announce that it achieved record field estimated production rates for November and December 2013 that averaged 9,970 boe/d, weighted 86% towards natural gas. Additionally, estimated production volumes for the fourth quarter of 2013 averaged 9,350 boe/d, weighted 84% towards natural gas.

Production for the first quarter of 2014 is estimated to remain flat and is expected to increase to approximately 11,500 boe/d for the second quarter of 2014.

MONTNEY NATURAL GAS OPERATIONS

Construction of the Company's 25 MMcf/d Townsend gas dehydration and condensate stabilization facility has begun and is expected to be operational at the end of the first quarter of 2014. In addition to currently shut-in volumes at Townsend, two 100% working interest Montney wells at the 56-H/94-B-09 pad, which were drilled in the fourth quarter of 2013 are scheduled to be completed by the end of the first quarter of 2014 coinciding with the facility's start-up. The wells, which targeted the upper and lower Montney, will provide additional production volumes in the second quarter of 2014.

Painted Pony has commissioned an engineering study for a refrigeration and gas plant facility with an expected capacity of up to 190 MMcf/d. The plant, located at the Company's Townsend property, is expected to be built in 2015.

At Blair, Painted Pony has secured an additional 7 MMcf/d of firm processing capacity at the AltaGas plant, bringing total firm capacity to approximately 40 MMcf/d of natural gas. Further to the additional capacity at Blair, Painted Pony has scheduled a Daiber facility expansion for the third quarter of 2014 to 50 MMcf/d of natural gas from its current 25 MMcf/d capacity.

The Company is currently drilling a 100% working interest Montney well at the Blair 41-F/94-B-16 pad as part of a two-well (2 net) drilling and completions program on this pad in the first quarter of 2014. In addition, Painted Pony is moving a second rig this week to drill two 100% working interest Montney wells at the Blair 11-F/94-B-16 pad. Painted Pony plans to drill a total of 18 (17.0 net) Montney wells in 2014.

Painted Pony is also pleased to announce that in November 2013 it acquired a further 7,765 net acres (12 net sections) of Montney natural gas rights that are directly contiguous to the Company's core area. As at December 31, 2013, the Company had approximately 130,200 net acres (203 net sections) of Montney lands.

LIGHT OIL OPERATIONS

Painted Pony continues to evaluate opportunities on its light oil assets in southeast Saskatchewan. In conjunction with recent industry activity in the Flat Lake area, the Company is assessing the potential of additional light oil bearing zones including the Torquay formation, of which Painted Pony has over 11,300 net acres (17 net sections) of rights on the Flat Lake property. The Company plans to drill a horizontal exploratory well (0.3 net) at Flat Lake in the first quarter of 2014.

HEDGING PROGRAM

Painted Pony has initiated a hedging program by entering into natural gas fixed swap AECO contracts as follows:


----------------------------------------------------------------------------
                                                               Average Fixed
                                             Volume               AECO Price
Quarter                                    (MMcf/d)               ($CDN/Mcf)
----------------------------------------------------------------------------
Q1 2014                                 15.8 MMcf/d            $4.00 CDN/Mcf
----------------------------------------------------------------------------
Q2 2014                                 19.0 MMcf/d            $3.99 CDN/Mcf
----------------------------------------------------------------------------
Q3 2014                                 19.0 MMcf/d            $3.99 CDN/Mcf
----------------------------------------------------------------------------
Q4 2014                                 19.0 MMcf/d            $3.99 CDN/Mcf
----------------------------------------------------------------------------
Q1 2015                                 14.2 MMcf/d            $4.10 CDN/Mcf
----------------------------------------------------------------------------

CORPORATE UPDATE

Painted Pony expects to report its 2013 year-end reserves information on March 4, 2014 and 2013 year-end financial and operating results on March 18, 2014.

Painted Pony will be undertaking a series of presentations to institutional investors over the coming weeks throughout the western United States, eastern United States and eastern Canada. Interested parties are invited to visit the Company's website on January 27, 2014 to view an updated presentation.

For more information please visit www.paintedpony.ca.

Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this news release.

Advisory

This news release contains certain forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "believe", "plan", "potential", "intend", "objective", "continuous", "ongoing", "encouraging", "estimate", "expect", "may", "will", "project", "should", or similar words suggesting future outcomes.

These forward-looking statements are based on numerous assumptions including but not limited to (i) drilling and construction success; (ii) production; (iii) future capital expenditures; (iv) cash flow from operating activities; and (v) available capital for future capital expenditures. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect.

Forward-looking statements are based upon the opinions and expectations of management of the Company as at the effective date of such statements and, in some cases, information supplied by third parties. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions and that information received from third parties is reliable, it can give no assurance that those expectations will prove to have been correct. Forward-looking statements are subject to certain risks and uncertainties that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements.

With respect to forward-looking statements contained in this document, Painted Pony has made a number of assumptions. The key assumptions underlying the aforementioned forward-looking statements include assumptions that: (i) commodity prices will be volatile throughout 2014; (ii) capital, undeveloped lands and skilled personnel will continue to be available at the level Painted Pony has enjoyed to date; (iii) Painted Pony will be able to obtain equipment in a timely manner to carry out exploration, development and exploitation activities; (iv) Painted Pony will have sufficient financial resources with which to conduct the capital program; (v) the accuracy of geological and geophysical data and Painted Pony's interpretation of that data; (vi) production rates in 2014 are expected to show growth from 2013; (vii) that production from new wells will be substantially similar to production rates associated with existing wells in the vicinity of the Company's properties; (viii) the continued ability of the Company to generate internal cash flow and the availability of capital on acceptable terms; (ix) the current tax and regulatory regime will remain substantially unchanged; and (x) that the Corporation will have sufficient capital to carry on its proposed capital expenditure program. Certain or all of the forgoing assumptions may prove to be untrue.

Certain information regarding Painted Pony set forth in this document, including management's assessment of Painted Pony's future plans and operations, number, type and timing of wells to be drilled and the planning and development of certain prospects, may constitute forward-looking statements under applicable securities laws and necessarily involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Painted Pony's control, including without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, environmental risks, inability to obtain drilling rigs or other services, capital expenditure costs, including drilling, completion and facility costs, unexpected decline rates in wells, wells not performing as expected, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and globally, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, and stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof. Readers are cautioned that the foregoing list of factors is not exhaustive. Painted Pony's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom. All subsequent and forgoing forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements.

Additional information on these and other factors that could affect Painted Pony's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) or Painted Pony's website (www.paintedpony.ca).

The forward-looking statements contained in this document are made as at the date of this news release and Painted Pony 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 laws.

Certain natural gas volumes have been converted to barrels of oil equivalent (BOE) on the basis of six thousand cubic feet (Mcf) to one barrel (bbl). BOEs 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.

Contacts:
Painted Pony Petroleum Ltd.
Patrick R. Ward
President & CEO
(403) 475-0440
(403) 238-1487 (FAX)

Painted Pony Petroleum Ltd.
John H. Van de Pol
Vice President, Finance & CFO
(403) 475-0440
(403) 238-1487 (FAX)
www.paintedpony.ca

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
As enterprises work to take advantage of Big Data technologies, they frequently become distracted by product-level decisions. In most new Big Data builds this approach is completely counter-productive: it presupposes tools that may not be a fit for development teams, forces IT to take on the burden of evaluating and maintaining unfamiliar technology, and represents a major up-front expense. In his session at @BigDataExpo at @ThingsExpo, Andrew Warfield, CTO and Co-Founder of Coho Data, will dis...
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry's single source for the cloud. Fusion's advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including clou...
As someone who has been dedicated to automation and Application Release Automation (ARA) technology for almost six years now, one of the most common questions I get asked regards Platform-as-a-Service (PaaS). Specifically, people want to know whether release automation is still needed when a PaaS is in place, and why. Isn't that what a PaaS provides? A solution to the deployment and runtime challenges of an application? Why would anyone using a PaaS then need an automation engine with workflow ...
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
Your business relies on your applications and your employees to stay in business. Whether you develop apps or manage business critical apps that help fuel your business, what happens when users experience sluggish performance? You and all technical teams across the organization – application, network, operations, among others, as well as, those outside the organization, like ISPs and third-party providers – are called in to solve the problem.
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
@DevOpsSummit taking place June 7-9, 2016 at Javits Center, New York City, and Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 18th International @CloudExpo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
SYS-CON Events announced today that VAI, a leading ERP software provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. VAI (Vormittag Associates, Inc.) is a leading independent mid-market ERP software developer renowned for its flexible solutions and ability to automate critical business functions for the distribution, manufacturing, specialty retail and service sectors. An IBM Premier Business Part...
Let’s face it, embracing new storage technologies, capabilities and upgrading to new hardware often adds complexity and increases costs. In his session at 18th Cloud Expo, Seth Oxenhorn, Vice President of Business Development & Alliances at FalconStor, will discuss how a truly heterogeneous software-defined storage approach can add value to legacy platforms and heterogeneous environments. The result reduces complexity, significantly lowers cost, and provides IT organizations with improved effi...
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies adopt disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevO...
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...