Welcome!

News Feed Item

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

CALGARY, ALBERTA -- (Marketwired) -- 01/22/14 -- 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
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
Enterprises have forever faced challenges surrounding the sharing of their intellectual property. Emerging cloud adoption has made it more compelling for enterprises to digitize their content, making them available over a wide variety of devices across the Internet. In his session at 19th Cloud Expo, Santosh Ahuja, Director of Architecture at Impiger Technologies, will introduce various mechanisms provided by cloud service providers today to manage and share digital content in a secure manner....
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
With over 720 million Internet users and 40–50% CAGR, the Chinese Cloud Computing market has been booming. When talking about cloud computing, what are the Chinese users of cloud thinking about? What is the most powerful force that can push them to make the buying decision? How to tap into them? In his session at 18th Cloud Expo, Yu Hao, CEO and co-founder of SpeedyCloud, answered these questions and discussed the results of SpeedyCloud’s survey.
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
SYS-CON Events announced today that StarNet Communications 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. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
SYS-CON Events announced today that 910Telecom 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. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...