|By Marketwired .||
|January 22, 2014 07:39 PM EST||
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.
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.
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 ----------------------------------------------------------------------------
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.
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.
Painted Pony Petroleum Ltd.
Patrick R. Ward
President & CEO
(403) 238-1487 (FAX)
Painted Pony Petroleum Ltd.
John H. Van de Pol
Vice President, Finance & CFO
(403) 238-1487 (FAX)
SYS-CON Events announced today that Harbinger Systems will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Harbinger Systems is a global company providing software technology services. Since 1990, Harbinger has developed a strong customer base worldwide. Its customers include software product companies ranging from hi-tech start-ups in Silicon Valley to leading product companies in the US a...
Jul. 5, 2015 06:00 PM EDT Reads: 2,087
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
Jul. 5, 2015 06:00 PM EDT Reads: 1,248
The 4th International Internet of @ThingsExpo, co-located with the 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - announces that its Call for Papers is open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than
Jul. 5, 2015 06:00 PM EDT Reads: 519
The 5th International DevOps Summit, co-located with 17th International Cloud Expo – being held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the ...
Jul. 5, 2015 05:15 PM EDT Reads: 1,361
SYS-CON Events announced today that Secure Infrastructure & Services will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Secure Infrastructure & Services (SIAS) is a managed services provider of cloud computing solutions for the IBM Power Systems market. The company helps mid-market firms built on IBM hardware platforms to deploy new levels of reliable and cost-effective computing and hig...
Jul. 5, 2015 05:00 PM EDT Reads: 1,562
DevOps Summit, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th 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 development...
Jul. 5, 2015 05:00 PM EDT Reads: 1,497
To many people, IoT is a buzzword whose value is not understood. Many people think IoT is all about wearables and home automation. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed some incredible game-changing use cases and how they are transforming industries like agriculture, manufacturing, health care, and smart cities. He will discuss cool technologies like smart dust, robotics, smart labels, and much more. Prepare...
Jul. 5, 2015 04:45 PM EDT Reads: 1,413
SYS-CON Events announced today that ProfitBricks, the provider of painless cloud infrastructure, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. ProfitBricks is the IaaS provider that offers a painless cloud experience for all IT users, with no learning curve. ProfitBricks boasts flexible cloud servers and networking, an integrated Data Center Designer tool for visual control over the...
Jul. 5, 2015 04:30 PM EDT Reads: 1,915
The cloud has transformed how we think about software quality. Instead of preventing failures, we must focus on automatic recovery from failure. In other words, resilience trumps traditional quality measures. Continuous delivery models further squeeze traditional notions of quality. Remember the venerable project management Iron Triangle? Among time, scope, and cost, you can only fix two or quality will suffer. Only in today's DevOps world, continuous testing, integration, and deployment upend...
Jul. 5, 2015 04:15 PM EDT Reads: 2,440
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides private all-in-one social intranets allowing workers to securely collaborate from anywhere in the world and from any device. Social, mobile, and easy to use. MangoApps has been named a "Market Leader" by Ovum Research and a "Cool Vendor" by Gartner. 20,000+ business custome...
Jul. 5, 2015 04:00 PM EDT Reads: 1,933
SYS-CON Events announced today that JFrog, maker of Artifactory, the popular Binary Repository Manager, will exhibit at SYS-CON's @DevOpsSummit Silicon Valley, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Based in California, Israel and France, founded by longtime field-experts, JFrog, creator of Artifactory and Bintray, has provided the market with the first Binary Repository solution and a software distribution social platform.
Jul. 5, 2015 03:30 PM EDT Reads: 1,585
DevOps tends to focus on the relationship between Dev and Ops, putting an emphasis on the ops and application infrastructure. But that’s changing with microservices architectures. In her session at DevOps Summit, Lori MacVittie, Evangelist for F5 Networks, will focus on how microservices are changing the underlying architectures needed to scale, secure and deliver applications based on highly distributed (micro) services and why that means an expansion into “the network” for DevOps.
Jul. 5, 2015 03:00 PM EDT Reads: 2,813
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises ar...
Jul. 5, 2015 03:00 PM EDT Reads: 1,304
Internet of Things is moving from being a hype to a reality. Experts estimate that internet connected cars will grow to 152 million, while over 100 million internet connected wireless light bulbs and lamps will be operational by 2020. These and many other intriguing statistics highlight the importance of Internet powered devices and how market penetration is going to multiply many times over in the next few years.
Jul. 5, 2015 03:00 PM EDT Reads: 2,390
"We got started as search consultants. On the services side of the business we have help organizations save time and save money when they hit issues that everyone more or less hits when their data grows," noted Otis Gospodnetić, Founder of Sematext, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 5, 2015 02:30 PM EDT Reads: 1,475