Welcome!

News Feed Item

Painted Pony Petroleum Announces Significant Increase in Montney Production With Start Up of Townsend Natural Gas Processing Facility

CALGARY, ALBERTA -- (Marketwired) -- 04/09/14 -- Painted Pony Petroleum Ltd. ("Painted Pony" or the "Company") (TSX:PPY) is pleased to provide the following production and operations update. Highlights include:


--  exceeded 15,000 barrels of oil equivalent per day ("boe/d"), weighted
    86% towards natural gas, in the first week of April 2014, based on field
    estimates that included 79 million cubic feet per day ("MMcf/d") of raw
    natural gas production and 2,050 barrels ("bbls") per day ("bbls/d") of
    crude oil and natural gas liquids ("NGLs") production; 
--  increased second quarter 2014 production estimate by 17% to 13,500 boe/d
    (86% natural gas) from previous estimates of 11,500 boe/d, as a result
    of better than anticipated well results at Blair and Townsend. This
    represents increases of approximately 38% over first quarter of 2014
    estimated production of 9,750 boe/d and 70% over second quarter 2013
    production of 7,928 boe/d; 
--  increased average annual production estimates for 2014 to 13,000 boe/d,
    a 50% increase over average production in 2013 of 8,693 boe/d; 
--  completed start-up of the new 100% working interest 25 MMcf/d natural
    gas processing facility at Townsend, British Columbia on time and on
    budget, which is expected to reach full capacity by the end of April
    2014. This facility currently has an associated recoverable wellhead
    condensate yield in excess of 40 bbls/MMcf; 
--  drilled 5 (5.0 net) Montney wells to date as part of an 18 (17.0 net)
    well 2014 Montney drilling program; and 
--  completed 4 (4.0 net) Montney wells to date in 2014 including 2 (2.0
    net) Montney wells at Townsend and 2 (2.0 net) Montney wells at Blair. 

INCREASED PRODUCTION EXCEEDING EXPECTATIONS

Painted Pony continues to achieve significant increases in its production base that have exceeded the Company's expectations. The recent production test results at Blair and Townsend, in conjunction with the commissioning of the new natural gas processing facility, have prompted the Company to increase its second quarter 2014 average production estimate. The Q2 production estimate has been increased to 13,500 boe/d from the previous estimate of 11,500 boe/d. Field production estimates during the first week of April 2014 exceeded 15,000 boe/d, including 79 MMcf/d of raw natural gas production, 1,050 bbls/d of natural gas liquids production and 1,000 bbls/d of crude oil production.

Annual average production estimates have also been increased to 13,000 boe/d (86% natural gas) from a previous estimate of 11,500 boe/d (85% natural gas). Field estimated production for the first quarter of 2014 was approximately 9,750 boe/d (87% natural gas) including 1,500 bbls/d of oil and natural gas liquids.

TOWNSEND

The Company has recently completed the commissioning of its 100% owned and operated natural gas processing facility at the 33-J pad with a design capacity of 25 MMcf/d. Field estimated condensate yields at this facility since April 1, 2014 have been 40 bbls/MMcf, and receive a price that approximates the Edmonton Par reference price for light oil. Painted Pony anticipates reaching full capacity at this facility by the end of April 2014. The Townsend property is the site of the Company's highest liquids yield production within its British Columbia Montney assets.

In addition, Painted Pony recently completed two 100% working interest Montney wells at Townsend. A Lower Montney well and an Upper Montney well have been flow-testing in-line through the Company's new 100% owned natural gas processing facility since April 1, 2014. These wells have flowed at a combined average raw wellhead rate of 12.0 MMcf/d plus associated condensate of 40 bbls/MMcf (480 bbls/d) over the last three days.

The Company has undertaken a pre-engineering study with a third party midstream company to build a refrigeration and natural gas plant facility with an expected capacity of approximately 190 MMcf/d. Final approval of the study is anticipated by the end of the second quarter of 2014. The plant is expected to be operational during the second half of 2015, and is expected to reduce transportation, processing, and operating costs, and increase liquids yields.

BLAIR

At Blair, Painted Pony drilled 5 (5.0 net) Montney wells to date in 2014. The Company completed two of the 100% working interest Montney wells on the 41-F pad drilled to date, and anticipates completing the remaining three 100% working interest Montney wells during the second quarter of 2014. Both of the completed wells are Upper Montney producers that have been testing in-line since late March 2014. In the first week of April, these wells have flowed at a combined average raw wellhead rate of 20.8 MMcf/d with an estimated associated 15 bbls/MMcf of natural gas liquids (312 bbls/d), which includes condensate, propane, and butane.

The production results of the Montney wells have exceeded the Company's expectations in the Blair area and confirm the continued success of the open-hole ball-drop completion technology utilized by Painted Pony. These early indications from well performance have confirmed the step-change in terms of both production volumes and reduced costs. Painted Pony is currently producing natural gas from the Blair property through a third party midstream facility and is evaluating options for increasing processing capacity at this plant.

LIGHT CRUDE OIL OPERATIONS

In Saskatchewan, Painted Pony has increased its current light, sweet oil production base to approximately 1,000 bbls/d with the successful Midale discovery at Ralph, and a recently completed 2 mile Bakken horizontal well at Flat Lake. Additionally, the Company anticipates restoring approximately 130 boe/d of natural gas and NGLs from the Huntoon area that was previously shut-in due to third party processing issues. Painted Pony continues to maintain an inventory of low-risk light crude oil development opportunities in Saskatchewan.

Painted Pony is a Canadian oil and gas exploration company that trades on the Toronto Stock Exchange under the symbol "PPY".

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

Special Note Regarding Forward-Looking Information

This news release contains certain forward-looking statements, which are based on numerous assumptions including but not limited to (i) drilling success; (ii) production; (iii) future capital expenditures; (iv) continued production at current rates; (v) the Townsend processing facility reaching full capacity; (vi) the receipt of a positive pre-engineering study in respect of the proposed refrigeration and natural gas plant; ; and (vii) cash flows from operating activities. In addition, and without limiting the generality of the foregoing, the key assumptions underlying the forward-looking statements contained herein include the following: (i) commodity prices will be volatile, and natural gas prices will remain low, throughout 2014; (ii) capital, undeveloped lands and skilled personnel will continue to be available at the level Painted Pony has enjoyed to date; (iii) the effect of hedges on risk management programs; (iv) Painted Pony will be able to obtain equipment in a timely manner to carry out exploration, development and exploitation activities; (v) production rates in 2014 are expected to show growth from the fourth quarter of 2013; (vi) Painted Pony will have sufficient financial resources with which to conduct the capital program; and (vii) the current tax and regulatory regime will remain substantially unchanged The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect.

This news release contains information, including in respect of Painted Pony's capital program, which may constitute future oriented financial information or a financial outlook. Such information was approved by management of Painted Pony on March 4, 2014, and such information is included herein to provide readers with an understanding of the Company's anticipated capital expenditures. Readers are cautioned that the information may not be appropriate for other purposes.

Certain information regarding Painted Pony set forth in this document, including estimates of the Company's production, the timing of proposed capital projects and receipt of a positive pre-feasibility study for the proposed refrigeration and natural gas plant 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 overseas, 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, including the amount of proceeds, that the Company will derive therefrom. All subsequent 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.

Estimates of production for individual wells may not reflect the same confidence or production levels as estimates of production for all wells on specific properties due to the effects of aggregation.

The well test results and short term production disclosed in this news release represent short-term results, which may not necessarily be indicative of long-term well performance or ultimate hydrocarbon recovery therefrom.

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. Given the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6 Mcf: 1 bbl, utilizing a conversion ratio at 6 Mcf: 1 bbl may be misleading as an indication of value.

Additional information on these and other factors that could affect Painted Pony's operations and financial results are included in the Company's Management's Discussion and Analysis for the year ended December 31, 2013, and the Company's Annual Information Form for the year ended December 31, 2013 and in reports which are on file with the 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.

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
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations might...
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem" ...
In his session at 20th Cloud Expo, Scott Davis, CTO of Embotics, will discuss how automation can provide the dynamic management required to cost-effectively deliver microservices and container solutions at scale. He will discuss how flexible automation is the key to effectively bridging and seamlessly coordinating both IT and developer needs for component orchestration across disparate clouds – an increasingly important requirement at today’s multi-cloud enterprise.
The essence of cloud computing is that all consumable IT resources are delivered as services. In his session at 15th Cloud Expo, Yung Chou, Technology Evangelist at Microsoft, demonstrated the concepts and implementations of two important cloud computing deliveries: Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). He discussed from business and technical viewpoints what exactly they are, why we care, how they are different and in what ways, and the strategies for IT to transi...
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound e...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
Niagara Networks exhibited at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.
Virtualization over the past years has become a key strategy for IT to acquire multi-tenancy, increase utilization, develop elasticity and improve security. And virtual machines (VMs) are quickly becoming a main vehicle for developing and deploying applications. The introduction of containers seems to be bringing another and perhaps overlapped solution for achieving the same above-mentioned benefits. Are a container and a virtual machine fundamentally the same or different? And how? Is one techn...
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
Information technology (IT) advances are transforming the way we innovate in business, thereby disrupting the old guard and their predictable status-quo. It’s creating global market turbulence. Industries are converging, and new opportunities and threats are emerging, like never before. So, how are savvy chief information officers (CIOs) leading this transition? Back in 2015, the IBM Institute for Business Value conducted a market study that included the findings from over 1,800 CIO interviews ...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
"We host and fully manage cloud data services, whether we store, the data, move the data, or run analytics on the data," stated Kamal Shannak, Senior Development Manager, Cloud Data Services, IBM, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.