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
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of Soli...
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, discussed recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model for ...
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effici...
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lead...
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
"MathFreeOn.com is a line coding platform for engineers and scientists. When they want to solve an engineering problem and they have to use software - they have to pay a lot of money for licenses - but with MathFreeOn you don't have to pay a lot of money. Just go to our site and write the code and you can check the result right away," explained Simon Lee, CMO of MathFreeOn, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Cla...
In his session at 19th Cloud Expo, Claude Remillard, Principal Program Manager in Developer Division at Microsoft, contrasted how his team used config as code and immutable patterns for continuous delivery of microservices and apps to the cloud. He showed how the immutable patterns helps developers do away with most of the complexity of config as code-enabling scenarios such as rollback, zero downtime upgrades with far greater simplicity. He also demoed building immutable pipelines in the cloud ...
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
In his session at Cloud Expo, Robert Cohen, an economist and senior fellow at the Economic Strategy Institute, provideed economic scenarios that describe how the rapid adoption of software-defined everything including cloud services, SDDC and open networking will change GDP, industry growth, productivity and jobs. This session also included a drill down for several industries such as finance, social media, cloud service providers and pharmaceuticals.