|By Marketwired .||
|May 27, 2014 08:30 AM EDT||
CALGARY, ALBERTA -- (Marketwired) -- 05/27/14 -- Lightstream Resources Ltd. ("Lightstream" or the "Company") (TSX:LTS), is pleased to announce that our new Swan Hills battery is operational and that we have entered into an agreement to complete a further non-core asset disposition for gross proceeds of $98 million. In connection with the disposition, we have updated our production guidance for the year.
The Swan Hills region of our Alberta/BC business unit has become an area of focus and growth for Lightstream. To support this growth we have built a 3,500 bopd battery, which has been 100% commissioned and is now commencing operations. The seven wells we drilled and completed during this past winter drilling season are being brought on-stream through this facility and are expected to add over 2,000 boepd (95% light oil) of production for the full month of June. In addition, four other wells that currently produce through multi-well truck-out batteries are now tied-in to our new facility, resulting in additional conserved sales gas volumes. The battery and extensive tie-in activities, including a 1.8 km sales oil pipeline and 7.6 km gas pipeline, have been completed on budget at a total cost of $26 million and will provide us a platform to expand operations in the area. We plan to drill at least four additional wells in the second half of the year, which will also be tied into this facility. With this battery coming on-stream, we expect second quarter production to be in-line with our first quarter.
We continue to execute on our asset disposition plan and have entered into an agreement, expected to close mid-July, to sell a portion of our Conventional business unit assets in southeast Saskatchewan for gross proceeds of $98 million. These non-core assets consist of approximately 1,000 boepd of production (96% liquids weighted), 3.9 MMboe of proved plus probable ("2P") reserves, and 36,250 net acres of land (20,160 net undeveloped acres).
The asset disposition package represents 20% of the production associated with our Conventional business unit and includes 700 (356 net) wells, representing 36% of our Conventional business unit wellbores. Transaction metrics for this non-core asset disposition are:
-- Annualized Q1 2014 Cash flow: 5.2x -- Q1 2014 Production: $98,000/boepd -- Proved and Probable Reserves: $25.13/boe ($29.10/boe, including future development costs)
Subject to the successful closing of this disposition, we also expect to reduce our decommissioning liabilities by approximately $17 million.
This property sale advances our 2014 and 2015 objectives to reduce debt and achieve $600 million of non-core asset disposition proceeds. Including this current transaction, our cumulative 2014 asset disposition proceeds are $351 million. While we have exceeded our 2014 minimum target of $300 million, we plan to continue to actively pursue additional dispositions this year. The table below is a summary of our 2014 non-core asset sales.
Dispositions Current Cumulative To-Date Transaction Total Metrics ---------------------------------------------------------------------------- Production 2,015 boepd 1,000 boepd 3,015 boepd $116,418/boepd Reserves (2P) 3.8 MMboe 3.9 MMboe 7.7 MMboe $48.38/boe(1) Cash Flow $ 25 M $19 M $44 M 8.0x Disposition Proceeds $ 253 M $ 98 M $351 M ---------------------------------------------------------------------------- (1) Future development costs of $21.5 million included in reserve metric calculation
On a go-forward basis, the cash flow impact of these dispositions is improved by at least $12 million in cash interest savings.
2014 Guidance Update
In connection with our $98 million non-core asset disposition, we are revising our full year average production guidance, with the remainder of guidance unchanged for 2014.
REVISED GUIDANCE ORIGINAL GUIDANCE May 27, 2014 March 3, 2014 Average Production (boe/d) 43,000 - 45,000 43,500 - 45,500 Exit Production (boe/d) unchanged 45,000 - 47,000 Oil and Liquids Weighting unchanged 80% Funds Flow(1) Funds Flow from Operations ('000) unchanged $635,000 - $665,000 Funds Flow per share(2) unchanged $3.19 - $3.34 Dividends per share unchanged $0.48 Capital Expenditures(3) Drill, Complete, Equip and Tie-in ('000) unchanged $350,000 - $370,000 Facilities, Workovers and Optimizations ('000) unchanged $120,000 - $140,000 Land, Seismic and Other ('000) unchanged $55,000 - $65,000 Total Capital Expenditures ('000) unchanged $525,000-$575,000 (1) Commodity price assumptions include WTI US$95.00/bbl, AECO CDN$4.00/Mcf, foreign exchange rate of US$/CDN$0.90, and corporate light oil differential of 10%. (2) Funds flow per share calculation based on 199 million shares outstanding for 2014. (3) Projected capital expenditures exclude acquisitions, which are evaluated separately.
Lightstream Resources Ltd. is an oil and gas exploration and production company combining light oil Bakken and Cardium resource plays with conventional light oil assets, delivering industry leading operating netbacks, strong cash flows and production growth. Lightstream is applying leading edge technology to a multi-year inventory of Bakken and Cardium light oil development locations, along with other emerging resource play opportunities. Our strategy is to deliver accretive production and reserves growth, along with an attractive dividend yield.
Forward Looking Statements. Certain information provided in this press release constitutes forward-looking statements. Specifically, this press release contains forward-looking statements relating to an asset disposition, expected facilities, expected future tie-in of future production to facilities, results from operations, future production rates, proposed exploration and development activities (including the number of wells to be drilled, completed and put on production), projected capital expenditures, the timing of certain projects, the anticipated completion of asset dispositions, and future dividend payments. The forward-looking statements are based on certain key expectations and assumptions, including closing of the asset disposition, expectations and assumptions concerning the success of future drilling, completion, recompletion and development activities, the performance of new and existing wells, prevailing commodity prices and economic conditions, the market for asset dispositions and the ability of counterparties to close on dispositions, the availability and cost of labour and services, timing of pipeline and facilities construction, access to third party facilities and weather and access to drilling locations. Although we believe that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because we can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, reliance on industry partners, risks that asset dispositions cannot be completed, availability of equipment and personnel, uncertainty surrounding timing for drilling and completion activities resulting from weather and other factors, changes in applicable regulatory regimes and health, safety and environmental risks), commodity price and exchange rate fluctuations and general economic conditions. Certain of these risks are set out in more detail in our Annual Information Form which has been filed on SEDAR and can be accessed at www.sedar.com. Except as may be required by applicable securities laws, Lightstream assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
BOEs. Natural gas volumes have been converted to barrels of oil equivalent ("boe"). Six thousand cubic feet ("Mcf") of natural gas is equal to one barrel of oil equivalent based on an energy equivalency conversion method primarily attributable at the burner tip and does not represent a value equivalency at the wellhead. Boes may be misleading, especially if used in isolation.
Well Counts. All references to well counts are on a net basis.
John D. Wright
President and Chief Executive Officer
Peter D. Scott
Senior Vice President and Chief Financial Officer
William A. Kanters
Vice President, Capital Markets
Eighth Avenue Place, 2800, 525 - 8th Avenue S.W.
Calgary, Alberta T2P 1G1
E-mail: [email protected]
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
May. 30, 2016 10:00 PM EDT Reads: 2,024
SYS-CON Events announced today that EastBanc Technologies 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. EastBanc Technologies has been working at the frontier of technology since 1999. Today, the firm provides full-lifecycle software development delivering flexible technology solutions that seamlessly integrate with existing systems – whether on premise or cloud. EastBanc Technologies partners with p...
May. 30, 2016 09:00 PM EDT Reads: 2,448
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
May. 30, 2016 06:45 PM EDT Reads: 1,440
SYS-CON Events announced today that AppNeta, the leader in performance insight for business-critical web applications, will exhibit and present at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. AppNeta is the only application performance monitoring (APM) company to provide solutions for all applications – applications you develop internally, business-critical SaaS applications you use and the networks that deli...
May. 30, 2016 06:00 PM EDT Reads: 2,668
The cloud era has reached the stage where it is no longer a question of whether a company should migrate, but when. Enterprises have embraced the outsourcing of where their various applications are stored and who manages them, saving significant investment along the way. Plus, the cloud has become a defining competitive edge. Companies that fail to successfully adapt risk failure. The media, of course, continues to extol the virtues of the cloud, including how easy it is to get there. Migrating...
May. 30, 2016 05:30 PM EDT Reads: 764
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. Commvault can ensure protection, access and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his general session at 18th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Part...
May. 30, 2016 05:30 PM EDT Reads: 793
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, will discuss the importance of WebRTC and how it enables companies to fo...
May. 30, 2016 04:30 PM EDT Reads: 2,636
As machines are increasingly connected to the internet, it’s becoming easier to discover the numerous ways Industrial IoT (IIoT) is helping to shape the business world. This is exactly why we have decided to take a closer look at this pervasive movement and to examine the desire to connect more things! Now if you need a refresher on IIoT and how it is changing the world, take a moment and listen to Greg Gorbach with ARC Advisory Group. Gorbach believes, "IIoT will significantly change the worl...
May. 30, 2016 04:30 PM EDT Reads: 2,109
SYS-CON Events announced today the Docker Meets Kubernetes – Intro into the Kubernetes World, being held June 9, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Register for 'Docker Meets Kubernetes Workshop' Here! This workshop led by Sebastian Scheele, co-founder of Loodse, introduces participants to Kubernetes (container orchestration). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, participants learn ...
May. 30, 2016 03:00 PM EDT Reads: 2,087
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discuss how businesses can gain an edge over competitors by empowering consumers to take control through IoT. We'll cite examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He'll also highlight how IoT can revitalize and restore outdated business models, making them profitable...
May. 30, 2016 02:00 PM EDT Reads: 3,082
SYS-CON Events announced today that MangoApps 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. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device. For more information, please visit https://www.mangoapps.com/.
May. 30, 2016 01:30 PM EDT Reads: 1,151
In his session at 18th Cloud Expo, Andrew Cole, Director of Solutions Engineering at Peak 10, will discuss how the newest technology advances are reducing the cost and complexity of traditional business continuity and disaster recovery solutions. Attendees will: Learn why having a full disaster recovery strategy is more important now than ever before Explore the key drivers of a successful disaster recovery solution Achieve measurable operational and business value from a disaster recovery ...
May. 30, 2016 12:00 PM EDT Reads: 1,512
SYS-CON Events announced today the How to Create Angular 2 Clients for the Cloud Workshop, being held June 7, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified. Now it’s a component-based well-performing framework. The immersive one-day workshop led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and...
May. 30, 2016 12:00 PM EDT Reads: 4,125
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT 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. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and ...
May. 30, 2016 12:00 PM EDT Reads: 813
How will your company move to the cloud while ensuring a solid security posture? Organizations from small to large are increasingly adopting cloud solutions to deliver essential business services at a much lower cost. According to cyber security experts, the frequency and severity of cyber-attacks are on the rise, causing alarm to businesses and customers across a variety of industries. To defend against exploits like these, a company must adopt a comprehensive security defense strategy that is ...
May. 30, 2016 11:30 AM EDT Reads: 812