|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
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
Feb. 26, 2017 11:45 PM EST Reads: 2,044
Who are you? How do you introduce yourself? Do you use a name, or do you greet a friend by the last four digits of his social security number? Assuming you don’t, why are we content to associate our identity with 10 random digits assigned by our phone company? Identity is an issue that affects everyone, but as individuals we don’t spend a lot of time thinking about it. In his session at @ThingsExpo, Ben Klang, Founder & President of Mojo Lingo, discussed the impact of technology on identity. Sho...
Feb. 26, 2017 11:45 PM EST Reads: 6,188
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...
Feb. 26, 2017 11:15 PM EST Reads: 8,744
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
Feb. 26, 2017 10:00 PM EST Reads: 13,684
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and 21st International Cloud Expo, which will take place in November in Silicon Valley, California.
Feb. 26, 2017 09:15 PM EST Reads: 2,434
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Feb. 26, 2017 09:00 PM EST Reads: 8,979
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
Feb. 26, 2017 08:45 PM EST Reads: 2,004
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...
Feb. 26, 2017 08:45 PM EST Reads: 5,157
SYS-CON Events announced today that Hitrons Solutions 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. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
Feb. 26, 2017 08:30 PM EST Reads: 715
WebRTC is about the data channel as much as about video and audio conferencing. However, basically all commercial WebRTC applications have been built with a focus on audio and video. The handling of “data” has been limited to text chat and file download – all other data sharing seems to end with screensharing. What is holding back a more intensive use of peer-to-peer data? In her session at @ThingsExpo, Dr Silvia Pfeiffer, WebRTC Applications Team Lead at National ICT Australia, looked at differ...
Feb. 26, 2017 08:30 PM EST Reads: 7,181
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
Feb. 26, 2017 07:45 PM EST Reads: 2,071
In his session at 20th Cloud Expo, Chris Carter, CEO of Approyo, will discuss the basic set up and solution for an SAP solution in the cloud and what it means to the viability of your company. Chris Carter is CEO of Approyo. He works with business around the globe, to assist them in their journey to the usage of Big Data in the forms of Hadoop (Cloudera and Hortonwork's) and SAP HANA. At Approyo, we support firms who are looking for knowledge to grow through current business process, where even ...
Feb. 26, 2017 07:30 PM EST Reads: 1,161
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, discussed the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports.
Feb. 26, 2017 06:45 PM EST Reads: 2,372
Addteq is one of the top 10 Platinum Atlassian Experts who specialize in DevOps, custom and continuous integration, automation, plugin development, and consulting for midsize and global firms. Addteq firmly believes that automation is essential for successful software releases. Addteq centers its products and services around this fundamentally unique approach to delivering complete software release management solutions. With a combination of Addteq's services and our extensive list of partners,...
Feb. 26, 2017 06:00 PM EST Reads: 957
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain.
Feb. 26, 2017 05:30 PM EST Reads: 2,009