Welcome!

News Feed Item

Lightstream Announces New Swan Hills Battery, $98 Million Non-Core Asset Disposition and Provides Updated Guidance

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.

Contacts:
John D. Wright
President and Chief Executive Officer
Phone: 403.268.7800

Peter D. Scott
Senior Vice President and Chief Financial Officer
Phone: 403.268.7800

William A. Kanters
Vice President, Capital Markets
Phone: 403.268.7800

Eighth Avenue Place, 2800, 525 - 8th Avenue S.W.
Calgary, Alberta T2P 1G1
Phone: 403.268.7800
Fax: 403.218.6075
E-mail: [email protected]
Website: www.lightstreamresources.com

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
Deep learning has been very successful in social sciences and specially areas where there is a lot of data. Trading is another field that can be viewed as social science with a lot of data. With the advent of Deep Learning and Big Data technologies for efficient computation, we are finally able to use the same methods in investment management as we would in face recognition or in making chat-bots. In his session at 20th Cloud Expo, Gaurav Chakravorty, co-founder and Head of Strategy Development ...
Interoute has announced the integration of its Global Cloud Infrastructure platform with Rancher Labs’ container management platform, Rancher. This approach enables enterprises to accelerate their digital transformation and infrastructure investments. Matthew Finnie, Interoute CTO commented “Enterprises developing and building apps in the cloud and those on a path to Digital Transformation need Digital ICT Infrastructure that allows them to build, test and deploy faster than ever before. The in...
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, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
In today's enterprise, digital transformation represents organizational change even more so than technology change, as customer preferences and behavior drive end-to-end transformation across lines of business as well as IT. To capitalize on the ubiquitous disruption driving this transformation, companies must be able to innovate at an increasingly rapid pace. Traditional approaches for driving innovation are now woefully inadequate for keeping up with the breadth of disruption and change facing...
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, will discuss the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information,
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...
SYS-CON Events announced today that Infranics will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Since 2000, Infranics has developed SysMaster Suite, which is required for the stable and efficient management of ICT infrastructure. The ICT management solution developed and provided by Infranics continues to add intelligence to the ICT infrastructure through the IMC (Infra Management Cycle) based on mathemat...
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze 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, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
Now that the world has connected “things,” we need to build these devices as truly intelligent in order to create instantaneous and precise results. This means you have to do as much of the processing at the point of entry as you can: at the edge. The killer use cases for IoT are becoming manifest through AI engines on edge devices. An autonomous car has this dual edge/cloud analytics model, producing precise, real-time results. In his session at @ThingsExpo, John Crupi, Vice President and Eng...
What if you could build a web application that could support true web-scale traffic without having to ever provision or manage a single server? Sounds magical, and it is! In his session at 20th Cloud Expo, Chris Munns, Senior Developer Advocate for Serverless Applications at Amazon Web Services, will show how to build a serverless website that scales automatically using services like AWS Lambda, Amazon API Gateway, and Amazon S3. We will review several frameworks that can help you build serverle...
In the enterprise today, connected IoT devices are everywhere – both inside and outside corporate environments. The need to identify, manage, control and secure a quickly growing web of connections and outside devices is making the already challenging task of security even more important, and onerous. In his session at @ThingsExpo, Rich Boyer, CISO and Chief Architect for Security at NTT i3, will discuss new ways of thinking and the approaches needed to address the emerging challenges of securit...
The taxi industry never saw Uber coming. Startups are a threat to incumbents like never before, and a major enabler for startups is that they are instantly “cloud ready.” If innovation moves at the pace of IT, then your company is in trouble. Why? Because your data center will not keep up with frenetic pace AWS, Microsoft and Google are rolling out new capabilities In his session at 20th Cloud Expo, Don Browning, VP of Cloud Architecture at Turner, will posit that disruption is inevitable for c...
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...
There are 66 million network cameras capturing terabytes of data. How did factories in Japan improve physical security at the facilities and improve employee productivity? Edge Computing reduces possible kilobytes of data collected per second to only a few kilobytes of data transmitted to the public cloud every day. Data is aggregated and analyzed close to sensors so only intelligent results need to be transmitted to the cloud. Non-essential data is recycled to optimize storage.
"I think that everyone recognizes that for IoT to really realize its full potential and value that it is about creating ecosystems and marketplaces and that no single vendor is able to support what is required," explained Esmeralda Swartz, VP, Marketing Enterprise and Cloud at Ericsson, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.