|By Marketwired .||
|July 15, 2014 06:30 AM EDT||
CALGARY, ALBERTA -- (Marketwired) -- 07/15/14 -- Lightstream Resources Ltd. ("Lightstream" or the "Company") (TSX:LTS), is pleased to provide an operational update following the end of the second quarter and announce the buy back of US$44 million principal amount of our outstanding high yield Senior Notes.
Production for the second quarter of 2014 averaged 42,500 boepd based on field estimates (80% light-oil and liquids weighting), in line with first quarter 2014 production, accounting for dispositions. This represents a 3% reduction from first quarter 2014 levels, significantly lower than the average seasonal drop of 11% we have experienced for the past three years. Production in the second quarter of 2014 benefitted from an active first quarter drilling program and the completion of our Swan Hills battery. For 2014 one of our goals is to maintain 2013 production levels with an attenuated capital program, prior to the impact of dispositions, and our second quarter production is on target for achieving this goal.
Activity during the second quarter of 2014 was reduced, as is typical due to the spring break-up period. Consequently, three wells were drilled during the second quarter while completion and facility construction activity resulted in 29 wells being brought on production through June 30, 2014.
Q2 2014 Drilling Activity Drilled Completed On Production Inventory(1) Business Unit Gross Net Gross Net Gross Net Gross Net ---------------------------------------------------------------------------- Bakken - - 4 1 8 3 3 2 Conventional (SE SK) - - 1 - 2 - - - Cardium (central AB) 2 1 14 9 25 19 1 1 Alberta/BC - - 7 7 7 7 - - ---------------------------------------------------------------------------- Total 2 1 26 17 42 29 4 3 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- (1) Inventory refers to the number of wells pending completion and/or tie- in at June 30, 2014.
As we enter the third quarter of 2014, activity levels are ramping up for the second half of the year. We have 45% of our 2014 drilling program left to execute and we will be completing two facility projects in the Cardium. For the remainder of the year we plan to drill 17 wells in southeast Saskatchewan, 17 wells in the Cardium and seven wells in AB/BC. Currently we have three drilling rigs operational in the Cardium.
After commissioning our 3,500 bopd oil battery in Swan Hills during the second quarter, we tied-in and brought on all seven wells that were drilled in the area during the past winter drilling season. These seven wells contributed 1,300 boepd of production during the month of June. Production rates continue to improve as the wells clean up after being initially tied-in. In addition, plans for enhanced oil recovery in the area are progressing and we anticipate having our first waterflood pilot pattern on injection by year end.
On July 7, we closed the previously announced $98 million asset disposition of a portion of our southeast Saskatchewan non-core assets which consisted of approximately 1,000 boepd of production (96% liquids weighted) and 3.9 MMboe of proved plus probable ("2P") reserves.
Although we received competitive bids for our east Pembina Cardium asset package, we have not yet been able to finalize a transaction. We will continue to operate these assets, which contribute $15 million of net operating income to Lightstream annually. Our sales process for conventional assets in southeast Saskatchewan is still ongoing with initial bids due later this month.
HIGH YIELD NOTE BUYBACK
On July 11, 2014, we repurchased approximately US$44 million principal amount of outstanding 8.625% Senior Notes due 2020 from a note holder for an aggregate purchase price of US$47.6 million, including accrued interest. The repurchased notes are being retired and a total of US$856 million aggregate principal amount of 8.625% Senior Notes remain outstanding. The repurchase was financed through our secured credit facility and results in incremental interest savings of approximately $2.5 million per annum.
SECOND QUARTER FINANCIAL REPORTING AND INVESTOR CONFERENCE CALL
We will be releasing our second quarter financials results on August 6, 2014. Management of Lightstream will be holding a conference call for investors, financial analysts, media and any interested persons on August 7th, 2014 at 9:00 a.m. (MST) (11:00 a.m. EST) to discuss our second quarter financial and operating results.
The investor conference call details are as follows:
Live call dial-in numbers: 1-416-340-8530/ 1-800-766-6630 Replay dial-in numbers: 1-905-694-9451 / 1-800-408-3053 Passcode: 5694926
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 applies 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.
Lightstream Resources Ltd.
John D. Wright
President and Chief Executive Officer
Lightstream Resources Ltd.
Peter D. Scott
Senior Vice President and Chief Financial Officer
Lightstream Resources Ltd.
William A. Kanters
Vice President, Capital Markets
Lightstream Resources Ltd.
Eighth Avenue Place, 2800, 525 - 8th Avenue S.W.
Calgary, Alberta T2P 1G1
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
Aug. 29, 2016 03:00 AM EDT Reads: 2,401
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
Aug. 29, 2016 02:15 AM EDT Reads: 1,820
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...
Aug. 29, 2016 02:15 AM EDT Reads: 2,205
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Aug. 29, 2016 01:45 AM EDT Reads: 2,174
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Aug. 29, 2016 01:15 AM EDT Reads: 3,012
With over 720 million Internet users and 40–50% CAGR, the Chinese Cloud Computing market has been booming. When talking about cloud computing, what are the Chinese users of cloud thinking about? What is the most powerful force that can push them to make the buying decision? How to tap into them? In his session at 18th Cloud Expo, Yu Hao, CEO and co-founder of SpeedyCloud, answered these questions and discussed the results of SpeedyCloud’s survey.
Aug. 29, 2016 01:00 AM EDT Reads: 2,230
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Aug. 29, 2016 12:00 AM EDT Reads: 1,894
Actian Corporation has announced the latest version of the Actian Vector in Hadoop (VectorH) database, generally available at the end of July. VectorH is based on the same query engine that powers Actian Vector, which recently doubled the TPC-H benchmark record for non-clustered systems at the 3000GB scale factor (see tpc.org/3323). The ability to easily ingest information from different data sources and rapidly develop queries to make better business decisions is becoming increasingly importan...
Aug. 28, 2016 11:15 PM EDT Reads: 2,153
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, 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 opportuni...
Aug. 28, 2016 10:30 PM EDT Reads: 4,061
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
Aug. 28, 2016 08:30 PM EDT Reads: 1,845
Deploying applications in hybrid cloud environments is hard work. Your team spends most of the time maintaining your infrastructure, configuring dev/test and production environments, and deploying applications across environments – which can be both time consuming and error prone. But what if you could automate provisioning and deployment to deliver error free environments faster? What could you do with your free time?
Aug. 28, 2016 08:15 PM EDT Reads: 1,957
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.
Aug. 28, 2016 07:30 PM EDT Reads: 717
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
Aug. 28, 2016 06:30 PM EDT Reads: 1,638
SYS-CON Events announced today that 910Telecom 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. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Aug. 28, 2016 06:00 PM EDT Reads: 1,949
SYS-CON Events announced today that eCube Systems, a leading provider of middleware modernization, integration, and management solutions, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. eCube Systems offers a family of middleware evolution products and services that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...
Aug. 28, 2016 05:30 PM EDT Reads: 798