News Feed Item

Lightstream Announces Operational Update and Buy Back of US$44 Million of High Yield Unsecured Senior Notes

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
                           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.


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.


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
403.218.6075 (FAX)
[email protected]

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
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of bus...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...
As you move to the cloud, your network should be efficient, secure, and easy to manage. An enterprise adopting a hybrid or public cloud needs systems and tools that provide: Agility: ability to deliver applications and services faster, even in complex hybrid environments Easier manageability: enable reliable connectivity with complete oversight as the data center network evolves Greater efficiency: eliminate wasted effort while reducing errors and optimize asset utilization Security: implemen...
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
DXWorldEXPO LLC announced today that ICOHOLDER named "Media Sponsor" of Miami Blockchain Event by FinTechEXPO. ICOHOLDER give you detailed information and help the community to invest in the trusty projects. Miami Blockchain Event by FinTechEXPO has opened its Call for Papers. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Miami Blockchain Event by FinTechEXPO also offers s...
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
@DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises - and delivering real results.
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
DXWorldEXPO LLC announced today that Dez Blanchfield joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Dez is a strategic leader in business and digital transformation with 25 years of experience in the IT and telecommunications industries developing strategies and implementing business initiatives. He has a breadth of expertise spanning technologies such as cloud computing, big data and analytics, cognitive computing, m...
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
DXWorldEXPO LLC announced today that Kevin Jackson joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Kevin L. Jackson is a globally recognized cloud computing expert and Founder/Author of the award winning "Cloud Musings" blog. Mr. Jackson has also been recognized as a "Top 100 Cybersecurity Influencer and Brand" by Onalytica (2015), a Huffington Post "Top 100 Cloud Computing Experts on Twitter" (2013) and a "Top 50 C...
There is a huge demand for responsive, real-time mobile and web experiences, but current architectural patterns do not easily accommodate applications that respond to events in real time. Common solutions using message queues or HTTP long-polling quickly lead to resiliency, scalability and development velocity challenges. In his session at 21st Cloud Expo, Ryland Degnan, a Senior Software Engineer on the Netflix Edge Platform team, will discuss how by leveraging a reactive stream-based protocol,...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.