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Journey Energy Inc. Reports 2016 Reserves Highlighting a 44% Increase in Proved Developed Producing Net Asset Value Per Share23.02.2017 | 0:57 Uhr | CNW
CALGARY, Feb. 22, 2017 /CNW/ - Journey Energy Inc. (JOY – TSX) ("Journey" or the "Company") is pleased to report its year-end 2016 oil and gas reserves evaluation. During 2016, the Company invested approximately $16 million in exploration and development activities, and realized $9 million of net proceeds from acquisition and divestiture ("A&D") activities. A&D initiatives throughout the year included the disposition of non-core assets, consolidation of working interests in core properties, and the acquisition of strategic infrastructure, which yielded significant reductions in operating costs. In response to declining commodity prices throughout 2016, Journey reduced its capital program while it focused on cost cutting initiatives, A&D activities, and preserving financial flexibility. Total capital and development capital expenditures for 2016 were 14% and 39% of 2015 levels respectively. Highlights:
COMPANY GROSS WORKING INTEREST OIL AND GAS RESERVES AND NET PRESENT VALUES The following table provides summary information presented in the GLJ Petroleum Consultants Limited ("GLJ") independent reserves assessment and evaluation effective December 31, 2016, (the "GLJ Report"). GLJ evaluated 100% of Journey's crude oil, natural gas liquids ("NGL") and natural gas reserves. The evaluation of all of its oil and gas properties was done in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook") and National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). Detailed reserve information will be presented in the Company's upcoming Statement of Reserves Data and Other Oil and Gas Information section of the Company's Annual Information Form scheduled to be filed on SEDAR on or before March 31, 2017. Company Gross Reserves
Net Present Values of Future Net Revenue (Based on Forecast Prices and Costs)
The forecast prices and foreign exchange rates used in the GLJ Report are as follows:
FINDING, DEVELOPMENT AND ACQUISITION COSTS Journey's finding and development ("F&D") and finding, development and acquisition ("FD&A") costs for 2016, 2015 and the three-year average are presented in the tables below. The capital costs used in the calculations are those costs related to: land acquisition and retention, seismic, drilling, completions, tangible well site, tie-ins, and facilities, plus the change in estimated future development costs ("FDC") as per the independent evaluator's reserve report. Net acquisition costs are the cash outlays in respect of acquisitions; minus the proceeds from the disposition of properties during the year. Due to the timing of capital costs and the subjectivity in the estimation of future costs, the aggregate of the exploration and development costs incurred in the most recent financial year and the change during that year in estimated FDC's generally will not necessarily reflect total FDC's related to reserve additions for that year. The reserves used in this calculation are working interest reserve additions, including technical revisions and changes due to economic factors. The 2016 and the three-year average capital expenditures are unaudited as the financial results are in the process of being finalized.
Future Development Costs The following table provides the breakdown of future development costs deducted in the estimation of the future net revenue attributable to the proved and proved plus probable reserve categories noted below:
Reserve Life Index The Company's reserve life index ("RLI") is calculated by taking the Company Gross Reserves from the GLJ Report and dividing them by the projected 2017 production as estimated in the report.
Net Asset Value The following table provides a calculation of Journey's estimated net asset value ("NAV") and net asset value per share ("NAVPS") as at December 31, 2016 based on the estimated future net revenues associated with Journey's reserves as presented in the GLJ Report.
2017 GUIDANCE Journey's initial 2017 guidance is as follows:
Journey's 2017 forecasted cash flow from operations of $41-44 million is based on the following average prices: WTI of US$50.00/bbl; AECO gas of CDN$2.90/mcf; and a foreign exchange rate of $0.75 US$/CDN$. The Company will operate substantially all of its 2017 capital program with an average working interest in excess of 90%. Because of this, Journey can remain flexible with its budget by increasing or decreasing its spending levels should prices change materially. Although Journey has the ability to provide additional growth within cash flow, Journey remains steadfast in its commitment to preserve financial flexibility during volatile times. With the execution of Journey's base budget Journey forecasts the net debt to annualized fourth quarter 2017 cash flow ratio to decrease to less than 1.5 times. Journey's 2017 cash flow guidance range represents a 60% improvement from 2016. This dramatic improvement in cash flow is expected to continue into 2018 if the current commodity strip prices materialize. Journey forecasts annual production of between 8,800 and 9,200 boe/d in 2017, with the drilling of 15 gross (14.4 net) wells. Capital is allocated evenly between Journey's central and south core areas. Journey intends to prudently expand long lead-time waterflood projects in addition to its drilling program. Over 25% of Journey's 2017 growth capital is directed toward waterflood expansion projects. These exploitation projects do not provide immediate production uplifts but generate high rates of return as they contribute to the sustainability of Journey's long term business model, which is focused on low cost, low decline, high quality conventional oil pools. To assist in achieving its goals for 2017, Journey has implemented a strategic hedging program. Journey now has close to 50% of its net-of-royalty production (both liquids and natural gas) hedged for 2017. This level of hedging was designed to ensure that all operating and corporate costs were covered until the end of 2017. A summary of Journey's current hedges is shown in the following table:
Journey's budgeted capital program does not include any component for acquisitions or divestments. To date in 2017, Journey has consummated a minor acquisition in the south Crystal pool. Journey has also completed a minor swap to acquire additional strategic infrastructure in south Crystal. In the first quarter, Journey drilled a successful development well in the south Crystal field and these acquisitions allow for Journey to initiate development drilling in an area where it has identified 18 development locations. Journey continues to pursue both non-core divestments and strategic acquisitions. The Company intends to provide further refinement of its 2017 guidance and capital program with the release of the 2016 annual, audited, financial results on March 20, 2017. On behalf of Journey's management team and its directors, Journey would like to thank its shareholders for their continued support through this challenging time. There are few companies within Journey's peer group that share the same upside leverage to rising commodity prices that Journey does. With only 43.7 million outstanding shares and a development inventory of over twenty years, Journey is poised to provide significant growth in shareholder value over the longer term. About the Company Journey is a Canadian exploration and production company focused on conventional, oil-weighted operations in western Canada. Journey's strategy is to grow its production base by drilling on its existing core lands, implementing waterflood projects, executing on accretive acquisitions. Journey seeks to optimize its legacy oil pools on existing lands through the application of best practices in horizontal drilling and, where feasible, with waterfloods. ADVISORIES Information in this press release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws, which involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Journey, including, without limitation, those listed under "Risk Factors" and "Forward Looking Statements" in the Annual Information Form filed on www.SEDAR.com on March 31, 2016. Forward-looking information may relate to Journey's future outlook and anticipated events or results and may include statements regarding the business strategy and plans and objectives. Particularly, forward-looking information in this press release includes, but is not limited to, information concerning Journey's drilling and other operational plans, production rates, and long-term objectives. Journey cautions investors in Journey's securities about important factors that could cause Journey's actual results to differ materially from those projected in any forward-looking statements included in this press release. Information in this press release about Journey's prospective cash flows and financial position is based on assumptions about future events, including economic conditions and courses of action, based on management's assessment of the relevant information currently available. Readers are cautioned that information regarding Journey's financial outlook should not be used for purposes other than those disclosed herein. Forward-looking information contained in this press release is based on current estimates, expectations and projections, which Journey believes to be reasonable as of the current date. No assurance can be given that the expectations set out herein will prove to be correct and accordingly, you should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While we may elect to, we are under no obligation and do not undertake to update this information at any particular time except as required by applicable securities law. Readers are cautioned that the above list of risks and factors are not intended to be exhaustive. Additional information on these and other factors that could affect operating and financial results are, or will be, included in reports filed with the applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). Non-IFRS Measures The company uses the following non-IFRS measures in evaluating corporate performance. These terms do not have a standardized meaning prescribed by International Financial Reporting Standards and therefore may not be comparable with the calculation of similar measures.by other companies.
Barrel of Oil Equivalents Where amounts are expressed in a barrel of oil equivalent ("BOE"), or barrel of oil equivalent per day ("BOE/d"), natural gas volumes have been converted to barrels of oil equivalent at six (6) thousand cubic feet ("Mcf") to one (1) barrel. Use of the term BOE may be misleading particularly if used in isolation. The BOE conversion ratio of 6 Mcf to 1 barrel ("Bbl") of oil or natural gas liquids is based on an energy equivalency conversion methodology primarily applicable at the burner tip, and does not represent a value equivalency at the wellhead. This conversion conforms to the Canadian Securities Regulators' National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities. Oil and Gas Measures and Metrics All reserve references in this press release are "Company Gross Reserves". Company gross reserves are the Company's total working interest share of reserves before deduction of any royalties and excluding any royalty interests of the Company. All future net revenues are stated prior to provision of general and administrative expenses, interest, but after the deduction of royalties, operating costs, estimated abandonment and reclamation cost for wells with reserves attributed to them; and estimated future capital expenditures to book those reserves. Future net revenues have been presented on a before tax basis. Estimated values of future net revenue disclosed herein are not representative of fair market value. The Company uses the following metrics in assessing its performance and comparing itself to other companies in the oil and gas industry. These terms do not have a standardized meaning and therefore may not be comparable with the calculation of similar measures.by other companies:
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No securities regulatory authority has either approved or disapproved of the contents of this press release. SOURCE Journey Energy Inc. Contact Alex G. Verge, President and Chief Executive Officer, 403.303.3232, alex.verge@journeyenergy.ca; or Gerry Gilewicz, Chief Financial Officer, 403.303.3238, gerry.gilewicz@journeyenergy.ca; Journey Energy Inc., 700, 517 - 10th Avenue SW, Calgary, AB T2R 0A8, 403.294.1635, www.journeyenergy.ca Dieser Artikel stammt von Rohstoff-Welt.de
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