Spartan Energy Corp. Provides Corporate Pro Forma Reserves Summary
and Renegade Petroleum Ltd. 2013 Year-End Financial and Reserves
Information
CALGARY, ALBERTA--(Marketwired - Apr 1, 2014) - Spartan Energy
Corp. ("Spartan" or the "Company") (TSX-VENTURE:SPE) is pleased to
provide a pro forma reserves summary as a result of the material
increase in Spartan's reserves due to the completion of the
acquisition of Renegade Petroleum Ltd. ("Renegade") on March 31,
2014. Spartan also reports the financial results and year-end
reserves of Renegade for the year ended December 31, 2013, all as
approved by the board of directors of Renegade on March 31, 2014
prior to the completion of the acquisition of Renegade by
Spartan.
PRO FORMA RESERVES (SPARTAN AND RENEGADE)
The summary below sets forth Spartan's gross reserves as at
December 31, 2013, after giving effect to the acquisition of
Renegade as though such acquisition had occurred on December 31,
2013, but excluding reserves associated with assets disposed of by
Renegade to Surge Energy Inc. in the first quarter of 2014 (the
"Surge Assets"). The reserves set forth below represent an
aggregate of: (a) the reserves of Spartan as at December 31, 2013,
as evaluated in an independent report prepared by Sproule
Associates Limited ("Sproule") dated February 6, 2014 (the "Spartan
Report"); (b) reserves associated with assets acquired by Spartan
from Renegade on February 3, 2014 (the "Spartan Acquired Assets"),
as evaluated in an independent report prepared by Sproule on
January 24, 2014 with an effective date of December 31, 2013 (the
"Spartan Asset Report"); and (c) the reserves of Renegade as at
December 31, 2013, as evaluated in an independent report prepared
by Sproule on March 31, 2014 (the "Renegade Report"), exclusive of
the reserves associated with the Surge Assets and the Spartan
Acquired Assets (the "Renegade Assets"). The figures in the
following tables have been prepared in accordance with the
standards contained in the Canadian Oil and Gas Evaluation Handbook
(the "COGE Handbook") and the reserve definitions contained in NI
51-101.
Summary of Gross Oil and Gas Reserves as of
December 31, 2013 (1), (2), (3), (4) |
|
Oil |
Natural Gas (associated & non-associated) |
Natural Gas Liquids |
Barrels of Oil Equivalent |
|
Gross |
Gross |
Gross |
Gross |
|
(Mbbl) |
(MMcf) |
(Mbbl) |
(Mboe) |
Proved |
|
|
|
|
|
Developed Producing |
10,909.1 |
6,172.6 |
424.3 |
12,362.2 |
|
Developed Non-Producing |
167.9 |
343.2 |
3.6 |
228.7 |
|
Undeveloped |
5,444.6 |
2,546.4 |
156.6 |
6,025.6 |
Total Proved |
16,521.6 |
9,062.2 |
584.5 |
18,616.5 |
Probable |
6,746.9 |
3,584.9 |
226.0 |
7,570.4 |
Total Proved plus Probable |
23,268.5 |
12,647.1 |
810.5 |
26,186.9 |
|
|
|
|
|
|
Summary of Net Present Values of Future Net Revenue
as of December 31, 2013 (1), (2), (3), (4) |
|
Net Present Value before Income Taxes Discounted at (%
per Year) (M$) |
|
0% |
5% |
10% |
15% |
20% |
Proved |
|
|
|
|
|
|
Developed Producing |
524,947 |
418,046 |
350,079 |
303,202 |
268,933 |
|
Developed Non-Producing |
7,251 |
4,961 |
3,563 |
2,670 |
2,076 |
|
Undeveloped |
209,422 |
142,164 |
99,912 |
71,753 |
52,098 |
Total Proved |
741,620 |
565,171 |
453,554 |
377,625 |
323,107 |
Probable |
397,422 |
246,749 |
171,246 |
127,595 |
99,830 |
Total Proved plus Probable |
1,139,042 |
811,920 |
624,800 |
505,220 |
422,937 |
|
|
|
|
|
|
(1) |
The tables summarize the data contained in the Spartan Report, the
Spartan Asset Report and the Renegade Report and as a result may
contain slightly different numbers than such report due to
rounding. Also due to rounding, certain columns may not add
exactly. |
|
|
(2) |
Gross reserves means the total working interest (operating or
non-operating) share of remaining recoverable reserves owned by
Spartan, including the Renegade Assets and the Spartan Acquired
Assets, before deductions of royalties payable to others and
without including any royalty interests owned by Spartan. |
|
|
(3) |
Based on Sproule's December 31, 2013 escalated price forecast. See
"Summary of Pricing and Inflation Rate Assumptions". |
|
|
(4) |
The net present value of future net revenue attributable to the
Company's reserves, including the Renegade Assets and the Spartan
Acquired Assets, is stated without provision for interest costs and
general and administrative costs, but after providing for estimated
royalties, production costs, development costs, other income,
future capital expenditures, and well abandonment costs for only
those wells assigned reserves by Sproule. It should not be assumed
that the undiscounted or discounted net present value of future net
revenue attributable to the Company's reserves estimated by Sproule
represent the fair market value of those reserves. Other
assumptions and qualifications relating to costs, prices for future
production and other matters are summarized herein. The recovery
and reserve estimates of the Company's oil, NGL and natural gas
reserves provided herein are estimates only and there is no
guarantee that the estimated reserves will be recovered. Actual
reserves may be greater than or less than the estimates provided
herein. |
Future Development Costs
The following table sets forth development costs deducted in the
estimation of Spartan's future net revenue attributable to the
reserve categories noted below:
|
Forecast Prices and Costs (M$) |
Year |
Proved Reserves |
|
Proved Plus Probable Reserves |
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
$ |
46,327 |
|
$ |
47,219 |
2015 |
$ |
37,178 |
|
$ |
41,711 |
2016 |
$ |
38,118 |
|
$ |
39,682 |
2017 |
$ |
26,058 |
|
$ |
36,172 |
2018 |
$ |
388 |
|
$ |
776 |
Thereafter |
$ |
442 |
|
$ |
442 |
|
|
|
|
|
|
Total Undiscounted |
$ |
148,509 |
|
$ |
166,000 |
Total Discounted at 10% |
$ |
126,226 |
|
$ |
139,788 |
The future development costs are capital expenditures required
in the future for Spartan to convert proved undeveloped reserves
and probable reserves to proved developed producing reserves. The
undiscounted development costs are $148.5 million for proved
reserves and $166 million for proved plus probable reserves (in
each case based on forecast prices and costs).
Summary of Pricing and Inflation Rate Assumptions - Forecast
Prices and Costs
The forecast cost and price assumptions assume increases in
wellhead selling prices and take into account inflation with
respect to future operating and capital costs. Crude oil and
natural gas benchmark reference pricing, inflation and exchange
rates utilized by Sproule in the Spartan Report, Spartan Asset
Report and Renegade Report were Sproule's forecasts, as at December
31, 2013, as follows:
Year |
WTI Cushing Oklahoma ($US/bbl) (1) |
Edmonton Par Price 40ºAPI ($Cdn/bbl)(2) |
Cromer LSB 35º API ($Cdn/bbl)(3) |
Natural Gas AECO ($Cdn/ MMBtu) |
Pentanes Plus FOB Field Gate ($Cdn/bbl) |
Butanes FOB Field Gate ($Cdn/bbl) |
Inflation Rate %/year |
Exchange Rate ($US/$CDN) |
Forecast |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
94.65 |
92.64 |
90.64 |
4.00 |
103.50 |
69.05 |
1.5 |
0.94 |
2015 |
88.37 |
89.31 |
87.31 |
3.99 |
99.78 |
66.57 |
1.5 |
0.94 |
2016 |
84.25 |
89.63 |
87.63 |
4.00 |
100.14 |
66.81 |
1.5 |
0.94 |
2017 |
95.52 |
101.62 |
99.62 |
4.93 |
113.53 |
75.74 |
1.5 |
0.94 |
2018 |
96.96 |
103.14 |
101.14 |
5.01 |
115.24 |
76.88 |
1.5 |
0.94 |
2019 |
98.41 |
104.69 |
102.69 |
5.09 |
116.97 |
78.03 |
1.5 |
0.94 |
2020 |
99.89 |
106.26 |
104.26 |
5.18 |
118.72 |
79.20 |
1.5 |
0.94 |
2021 |
101.38 |
107.86 |
105.86 |
5.26 |
120.50 |
80.39 |
1.5 |
0.94 |
2022 |
102.91 |
109.47 |
107.47 |
5.35 |
122.31 |
81.60 |
1.5 |
0.94 |
2023 |
104.45 |
111.12 |
109.12 |
5.43 |
124.14 |
82.82 |
1.5 |
0.94 |
2024 |
106.02 |
112.78 |
110.78 |
5.52 |
126.01 |
84.06 |
1.5 |
0.94 |
|
|
Thereafter |
Escalation Rate of 1.5% |
(1) |
West
Texas Intermediate at Cushing Oklahoma 40 degrees API, 0.4%
sulphur. |
(2) |
Edmonton Light Sweet 40 degrees API, 0.3% sulphur. |
(3) |
Comer
LSB (35 degrees API stream). |
Weighted average historical price realized, including the
Spartan Acquired Assets and the Renegade Assets, for the year ended
December 31, 2013, after hedging, was $82.37/Bbl for crude oil,
$52.76/Bbl for NGLs and $3.10/Mcf for natural gas.
RENEGADE FINANCIAL AND OPERATIONAL RESULTS
The following summarizes information contained in and should be
read in conjunction with Renegade's 2013 audited annual financial
statements and the related management's discussion and analysis,
each as approved by the board of directors of Renegade on March 31,
2014, which are available for review at www.sedar.com.
|
Three Months Ended |
|
Year Ended |
|
|
December 31, 2013 |
|
December 31, 2013 |
|
|
|
|
|
|
|
|
Average daily production (BOE/d) |
|
7,380 |
|
|
7,442 |
|
|
|
|
|
|
|
|
Petroleum and natural gas revenue, net of royalties and realized
derivative contracts ($000) |
$ |
41,333 |
|
$ |
170,036 |
|
|
|
|
|
|
|
|
Production costs ($000) |
$ |
13,722 |
|
$ |
53,078 |
|
|
|
|
|
|
|
|
Operating netback ($/BOE) (1) |
$ |
40.67 |
|
$ |
47.45 |
|
|
|
|
|
|
|
|
Cash flow from operations ($000) (1) |
$ |
19,000 |
|
$ |
95,253 |
|
per share - basic |
$ |
0.09 |
|
$ |
0.47 |
|
per share - diluted |
$ |
0.09 |
|
$ |
0.46 |
|
|
|
|
|
|
|
|
Net loss ($000) |
$ |
(83,847 |
) |
$ |
(98,236 |
) |
per share - basic and diluted |
$ |
(0.41 |
) |
$ |
(0.48 |
) |
|
|
|
|
|
|
|
Capital expenditures (excluding A&D) ($000) |
$ |
16,849 |
|
$ |
86,388 |
|
|
|
|
|
|
|
|
Net debt ($000) (1) |
$ |
284,950 |
|
$ |
284,950 |
|
|
|
|
|
|
|
|
(1) Cash flow from operations, net debt and operating
netback are non-IFRS measures. See "Non-IFRS Measures". |
|
RENEGADE'S RESERVES AFTER GIVING EFFECT TO ASSET DISPOSITIONS
(RENEGADE ONLY)
The reserves data set forth below is based upon the Renegade
Report, and summarizes Renegade's gross reserves as at December 31,
2013 but after giving effect to the disposition of the Surge Assets
and the Spartan Acquired Assets as though such dispositions had
occurred at December 31, 2013. The figures in the following tables
have been prepared in accordance with the standards contained in
the COGE Handbook and the reserve definitions contained in NI
51-101.
Summary of Gross Oil and Gas Reserves as of
December 31, 2013 (1), (2), (3), (4) |
|
Oil |
Natural Gas (associated & non-associated) |
Natural Gas Liquids |
Barrels of Oil Equivalent |
|
Gross |
Gross |
Gross |
Gross |
|
(Mbbl) |
(MMcf) |
(Mbbl) |
(Mboe) |
Proved |
|
|
|
|
|
Developed Producing |
9,051.1 |
4,550.3 |
396.4 |
10,205.9 |
|
Developed Non-Producing |
79.8 |
13.2 |
1.9 |
83.9 |
|
Undeveloped |
4,582.6 |
2,205.4 |
154.9 |
5,105.1 |
Total Proved |
13,713.5 |
6,768.9 |
553.2 |
15,394.9 |
Probable |
5,605.4 |
2,615.2 |
212.1 |
6,253.4 |
Total Proved plus Probable |
19,318.9 |
9,384.1 |
765.3 |
21,648.2 |
|
|
|
|
|
|
Summary of Net Present Values of Future Net Revenue
as of December 31, 2013 (1), (2), (3), (4) |
|
Net Present Value before Income Taxes Discounted at (%
per Year) (M$) |
|
0% |
5% |
10% |
15% |
20% |
Proved |
|
|
|
|
|
|
Developed Producing |
439,863 |
355,487 |
300,223 |
261,353 |
232,577 |
|
Developed Non-Producing |
1,770 |
1,508 |
1,305 |
1,144 |
1,014 |
|
Undeveloped |
169,700 |
116,145 |
81,769 |
58,511 |
42,110 |
Total Proved |
611,333 |
473,140 |
383,297 |
321,008 |
275,701 |
Probable |
335,301 |
213,461 |
150,031 |
112,682 |
88,716 |
Total Proved plus Probable |
946,634 |
686,601 |
533,328 |
433,690 |
364,417 |
|
(1) |
The tables above are a summary of the oil, NGL and natural gas
reserves of Renegade and the net present value of future net
revenue attributable to such reserves as evaluated in the Renegade
Report based on forecast price and cost assumptions. The tables
summarize the data contained in the Renegade Report and as a result
may contain slightly different numbers than such report due to
rounding. Also due to rounding, certain columns may not add
exactly. |
|
|
(2) |
Gross reserves means the total working interest (operating or
non-operating) share of remaining recoverable reserves owned by
Renegade, excluding the Surge Assets and the Spartan Acquired
Assets, before deductions of royalties payable to others and
without including any royalty interests owned by Renegade. |
|
|
(3) |
Based on Sproule's December 31, 2013 escalated price forecast. See
"Summary of Pricing and Inflation Rate Assumptions" under "Pro
Forma Reserves (Spartan and Renegade)". |
|
|
(4) |
The net present value of future net revenue attributable to
Renegade's reserves, excluding the Surge Assets and the Spartan
Acquired Assets, is stated without provision for interest costs and
general and administrative costs, but after providing for estimated
royalties, production costs, development costs, other income,
future capital expenditures, and well abandonment costs for only
those wells assigned reserves by Sproule. It should not be assumed
that the undiscounted or discounted net present value of future net
revenue attributable to Renegade's reserves estimated by Sproule
represent the fair market value of those reserves. Other
assumptions and qualifications relating to costs, prices for future
production and other matters are summarized herein. The recovery
and reserve estimates of Renegade's oil, NGL and natural gas
reserves provided herein are estimates only and there is no
guarantee that the estimated reserves will be recovered. Actual
reserves may be greater than or less than the estimates provided
herein. |
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
READER ADVISORY
BOE Disclosure. The term barrels of oil equivalent ("BOE") may
be misleading, particularly if used in isolation. A BOE conversion
ratio of six thousand cubic feet per barrel (6Mcf/bbl) of natural
gas to barrels of oil equivalence is based on an energy equivalency
conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead. All BOE
conversions in the report are derived from converting gas to oil in
the ratio mix of six thousand cubic feet of gas to one barrel of
oil.
Forward-Looking Statements. Certain information included in this
press release constitutes forward-looking information under
applicable securities legislation. Forward-looking information
typically contains statements with words such as "anticipate",
"believe", "expect", "plan", "intend", "estimate", "propose",
"project" or similar words suggesting future outcomes or statements
regarding an outlook. Forward-looking information in this press
release may include, but is not limited to, timing for completion
of the acquisition of Renegade. Forward-looking information is
based on a number of factors and assumptions which have been used
to develop such information but which may prove to be incorrect.
Although Spartan believes that the expectations reflected in its
forward-looking information are reasonable, undue reliance should
not be placed on forward-looking information because Alexander and
Renegade can give no assurance that such expectations will prove to
be correct. In addition to other factors and assumptions which may
be identified in this press release, assumptions have been made
regarding and are implicit in, among other things, the timely
receipt of any required regulatory approvals (including Court and
shareholder approvals) and the satisfaction of all conditions to
the completion of the transaction. Readers are cautioned that the
foregoing list is not exhaustive of all factors and assumptions
which have been used.
Forward-looking information is based on current expectations,
estimates and projections that involve a number of risks and
uncertainties which could cause actual results to differ materially
from those anticipated by Alexander and Renegade and described in
the forward-looking information. The forward-looking information
contained in this press release is made as of the date hereof and
Spartan undertakes no obligation to update publicly or revise any
forward-looking information, whether as a result of new
information, future events or otherwise, unless required by
applicable securities laws. The forward-looking information
contained in this press release is expressly qualified by this
cautionary statement.
Non-IFRS Measures. This press release provides
certain financial measures that do not have a standardized meaning
prescribed by IFRS. These non-IFRS financial measures may not be
comparable to similar measures presented by other issuers. Cash
flow from operations, operating netback and net debt are not
recognized measures under IFRS. Management believes that in
addition to net income (loss), cash flow from operations, operating
netback and net debt are useful supplemental measures that
demonstrate the Company's ability to generate the cash necessary to
repay debt or fund future capital investment. Investors are
cautioned, however, that these measures should not be construed as
an alternative to net income (loss) determined in accordance with
IFRS as an indication of the Company's performance. Spartan's and
Renegade's method of calculating these measures may differ from
other companies and accordingly, they may not be comparable to
measures used by other companies. Cash flow from operations is
calculated by adjusting net income (loss) for other income,
unrealized gains or losses on financial derivative instruments,
accretion, share based compensation, impairment and depletion and
depreciation. Operating netback is calculated based on oil and gas
revenue less royalties and operating and transportation expenses.
Net debt is the total of cash plus accounts receivable, prepaids
and deposits, less accounts payable plus bank debt.
Spartan Energy Corp.Richard (Rick) McHardyPresident and Chief
Executive Officer(403)
265-6444403.264.1348info@spartanenergy.caSpartan Energy
Corp.Michelle WigginsVice-President Finance and Chief Financial
Officer(403) 265-6444403.264.1348info@spartanenergy.ca
Spartan Energy Corp (TSXV:SPE)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Spartan Energy Corp (TSXV:SPE)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024