CALGARY, ALBERTA–(Marketwired – Jan. 28, 2015) – StonePoint Energy Inc. (TSX VENTURE:STO) (“StonePoint” or the “Company“) is pleased to announce the following activity update. Since closing the private placement on October 2, 2014, the Company has focussed on its core strategy of acquiring assets in the greater Peace River Arch and Deep Basin areas. With the rapidly changing commodity price environments, the Company has continued to aggressively evaluate and pursue production acquisitions and anticipates opportunities to become more opportunistic as potential vendors work through the impact of this deteriorating commodity price environment.
Parallel to the production acquisition strategy, the Company has been executing a strategy to acquire a core position in one of the premier Montney fairways in the greater Valhalla area. This area includes multiple layers of Montney and Doig potential with associated natural gas liquids.
StonePoint has acquired five (2.3 net) sections of land of which four (2.1 net) sections include the Montney rights in the Company’s target area. To date, industry activity has been mainly focussed on the upper Montney in the area, although there have been a number of successful wells drilled targeting other Montney intervals.
The Company recently participated in a mid Montney recompletion in a vertical natural gas well (47.5% working interest). A three metre interval was perforated and fracture stimulated using 80 tonnes of proppant in an energized hydrocarbon based fluid. The well was production tested for approximately two days and had a final gross rate of 0.7 MMcf/d and a flowing tubing pressure of 300 psi. The well has been shut-in for pressure buildup and evaluation. Based on this encouraging result, the Company believes that economic potential exists to drill mid Montney horizontal wells on its land base.
Incorporating the above mentioned successful vertical Montney test and regional mapping of the Doig Formation the Company estimates it has the following inventory:
|Upper Mid Montney||8/5.9|
|Lower Mid Montney||5/2.4|
The Company is also pleased to provide an updated corporate presentation available on its website at www.stonepointenergy.com.
Forward Looking Statements
This news release may include forward-looking statements including opinions, assumptions, estimates, and, more particularly, statements concerning the Company’s drilling inventory.
When used in this document, the words “will,” “anticipate,” “believe,” “estimate,” “expect,” “intent,” “may,” “project,” “should,” and similar expressions are intended to be among the statements that identify forward-looking statements.
The forward-looking statements are founded on the basis of expectations and assumptions made by StonePoint. Forward-looking statements are subject to a wide range of risks and uncertainties, and although StonePoint believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. Any number of important factors could cause actual results to differ materially from those in the forward-looking statements including, but not limited to, regulatory and third party approvals not being obtained in the manner or timing anticipated, the ability to implement corporate strategies, the state of domestic capital markets, the ability to obtain financing, changes in general market conditions and other factors more fully described from time to time in the reports and filings made by StonePoint with securities regulatory authorities.
Except as required by applicable laws, StonePoint does not undertake any obligation to publicly update or revise any forward-looking statements.
Well test rates disclosed herein are not determinative of the rates at which the well will continue to produce and decline thereafter and are not necessarily be indicative of long-term performance or ultimate recovery.
The inventory of wells presented herein are based on estimates prepared by management of the Company and they have not been reviewed by an independent reserve evaluator. Actual drilling of the wells included in the inventory will be dependent upon, among other things, drilling results, availability of capital and allocation of such capital, which will be dependent upon various matters including the relative return of each potential well, compared to other capital allocations.
Barrels of Oil Equivalent
Barrels of oil equivalent may be misleading, particularly if used in isolation. A Boe conversion ratio of six thousand cubic feet of natural gas to one barrel of crude oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency conversion ratio of 6:1, utilizing a conversion on a 6:1 basis is misleading as an indication of value.
|Oil and Natural Gas Liquids||Natural Gas|
|Bbl||barrels||Mcf||thousand cubic feet|
|Bbl/d||barrels per day||Mcf/d||thousand cubic feet per day|
|NGLs||natural gas liquids||MMcf/d||Million cubic feet per day|
|Boe||barrels of oil equivalent|
|Boe/d||barrels of oil equivalent per day|
|Liquids||light oil, heavy oil, and NGLs|
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the polices of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
StonePoint Energy Inc.
President & CEO
StonePoint Energy Inc.
Vice President Finance & CFO