Operating & Financial Highlights – Three months and year ended December 31, 2012 and 2011
| Three months ended December 31 |
Year ended December 31 |
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| 2012 | 2011 | % Change | 2012 | 2011 | % Change | ||||||||||
| Operating | |||||||||||||||
| Wells drilled, re-entered or reactivated (gross and net) | |||||||||||||||
| Oil | 6 | 10 | -40% | 18 | 18 | 0% | |||||||||
| Salt water disposal | – | 4 | -100% | 3 | 4 | -25% | |||||||||
| Total | 6 | 14 | -57% | 21 | 22 | -5% | |||||||||
| Success (%) | 83% | 91% | -9% | 90% | 95% | -5% | |||||||||
| Undeveloped land Greater Lloydminster (net acres) | 32,542 | 18,239 | 78% | 32,542 | 18,239 | 78% | |||||||||
| Undeveloped land Medicine Hat (net acres) | 31,602 | 29,362 | 8% | 31,602 | 29,362 | 8% | |||||||||
| Total undeveloped land (net acres) | 64,144 | 47,601 | 35% | 64,144 | 47,601 | 35% | |||||||||
| Average daily production | |||||||||||||||
| Crude oil (bbl per day) | 2,450 | 1,597 | 53% | 2,065 | 1,319 | 57% | |||||||||
| Natural gas (Mcf per day) | 293 | 360 | -19% | 351 | 344 | 2% | |||||||||
| Barrels of oil equivalent (boe per day, 6:1) | 2,498 | 1,657 | 51% | 2,124 | 1,377 | 54% | |||||||||
| Crude oil production (%) | 98% | 96% | 2% | 97% | 96% | 1% | |||||||||
| Average sales prices | |||||||||||||||
| Crude oil ($ per bbl) | $ | 58.96 | $ | 77.65 | -24% | $ | 62.51 | $ | 69.26 | -10% | |||||
| Natural gas ($ per Mcf) | $ | 3.11 | $ | 2.77 | 12% | $ | 2.26 | $ | 3.41 | -34% | |||||
| Barrels of oil equivalent ($ per boe, 6:1) | $ | 58.18 | $ | 75.45 | -23% | $ | 61.18 | $ | 67.24 | -9% | |||||
| Operating netback ($ per boe) | |||||||||||||||
| Petroleum and natural gas sales | $ | 58.18 | $ | 75.45 | -23% | $ | 61.18 | $ | 67.24 | -9% | |||||
| Realized gain (loss) on financial derivatives | $ | 8.10 | $ | (4.54) | – | $ | 4.81 | $ | (1.38) | – | |||||
| Royalties | $ | 13.13 | $ | 20.74 | -37% | $ | 14.26 | $ | 16.52 | -14% | |||||
| Production & operating expenses | $ | 22.98 | $ | 29.42 | -22% | $ | 23.04 | $ | 31.31 | -26% | |||||
| Operating netback (1) | $ | 30.17 | $ | 20.75 | 45% | $ | 28.69 | $ | 18.03 | 59% | |||||
| Financial ($000’s except per share amounts) | |||||||||||||
| Three months ended December 31 |
Year ended December 31 |
||||||||||||
| 2012 | 2011 | % Change | 2012 | 2011 | % Change | ||||||||
| Oil and natural gas sales | $ | 13,373 | $ | 11,499 | 16% | $ | 47,547 | $ | 33,781 | 41% | |||
| Funds flow from | |||||||||||||
| operating activities (2) | $ | 5,405 | $ | 2,014 | 168% | $ | 16,873 | $ | 4,424 | 281% | |||
| Per share – basic and diluted | $ | 0.09 | $ | 0.05 | 80% | $ | 0.31 | $ | 0.11 | 182% | |||
| Income (loss) and | |||||||||||||
| comprehensive income (loss) | $ | (513) | $ | (2,421) | – | $ | 1,538 | $ | (4,905) | – | |||
| Per share – basic and diluted | $ | (0.01) | $ | (0.05) | – | $ | 0.03 | $ | (0.12) | – | |||
| Weighted average | |||||||||||||
| shares outstanding | 57,739,515 | 44,170,752 | 31% | 55,182,838 | 41,936,343 | 32% | |||||||
| Shares outstanding | 58,915,979 | 54,130,348 | 9% | 58,915,979 | 54,130,348 | 9% | |||||||
| Capital expenditures (3) | $ | 7,975 | $ | 12,888 | -38% | $ | 36,446 | $ | 41,560 | -12% | |||
| Working capital (net debt) (4) | $ | (37,345) | $ | (20,864) | 79% | $ | (37,345) | $ | (20,864) | 79% | |||
| Shareholders’ equity | $ | 45,448 | $ | 39,859 | 14% | $ | 45,448 | $ | 39,859 | 14% | |||
| (1) Operating netback is a non-IFRS measure and is the net of petroleum and natural gas sales, realized gain or loss on financial derivatives, royalties and production & operating expenses. (2) Funds flow from operating activities is a non-IFRS measure that represents cash flow from operations less decommissioning expenditures and changes in non-cash working capital related to operating activities. Funds flow per share amounts are calculated using weighted average shares outstanding consistent with the calculation of net income per share. Funds flow from operating activities is a key measure as it demonstrates the Company’s ability to generate the funds necessary to achieve future growth through capital investment. This table also contains other industry benchmarks and terms, such as working capital (calculated as current assets less current liabilities) and operating netbacks (calculated on a per unit basis as production sales less royalties, transportation and operating costs), which are not recognized measures under IFRS. Management believes these are useful supplemental measures of, firstly, the total net position of current assets and current liabilities of the Company and secondly, the profitability relative to commodity prices. Other entities may calculate these figures differently than Palliser. (3) Capital expenditures exclude decommissioning liability costs and capitalized share-based compensation. (4) Working capital (net debt) is a non-IFRS measure representing the total bank loan, accounts payable and accrued liabilities, less accounts receivable, deposits and prepaid expenses. |
Reserves
Palliser’s reserves have been independently evaluated by the Corporation’s independent reserve engineering firm, Sproule Unconventional Limited (“Sproule”). The reserves were evaluated in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities (“NI 51-101“) and the Canadian Oil and Gas Evaluation Handbook (“”COGEH“”) reserves definitions.
Reserves and Net Present Value (Forecast Prices and Costs)
The following tables summarize Palliser’s remaining gross interest reserve volumes along with the value of future net revenue utilizing Sproule’s forecast pricing and cost estimates as at December 31, 2012.
| Reserves | |||||||||||||
| Oil & NGL | Gas | BOE | |||||||||||
| December 31, 2012 | Gross Mbbls |
Net Mbbls |
Gross MMcf |
Net MMcf |
Gross Mboe |
Net Mboe |
|||||||
| Proved | |||||||||||||
| Producing | 2,332 | 1,908 | 712 | 675 | 2,452 | 2,021 | |||||||
| Non-producing | 1,058 | 851 | – | – | 1,058 | 851 | |||||||
| Undeveloped | 2,069 | 1,666 | – | – | 2,069 | 1,666 | |||||||
| Total proved | 5,459 | 4,425 | 712 | 675 | 5,579 | 4,538 | |||||||
| Probable | 2,310 | 1,840 | 187 | 177 | 2,342 | 1,869 | |||||||
| Total proved plus probable | 7,769 | 6,265 | 898 | 852 | 7,921 | 6,408 | |||||||
| Net present value of future net revenue | |||||||
| Present value ($000’s)(1) | |||||||
| discounted at rate of | |||||||
| December 31, 2012 | 0% | 5% | 10% | ||||
| Proved | |||||||
| Producing | $58,021 | $52,712 | $48,459 | ||||
| Non-producing | 28,278 | 20,424 | 15,277 | ||||
| Undeveloped | 32,196 | 25,406 | 20,149 | ||||
| Total proved | 118,494 | 98,542 | 83,886 | ||||
| Probable | 68,973 | 53,506 | 42,934 | ||||
| Total proved plus probable | $187,467 | $152,048 | $126,820 | ||||
| (1) Values shown are calculated on a before tax basis |
Pricing Assumptions
The following benchmark prices, inflation rates and exchange rates were used by Sproule for the forecast price and cost evaluation effective December 31, 2012.
| Oil WTI |
Oil WCS 20.5 API |
Foreign Exchange |
Natural Gas AECO Spot |
Inflation Rate |
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| Year | US $/bbl | CDN $/bbl | Rate | Cdn $/MMbtu | % / year | |||||
| 2013 | 89.63 | 69.33 | 1.001 | 3.31 | 1.5% | |||||
| 2014 | 89.93 | 74.57 | 1.001 | 3.72 | 1.5% | |||||
| 2015 | 88.29 | 73.21 | 1.001 | 3.91 | 1.5% | |||||
| 2016 | 95.52 | 80.17 | 1.001 | 4.70 | 1.5% | |||||
| 2017 | 96.96 | 81.37 | 1.001 | 5.32 | 1.5% | |||||
| 2018 | 98.41 | 82.59 | 1.001 | 5.40 | 1.5% | |||||
| 2019 | 99.89 | 83.83 | 1.001 | 5.49 | 1.5% | |||||
| 2020 | 101.38 | 85.08 | 1.001 | 5.58 | 1.5% | |||||
| 2021 | 102.91 | 86.36 | 1.001 | 5.67 | 1.5% | |||||
| 2022 | 104.45 | 87.66 | 1.001 | 5.76 | 1.5% | |||||
| 2023+ | +1.5%/year | +1.5%/year | 1.001 | +1.5%/year | +1.5%/year |
| Crude oil price is WTI at Cushing, Oklahoma, natural gas is the AECO spot price |
Reserves Reconciliation
The following table is a reconciliation of Palliser’s gross interest reserves at December 31, 2012 and December 31, 2011 using Sproule’s forecast pricing and cost estimates as at December 31, 2012 and December 31, 2011.
| Heavy Oil (Mbbl) | Natural Gas( MMcf) | BOE (Mboe) | ||||||||||||||||
| Reserves | Proved | Probable | Total | Proved | Probable | Total | Proved | Probable | Total | |||||||||
| December 31, 2011 | 1,638 | 2,077 | 3,715 | 744 | 452 | 1,196 | 1,762 | 2,152 | 3,914 | |||||||||
| Additions (1) | 3,371 | 1,371 | 4,742 | – | – | – | 3,371 | 1,371 | 4,742 | |||||||||
| Revisions(2) | 924 | 48 | (324) | 96 | (266) | (170) | 940 | (1,292) | (352) | |||||||||
| Acquistions | 283 | 111 | 393 | – | – | – | 283 | 111 | 393 | |||||||||
| 6,216 | 2,310 | 8,526 | 840 | 186 | 1,026 | 6,356 | 2,341 | 8,697 | ||||||||||
| Production | (756) | – | (756) | (128) | – | (128) | (777) | – | (777) | |||||||||
| December 31, 2012 | 5,461 | 2,310 | 7,771 | 712 | 186 | 898 | 5,579 | 2,341 | 7,920 | |||||||||
| (1) Additions include discoveries, extensions, infill drilling and improved recovery (2) Technical revisions include technical revisions and economic factors |
Finding, Development and Acquisition Costs (“FD&A”)
The following table summarizes Palliser’s finding, development and acquisition costs for the years ended December 31, 2012, 2011 and 2010 including future development costs (“FDC”).
| 2012 | 2011 | 2010 | 3 Year Avg | |||||||||
| Proved | ||||||||||||
| Capital expenditures | $ | 42,449 | $ | 44,042 | $ | 13,620 | $ | 33,370 | ||||
| FDC – opening balance (1) | $ | 9,954 | $ | 9,165 | $ | 4,048 | $ | 7,722 | ||||
| FDC – closing balance | $ | 36,690 | $ | 9,954 | $ | 9,165 | $ | 18,603 | ||||
| FDC – change | $ | 26,736 | $ | 789 | $ | 5,117 | $ | 10,881 | ||||
| Capital expenditures | ||||||||||||
| including FDC change | $ | 69,185 | $ | 44,831 | $ | 18,737 | $ | 44,251 | ||||
| Reserves additions | 4,594 | 912 | 882 | 2,129 | ||||||||
| FD&A (before FDC) | $ | 9.24 | $ | 48.29 | $ | 15.44 | $ | 15.67 | ||||
| FD&A (after FDC) | $ | 15.06 | $ | 49.16 | $ | 21.24 | $ | 20.78 | ||||
| Proved plus probable | ||||||||||||
| Capital expenditures | $ | 42,449 | $ | 44,042 | $ | 13,620 | $ | 33,370 | ||||
| FDC – opening balance | $ | 22,793 | $ | 15,965 | $ | 7,441 | $ | 15,400 | ||||
| FDC – closing balance | $ | 40,728 | $ | 22,793 | $ | 15,965 | $ | 26,495 | ||||
| FDC – change | $ | 17,935 | $ | 6,828 | $ | 8,524 | $ | 11,096 | ||||
| Capital expenditures | ||||||||||||
| including FDC change | $ | 60,384 | $ | 50,870 | $ | 22,144 | $ | 44,466 | ||||
| Reserves additions | 4,782 | 1,413 | 1,813 | 2,669 | ||||||||
| FD&A (before FDC) | $ | 8.88 | $ | 31.17 | $ | 7.51 | $ | 12.50 | ||||
| FD&A (after FDC) | $ | 12.63 | $ | 36.00 | $ | 12.21 | $ | 16.66 | ||||
| Operating netback | $ | 28.69 | $ | 18.03 | $ | 22.03 | $ | 24.12 | ||||
| Recycle ratio (before FDC) | 3.2 | 0.6 | 2.9 | 1.9 | ||||||||
| Recycle ratio (after FDC) | 2.3 | 0.5 | 1.8 | 1.4 | ||||||||
| (1) Future capital expenditures required to convert proved non-producing and probable reserves into proved producing |
Undeveloped Land
The following table summarizes Palliser’s undeveloped land holdings and the fair value of those landholdings, as at December 31, 2012 and 2011:
| 2012 | 2011 | |||||||||
| Acres | Gross | Net | Gross | Net | ||||||
| Alberta | 53,231 | 45,264 | 43,806 | 35,579 | ||||||
| Saskatchewan | 19,090 | 18,880 | 12,095 | 12,022 | ||||||
| Total | 72,321 | 64,144 | 55,901 | 47,601 | ||||||
| Fair value of net undeveloped acres ($000) (1) | $ | 10,860 | $ | 5,666 | ||||||
| Average working interest | 89% | 85% | ||||||||
| (1) | Valuation is based on management’s estimation of fair market value. 2012 values assume $300 per acre for undeveloped heavy oil acreage with no booked reserves and $100 per acre for natural gas acreage with no booked reserves |
| Net Asset Value | |||||
| Reserve value ($000) | 2012 | 2011 | |||
| Proved + probable (1) | $126,820 | $78,626 | |||
| Add: land value(2) | 10,860 | 5,666 | |||
| Seismic(2) | 1,350 | 1,350 | |||
| Working capital (deficiency) and bank indebtedness | (37,345) | (20,864) | |||
| Net asset value | $101,685 | $64,778 | |||
| Year end shares outstanding (000) | 58,916 | 54,130 | |||
| Net asset value per share – basic | $1.73 | $1.20 | |||
| Fully diluted shares outstanding | 64,432 | 57,862 | |||
| Net asset value per share – fully diluted | $1.66 | $1.19 | |||
| (1) | Present value discount 10% before taxes |
| (2) | Valuation is based on management’s estimation of fair market value |
Reserve Life Index (“RLI”)
The reserve life index has been calculated based on year end reserves divided by fourth quarter 2012 average production of 2,498 boe/d.
| Proved | Proved plus probable |
|||
| Total company interest reserves (Mboe) | 5,579 | 7,920 | ||
| Fourth quarter 2012 production average (boe/d) | 2,498 | 2,498 | ||
| RLI based on fourth quarter 2012 production average (years) | 6.1 | 8.7 | ||
2012 Highlights
Operations
Palliser achieved record production of 2,498 boe/d (98% oil weighting) during the fourth quarter of 2012, representing 15 consecutive quarters of production growth. Average production for the year was 2,124 boe/d, representing a 54% increase over 2011; production per share increased 18%.
We continue to focus our program on heavy oil projects within the greater Lloydminster area. Capital expenditures for 2012 amounted to $36.4 million. We maintained a 100% working interest in our capital program, which included 21 wells. This program resulted in 17 wells being completed for heavy oil production, three salt water disposal wells, and one dry well, for a 90% success rate (one well targeted for heavy oil was cased for salt water disposal). Eight property acquisitions were completed, adding 170 bbls/d of production and 75 non-producing well bores for future development and reactivation potential utilizing the Company’s high volume lift (“HVL”) strategy. A select number of wells were reactivated by the end of 2012, increasing production from the new properties to over 300 bbl/d in December, with significant additional re-entries and reactivations planned for 2013 and beyond. Undeveloped heavy oil land holdings increased 78% in 2012.
Reserves
The 2012 year end independent reserves evaluation was completed by Sproule Unconventional Ltd. (“Sproule”). Proved developed producing reserves increased 102% to 2.45 million boe, total proved reserves increased 217% to 5.58 million boe, and total proved plus probable reserves increased 102% to 7.92 million boe. Having another year of production performance history from our HVL production resulted in a better reflection of ultimate pool recoveries from both existing production as well as future undeveloped locations.
Our HVL strategy has not only proven its consistency with a track record of production growth, but has also proven its economic viability with sustainable low operating expenses and favourable high netbacks in comparison to our peers in the Lloydminster heavy oil area. Generally, individual well performance continues to meet or exceed internal estimates, and further performance history continues to demonstrate additional increases to recovery factors.
Proved plus probable reserves additions (including revisions) totalled 4.78 million boe in 2012 and 8.00 million boe for the three year period from 2010 to 2012. Finding and development costs including future development capital were $12.63 per boe in 2012 and $16.66 per boe for the three year period. These metrics resulted in recycle ratios of 2.3 times in 2012 and a three year average of 1.4 times.
Palliser’s December 31, 2012 total proved plus probable reserves were valued at $126.8 million, resulting in a net asset value (debt adjusted, fully diluted, discounted at 10% before tax) of $1.66 per share. The Company’s reserve life index based on annualized fourth quarter 2012 average production was 6.1 years for total proved reserves and 8.7 years for total proved plus probable reserves.
Financial
Palliser significantly improved the profitability of its operations in 2012. Production and operating expenses averaged $23.04/boe in 2012, 26% lower than 2011 and operating netbacks averaged $28.69/boe, 59% higher than the prior year. This resulted in record funds flow from operating activities of $16.9 million ($0.31/share), 281% higher than $4.4 million ($0.11/share) in 2011.
The Company exited 2012 with net debt of $37.3 million relative to a current total credit facility of $52.0 million. Funds flow from operating activities in the fourth quarter amounted to $5.4 million, resulting in net debt to annualized 2012 Q4 funds flow from operating activities ratio of 1.73 times. Subsequent to year end, the Company completed an equity issuance for gross proceeds of $3.15 million, further strengthening the Company’s balance sheet.
Outlook
Palliser is proud to have a strong track record of production growth, gaining significant momentum over the last year. The first quarter of 2013 has presented several challenges to the Company; however, we are confident we are well positioned to deliver continued strong results in 2013.
First quarter 2013 production is below budget and is estimated to average approximately 2,200 boe/d. Along with normal production declines through the quarter, production was impacted by offset drilling in one of Palliser’s core areas, which necessitated the temporary shut in of approximately 300 bbl/d of production. The wells were shut in early February and were brought back on production late in the first quarter. Production from the wells continues to ramp up in the second quarter with current corporate production estimated to be approximately 2,400 boe/d. We had an active drilling and reactivation program in the first quarter of 2013 totaling 11 wells, all at 100% working interest. This program resulted in 10 heavy oil wells and one salt water disposal well, for a 100% success rate. These wells were all brought on production late in the quarter, and as such, had no impact on first quarter production. With production additions from these new wells expected to build through the second quarter, we remain on track to achieve our 2013 average production guidance of 2,700 to 2,800 boe/d.
Lower production volumes for the first quarter of 2013, combined with unusually harsh winter operating conditions, will result in higher than budgeted first quarter operating costs, forecast to be approximately $29/boe. Despite this high quarterly operating cost number, we are expecting operating costs in the second quarter of 2013 to return to approximately $23/boe and we remain on track to continue to be a sustainable low operating cost producer.
The first quarter 2013 also saw significant increased heavy oil differentials, resulting in lower net wellhead pricing. Lower production volumes, combined with these wide heavy oil differentials, will result in lower than budgeted funds flow in the first quarter. The second quarter is progressing favorably, with improved current heavy oil pricing, growing production, and return to lower operating expenses. We believe this keeps us on track to achieve our 2013 budget: funds flow from operating activities of approximately $20 million, operating netbacks of $26/boe, and year-end net debt of $39 million.
In light of the wider heavy oil differential at the start of 2013, the Board of Directors previously approved a 2013 capital budget of $24 million, assuming US$93.00 WTI per barrel and $63.00 WCS per barrel pricing. Our internally driven capital program is to be funded by cash flow and credit facilities. As previously noted, the heavy oil differential has narrowed significantly, and WCS pricing for the second quarter is forecast to be materially higher than the budgeted $63.00 WCS per barrel. If heavy oil differentials continue to remain favourable, the Company is poised to prudently expand its capital program.
To reduce funds flow risk from commodity price volatility, the Company has hedged approximately 45% of budgeted production volumes for 2013, through a combination of WTI CAD and WCS fixed price swaps, which provides the Company with greater certainty and funds flow support to offset volatility and potentially weaker commodity prices. Additionally, Palliser has augmented its hedge position by shipping heavy oil production by rail to the Gulf Coast. Palliser commenced shipping by rail in September 2012 and is currently shipping approximately 1,000 bbl/d, representing approximately 40% of corporate production. With minimal additional capital, we can increase the percentage shipped by rail to in excess of 50% by year-end. As the majority of our production has double tank systems installed at single well batteries, production is able to ship clean, meeting the specifications of the rail terminals.
Palliser continues to possess a large heavy oil prospect inventory which currently stands at 140 locations, none of which are included in the 2012 independent Sproule reserve report. This inventory supports a multi-year drilling and re-activation program, and affords significant growth opportunities for future capital programs. We are continually working to expand our prospect inventory through organic growth as well as the acquisition market. Palliser successfully closed three strategic property acquisitions during the first quarter of 2013, and expects to continue to pursue additional acquisitions that align with our strategy.
We would like to pay tribute to our employees for their valuable contributions to Palliser’s continued success and extend our thanks to our shareholders for their ongoing support. We look forward to delivering continued growth and increased profitability in order to maximize value for our shareholders.
Palliser is a Calgary-based emerging junior oil and gas company currently focused on heavy oil production in the greater Lloydminster area of both Alberta and Saskatchewan. For further information regarding Palliser Oil & Gas Corporation, the reader is invited to visit the Company’s website at www.palliserogc.com.
Forward-Looking Statements
Certain statements contained herein constitute forward-looking statements or information (collectively “forward-looking statements“) within the meaning of applicable securities legislation, including, but not limited to management’s assessment of future plans and operations, including: commodity focus; drilling plans and potential locations; expected production levels; development plans; reserves growth; production and operating sales and expenses; reservoir characteristics; the results of applying certain operational development techniques; certain economic factors; and capital expenditures. Forward-looking statements are typically identified by words such as “anticipate”, “estimate”, “expect”, “forecast”, “may”, “will”, “project” and similar words suggesting future events or performance or may be identified by reference to a future date. In addition, statements relating to oil and gas reserves and resources are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the reserves or resources described, as the case may be, exist in the quantities predicted or estimated and can be profitably produced in the future. With respect to forward-looking statements herein, Palliser has made assumptions regarding, among other things; future capital expenditure levels; future oil and natural gas prices; “differentials” between West Texas Intermediate and Western Canadian Select benchmark pricing; future oil and natural gas production levels; future water disposal capacity; future exchange rates and interest rates; ability to obtain equipment and services in a timely manner to carry out development activities; ability to market oil and natural gas successfully to current and new customers; the impact of increasing competition; the ability to obtain financing on acceptable terms; and the ability to add production and reserves through development and exploitation activities. Although Palliser believes that the expectations reflected in the forward-looking statements contained herein, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included herein, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous risks and uncertainties that contribute to the possibility that the forward-looking statements will not occur, which may cause Palliser’s actual performance and financial results in future periods to differ materially from any estimates or projections. Additional information on these and other factors that could affect Palliser’s results are included in reports on file with Canadian securities regulatory authorities, including the Company’s Annual Information Form, and may be accessed through the SEDAR website at www.sedar.com.
The forward-looking statements contained herein speak only as of the date hereof. Except as expressly required by applicable securities laws, Palliser does not undertake any obligation to, nor does it intend to, publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained herein are expressly qualified by this cautionary statement. In addition, readers are cautioned that historical results are not necessarily indicative of future performance.
Production volumes are commonly expressed on a barrel of equivalent (“BOE”) basis whereby natural gas volumes are converted at a ratio of six thousand cubic feet to one barrel of oil. The intention is to convert oil and natural gas measurement units into one basis for improved analysis of results and comparisons with other industry participants. The term BOE may be misleading, particularly if used in isolation. The conversion ratio is based on an energy equivalent method and does not represent an economic value equivalency at the wellhead.
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 Press release.
SOURCE: Palliser Oil & Gas Corporation
Allan B. Carswell
President and COO
al@palliserogc.com
(403) 209-5709
Or
Kevin Gibson
CEO
kevin@palliserogc.com
(403) 209-5717
Or
Ivan J. Condic
Vice President, Finance and CFO
ivan@palliserogc.com
(403) 209-5718