CALGARY, ALBERTA–(Marketwired – Dec. 2, 2013) – Shoreline Energy Corp. (TSX:SEQ) (“Shoreline” or the “Company“) is pleased to announce that it has closed a strategic acquisition whereby the Company has acquired 27,171 net acres of land, increasing its holdings in its high impact Montney project area, including additional ownership in previously announced pool discoveries. Approximately half of the newly acquired lands are situated in the Montney light oil and gas fairway, with 1,920 net acres immediately offsetting the Company’s previously announced Montney discovery wells which came on stream earlier in 2013 with first month production rates of between 163 and 422 barrels of oil equivalent per day (BOED) based on first month production periods of 86 and 255 hours respectively.
- 54,400 gross acres, 27,171 net acres in the heart of the Company’s existing core area;
- 8 to 12 net additional Montney drilling locations on lands adjacent to previous Shoreline discoveries;
- Future potential in the Charlie Lake formation and various Cretaceous horizons;
- Less than 10% of the lands expiring over next two years;
- Current production of 54 BOED;
- Acquisition of a gross over-riding royalty, increasing net income by $200,000 to $300,000 annually.
Financial and Operational Summary
- Revenue has increased by 71% to $23.0 million for the nine months ended September 30, 2013 compared to $13.4 million for the same period one year ago;
- Year-to-date production has increased 26% to 2,092 BOED at September 30, 2013 compared to 1,666 BOED during the corresponding period last year. As expected, production declined from peak levels in the second quarter of 2013 due to normal declines of new wells;
- On October 31, 2013 the Company became compliant with its working capital covenant in relation to its bank debt and continues to take measures to maintain this status going forward;
- Shoreline’s total net debt has decreased by $20.7 million or 28% from its peak at March 31, 2013;
- Since January 1, 2013 the Company has raised $10.5 million in equity and $3.1 million through the disposition of non-core assets;
- Funds from operations have grown by 75% to $5.6 million for the nine month period ended September 30, 2013 compared to $3.2 million during the same period last year;
- Oil and natural gas liquids weighting has increased to 31% from 24% a year ago;
- In 2013 the Company has increased its holdings in the Peace River Arch area of Alberta by over 75,000 net acres, to a total of over 200,000 net acres;
- Shoreline has increased its potential Montney drilling inventory by over 24 wells, and continues to evaluate all of its acreage located in the Montney prospective fairway.
Shoreline is a Calgary, Alberta based corporation engaged in the exploration, development and production of petroleum and natural gas. The Company’s common shares are currently listed on the TSX under the trading symbol “SEQ” and its debentures under the trading symbol “SEQ.DB”. Additional information regarding Shoreline is available under the Company’s profile at www.sedar.com or at the Corporation’s website, www.shorelineenergy.ca.
Forward Looking and Cautionary Statements
This news release contains forward-looking statements relating to the Corporation’s plans and other aspects of the Corporation’s anticipated future operations, strategies, financial and operating results and business