CALGARY, ALBERTA–(Marketwired – Jan. 29, 2014) – Hyperion Exploration Corp. (“Hyperion” or the “Corporation”) (TSX VENTURE:HYX) announces that it has entered into a definitive purchase and sale agreement to divest 100 boe/d of non-core, gas weighted production in the Chip Lake Area of Central Alberta for cash consideration of $3.4 million (the “Disposition”). The Disposition is expected to close on January 31, 2014. Proceeds from the sale of the Chip Lake assets will be used to reduce Hyperion’s bank debt.
Divestiture Highlights
- Total consideration of $3.4 million cash, net of adjustments;
- Effective date of October 1, 2013;
- Net production as of January 2014 of 100 boe/d (70% gas, 12% NGL and 18% oil);
- Reserves as independently evaluated by McDaniel and Associates Consultants Ltd. effective December 31, 2012 of:
- Proved Developed Producing Reserves of 225.55 mboe;
- Total Proved Reserves of 225.55 mboe; and
- Total Proved plus Probable Reserves of 300.87 mboe
- Q3, 2013 cash flow of $0.205 million;
- Q3, 2013 operating cost of $16.28/boe;
- No Proven Undeveloped or Proved plus Probable Undeveloped locations assigned;
- Sold for attractive metrics considering gas weighting; and
- Accretive to Hyperion’s cash flow and operating cost per boe.
This press release contains certain forward-looking statements (forecasts) under applicable securities laws relating to future events or future performance. Forward-looking statements are necessarily based upon assumptions and judgements with respect to the future. In some cases, forward-looking statements can be identified by terminology such as “may”, “will”, “should”, “expect”, “projects”, “plans”, “anticipates” and similar expressions. These statements represent management’s expectations or beliefs concerning, among other things, future operating results and various components thereof affecting the economic performance of Hyperion. Undue reliance should not be placed on these forward-looking statements which are based upon management’s assumptions and are subject to known and unknown risks and uncertainties, including the business risks discussed above, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted. These statements speak only as of the date specified in the statements.
In particular, this press release may contain forward-looking statements pertaining to the following:
- the performance characteristics of the Corporation’s oil and natural gas properties;
- oil and natural gas production levels;
- capital expenditure programs;
- the quantity of the Corporation’s oil and natural gas reserves and anticipated future cash flows from such reserves;
- projections of commodity prices and costs;
- supply and demand for oil and natural gas;
- expectations regarding the ability to raise capital and to continually add to reserves through acquisitions and development; and
- treatment under governmental regulatory regimes.
The Corporation’s actual results could differ materially from those anticipated in the forward-looking statements contained throughout this press release as a result of the material risk factors set forth below, and elsewhere in this press release:
- volatility in market prices for oil and natural gas;
- liabilities inherent in oil and natural gas operations;
- uncertainties associated with estimating oil and natural gas reserves;
- competition for, among other things, capital, acquisitions of reserves, undeveloped lands and skilled personnel;
- incorrect assessments of the value of acquisitions and exploration and development programs;
- geological, technical, drilling and processing problems;
- fluctuations in foreign exchange or interest rates and stock market volatility;
- failure to realize the anticipated benefits of acquisitions;
- general business and market conditions; and
- changes in income tax laws or changes in tax laws and incentive programs relating to the oil and gas industry.
These factors should not be construed as exhaustive. Unless required by law, Hyperion does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Barrels of oil equivalent (boe) may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet (mcf) of natural gas to one barrel (bbl) of oil is based on an energy conversion method primarily applicable at the burner tip and is not intended to represent a value equivalency at the wellhead. All boe conversions in this press release are derived by converting natural gas to oil in the ratio of six thousand cubic feet of natural gas to one barrel of oil. Certain financial amounts are presented on a per boe basis, such measurements may not be consistent with those used by other companies.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Hyperion Exploration Corp.
Trevor Spagrud
President and CEO
(403) 930-0701
tspagrud@hyperionexploration.com