CALGARY, ALBERTA–(Marketwired – Feb. 19, 2015) – StonePoint Energy Inc. (TSX VENTURE:STO) (“StonePoint” or “the Company“) is providing a summary of its 2014 year-end reserves.
HIGHLIGHTS
Notes:
RESERVES SUMMARY
The summary below sets forth StonePoint’s reserves as at December 31, 2014, as evaluated in an independent report dated February 2, 2015 (the “Trimble Report”) prepared by Trimble Engineering Associates Ltd. (“Trimble”). The Trimble Report was prepared in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook (the “COGE Handbook”) and National Instrument 51-101 (“NI 51-101”). Further information in respect of the Company’s reserves as evaluated in the Trimble Report will be available in the Company’s Statement of Reserves Data which will be filed on SEDAR.
Summary of Oil and Gas Reserves
Effective Date: December 31, 2014 | Light and Medium Oil | Natural Gas Liquids | Natural Gas | Total Oil Equivalent | ||||
Reserve Category | Gross (Mbbl) |
Net (Mbbl) |
Gross (Mbbl) |
Net (Mbbl) |
Gross (Mcf) |
Net (Mcf) |
Gross (Mboe) |
Net (Mboe) |
Proved | ||||||||
Developed Producing | 119.4 | 102.7 | 66.4 | 42.0 | 568.5 | 480.5 | 280.6 | 224.8 |
Developed Non-Producing | 22.9 | 18.3 | 5.8 | 3.9 | 129.7 | 115.7 | 50.3 | 41.5 |
Undeveloped | 0.0 | 0.0 | 143.1 | 118.6 | 3,329.3 | 3,051.5 | 698.0 | 629.2 |
Total Proved | 142.3 | 121.0 | 215.4 | 164.5 | 4,027.4 | 3,647.7 | 1,028.9 | 893.5 |
Probable | ||||||||
Total Probable | 93.6 | 81.7 | 242.8 | 185.9 | 5,115.4 | 4,320.2 | 1,189.0 | 987.6 |
Total Proved and Probable | 235.9 | 202.7 | 458.2 | 350.4 | 9,142.8 | 7,967.9 | 2,217.9 | 1,881.1 |
Summary of Net Present Value of Future Net Revenue
Effective Date: December 31, 2014 | Before Income Tax Discounted at (%/year) | ||
Reserve Category | 0% (M$) | 5% (M$) | 10% (M$) |
Proved | |||
Developed Producing | 6,159.5 | 4,876.3 | 4,096.9 |
Developed Non-Producing | 162.5 | 129.1 | 102.6 |
Undeveloped | 6,446.1 | 2,827.6 | 887.6 |
Total Proved | 12,768.1 | 7,833.0 | 5,087.2 |
Probable | |||
Total Probable | 23,029.9 | 13,897.9 | 9,169.1 |
Total Proved and Probable | 35,798.0 | 21,730.9 | 14,256.3 |
Notes:
Reconciliation of Gross Reserves (before Royalties) by Principal Product Type
Light & Medium Oil | Natural Gas | |||||
Factors | Total Proved (Mbbl) |
Total Probable (Mbbl) |
Total Proved + Probable (Mbbl) |
Total Proved (Mcf) |
Total Probable (Mcf) |
Total Proved + Probable (Mcf) |
December 31, 2013 | 143.4 | 94.7 | 238.1 | 462.1 | 248.3 | 710.3 |
Technical Revisions | 3.0 | -6.9 | -3.8 | 11.9 | 7.7 | 19.6 |
Infill Drilling | 0.0 | 0.0 | 0.0 | 129.7 | 56.4 | 186 |
Economic Factors | 0.0 | 4.0 | 4.0 | 0.0 | 0.0 | 0.0 |
Acquisitions and Dispositions | -0.9 | 1.8 | 0.9 | 3,437.1 | 4,803.0 | 8,240.2 |
Production | -3.3 | 0.0 | -3.3 | -13.3 | 0.0 | -13.3 |
December 31, 2014 | 142.3 | 93.6 | 235.9 | 4,027.4 | 5,115.4 | 9,142.8 |
Natural Gas Liquids | Total Oil Equivalent | |||||
Factors | Total Proved (Mbbl) |
Total Probable (Mbbl) |
Total Proved + Probable (Mbbl) |
Total Proved (Mcf) |
Total Probable (Mcf) |
Total Proved + Probable (Mcf) |
December 31, 2013 | 57.6 | 30.6 | 88.2 | 278.0 | 166.7 | 444.8 |
Technical Revisions | 0.8 | 0.5 | 1.2 | 5.8 | -5.1 | 0.7 |
Infill Drilling | 5.8 | 2.5 | 8.4 | 27.4 | 11.9 | 39.4 |
Economic Factors | 0.0 | 0.0 | 0.0 | 0.0 | 4.0 | 4.0 |
Acquisitions and Dispositions | 152.7 | 209.1 | 361.9 | 724.7 | 1011.5 | 1736.1 |
Production | -1.5 | 0.0 | -1.5 | -7.1 | 0.0 | -7.1 |
December 31, 2014 | 215.4 | 242.8 | 458.2 | 1,028.9 | 1,189.0 | 2,217.9 |
Notes:
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 Trimble as at January 1, 2015 were as follows:
OIL (1) | GAS (3) | |||||||
YEAR FORECAST |
Exchange Rate US$/ CDN$ |
WTI @ Cushing US$/ bbl |
Edmonton Light (2) CDN$/ bbl |
Henry Hub US$/ MMbtu |
AECO Spot CDN$/ MMbtu |
Cond. (1) CDN$/ bbl |
But. (4) CDN$/ bbl |
Prop. (4) CDN$/ bbl |
2015 | 0.86 | 65.00 | 70.00 | 3.30 | 3.50 | 78.00 | 50.00 | 30.00 |
2016 | 0.86 | 78.00 | 85.00 | 3.70 | 4.00 | 93.00 | 60.00 | 35.00 |
2017 | 0.86 | 82.00 | 90.00 | 4.10 | 4.40 | 98.00 | 68.00 | 40.00 |
2018 | 0.86 | 86.00 | 95.00 | 4.30 | 4.60 | 103.00 | 73.00 | 45.00 |
2019 | 0.86 | 90.00 | 100.00 | 4.50 | 4.90 | 108.00 | 77.00 | 48.00 |
2020 | 0.86 | 95.00 | 105.00 | 4.80 | 5.20 | 113.00 | 80.00 | 50.00 |
2021 | 0.86 | 97.00 | 107.00 | 4.90 | 5.40 | 115.00 | 82.00 | 52.00 |
Prices escalating at 2.0 percent annually thereafter. |
Notes:
[expand title=”Advisories & Contact”]ADVISORIES
Forward-Looking Statements: This press release contains forward-looking statements. More particularly, this press release contains forward-looking statements concerning the reserves attributable to the Company’s assets and the estimate of the net present value of the future net revenues attributable thereto and availability of further reserve information in the Statement of Reserves Data. Although StonePoint believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because StonePoint cannot give assurances that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Risks include risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets and other economic and industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling services, incorrect assessment of value of acquisitions and failure to realize the benefits therefrom, delays resulting from or inability to obtain required regulatory approvals, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources and economic or industry condition changes. Actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that StonePoint will derive therefrom. Additional information on these and other factors that could affect StonePoint are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). The forward-looking statements contained in this press release are made as of the date hereof and StonePoint undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Barrels of Oil Equivalent: Disclosure provided herein in respect of barrels of oil equivalent (BOE) may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 Bbl 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 of 6:1; utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Steve VanSickle, President & CEO
Telephone: (403) 351-6508
E-mail: svansickle@stonepointenergy.com
Aaron Grandberg, Vice President Finance & CFO
Telephone: (403) 351-6503
E-mail: agrandberg@stonepointenergy.com
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