CALGARY, ALBERTA–(Marketwired – May 28, 2015) – StonePoint Energy Inc. (TSX VENTURE:STO) (“StonePoint” or the “Company“) is pleased to announce it has filed on SEDAR its financial statements and related management’s discussion and analysis (“MD&A”) for the three months ended March 31, 2015. The financial statements and MD&A will be available for review on SEDAR at www.sedar.com as well as the Company’s website at www.stonepointenergy.com.
The first quarter of 2015 was relatively quiet for StonePoint as we continued to monitor the impact of commodity price weakness on overall industry activity and profitability. During the first quarter and through the month of May, we have evaluated and bid on a number of quality assets that fit within our area of geographic focus and strategy. We will remain diligent in our evaluations and bidding strategy and believe with continued commodity weakness that seller expectations will moderate into a range where we are comfortable deploying our cash resources.
In parallel with our acquisition strategy, the Company has built a land base in the Valhalla/Elmworth area where we are prepared to allocate capital through the drilling of the Company’s first operated horizontal well. The 100% working interest well will target a Dunvegan channel that is present in a vertical well in the same spacing unit. The Dunvegan in the offset vertical well has log indicated net pay of 21 metres with an average porosity of approximately 10.5%. The location has been surveyed and we expect to license the well shortly with an early third quarter 2015 spud date targeting a 1,550 metre horizontal section for the wellbore. The timing of this well will also take advantage of what the Company expects will be a cost structure for the drilling and completion capital that will be materially less than originally planned in the fall of 2014. The Company anticipates the Dunvegan well will have a total cost of approximately $3.0 million.
StonePoint has also built a deep inventory of locations in the Montney and Doig formations in the Valhalla area that will serve to provide activity into the future as the Company advances its business plan and strategy.
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 and plans and timing for drilling of additional wells including the timing and cost of the Dunvegan horizontal well.
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, volatility of commodity prices, 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 securities laws, StonePoint does not undertake any obligation to publicly update or revise any forward-looking statements.
The inventory of wells referenced 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.
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.
StonePoint Energy Inc.
President & CEO
StonePoint Energy Inc.
Vice President Finance & CFO