CALGARY, ALBERTA–(Marketwired – March 10, 2016) – Long Run Exploration Ltd. (“Long Run” or the “Company”) (TSX:LRE) announces financial, reserves and operating results for the year ended December 31, 2015.
2015 ANNUAL HIGHLIGHTS
Selected financial and operational information outlined in this news release should be read in conjunction with Long Run’s financial statements and related Management’s Discussion and Analysis for the year ended December 31, 2015, which will be available for review at www.sedar.com and on our website at www.longrunexploration.com.
SUMMARY OF ANNUAL RESULTS
($000s, except per share amounts or unless otherwise noted) | 2015 | 2014 | |||
Funds flow from operations1 | 151,636 | 291,856 | |||
Per share, basic 1 | 0.78 | 1.85 | |||
Per share, diluted1 | 0.78 | 1.85 | |||
Net earnings (loss) | (645,032 | ) | (190,395 | ) | |
Per share, basic | (3.33 | ) | (1.21 | ) | |
Per share, diluted | (3.33 | ) | (1.21 | ) | |
Production | |||||
Oil (Bbl/d) | 8,893 | 12,590 | |||
NGLs (Bbl/d) | 4,532 | 3,076 | |||
Liquids (Bbl/d) | 13,425 | 15,666 | |||
Natural Gas (Mcf/d) | 113,767 | 93,008 | |||
Total (Boe/d) | 32,386 | 31,168 | |||
Prices, including derivatives | |||||
Oil ($/Bbl) | 68.88 | 84.89 | |||
NGLs ($/Bbl) | 22.52 | 51.24 | |||
Liquids ($/Bbl) | 53.23 | 78.29 | |||
Natural Gas ($/Mcf) | 3.25 | 4.52 | |||
Total ($/Boe) | 33.70 | 53.00 | |||
Revenues, before royalties | 311,770 | 610,896 | |||
Capital expenditures | 91,039 | 304,031 | |||
Net acquisitions (divestitures)2 | (28,374 | ) | (28,674 | ) | |
Net capital expenditures2 | 62,665 | 275,357 | |||
Total assets | 1,198,623 | 1,939,706 | |||
Bank loan | 582,588 | 611,717 | |||
Net debt1 | 675,024 | 739,598 | |||
Non-current financial liabilities, excluding bank loan | 69,592 | 68,230 | |||
1See Non-GAAP Measures section. 2Excludes the two Deep Basin acquisitions. |
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2015 YEAR END RESERVES
Long Run’s 2015 year end reserves were evaluated by independent reserves evaluator Sproule Associates Limited (“Sproule”). Reserves estimates were prepared in accordance with National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (“NI 51-101”) and the summary below represents Long Run’s gross reserves, which are the Company’s interest before deduction of royalties and without including any of the Company’s royalty interests. The reserves estimates set forth below are based upon the Sproule reserve report dated March 9, 2016.
Additional information with respect to the Company’s reserves as at December 31, 2015 will be contained in the Company’s annual information form for the year ended December 31, 2015 which will be filed on SEDAR at www.sedar.com.
December 31, 2015 Reserves1 | |||||
Oil (MBbl) |
NGLs (MBbl) |
Natural Gas (MMcf) |
Total (MBoe) |
||
Proved | |||||
Proved producing | 11,865 | 6,577 | 162,367 | 45,502 | |
Proved non-producing | 111 | 208 | 11,818 | 2,288 | |
Proved undeveloped | 10,121 | 6,590 | 110,699 | 35,161 | |
Total Proved | 22,096 | 13,374 | 284,884 | 82,951 | |
Probable | 12,809 | 9,632 | 250,153 | 64,133 | |
Total Proved Plus Probable | 34,905 | 23,006 | 535,038 | 147,084 |
1 Amounts may not add due to rounding |
Reserves Reconciliation1 | |||||||
(MBoe) | Proved | Probable | Proved plus Probable |
||||
December 31, 2014 | 103,544 | 67,081 | 170,625 | ||||
Infill drilling | 599 | 1,729 | 2,328 | ||||
Improved recoveries | – | 207 | 207 | ||||
Technical revisions | 3,657 | (6,131 | ) | (2,474 | ) | ||
Dispositions | (724 | ) | (438 | ) | (1,162 | ) | |
Economic factors | (12,302 | ) | 1,685 | (10,618 | ) | ||
Production | (11,821 | ) | – | (11,821 | ) | ||
December 31, 2015 | 82,951 | 64,133 | 147,084 | ||||
1Amounts may not add due to rounding | |||||||
Reserves Pricing
2015 | 2014 | |||
WTI Oil (US$/Bbl) |
AECO Gas (CDN$/Mcf) |
WTI Oil (US$/Bbl) |
AECO Gas (CDN$/Mcf) |
|
2015 | – | – | 64.17 | 3.38 |
2016 | 45.00 | 2.25 | 76.67 | 3.83 |
2017 | 60.00 | 2.95 | 83.33 | 4.06 |
2018 | 70.00 | 3.42 | 87.08 | 4.41 |
2019 – 2022 | 80.00 – 83.65 | 3.91 – 4.35 | 90.67 – 98.36 | 4.76 – 5.36 |
2023 – 2026 | 84.91 – 88.79 | 4.43 – 4.67 | 100.18 – 105.80 | 5.54 – 5.90 |
Remainder | +1.5%/yr | +1.5%/yr | +1.8%/yr | +1.8%/yr |
Forecast prices, inflation, and exchange rates utilized by Sproule in its evaluation were based on rates published by Sproule as at December 31, 2015.
Summary of Before Tax Net Present Values of Future Net Revenue 1
Before Tax Net Present Value ($000s) | |||||
Discount Rate | 0% | 5% | 10% | 15% | 20% |
Proved producing | 601,422 | 516,768 | 445,951 | 390,109 | 346,036 |
Proved non-producing | 11,935 | 11,031 | 9,639 | 8,349 | 7,243 |
Proved undeveloped | 303,426 | 181,269 | 99,211 | 43,950 | 6,177 |
Total Proved | 916,783 | 709,068 | 554,801 | 442,409 | 359,456 |
Probable | 963,084 | 627,377 | 423,944 | 297,259 | 214,675 |
Total proved plus probable | 1,879,867 | 1,336,445 | 978,744 | 739,667 | 574,131 |
1 Net present values of future net revenue does not represent fair market value |
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