CALGARY, ALBERTA–(Marketwired – April 27, 2017) – Relentless Resources Ltd. (“Relentless” or the “Company“) (TSX VENTURE:RRL) announces the filing of its audited financial statements and related management’s discussion and analysis (“MD&A“) for the year ended December 31, 2016. The Company also announces the filing of its reserves data and other oil and natural gas information (“51-101 Information“), as required under National Instrument 51-101. The financial statements, MD&A and 51-101 Information are available for review at www.sedar.com. Additional information about Relentless is available on SEDAR at www.sedar.com or on the Company’s website at www.relentless-resources.com.
Recent Highlights
• | In Q4 of 2016, the Company expended approximately $1.5 million to drill and complete two new wells in Heathdale, Alberta: | ||
o | 102/5-7-27-9W4 horizontal oil well: | ||
• | drilled in eight days to a total measured depth of 2,375 metres; | ||
• | perforated over 23 intervals and fracture stimulated using a coil tubing straddle packer assembly; placed on stream in mid-January with a spud to on-stream timeline of 35 days inclusive of the holidays; | ||
• | total on-stream cost of $1.17 million as a one-off single well operation; | ||
• | continual production with minimal downtime and a high fluid level; | ||
• | averaged 100 boe/d (80% oil) for the first 60 days; and | ||
• | continues to produce at 80 boe/d (75% oil). | ||
o | 100/6-12-27-10W4 vertical well: | ||
• | drilled approximately 1.2 kilometres west of the known Heathdale glauconitic oil pool; | ||
• | encountered approximately five meters of glauconitic oil reservoir at virgin pressure; | ||
• | total on-stream cost of $425,000 equipped as a single well battery; and | ||
• | fifth section of land in which Relentless has confirmed the presence of this glauconite oil deposit. | ||
• | The Company’s net debt was reduced from approximately $4.05 million, as at December 31, 2016, to approximately $3.05 million as a result of the completion of two private placements in January 2017. | ||
• | The Heathdale glauconite oil pool have been successfully delineated with five vertical wells and developed with four horizontal multistage fractured wells. | ||
• | Current corporate production is estimated at 275 boe/d (60% oil and liquids). Fifty boe/d is currently shut in as a result of a third party compressor outage and is anticipated to return to production in Q2 2017. |
Cash Flow, Comprehensive Loss and Netbacks
Three months ended December 31, | 2016 | 2015 | % Change | 2016 | 2015 | % Change | ||||||
($ / boe) | ($ / boe) | |||||||||||
Oil and natural gas sales | 606,421 | 613,309 | (1 | ) | 34.26 | 29.68 | 15 | |||||
Royalties | (53,717 | ) | (35,565 | ) | 51 | (3.03 | ) | (1.72 | ) | 76 | ||
Revenue after royalties | 552,704 | 577,744 | (4 | ) | 31.23 | 27.96 | 12 | |||||
Production, operating and transportation expenses | (309,960 | ) | (303,177 | ) | 2 | (17.51 | ) | (14.67 | ) | 19 | ||
Operating cash flow (1) | 242,744 | 274,567 | (12 | ) | 13.72 | 13.29 | 3 | |||||
General & administrative expenses | (102,106 | ) | (109,994 | ) | (7 | ) | (5.77 | ) | (5.32 | ) | 8 | |
Interest and other financing charges | (34,489 | ) | (36,305 | ) | (5 | ) | (1.95 | ) | (1.76 | ) | 11 | |
Bad debt expense | – | (181,018 | ) | (100 | ) | 0.00 | (8.76 | ) | (100 | ) | ||
Flow through share indemnification expense | – | (15,732 | ) | (100 | ) | 0.00 | (0.76 | ) | (100 | ) | ||
Cash flow from operations (1) | 106,149 | (68,482 | ) | (255 | ) | 6.00 | (3.31 | ) | (281 | ) | ||
Other income | 393,750 | 26,192 | 1,403 | 22.25 | 1.27 | 1652 | ||||||
Gain on disposition | 99,504 | 5.62 | 0.00 | 100 | ||||||||
Share based compensation | – | – | – | 0.00 | 0.00 | – | ||||||
Accretion | (10,799 | ) | 21,758 | (150 | ) | (0.61 | ) | 1.05 | (158 | ) | ||
Impairment | 59,050 | (234,506 | ) | (125 | ) | 3.34 | (11.35 | ) | (129 | ) | ||
Depletion and depreciation | (135,807 | ) | (138,500 | ) | (2 | ) | (7.67 | ) | (6.70 | ) | 14 | |
Comprehensive income (loss) | 511,847 | (393,538 | ) | (230 | ) | 28.93 | (19.04 | ) | (252 | ) | ||
$ Per Share – Basic | 0.01 | (0.01 | ) | |||||||||
$ Per Share – Diluted | 0.01 | (0.01 | ) |
Year ended December 31, | 2016 | 2015 | % Change | 2016 | 2015 | % Change | ||||||
($ / boe) | ($ / boe) | |||||||||||
Oil and natural gas sales | 2,030,043 | 3,331,944 | (39 | ) | 29.54 | 32.91 | (10 | ) | ||||
Royalties | (171,064 | ) | (413,605 | ) | (59 | ) | (2.49 | ) | (4.08 | ) | (39 | ) |
Revenue after royalties | 1,858,979 | 2,918,339 | (36 | ) | 27.05 | 28.83 | (6 | ) | ||||
Production, operating and transportation expenses | (1,011,344 | ) | (1,506,848 | ) | (33 | ) | (14.71 | ) | (14.88 | ) | (1 | ) |
Operating cash flow (1) | 847,635 | 1,411,491 | (40 | ) | 12.33 | 13.95 | (12 | ) | ||||
General & administrative expenses | (475,096 | ) | (551,445 | ) | (14 | ) | (6.91 | ) | (5.45 | ) | 27 | |
Interest and other financing charges | (139,562 | ) | (72,628 | ) | 92 | (2.03 | ) | (0.72 | ) | 183 | ||
Bad debt expense | – | (181,018 | ) | (100 | ) | 0.00 | (1.79 | ) | (100 | ) | ||
Flow through share indemnification expense | – | (15,732 | ) | (100 | ) | 0.00 | (0.16 | ) | (100 | ) | ||
Cash flow from operations (1) | 232,977 | 590,668 | (61 | ) | 3.39 | 5.83 | (42 | ) | ||||
Other income | 393,750 | 305,223 | 29 | 5.73 | 3.01 | 90 | ||||||
Gain on disposition | 99,504 | – | 1.45 | 0.00 | 100 | |||||||
Share based compensation | – | (132,027 | ) | (100 | ) | 0.00 | (1.30 | ) | (100 | ) | ||
Accretion | (54,681 | ) | (64,901 | ) | (16 | ) | (0.80 | ) | (0.64 | ) | 24 | |
Impairment | (96,725 | ) | (1,903,931 | ) | (95 | ) | (1.41 | ) | (18.80 | ) | (93 | ) |
Depletion and depreciation | (819,719 | ) | (1,390,068 | ) | (41 | ) | (11.93 | ) | (13.73 | ) | (13 | ) |
Comprehensive loss | (244,894 | ) | (2,595,036 | ) | (91 | ) | (3.56 | ) | (25.63 | ) | (86 | ) |
$ Per Share – Basic | (0.00 | ) | (0.04 | ) | ||||||||
$ Per Share – Diluted | (0.00 | ) | (0.04 | ) |
(1) Non-IFRS measure
Daily Production and Commodity Prices
Three months ended December 31 | ||||||
2016 | 2015 | % Change | ||||
Daily production | ||||||
Oil and NGLs (bbl/d) | 96 | 125 | (23 | ) | ||
Natural gas (mcf/d) | 581 | 600 | (3 | ) | ||
Oil equivalent (boe/d @ 6:1) | 192 | 225 | (15 | ) | ||
Realized commodity prices ($CDN) | ||||||
Oil and NGLs (bbl) | $ | 50.17 | $ | 40.62 | 24 | |
Natural gas (mcf) | $ | 3.10 | $ | 2.67 | 16 | |
Oil equivalent (boe @ 6:1) | $ | 34.26 | $ | 29.68 | 15 | |
Years ended December 31 | ||||||
2016 | 2015 | % Change | ||||
Daily production | ||||||
Oil and NGLs (bbl/d) | 103 | 150 | (31 | ) | ||
Natural gas (mcf/d) | 511 | 766 | (33 | ) | ||
Oil equivalent (boe/d @ 6:1) | 188 | 278 | (32 | ) | ||
Realized commodity prices ($CDN) | ||||||
Oil and NGLs (bbl) | $ | 42.18 | $ | 47.95 | (12 | ) |
Natural gas (mcf) | $ | 2.37 | $ | 2.55 | (7 | ) |
Oil equivalent (boe @ 6:1) | $ | 29.54 | $ | 32.91 | (10 | ) |
Reserves Data
The reserves data set forth below (the “Reserves Data“) is based upon a report prepared by Trimble Engineering Associates Ltd. independent petroleum consultants of Calgary, Alberta, evaluating the crude oil, natural gas and natural gas liquids (“NGL“) reserves of Relentless, as at December 31, 2016, with a preparation date of April 11, 2017 (the “Trimble Report“). The Reserves Data summarizes the crude oil, NGL and natural gas reserves of the Company and the net present values of future net revenue for these reserves using forecast prices and costs. The Trimble Report is available for review on the Company’s profile on www.sedar.com.
OIL AND GAS RESERVES SUMMARY
Reserve Category | Light & Medium Crude Oil | Solution Gas | Conventional Natural Gas | NGL | BOE | |||||
Gross | Net | Gross | Net | Gross | Net | Gross | Net | Gross | Net | |
Mstb | Mstb | MMcf | MMcf | MMcf | MMcf | Mstb | Mstb | Mboe | Mboe | |
Proved | ||||||||||
Developed Producing | 249.4 | 222.8 | 1,028.2 | 906.0 | 506.2 | 441.0 | 26.8 | 18.0 | 531.9 | 465.4 |
Developed Non-producing | 60.0 | 49.9 | 113.5 | 89.3 | – | – | 1.0 | 0.7 | 79.9 | 65.5 |
Undeveloped | 270.0 | 228.8 | 446.3 | 370.6 | – | – | 4.0 | 3.3 | 348.4 | 293.9 |
Total Proved | 579.4 | 501.5 | 1,588.0 | 1,366.0 | 506.2 | 441.0 | 31.8 | 22.1 | 960.2 | 824.7 |
Total Probable | 502.9 | 432.3 | 1,034.5 | 883.4 | 170.2 | 150.9 | 14.3 | 11.3 | 718.0 | 615.9 |
Total Proved Plus Probable | 1,082.3 | 933.7 | 2,622.5 | 2,249.4 | 676.3 | 591.9 | 46.1 | 33.4 | 1,678.2 | 1,440.6 |
NET PRESENT VALUES OF FUTURE NET REVENUE BEFORE INCOME TAXES DISCOUNTED AT (%/YEAR)
(FORECAST COSTS AND PRICES)
Reserve Category | 0% (BTax) | 5% (BTax) | 10% (BTax) | 15% (BTax) | 20% (BTax) | 10% |
M$ | M$ | M$ | M$ | M$ | $/boe | |
Proved | ||||||
Developed Producing | 11,391.6 | 8,788.1 | 7,118.4 | 5,993.5 | 5,197.4 | 15.30 |
Developed Non-producing | 2,862.5 | 2,267.6 | 1,883.9 | 1,622.4 | 1,435.6 | 28.76 |
Undeveloped | 9,546.3 | 6,868.6 | 5,163.5 | 4,015.1 | 3,204.1 | 17.57 |
Total Proved | 23,800.4 | 17,924.3 | 14,165.8 | 11,631.1 | 9,837.0 | 17.18 |
Total Probable | 26,907.6 | 15,692.0 | 10,407.8 | 7,557.9 | 5,832.5 | 16.90 |
Total Proved Plus Probable | 50,708.0 | 33,616.3 | 24,573.5 | 19,188.9 | 15,669.5 | 17.06 |
About Relentless Resources Ltd.
Relentless is a Calgary based emerging oil and natural gas company, engaged in the exploration, development, acquisition and production of natural gas and light gravity crude oil reserves in Alberta, Canada. Relentless’s common shares trade on the TSX Venture Exchange under the symbol RRL.
Relentless’s primary corporate objective is to achieve non-dilutive growth and enhance shareholder value through internal prospect development, strategic production acquisitions and prudent financial management.