CALGARY, Alberta, Dec. 21, 2018 (GLOBE NEWSWIRE) — Altura Energy Inc. (“Altura”, or the “Corporation”) (TSXV: ATU) is pleased to announce a corporate update including: fourth quarter 2018 production estimates; an increase to its credit facility; and the closing of a previously announced asset acquisition for cash consideration of $1.0 million.
October 2018 production averaged 2,053 Boe per day, exceeding 2018 exit production guidance two months early. November and December production volumes were voluntarily curtailed in response to weak oil prices caused by wide Canadian oil differentials. December 2018 production volumes are forecasted to be approximately 600 Boe per day (78 percent oil and liquids) and production volumes for the fourth quarter of 2018 are forecasted at 1,400 Boe per day (80 percent oil and liquids), based on field estimates and Altura’s December forecast.
The Canadian oil differentials have significantly narrowed for January 2019 deliveries and Altura expects to be producing at full capacity in the new year, subject to any pipeline apportionments.
The recent 325,000 barrels per day curtailment of oil production announced by the Government of Alberta does not apply to the Corporation’s oil production.
REVISED CREDIT FACILITY
In December, Altura’s credit facility was increased from $3.0 million to $6.0 million based on an interim review of the Corporation’s reserves following the completion of its summer drilling program. The Corporation’s credit facility will undergo its annual review in May 2019 utilizing the December 31, 2018 reserve report.
On August 9, 2018, Altura announced an acquisition of highly prospective Upper Mannville lands at Leduc-Woodbend (“LWB”) including a 20 percent working interest in the LWB Glauconitic D Unit No.1 (the “Acquisition”), adding net production of approximately 40 Boe per day (90 percent oil & liquids) of low decline, Glauconite oil (33° API) production. The Acquisition closed on December 21, 2018 for cash consideration of $1.0 million.
The combination of the lands from the Acquisition and Altura’s existing lands will add four Upper Mannville extended reach horizontal drilling opportunities that offset existing producing wells. Additionally, the Acquisition increases Altura’s operated working interest from 40 percent to 60 percent in key infrastructure including a 3,000 barrels of oil per day multi-well battery, water injection facility and gathering pipelines.
2019 CAPITAL BUDGET
Planning for 2019 continues but has been challenged by the volatility in crude oil prices and Canadian oil differentials. Altura anticipates releasing its 2019 capital budget in early 2019.
ABOUT ALTURA ENERGY INC.
Altura is a junior oil and gas exploration, development and production company with operations in central Alberta. Altura predominantly produces from the Rex member in the Upper Mannville group and is focused on delivering per share growth and attractive shareholder returns through a combination of organic growth and strategic acquisitions.