CALGARY, Alberta, Jan. 22, 2019 (GLOBE NEWSWIRE) — Razor Energy Corp. (“Razor” or the “Company”) (TSXV: RZE) (www.razor-energy.com) is pleased to announce that its Board of Directors (the “Board”) has approved a capital budget of $13.5 million for fiscal 2019 that allows Razor to maintain production levels while continuing to pay a sustainable dividend.
Capital expenditures of $13.5 million are expected to be allocated as follows:
|Reactivations, recompletions and optimizations||$4.6 million|
|Facilities and pipelines||$5.2 million|
|Other (oilfield IT and other)||$1.5 million|
|End of life expenditures||$2.2 million|
Reactivations, recompletions and optimizations include activities in both the Swan Hills and Kaybob areas. Also included are certain production management activities of existing waterfloods which will complement current production levels while enhancing long term recoveries of oil in place.
Facilities and pipelines consist primarily of projects intended to enhance the realized price for our production. Razor plans to develop a blending facility in Kaybob as well as a condensate stabilization facility in Swan Hills.
The Company continues to address operating costs through heightened field efficiencies and capital investment. In 2019, Razor will complete the oilfield information system upgrade program, which has already provided immediate enhancements impacting operational awareness, preventative maintenance, personnel safety, and environmental protection through actionable and predictive analytics.
End of life expenditures will address both the Alberta Energy Regulator’s requirements under the Inactive Well Compliance Program and other discretionary spending within the asset portfolio.
Recent volatility in both West Texas Intermediate (“WTI”) and Canadian crude oil differentials has resulted in a lower capital spending budget and production profile for 2019. The capital budget will be reviewed continuously by management and the Board and adjusted in response to changes in light oil price assumptions, project economics, and other market opportunities. Razor remains steadfast in its conviction to maintain its financial advantage and build a top-tier junior oil and gas company.
The Company’s 2019 financial and operating guidance and assumptions are as follows:
|Average daily production January 2019||4,300 boe/d|
|Average daily production 2019||4,900 boe/d|
|Capital expenditures||$13.5 million|
|Net debt(1), December 31, 2019 (“Exit Net Debt”)||$51.1 million|
|Exchange rate (US$/C$)||0.75|
|Light sweet oil differential to WTI (C$/bbl)||($11.45)|
|AECO gas (C$/GJ)||$1.90|
- “Net debt” does not have any standardized meaning prescribed by International Financial Reporting Standards (“IFRS”). See “Reader Advisories – Non-IFRS Measures”.
Razor intends to continue to pursue value-driven acquisitions. Specifically, Razor will pursue consolidation of land and production within the Company’s existing project areas, in addition to complementary shallow horizons within its Alberta core region. Razor remains focused on adding to its inventory of high-quality projects to sustain longer-term growth.
Razor is a publicly-traded junior oil and gas development and production company headquartered in Calgary, Alberta, concentrated on acquiring, and subsequently enhancing, producing oil and gas properties primarily in Alberta. The Company is led by experienced management and a strong, committed Board of Directors, with a long-term vision of growth focused on efficiency and cost control in all areas of the business.
Razor started operations in the first quarter of 2017, through an acquisition of producing assets in the Swan Hills area. In the second quarter of 2017, Razor added to its asset base with the acquisition of complementary assets in the Kaybob area. These predominantly light oil assets provide a foundation for strong shareholder return through abundant low risk operations. Razor plans to concurrently grow Swan Hills and Kaybob, and execute on similar acquisitions, using its experience to extract upside value.
Razor is a pivotal leading-edge enterprise, balancing creativity and discipline, focused on growing an enduring energy company.
Razor currently trades on TSX Venture Exchange under the ticker “RZE”.
For additional information please contact:
President and Chief Executive Officer
Chief Financial Officer
|Razor Energy Corp.
800, 500 5th Avenue S.W.
Calgary, Alberta T2P 3L4G8
Telephone: (403) 262-0242
|Alliance Capital Partners