Highwood received notice on May 1, 2020 from the Alberta Energy Regulator (“AER“) that the Red Earth license transfer application had been rejected. The AER had previously provided their conditional approval of the license transfers on April 24, 2020.
After spending $4.1 million in Q1 2020, the Company has continued to suspend its 2020 capital program until a sustained price recovery is realized.
The Clearwater oil resource play continues to deliver positive delineation results which underpin an expanding opportunity set for Highwood to pursue lower risk, highly economic, oil-weighted growth. Since early 2017, industry has spud more than 290 wells to delineate and quickly grow the Clearwater play to achieve production in excess of 26,000 bbl/d. Even within a pricing environment that has been very suppressed by historical standards, strong well economics characterized by short cycle times and quick payback periods supported industry drilling over 130 wells to date in 2020.
Gross production capacity of the Company’s Clearwater wells is 2,000 bbl/d of oil (1,000 bbl/d net). Total net Company production capacity is 2,200 bbl/d of oil with 1,000 bbl/d currently onstream.
Highwood has scheduled the annual general and special meeting of shareholders for June 18, 2020 and has the following update to announce.
Due to the public health restrictions implemented to combat the spread of the COVID-19 pandemic, including restrictions on mass gatherings implemented by the Government of Alberta and taking into account the health and safety of our employees, shareholders, service providers and other stakeholders, the Company strongly encourages shareholders NOT to attend the Meeting in person. The Company strongly encourages shareholders to vote by proxy on the internet, rather than attending the Meeting in person.
To this end, only registered shareholders and duly appointed proxyholders will be permitted to attend the Meeting in person. Further restrictions with regards to the Meeting may be implemented by the Company as required in accordance with applicable laws and to comply with public health restrictions. At the Meeting, the Company may adopt screening or other measures for identifying COVID-19 symptoms or risk factors as may be recommended or required by applicable health authorities. These measures may include requiring registered Shareholders or duly appointed proxy holders still wishing to attend the Meeting in person to sign a confirmation letter at the Meeting that they are not a confirmed case of COVID-19 or a close contact of a confirmed case of COVID-19, they are not experiencing cold or flu-like systems, including fever, cough, difficulty breathing, muscle aches, fatigue, headache, sore throat or runny nose, and that they have not travelled outside of Canada for a period of two weeks preceding the Meeting date. The Company reserves the right to refuse admission to a shareholder or proxyholder seeking to attend the Meeting if the Company believes the shareholder or proxyholder poses a health risk to attendees at the Meeting or would otherwise breach public health restrictions. THE COMPANY MAY LIMIT ATTENDEES AS REQUIRED BY MASS GATHERING RESTRICTIONS IMPLEMENTED BY THE GOVERNMENT OF ALBERTA AT THE TIME OF THE MEETING. In addition, any attendees will be required to practice social distancing at the Meeting.
In order to permit Shareholders and proxyholders to listen to the Meeting in real time, without having to attend in person, a conference call of the Meeting will be available as follows:
Conference call participation:
• North America Toll-Free: 1 877 234 4610
• Local (Calgary): 403 269 5197
• Participant Conference Access code: 4872953 #
Shareholders will not be able to vote through the conference call; however, there may be a question and answer session following the termination of the formal business of the Meeting during which shareholders attending the conference call can ask questions.
As the COVID-19 outbreak continues to be a rapidly evolving situation, and in light of changing public health restrictions and recommendations related to COVID-19, there may be changes to the date, time and location of the Meeting, or the Company may adjourn or postpone the Meeting. The Company will continue to monitor and review provincial and federal governmental guidance in order to assess and implement measures to reduce the risk of spreading the virus at the Meeting. Any such changes will be communicated by news release which will be made available under the Company’s profile on SEDAR at www.sedar.com.
WE STRONGLY ENCOURAGE ALL SHAREHOLDERS TO VOTE ELECTRONICALLY BY PROXY RATHER THAN ATTENDING THE MEETING IN PERSON. PLEASE CONTACT YOUR BROKER OR FINANCIAL INSTITUTION FOR YOUR CONTROL NUMBER TO ALLOW ONLINE VOTING.