Altura Energy Inc. announces the closing of a previously announced asset disposition, operational update and 2021 capital program

[expand title=”Advisories & Contact”]READER ADVISORIES

Forward–looking Information and Statements

This press release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “budget”, “forecast”, “continue”, “estimate”, “objective”, “ongoing”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends”, “strategy” and similar expressions are intended to identify forward-looking information or statements.  In particular, but without limiting the foregoing, this press release contains forward-looking information and statements pertaining to:

• plans to close stages 3b and 4 of the previously announced asset disposition on April 30, 2021 and June 30, 2021;
• the 2021 capital expenditure budget;
• pay out of the 16-14 completion operation estimated at seven months using current strip pricing and adding approximately 130 boe per day to Altura’s annualized production;
• forecasted average production and percent growth for 2021; and
• the expectation that increased crude oil prices coupled with the tightening of long-term WCS differentials and strengthening natural gas prices will increase cashflows, netbacks and reserves values over time.
• The forward-looking information and statements contained in this press release reflect several material factors and expectations and assumptions of Altura including, without limitation:
• the continued performance of Altura’s oil and gas properties in a manner consistent with its past experiences;
• that Altura will continue to conduct its operations in a manner consistent with past operations;
• the return of industry conditions to pre-COVID-19 levels;
• the continuance of existing (and in certain circumstances, the implementation of proposed) tax, royalty and regulatory regimes;
• the accuracy of the estimates of Altura’s reserves and resource volumes;
• certain commodity price and other cost assumptions;
• the continued availability of oilfield services; and
• the continued availability of adequate debt and equity financing and cash flow from operations to, among other things, fund its planned expenditures.

Altura believes the material factors, expectations and assumptions reflected in the forward-looking information and statements are reasonable based on prior operating history but no assurance can be given that these factors, expectations and assumptions will prove to be correct particularly in the current operating environment which is unprecedented by any standard.  To the extent that any forward-looking information contained herein may be considered future oriented financial information or a financial outlook, such information has been included to provide readers with an understanding of management’s assumptions used for budgeted and developing future plans and readers are cautioned that the information may not be appropriate for other purposes.

The forward-looking information and statements included in this press release are not guarantees of future performance and should not be unduly relied upon.  Such information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements including, without limitation:

• the COVID-19 pandemic and related disruptions in oil and gas markets, including the duration and impacts thereof;
• changes in commodity prices including, without limitation, as a result of COVID-19 pandemic;
• changes in commodity prices including, without limitation, as a result of the COVID-19 pandemic and related disruptions in oil and gas markets;
• unanticipated operating results or production declines;
• public health crises, such as the recent outbreak of COVID-19 and the related economic disruption that can result in volatility in financial markets, disruption to global supply chains, and the ability to directly and indirectly staff the Corporation’s day to day operations;
• changes in tax or environmental laws, royalty rates or other regulatory matters;
• changes in development plans of Altura or by third-party operators of Altura’s properties;
• increased debt levels or debt service requirements;
• inaccurate estimation of Altura’s oil and gas reserve and resource volumes;
• limited, unfavorable or a lack of access to capital or debt markets;
• increased costs;
• a lack of adequate insurance coverage;
• the impact of competitors; and
• certain other risks detailed from time to time in Altura’s public documents.

The forward-looking information and statements contained in this press release speak only as of the date of this press release, and Altura does not assume any obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable laws.

Barrels of Oil Equivalent

The term barrels of oil equivalent (“boe”) may be misleading, particularly if used in isolation.  Per boe amounts have been calculated by using the conversion ratio of six thousand cubic feet (6 Mcf) of natural gas to one barrel (1 bbl) of crude oil.  The boe conversion ratio of 6 Mcf to 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.  Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalent of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

Drilling Locations

This press release discloses drilling locations in two categories: (i) proved and probable locations; and (ii) potential drilling opportunities.  Proved and probable locations, which are sometimes referred to as “booked locations”, are derived from the Corporation’s most recent independent reserves evaluation as of December 31, 2019 and account for drilling locations that have associated proved or probable reserves, as applicable.  Potential drilling opportunities are internal estimates based on the Corporation’s prospective acreage and an assumption as to the number of wells that can be drilled per section based on industry practice and internal review.  Potential drilling opportunities do not have attributed reserves or resources. The Corporation has, based on the December 31, 2019 reserve report and management’s current internal assessment, 24.6 net proved locations, 7.8 net probable locations and 66 (54.2 net) potential drilling opportunities.  Potential drilling opportunities have specifically been identified by management as an estimation of our multi-year drilling activities based on evaluation of applicable geologic, seismic, engineering, production and reserves data on prospective acreage and geologic formations.  The drilling locations on which we actually drill wells will ultimately depend upon the availability of capital, regulatory approvals, seasonal restrictions, oil and natural gas prices, costs, actual drilling results and other factors.  While certain of the potential drilling opportunities have been derisked by drilling existing wells in relative close proximity to such potential drilling opportunities, the majority of other potential drilling opportunities are farther away from existing wells where management has less information about the characteristics of the reservoir and therefore there is more uncertainty whether wells will be drilled in such locations and if drilled there is more uncertainty that such wells will result in additional oil and gas reserves, resources or production.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.