2017 Budget Includes 17% Production
Growth,
Upsized Glacier Gas Plant Expansion to 400
MMCF/D &
$205
Million Capital Program
(TSX: AAV, NYSE: AAV)
CALGARY, Nov. 28, 2016 /PRNewswire/ - Advantage
Oil & Gas Ltd. ("Advantage" or the "Corporation") is
pleased to announce that its Board of Directors ("Board") has
approved a 2017 capital budget and development plan estimates for
2018 and 2019. Advantage's 2017 through 2019 investment will
continue with the profitable and sustainable growth of our industry
leading low cost Montney natural
gas supply. This development will be supported by the
Corporation's future drilling inventory of 1,100 dry gas and
liquids rich Montney locations at
Glacier which will remain the primary focus of development through
the next decade. Additionally, the strategic expansion of
Advantage's 100% owned Glacier gas plant processing capacity has
been upsized from 350 mmcf/d to 400 mmcf/d (66,670 boe/d) with
construction planned to start in the second half of 2017.
This will provide optionality for accelerated growth at Glacier and
operational flexibility to process a broader spectrum of gas and
liquids compositions from Advantage's Montney lands located at Valhalla, Wembley and Progress in the greater Glacier
area.
Advantage's 2017 capital budget includes an investment of
$205 million targeted to increase
annual production by 17% to 236 mmcfe/d (39,333 boe/d).
Annual 2017 funds from operations is estimated to grow 27% on a per
share basis to $210 million based on
an average daily natural gas price of AECO Cdn $2.95/mcf ($2.80/GJ) and the Corporation's current hedging
positions. The upsized Glacier plant expansion has minimal impact
on the Corporation's 2017 capital expenditure budget due to
Advantage's proven expertise in cost efficient facilities
engineering design, lower construction costs and fewer required
wells to grow and maintain production compared to earlier
estimates. As a result, the Corporation's increasing cash flow is
expected to reduce the total debt to trailing cash flow to 0.8
times at year-end 2017.
The Corporation's 2017 through 2019 development plan is
targeted to increase 2016 annual production by 56% (52% on a per
share basis) to 316 mmcfe/d (52,670 boe/d) in 2019 or 16% on
an average annual per share basis. Based on an average AECO
daily natural gas price of $2.95/mcf
($2.80/GJ) over the 2017 through 2019
period, cash flow is expected to grow by 78% (74% on a per share
basis) or 20% on an average annual per share basis. Surplus
cash is anticipated to reduce estimated year-end 2016 total debt
from approximately $165 million to $55
million at year-end 2019, resulting in a total debt to
trailing cash flow ratio of 0.2 times. At an average AECO Cdn
daily natural gas price of $3.50/mcf
($3.30/GJ), Advantage's strong cash
margins could generate $230 million
of cumulative surplus cash over the 2017 through 2019 period.
Total capital expenditures over the development plan period
is estimated at $625 million and
includes the drilling of 83 Montney wells.
The Corporation believes that the 2017 through 2019 period will
require Canadian natural gas producers to become more competitive
in the North America natural gas
market and Advantage's continuing focus on capital discipline, cost
efficiencies, profitability and financial strength will remain key
success factors in achieving strong investment returns.
2017 Budget & Guidance
Glacier outperformance reduces total capital
expenditures. Significant technological improvements in
drilling and completion efficiencies, shallower production
declines, lower well costs and lower total corporate cash costs
have reduced the Corporation's capital requirements. The
Corporation's 2017 capital program is estimated at approximately
$205 million with $83 million directed to facilities and
infrastructure. This includes the Glacier gas plant expansion where
$71 million of the total $90 million is anticipated to be spent in
calendar 2017. Additional facilities expenditures of
$12 million include investments to
support ongoing growth and value generation such as expansion of
the field gas gathering system, a water source system and
connections into other sales pipelines. A total of 21 wells
are planned to be drilled in 2017 with 24 new and standing wells
completed to support 2018 growth. The 2017 capital and
operating budget includes consideration for potential increases in
industry and regulatory costs.
Well production type curves in all Montney layers at Glacier have been
increased. The Upper and Lower Montney average well
production type curves have been increased to a Management
estimated initial 30 day average well production rate ("IP30") of
7.5 mmcf/d with a 2P estimated ultimate recovery ("EUR") per well
of 7.5 Bcfe (previous IP30 of 7.2 mmcf/d and 2P EUR of 7.2
Bcfe). For planning purposes, in areas where top quartile
well results are anticipated, an average production well type curve
with an IP30 of 9 mmcf/d and a 2P EUR of 9 Bcfe has been utilized.
In the Middle Montney, the average well production type curve
estimates have been increased to an IP30 of 5 mmcf/d with a 2P EUR
of 5 Bcfe (previous IP30 of 4.5 mmcf/d and 2P EUR of 4.5
Bcfe). The drill, complete, equip and tie-in ("DCET") well
costs are projected to be $4.8
million for all Upper, Middle and Lower Montney wells with
an average lateral length of 1,800 meters and 25 frac stages.
The DCET cost for wells with longer laterals and increased frac
stages are adjusted accordingly in the budget.
Advantage's total corporate cash costs are estimated
to be $0.63/mcfe for 2017.
Advantage anticipates its industry leading low cost structure will
continue due to the Corporation's proven operational expertise and
our 100% owned Glacier gas plant which provides highly efficient
gas processing costs. The Glacier gas plant expansion to 400 mmcf/d
includes additional processing units added to the existing gas
plant infrastructure creating economies of scale with the use of
common utility systems, maintenance procedures and equipment
interchangeability.
Firm Transportation Service Secured. Advantage has
secured firm service sales gas transportation on TransCanada
Pipeline Limited's ("TCPL") Nova Gas Transmission System
(Alberta) for 100% of its planned
production targets from 2017 through 2019.
Advantage's hedging positions reduce cash flow
volatility. The Corporation believes natural gas
prices will remain volatile and continues to provide downside cash
flow protection through future hedge positions. Advantage has
hedged 45% of its 2017 forecast natural gas production at AECO Cdn
$3.19/mcf, 22% of estimated 2018
natural gas production at AECO Cdn $3.02/mcf and 18% of estimated Q1 2019 natural
gas production at AECO Cdn $3.00/mcf.
125 mmcf/d of completed standing well productivity is
currently available to support Advantage's 2017 production
target. The 125 mmcf/d of average first month
productivity ("IP30") is based on 9 currently completed standing
wells which will be utilized to support its target of 236
mmcfe/d in 2017. Additional wells will be drilled in the
fourth quarter of 2016 to support production levels in the second
half of 2017 and early 2018. Advantage's development cycles
are planned such that the timing of capital expenditure to initial
cash flow is based on large well pads (> 10 wells). This
normally means our drilling programs are completed approximately 8
to 12 months in advance and well completions are undertaken such
that a sufficient number of completed wells remain in inventory to
provide operational flexibility and optionality for increasing
growth.
Advantage's 100% owned Glacier gas plant has current
processing capacity to support its 2017
production target and additional capacity in the
future. The Glacier gas plant expansion to 400 mmcf/d is
targeted to begin construction during the second half of 2017 with
completion expected by the second quarter of 2018. Total
liquids handling capacity will be increased to 6,800 bbls/d of
propane plus ("C3+") liquids. Post expansion, Advantage will
have additional raw gas processing capacity of approximately 120
mmcf/d to 80 mmcf/d in 2018 and 2019 respectively, to provide
operational flexibility, accelerate growth or accommodate third
party processing. The expanded Glacier gas plant capacity to
400 mmcf/d will also match our existing sales gas pipeline lateral
capacity of 400 mmcf/d which connects to TCPL.
2017 Budget & Guidance
The table below provides calendar year estimates:
|
|
2017 Guidance(1)
|
Average Annual
Production (mmcfe/d)
|
|
230 to 240
|
% Natural
Gas
|
|
96%(2)
|
Royalty Rate
(%)
|
|
4% to 6%
|
Operating Costs
($/mcfe)
|
|
$0.23 to
$0.28
|
Liquids Transportation
Costs ($/mcfe)
|
|
$0.03 to
$0.05(3)
|
Capital Expenditures ($
Million)
|
|
$195 to $215
|
# Net Wells to be
Drilled
|
|
21(4)
|
|
|
(1)
|
Based on an average
AECO Cdn $2.95/mcf natural gas price for 2017 and Advantage's
current hedge positions.
|
(2)
|
Natural gas liquids
expected to be ~1,600 bbls/d, up 57% over 2016
|
(3)
|
Based on liquids
transportation costs. Sales gas transportation costs are
deducted from revenue associated with Advantage's sales gas
marketing contract.
|
(4)
|
All new wells will be
used to support 2018 growth.
|
Total cash costs (includes royalties, operating costs, liquids
transportation, cash G&A, interest & other cash expenses)
for 2017 are estimated to average approximately $0.63/mcfe.
Beyond 2017
Comments regarding 2018 and 2019 are Management estimates and
are not Board approved budgets. Additional details are
included in our updated Management presentation available on our
website.
Based on AECO Cdn natural gas prices of $2.95/mcf ($2.80/GJ) for 2018 and 2019 and the Corporation's
current hedging positions, Advantage's development plan includes a
targeted 15% production increase in 2018 to an annual average
production rate of 272 mmcfe/d (45,330 boe/d) and a 16% increase in
2019 annual average production to 316 mmcfe/d (52,670 boe/d).
Cash flow per share is estimated to grow 12% to $1.27 in 2018 and 22% to $1.55 in 2019. Capital expenditures of
$210 million are estimated to be
required in 2018 and $210 million in
2019 with a total of 62 wells to be drilled at Glacier over the two
years. The estimated year-end total debt to trailing cash
flow is estimated to be 0.6 times and 0.2 times at year-end 2018
and 2019, respectively.
The 2017 through 2019 development plan is expected to generate
56% production growth or 52% on a per share basis and 74% cash flow
growth per share over this period. The total capital required
during this period is estimated to be $625
million and is fully funded through cash flow.
Future Development at Valhalla, Wembley and Progress. During
the fourth quarter of 2016, three initial evaluation wells were
brought on-production in our Valhalla property. These three
Valhalla wells will be produced to
continue recovering load fluid and may be shut-in periodically to
gather additional evaluation data. These initial wells were drilled
in 2014 and 2015 into two of the four Montney layers present at Valhalla. Two
of the wells were drilled into the Upper Montney and one well
drilled in the first layer of the Middle Montney. The wells
confirmed the presence of liquids in the Upper Montney, compared to
dry gas in the Upper Montney at Glacier, as well as liquids in the
first layer of the Middle Montney. This is consistent with
Advantage's interpretation based on geotechnical work undertaken in
2012 which indicated that each layer of the Montney stack at Valhalla could contain liquids. In the
three initial Valhalla evaluation
wells, the C3+ liquid content of up to 45 bbls/mmcf is estimated
based on a shallow cut liquids recovery process with a condensate
quality that spans the condensate to oil window in the Upper and
first Middle Montney layers. Natural gas production rates of
up to 3.5 mmcf/d are similar to the initial Middle Montney
delineation wells at Glacier. We are encouraged with these
initial findings and to optimize the productivity of future wells,
frac design changes and lowering the pipeline operating pressure in
the Valhalla gathering system will
be undertaken. Additional geotechnical evaluation and
delineation drilling is required to determine the extent and
composition of the gas and liquids content in all four potential
Montney development layers at
Valhalla.
At Wembley, industry drilling
activity has extended to the northeast of the Pipestone Montney
property and is beginning to encroach within several kilometres of
Advantage's lands. Similarly, at our Progress land block,
several industry wells which indicate liquids rich production have
been drilled on-trend. Advantage has included plans to drill
an initial evaluation well at Wembley and Progress within the next 18 to 24
months.
Continuing Forward With Financial Discipline and Operational
Flexibility
The exceptional quality of the Corporation's Glacier Montney
asset, an industry leading low cost structure and 100% ownership of
our facilities demonstrated strong investment returns at low
commodity prices in the last three years of our development.
Advantage believes that continuing with a disciplined approach will
generate long term attractive returns for our shareholders and
provides upside potential as a more favourable natural gas price
environment could evolve in North
America as demand growth continues. We look forward to
reporting our continued progress and achievements as we develop our
high quality Montney resource.
Advisory
The information in this press release contains certain
forward-looking statements, including within the meaning of the
United States Private Securities Litigation Reform Act of 1995.
These statements relate to future events or our future intentions
or performance. All statements other than statements of historical
fact may be forward-looking statements. Forward-looking statements
are often, but not always, identified by the use of words such as
"seek", "anticipate", "plan", "continue", "estimate", "guidance",
"demonstrate", "expect", "may", "can", "will", "project",
"predict", "potential", "target", "intend", "could", "might",
"should", "believe", "would" and similar expressions and include
statements relating to, among other things, the design of
Advantage's 2017 through 2019 development program; anticipated
number of future drilling locations and the Corporation's focus on
developing such locations including the timing thereof; the
proposed expansion of Advantage's Glacier gas plant processing
capacity, including the amount of such expansion, the anticipated
timing that construction will start and be completed on the
proposed expansion, the expected benefits to Advantage from such
expansion and the anticipated costs of such expansion (including
the anticipated timing of which such costs will be incurred); the
Corporation's delineation drilling plans on its Montney lands located at Valhalla, Wembley and Progress and the effect of such
drilling on initial development and processing, including the
anticipated timing thereof; Advantage's 2017 capital program,
including the amount thereof, the amount to be allocated to
increase annual production and the amount to be directed to
facilities and infrastructure; the Corporation's drilling plans for
2017, including the number of wells to be drilled and the timing of
completion of certain wells; Advantage's anticipated annual
production (including the percentage of natural gas production),
royalty rates, operating costs, liquids transportation costs,
annual cash flow, total debt to trailing cash flow ratio and total
corporate cash costs for 2017; Advantage's anticipated annual
production, annual cash flow per share and total debt to trailing
cash flow ratio for 2018; the Corporation's anticipated annual
production, annual cash flow per share, year-end total debt and
total debt to trailing cash flow ratio for 2019; Advantage's
estimated capital expenditures from 2017 to 2019 and anticipated
drilling plans, including the number of Montney wells to be drilled in such period;
expected increases in production in 2017, 2018 and 2019 resulting
from Advantage's development plan; the Corporation's expectation
that total capital required from 2017 to 2019 will be fully funded
from cash flow; the Corporation's view that the 2017 through 2019
period will require Canadian natural gas producers to become more
competitive in the North America
natural gas market and the key factors to Advantage achieving
strong investment returns; management generated type curves;
Advantage's belief that its industry leading low cost structure
will continue; Advantage's future hedging positions, its beliefs
related to the volatility of natural gas prices and its belief that
such hedging positions are expected to reduce cash flow volatility
and provide downside cash flow protection; Advantage's belief that
continuing with a disciplined approach will generate long term
attractive returns for shareholders while preserving upside
potential for future opportunities; and other matters. Advantage's
actual decisions, activities, results, performance or achievement
could differ materially from those expressed in, or implied by,
such forward-looking statements and accordingly, no assurances can
be given that any of the events anticipated by the forward-looking
statements will transpire or occur or, if any of them do, what
benefits that Advantage will derive from them.
These statements involve substantial known and unknown risks
and uncertainties, certain of which are beyond Advantage's control,
including, but not limited to: changes in general economic, market
and business conditions; industry conditions; impact of significant
declines in market prices for oil and natural gas; actions by
governmental or regulatory authorities including increasing taxes
and changes in investment or other regulations; changes in tax
laws, royalty regimes and incentive programs relating to the oil
and gas industry; the effect of acquisitions; Advantage's success
at acquisition, exploitation and development of reserves;
unexpected drilling results; changes in commodity prices, currency
exchange rates, capital expenditures, reserves or reserves
estimates and debt service requirements; the occurrence of
unexpected events involved in the exploration for, and the
operation and development of, oil and gas properties, including
hazards such as fire, explosion, blowouts, cratering, and spills,
each of which could result in substantial damage to wells,
production facilities, other property and the environment or in
personal injury; changes or fluctuations in production levels;
delays in anticipated timing of drilling and completion of wells;
delays in completion of the expansion of the Glacier gas plant;
lack of available capacity on pipelines; individual well
productivity; competition from other producers; the lack of
availability of qualified personnel or management; credit risk;
changes in laws and regulations including the adoption of new
environmental laws and regulations and changes in how they are
interpreted and enforced; our ability to comply with current and
future environmental or other laws; stock market volatility and
market valuations; liabilities inherent in oil and natural gas
operations; uncertainties associated with estimating oil and
natural gas reserves; competition for, among other things, capital,
acquisitions of reserves, undeveloped lands and skilled personnel;
incorrect assessments of the value of acquisitions; geological,
technical, drilling and processing problems and other difficulties
in producing petroleum reserves; ability to obtain required
approvals of regulatory authorities; and ability to access
sufficient capital from internal and external sources. Many of
these risks and uncertainties and additional risk factors are
described in the Corporation's Annual Information Form which is
available at www.Sedar.com and www.advantageog.com. Readers are
also referred to risk factors described in other documents
Advantage files with Canadian securities authorities.
With respect to forward-looking statements contained in this
press release, Advantage has made assumptions regarding, but not
limited to: conditions in general economic and financial markets;
effects of regulation by governmental agencies; current and future
commodity prices and royalty regimes; future exchange rates;
royalty rates; future operating costs, cash costs and liquids
transportation costs; frac stages per well; lateral lengths per
well; estimated EURs; DCET well costs; availability of skilled
labor; availability of drilling and related equipment; timing and
amount of capital expenditures; the impact of increasing
competition; the price of crude oil and natural gas; that the
Corporation will have sufficient cash flow, debt or equity sources
or other financial resources required to fund its capital and
operating expenditures and requirements as needed; that the
Corporation's conduct and results of operations will be consistent
with its expectations; that the Corporation will have the ability
to develop the Corporation's properties in the manner currently
contemplated; available pipeline capacity; that the Corporation
will be able to complete the expansion and increase capacity at the
Glacier gas plant; that Advantage's production will increase;
current or, where applicable, proposed assumed industry conditions,
laws and regulations will continue in effect or as anticipated; and
that the estimates of the Corporation's production and reserves
volumes and the assumptions related thereto (including commodity
prices and development costs) are accurate in all material
respects. Production estimates contained herein for the years ended
December 31, 2017, 2018 and 2019 are
expressed as anticipated average production over the calendar year.
In determining anticipated production for the years ended
December 31, 2017, 2018 and 2019
Advantage considered historical drilling, completion and production
results for prior years and took into account the estimated impact
on production of the Corporation's 2017, 2018 and 2019 expected
drilling and completion activities.
Management has included the above summary of assumptions and
risks related to forward-looking information in order to provide
shareholders with a more complete perspective on Advantage's future
operations and such information may not be appropriate for other
purposes. Advantage's actual results, performance or achievement
could differ materially from those expressed in, or implied by,
these forward-looking statements and, accordingly, no assurance can
be given that any of the events anticipated by the forward-looking
statements will transpire or occur, or if any of them do so, what
benefits that Advantage will derive there from. Readers are
cautioned that the foregoing lists of factors are not
exhaustive.
These forward-looking statements are made as of the date of
this press release and Advantage disclaims any intent or obligation
to update publicly any forward-looking statements, whether as a
result of new information, future events or results or otherwise,
other than as required by applicable securities laws.
Barrels of oil equivalent (boe) and thousand cubic feet of
natural gas equivalent (mcfe) may be misleading, particularly if
used in isolation. Boe and mcfe conversion ratios have been
calculated using a conversion rate of six thousand cubic feet of
natural gas equivalent to one barrel of oil. A boe and mcfe
conversion ratio of 6 mcf: 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 equivalency
of 6:1, utilizing a conversion on a 6:1 basis may be misleading as
an indication of value.
This press release contains certain oil and gas metrics,
including EUR, which do not have standardized meanings or standard
methods of calculation and therefore such measures may not be
comparable to similar measures used by other companies and should
not be used to make comparisons. Such metrics have been included
herein to provide readers with additional measures to evaluate the
Corporation's performance; however, such measures are not reliable
indicators of the future performance of the Corporation and future
performance may not compare to the performance in previous periods
and therefore such metrics should not be unduly relied upon. EUR
represents the 2P estimated ultimate recoverable conventional
natural gas volumes per well assigned by the Corporation's internal
non-independent qualified reserves evaluator in accordance with the
Canadian Oil & Gas Evaluation Handbook.
This press release discloses 1,100 undeveloped future
drilling locations in the following categories: (i) proved (244
locations); (ii) proved + probable (297 locations); and (iii)
unbooked (803 additional locations). Proved locations and probable
locations are derived from the Corporation's most recent
independent reserves evaluation as prepared by Sproule Associates
Limited as of December 31, 2015 and
account for drilling locations that have associated proved and/or
probable reserves, as applicable. Unbooked locations 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. Unbooked
locations do not have attributed reserves or resources. Unbooked
locations have been identified by management as an estimation of
our multi-year drilling activities based on evaluation of
applicable geologic, seismic, engineering, production and reserves
information. There is no certainty that the Corporation will drill
all unbooked drilling locations and if drilled there is no
certainty that such locations will result in additional oil and gas
reserves, resources or production. 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, additional reservoir information that is obtained and
other factors. While certain of the unbooked drilling locations
have been derisked by drilling existing wells in relative close
proximity to such unbooked drilling locations, other unbooked
drilling locations 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.
Certain type curves presented herein represent estimates of
the production decline and ultimate volumes expected to be
recovered from wells over the life of the well. The 7.5 mmcf/d IP
(which represents the average 30 day initial production rate) and
7.5 Bcfe (which represents the ultimate volumes expected to be
recovered from the wells over the life of the well based on the
type curve) Upper and Lower Montney type curve and the 5 mmcf/d IP
and 5 Bcfe Middle Montney type curve are management generated type
curves based on a combination of historical performance of older
wells and management's expectation of what might be achieved from
future wells. The type curves represent what management thinks an
average well will achieve. Individual wells may be higher or lower
but over a larger number of wells management expects the average to
come out to the type curve. Over time type curves can and will
change based on achieving more production history on older wells or
more recent completion information on newer wells. Other type
curves presented herein, including the 9 mmcf/d IP and 9 Bcf Upper
and Lower Montney type curve have been provided to demonstrate the
economics associated with wells that could potentially have that
type of productivity and recovery but do not represent management
estimates of how such wells will actually perform.
The Corporation discloses several financial measures that do
not have any standardized meaning prescribed under International
Financial Reporting Standards ("IFRS"). These financial measures
include total debt to trailing cash flow ratio, funds from
operations and total cash costs. Total debt to trailing cash flow
ratio is calculated as bank indebtedness under the Corporation's
credit facilities plus working capital deficit divided by funds
from operations for the prior twelve month period. Funds from
operations is based on cash provided by operating activities,
before expenditures on decommissioning liability and changes in
non-cash working capital, reduced for finance expense excluding
accretion. Total cash costs includes royalties, operating costs,
liquids transportation, cash G&A, interest & other cash
expenses. Management believes that these financial measures are
useful supplemental information to analyze operating performance
and provide an indication of the results generated by the
Corporation's principal business activities. Investors should be
cautioned that these measures should not be construed as an
alternative to net income or other measures of financial
performance as determined in accordance with IFRS. Advantage's
method of calculating these measures may differ from other
companies, and accordingly, they may not be comparable to similar
measures used by other companies. Please see the Corporation's most
recent Management's Discussion and Analysis, which is available at
www.sedar.com and www.advantageog.com for additional information
about these financial measures, including a reconciliation of funds
from operations to cash provided by operating activities.
This press release and, in particular the information in
respect of the Corporation's prospective cash flow debt to trailing
cash flow ratio, total cash costs, operating costs, capital
expenditures, annual cash flow and liquids transportation costs,
may contain future oriented financial information ("FOFI")
within the meaning of applicable securities laws. The FOFI has been
prepared by management to provide an outlook of the Corporation's
activities and results and may not be appropriate for other
purposes. The FOFI has been prepared based on a number of
assumptions, including the assumptions discussed above, and
assumptions with respect to the costs and expenditures to be
incurred by the Corporation, capital equipment and operating costs,
foreign exchange rates, taxation rates for the Corporation, general
and administrative expenses and the prices to be paid for the
Corporation's production. Management does not have firm commitments
for all of the costs, expenditures, prices or other financial
assumptions used to prepare the FOFI or assurance that such
operating results will be achieved and, accordingly, the complete
financial effects of all of those costs, expenditures, prices and
operating results are not objectively determinable. The actual
results of operations of the Corporation and the resulting
financial results may vary from the amounts set forth herein, and
such variations may be material. The Corporation and management
believe that the FOFI has been prepared on a reasonable basis,
reflecting management's best estimates and judgments. However,
because this information is highly subjective and subject to
numerous risks including the risks discussed above, it should not
be relied on as necessarily indicative of future results.
FOFI contained in this press release was made as of the date of
this press release and the Corporation disclaims any intention or
obligations to update or revise any FOFI contained in this press
release, whether as a result of new information, future events or
otherwise, unless required pursuant to applicable law.
The following abbreviations used in this press release have
the meanings set forth below:
bbls
|
barrels
|
boe
|
barrels of oil
equivalent of natural gas, on the basis of one barrel of oil or
NGLs for six thousand cubic feet of natural gas
|
mcf
|
thousand cubic
feet
|
mmcf
|
million cubic
feet
|
mmcf/d
|
million cubic feet
per day
|
mcfe
|
thousand cubic
feet equivalent on the basis of six thousand cubic feet of natural
gas for one barrel of oil or NGLs
|
mmcfe
|
million cubic feet
equivalent
|
mmcfe/d
|
million cubic feet
equivalent per day
|
SOURCE Advantage Oil & Gas Ltd.