(TSX: AAV)
CALGARY, AB, Feb. 24, 2022 /CNW/ - Advantage Energy Ltd.
("Advantage" or the "Corporation") is pleased to report 2021
year-end results, reserves and an operational update.
Advantage achieved record results during 2021, while capital
spending remained modest. Advantage's long history of disciplined
capital deployment continued, with every well drilled since the
second half of 2020 achieving payout in under one year and many
achieving payout in under 5 months. The Corporation has a
line-of-sight to eliminate net debt during the third quarter (based
on current strip commodity prices) and intends to initiate a share
buyback program in second quarter pending regulatory approval.
Advantage's affiliate Entropy Inc. continues to make progress on
its previously announced financing (see News Release dated
December 30, 2021) and remains
on-track to close during the first quarter of 2022.
In order to maximize shareholder returns, Advantage's priority
is growing adjusted funds flow per share(a) while
maintaining a strong balance sheet and enhancing profitability
through all phases of the commodities cycle. With commodity pricing
remaining strong, production spiking, long-term demand likely to
continue to grow, decades of high-quality inventory and significant
existing capacity at Advantage-owned facilities, Advantage is well
positioned to continue generating significant shareholder
value.
2021 Year-End Financial Highlights
- Record cash provided by operating activities of $223 million
- Record adjusted funds flow ("AFF")(a) of
$235 million or $1.24/share
- Record free cash flow ("FCF")(a) of $85 million (36% of AFF)
- Cash used in investing activities was $118 million while net capital
expenditures(a) were $149
million
- Net income of $411 million, which
includes a full impairment recovery of $341
million
- Operating expenses remained low at $2.49/boe
- Net debt(a) decreased to $165
million (a 34% reduction year-over-year) while net debt to
AFF(a) ratio fell to 0.7x
(a)
|
Specified financial
measure which is not a standardized measure under International
Financial Reporting Standards ("IFRS") and may not be comparable to
similar specified financial measures used by other entities. Please
see "Specified Financial Measures" for the composition of such
specified financial measure, an explanation of how such specified
financial measure provides useful information to a reader and the
purposes for which management of Advantage uses the specified
financial measure, and where required, a reconciliation of the
specified financial measure to the most directly comparable IFRS
measure.
|
2021 Operating Highlights
- Record annual production of 49,445 boe/d (269.7 mmcf/d natural
gas, 4,493 bbls/d liquids), up 10% over 2020
- Liquids production of 4,493 bbls/d (1,101 bbls/d oil, 844
bbls/d condensate, and 2,548 bbls/d NGLs)
- Of all Alberta Montney wells
drilled in 2021, fourteen of the top 25 gas wells were Advantage's,
based on IP90 rates
- At Glacier, 20 gross (17.4 net) wells were drilled and 27 gross
(24.4 net) were completed. Average initial well performance
continues to exceed previous programs and area peers by significant
margins
- At Valhalla, 2 gross (2.0 net)
wells were drilled and completed with record results
- At Wembley, 3 gross (3.0 net)
wells were drilled
- Capital efficiency(a) was approximately $10,000/boe/d
2021 Reserves Highlights
- Proved Developed Producing ("PDP") reserves increased 10%, with
finding, development and acquisition
("FD&A") (a) costs of $5.23/boe including Future Development Capital
("FDC")
- Proved plus Probable ("2P") reserves increased 4%, with
FD&A(a) costs of $5.82/boe including FDC
- PDP reserve additions replaced(a) 163% of
production
- 2P reserve additions replaced(a) 218% of
production
- Recycle ratios(a) were 3.5x for PDP and 3.1x for
2P
- Average type well at Glacier increased to 7.9 bcf (2P)
- Reserves life index ("RLI") (a) was 7 years for PDP
and 32 years for 2P, based on the Corporation's average fourth
quarter 2021 production rate of 47,940 boe/d
Operational Update
Advantage expects 2022 average production to increase to between
52,000 boe/d and 55,000 boe/d based on the Corporation's 2022
capital program (see News Release dated December 6, 2021). In March, five days of
downtime are planned at Glacier for a plant turnaround and to
complete final construction of the Phase 1 CCS project.
In anticipation of gas supply shortages and elevated pricing,
Advantage accelerated $10 million of
spending from January into December. As a result, January
production was approximately 57,000 boe/d, with the Glacier Gas
Plant periodically exceeding 375 mmcf/d (gross raw). Drilling focus
has now shifted to oil and condensate targets at Wembley, Valhalla and Progress, with minimal new
Glacier volumes expected to come onstream for the remainder of
2022.
At Wembley, construction of the
trunk-line tying Advantage's oil battery to Keyera's Pipestone
Processing Facility is nearing completion, on-time and on-budget
with 2022 costs of $10 million. Once
complete, Advantage will have access to a total of 40 mmcf/d of
firm processing capacity in the area. Production at Wembley is expected to grow through 2022, with
6 recently-drilled wells coming on production in the second quarter
and drilling of one additional pad toward the end of the year.
At Progress, a new compressor station which was partially
constructed prior to the pandemic is nearing completion, on-time
and on-budget with 2022 costs of $12
million. In addition to increasing system capacity for
Advantage wells, the compressor will service firm-contracted
third-party volumes of 10 mmcf/d generating $5.5 million of processing revenue on an
annualized basis. These volumes are incremental to the existing 11
mmcf/d of third-party gas processed through Advantage's owned
infrastructure.
The Corporation has hedged 22% of its natural gas production for
first quarter of 2022, 36% for summer 2022, 27% for winter 2022/23
and 8% for summer 2023.
Share Buyback Program
As Advantage believes there may be times when the market price
of its common shares does not fully reflect the underlying value of
its business, or when buying back shares may provide superior
returns versus acquiring third-party assets. The Corporation
intends to launch a share buyback program during the second
quarter, subject to receiving regulatory approval and compliance
with applicable laws. The primary goals of the buyback program are
to provide returns to shareholders in a tax efficient manner, to
improve per share metrics and to help maintain an efficient capital
structure.
Indigenous Education Scholarship Program
Advantage is pleased to support Indigenous students in
communities near Advantage's operations in Alberta. Advantage
aims to provide students with funding to pursue post–secondary
education opportunities to benefit both the students and Alberta's
energy industry. Annual scholarships will be open to all
students but primarily awarded to students pursuing studies in
engineering, operations, geosciences, environmental studies, and
trades related to the energy industry. Applications for
Advantage's Indigenous Education Scholarship program will be
accepted between March 1st
to July 15th of each year
and scholarships will be announced prior to August 15th. To apply for the
Scholarship Award, please email scholarship@advantageog.com for an
application form and further instructions.
Board Retirement
As a part of Advantage's board succession planning, Mr.
Ron McIntosh plans to retire on
May 5, 2022, after 24 years of
service with Advantage and predecessor companies. The Advantage
team thanks him deeply for his dedication and wishes him all the
best in his retirement. The new Chair of the Board will be
appointed after Advantage's annual general and special meeting on
May 5, 2022.
Looking Forward
In order to maximize shareholder returns, Advantage's priority
is growing adjusted funds flow per share(a) while
maintaining a strong balance sheet. The capital program for the
second half of 2022 will focus on oil-weighted growth which
delivers outsized adjusted funds flow growth per unit of production
growth, at current strip commodity pricing. While total production
for 2022 is expected to grow by approximately 8%, relative adjusted
funds flow is expected to grow by over 25%, assuming the same
commodity prices.
At current strip commodity prices, Advantage expects 2022
AFF(a) to be more than double what it was in 2021. We
are on-track to generate significant free cash flow(a)
of over $140 million in the first
half of 2022 and approach zero net debt(a) in the third
quarter. Advantage's decision to advance $10
million in capital spending from early 2022 into
December 2021 has significantly
benefited the Corporation with average production of approximately
57,000 boe/d in January 2022,
coinciding with elevated gas prices, resulting in
payout(a) of new wells in under 5 months.
Advantage's 2022 capital program ($170
million to $200 million) is
weighted towards the first quarter with spending of approximately
$76 million or 40% of the total 2022
budget. Production is expected to average between 52,000 boe/d and
55,000 boe/d in 2022 (see News Release dated December 6, 2021). In March, five days of
downtime are planned at Glacier for a plant turnaround and to
complete final construction of the Phase 1 CCS project, with
production expected to average 52,000 boe/d during the first
quarter.
The Corporation has $1.4 billion
of tax pools which are expected to provide cash tax deferrals for
several years.
With modern, low emissions-intensity assets and the Glacier
carbon capture and sequestration asset, the Corporation continues
to proudly deliver clean, reliable, sustainable energy,
contributing to a reduction in global emissions by displacing
high-carbon fuels. Advantage wishes to thank our employees,
Board of Directors and our shareholders for their ongoing
support.
Below are the complete tables showing financial highlights,
operating highlights and reserves results.
Financial
Highlights
|
Three months
ended
December
31
|
Year
ended
December
31
|
($000, except as
otherwise indicated)
|
2021
|
2020
|
2021
|
2020
|
Financial
Statement Highlights
|
|
|
|
|
Natural gas and
liquids sales
|
159,255
|
73,203
|
492,035
|
245,085
|
Net income (loss) and
comprehensive income (loss)
|
359,956
|
24,168
|
411,354
|
(284,045)
|
per basic share
(2)
|
1.90
|
0.13
|
2.17
|
(1.51)
|
Basic weighted
average shares (000)
|
190,829
|
188,113
|
190,077
|
187,761
|
Cash provided by
operating activities
|
67,464
|
30,260
|
223,152
|
100,714
|
Cash provided by
(used in) financing activities
|
(27,423)
|
5,071
|
(83,411)
|
48,087
|
Cash used in
investing activities
|
(44,939)
|
(37,325)
|
(117,782)
|
(158,621)
|
Other Financial
Highlights
|
|
|
|
|
Adjusted funds flow
(1)
|
71,227
|
31,738
|
234,824
|
104,661
|
per boe
(1)
|
16.15
|
7.92
|
13.01
|
6.37
|
per basic share
(1)(2)
|
0.37
|
0.17
|
1.24
|
0.56
|
Net capital
expenditures (1)
|
58,384
|
32,390
|
149,403
|
157,935
|
Free cash flow
(deficit) (1)
|
12,843
|
(652)
|
85,421
|
(53,274)
|
Working capital
(surplus) deficit (1)
|
(2,092)
|
4,292
|
(2,092)
|
4,292
|
Bank
indebtedness
|
167,345
|
247,105
|
167,345
|
247,105
|
Net debt
(1)
|
165,253
|
251,397
|
165,253
|
251,397
|
|
|
(1)
|
Specified financial
measure which is not a standardized measure under International
Financial Reporting Standards ("IFRS") and may not be comparable to
similar specified financial measures used by other entities. Please
see "Specified Financial Measures" for the composition of such
specified financial measure, an explanation of how such specified
financial measure provides useful information to a reader and the
purposes for which management of Advantage uses the specified
financial measure, and where required, a reconciliation of the
specified financial measure to the most directly comparable IFRS
measure.
|
(2)
|
Based on basic
weighted average shares outstanding.
|
Operating
Highlights
|
Three months
ended
December
31
|
Year
ended
December
31
|
|
2021
|
2020
|
2021
|
2020
|
Operating
|
|
|
|
|
Production
|
|
|
|
|
Crude oil
(bbls/d)
|
816
|
1,653
|
1,101
|
1,664
|
Condensate
(bbls/d)
|
1,012
|
653
|
844
|
715
|
NGLs
(bbls/d)
|
2,524
|
2,234
|
2,548
|
2,029
|
Total liquids
production (bbls/d)
|
4,352
|
4,540
|
4,493
|
4,408
|
Natural gas
(Mcf/d)
|
261,530
|
233,949
|
269,710
|
243,081
|
Total production
(boe/d)
|
47,940
|
43,532
|
49,445
|
44,922
|
Average realized
prices (including realized
derivatives)(2)
|
|
|
|
|
Natural gas
($/Mcf)
|
4.17
|
2.45
|
3.38
|
2.02
|
Liquids
($/bbl)
|
54.70
|
41.29
|
50.92
|
37.43
|
Operating Netback
($/boe)
|
|
|
|
|
Natural gas and
liquids sales(2)
|
36.11
|
18.28
|
27.26
|
14.91
|
Realized losses on
derivatives(2)
|
(8.41)
|
(0.74)
|
(4.13)
|
(0.28)
|
Royalty
expense(2)
|
(2.02)
|
(0.77)
|
(1.53)
|
(0.64)
|
Operating
expense(2)
|
(2.92)
|
(2.68)
|
(2.49)
|
(2.43)
|
Transportation
expense(2)
|
(4.48)
|
(3.62)
|
(3.90)
|
(3.39)
|
Operating netback
(1) (2)
|
18.28
|
10.47
|
15.21
|
8.17
|
|
|
(1)
|
Specified financial
measure which is not a standardized measure under IFRS and may not
be comparable to similar specified financial measures used by other
entities. Please see "Specified Financial Measures" for the
composition of such specified financial measure, an explanation of
how such specified financial measure provides useful information to
a reader and the purposes for which management of Advantage uses
the specified financial measure, and where required, a
reconciliation of the specified financial measure to the most
directly comparable IFRS measure.
|
(2)
|
Specified financial
measure which is a supplementary financial measure. Please see
"Specified Financial Measures" for the composition of such
supplementary financial measure.
|
Reserves
Highlights
|
PDP
|
1P
|
2P
|
2021 Reserves
(million boe)
|
121.3
|
393.9
|
553.4
|
2021 FD&A Cost
($/per boe, including FDC) (a)
|
$5.23
|
$6.54
|
$5.82
|
2021 Recycle
ratio(a)
|
3.5
|
2.8
|
3.1
|
2020 Recycle
ratio(a)
|
1.2
|
2.9
|
3.7
|
2021 Reserves
Increase Over 2020
|
10.4%
|
1.8%
|
4.0%
|
RESERVES SUMMARY TABLES
Company Gross (before royalties) Working Interest Reserves
Summary as at December 31,
2021
|
Light &
Medium
Crude Oil (mbbl)
|
Conventional
Natural Gas (mmcf)
|
Natural Gas
Liquids (mbbl)
|
Total Oil
Equivalent (mboe)
|
Proved
|
|
|
|
|
Developed
Producing
|
1,252
|
681,611
|
6,445
|
121,299
|
Developed
Non-producing
|
23
|
24,113
|
405
|
4,447
|
Undeveloped
|
7,080
|
1,471,397
|
15,860
|
268,173
|
Total
Proved
|
8,355
|
2,177,121
|
22,709
|
393,918
|
Probable
|
9,212
|
839,142
|
10,379
|
159,447
|
Total Proved +
Probable
|
17,566
|
3,016,263
|
33,088
|
553,365
|
|
|
(1)
|
Table may not add due
to rounding.
|
Company Net Present Value of Future Net Revenue using the
IQRE Average Forecasts (1)(2)(3)($000)
|
Before Income Taxes
Discounted at
|
|
0%
|
10%
|
15%
|
Proved
|
|
|
|
Developed
Producing
|
1,762,965
|
1,051,069
|
884,897
|
Developed
Non-producing
|
96,017
|
53,724
|
45,536
|
Undeveloped
|
3,843,452
|
1,100,003
|
667,220
|
Total
Proved
|
5,702,434
|
2,204,796
|
1,597,653
|
Probable
|
3,269,713
|
1,148,280
|
821,846
|
Total Proved +
Probable
|
8,972,147
|
3,353,076
|
2,419,499
|
|
|
(1)
|
Advantage's light and
medium oil, conventional natural gas and natural gas liquid
reserves were evaluated using the IQRE Average Forecast effective
December 31, 2021 prior to the provision for income taxes,
interests, debt services charges and general and administrative
expenses. It should not be assumed that the discounted future net
revenue estimated by Sproule represents the fair market value of
the reserves.
|
(2)
|
Assumes that
development of reserves will occur, without regard to the likely
availability to the Corporation of funding required for that
development.
|
(3)
|
Future Net Revenue
incorporates Managements' estimates of required abandonment and
reclamation costs, including expected timing such costs will be
incurred, associated with all wells, facilities and
infrastructure.
|
(4)
|
Table may not add due
to rounding.
|
IQRE Average Forecasts
The net present value of future net revenue at December 31, 2021 was based upon light and medium
oil, conventional natural gas and natural gas liquid pricing
assumptions, which was computed by using the average of the
forecasts ("IQRE Average Forecast") prepared by McDaniel
& Associates Consultants Ltd., GLJ Petroleum Consultants and
Sproule effective December 31,
2021. These forecasts are adjusted for reserves quality,
transportation charges and the provision of any applicable sales
contracts. The price assumptions used over the next seven years are
summarized in the table below:
Year
|
Canadian
Light Sweet
Crude 40o
API
($Cdn/bbl)
|
Alberta
AECO-C Natural
Gas
($Cdn/mmbtu)
|
Edmonton Propane
($Cdn/bbl)
|
Edmonton Butane ($Cdn/bbl)
|
Edmonton Pentanes
Plus ($Cdn/bbl)
|
Exchange Rate ($US/$Cdn)
|
2022
|
86.82
|
3.56
|
43.38
|
57.49
|
91.85
|
0.80
|
2023
|
80.73
|
3.21
|
35.92
|
50.17
|
85.53
|
0.80
|
2024
|
78.01
|
3.05
|
34.62
|
48.53
|
82.98
|
0.80
|
2025
|
79.57
|
3.11
|
35.31
|
49.50
|
84.63
|
0.80
|
2026
|
81.16
|
3.17
|
36.02
|
50.49
|
86.33
|
0.80
|
2027
|
82.78
|
3.23
|
36.74
|
51.50
|
88.05
|
0.80
|
2028
|
84.44
|
3.30
|
37.47
|
52.53
|
89.82
|
0.80
|
Company Gross (before royalties) Working Interest Reserves
Reconciliation(2)
Proved
|
Light &
Medium
Crude Oil (Mbbl)
|
Conventional
Natural Gas (MMcf)
|
Natural
Gas Liquids (Mbbl)
|
Total
Oil Equivalent (Mboe)
|
Opening balance
Dec. 31, 2020
|
8,245
|
2,142,386
|
21,714
|
387,023
|
Extensions and
improved recovery
|
231
|
91,760
|
816
|
16,341
|
Technical
revisions(1)
|
180
|
21,058
|
1,216
|
4,905
|
Discoveries
|
-
|
-
|
-
|
-
|
Acquisitions
|
-
|
2,715
|
11
|
463
|
Dispositions
|
-
|
-
|
-
|
-
|
Economic
factors
|
101
|
17,646
|
191
|
3,232
|
Production
|
(402)
|
(98,444)
|
(1,238)
|
(18,048)
|
|
|
|
|
|
Closing balance at
Dec. 31, 2021
|
8,355
|
2,177,121
|
22,709
|
393,918
|
Proved Plus
Probable
|
Light &
Medium
Crude Oil (Mbbl)
|
Conventional
Natural Gas (MMcf)
|
Natural
Gas Liquids (Mbbl)
|
Total
Oil Equivalent (Mboe)
|
|
|
|
|
|
Opening balance
Dec. 31, 2020
|
14,083
|
2,929,142
|
29,760
|
532,034
|
Extensions and
improved recovery
|
4,044
|
194,885
|
2,504
|
39,030
|
Technical
revisions(1)
|
(262)
|
(22,954)
|
1,923
|
(2,165)
|
Discoveries
|
-
|
-
|
-
|
-
|
Acquisitions
|
-
|
3,463
|
13
|
590
|
Dispositions
|
-
|
-
|
-
|
-
|
Economic
factors
|
103
|
10,171
|
126
|
1,924
|
Production
|
(402)
|
(98,444)
|
(1,238)
|
(18,048)
|
|
|
|
|
|
Closing balance at
Dec. 31, 2021
|
17,566
|
3,016,263
|
33,088
|
553,365
|
|
|
(1)
|
Technical revisions
accounted for 20% of the total proved additions and 5% of the total
proved plus probable additions. Percentage of each category
calculated by dividing the technical revisions in the category by
the total reserve additions in the same category before
production.
|
(2)
|
Tables may not add
due to rounding.
|
Company 2021 FD&A Costs – Gross (before royalties)
Working Interest Reserves including FDC
(1)(2)(3)
|
Proved
|
Proved +
Probable
|
Net capital
expenditures ($000)(a)
|
148,912
|
148,912
|
Net change in FDC
($000)
|
14,087
|
80,305
|
Total capital
($000)
|
162,999
|
229,217
|
|
|
|
Total mboe, end of
year
|
393,918
|
553,365
|
Total mboe, beginning
of year
|
387,023
|
532,034
|
Production,
mboe
|
(18,047)
|
(18,047)
|
Reserve additions,
mboe
|
24,942
|
39,378
|
|
|
|
2021 FD&A costs
($/boe) (a)
|
$6.54
|
$5.82
|
2020 FD&A costs
($/boe) (a)
|
$3.63
|
$2.80
|
Three-year average
FD&A costs ($/boe) (a)
|
$4.47
|
$4.40
|
|
|
(1)
|
FD&A costs are
calculated by dividing total capital by reserve additions during
the applicable period. Total capital includes both capital
expenditures incurred and changes in FDC required to bring the
proved undeveloped and probable undeveloped reserves to production
during the applicable period. Reserves additions are calculated as
the change in reserves from the beginning to the ending of the
applicable period excluding production.
|
(2)
|
The aggregate of the
exploration and development costs incurred in the most recent
financial year and the change during that year in estimated FDC
generally will not reflect total finding and development costs
related to reserves additions for that year. Changes in forecast
FDC occur annually as a result of development activities,
acquisition and disposition activities and capital cost estimates
that reflect Sproule's best estimate of what it will cost to bring
the proved undeveloped and probable undeveloped reserves on
production.
|
(3)
|
The change in FDC is
primarily from incremental undeveloped locations.
|
The reserves by category and year-over-year changes compared to
2020 are indicated below:
Reserve
Category
|
Light &
Medium
Crude Oil Million
bbls
|
Conventional
Natural Gas Tcf
|
Natural Gas
Liquids Million
bbls
|
Total Oil
Equivalent Million
boe
|
% Change from
2020
|
PDP
|
1.25
|
0.68
|
6.44
|
121.3
|
10%
|
1P
|
8.35
|
2.18
|
22.71
|
393.9
|
2%
|
2P
|
17.57
|
3.02
|
33.09
|
553.4
|
4%
|
The total number of 2P future well locations booked in the
Sproule 2021 Reserves Report are illustrated in the following
table:
Sproule Number of
Gross Horizontal Wells Booked
|
|
Developed
|
Undeveloped
|
Total
|
Glacier
|
243
|
272
|
515
|
Valhalla
|
14
|
17
|
31
|
Wembley
|
8
|
38
|
46
|
Progress
|
6
|
12
|
18
|
Total
|
271
|
339
|
610
|
The Corporation's audited consolidated financial statements
for the fiscal year ended December 31,
2021 together with the notes thereto, and Management's
Discussion and Analysis for the year ended December 31, 2021 have been filed on SEDAR and
are available on the Corporation's website at
https://www.advantageog.com/investors/financial-reports. The
Corporation's audited consolidated financial statements for the
fiscal year ended December 31, 2020
are also available on the Corporation's website via the same
webpage. Upon request, Advantage will provide a hard copy of any
financial reports free of charge.
Advantage Energy Ltd.
2200, 440 -
2nd Avenue SW
Calgary, Alberta T2P 5E9
Phone: (403) 718-8000
Fax: (403) 718-8332
Web Site: www.advantageog.com
E-mail: ir@advantageog.com
Forward-Looking Information
and Advisory
The information in this press release contains certain
forward-looking statements, including within the meaning of
applicable securities laws. 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 "anticipate", "continue",
"demonstrate", "expect", "may", "can", "will", "believe", "would"
and similar expressions and include statements relating to, among
other things, Advantage's position, strategy and development plans
and the benefits to be derived therefrom; the Corporation's
expectations that long-term demand will likely continue to grow and
that Advantage is well positioned to continue generating
significant shareholder value; 2022 production guidance and
anticipated production rates; the Corporation's expectations that
it will have five days of downtime at Glacier in March for a plant
turnaround and to complete final construction of the Phase 1 CCS
project; anticipated gas supply shortages and elevated pricing; the
Corporation's expectations that minimal new Glacier volumes will
come onstream for the remainder of 2022; that the construction of
the trunk-line tying Advantage's oil battery to Keyera's Pipestone
Processing Facility is nearing completion and the anticipated
benefits to be derived therefrom; anticipated growth in production
at Wembley in 2022; the
anticipated number of wells to be drilled in 2022 and the
anticipated timing thereof; anticipated Wembley take-or-pay volumes in 2022 and 2023;
that the Progress compression station will come on-stream early in
the second quarter and the anticipated cost thereof and benefits to
be derived therefrom; the Corporation's hedging activities and the
benefits to be derived therefrom; that the Corporation will launch
a share buyback program and the anticipated timing thereof and
benefits to be derived therefrom; the anticipated magnitude of the
share buybacks; the anticipated timing of Mr. Ron McIntosh's retirement from the board and the
concurrent appointment of his successor; the anticipated timing of
Advantage's Indigenous Education Scholarship program and
anticipated benefits to be derived therefrom; that Advantage will
grow adjusted funds flow per share while maintaining a strong
balance sheet; the focus of Advantage's 2022 capital program;
anticipated growth in total production and relative adjusted funds
flow in 2022; the Corporation's expected growth in adjusted funds
flow; the Corporation's expectations that it will generate
significant free cash flow of over $140
million in the first half of 2022 and approach zero net debt
in the third quarter of 2022; the Corporation's expectations that
new wells will pay out in under 5 months; estimated tax pools and
the anticipated benefits to be derived therefrom; the Corporation's
expectations that it will continue to deliver clean, reliable,
sustainable energy, and contribute to a reduction in global
emissions by displacing high-carbon fuels; and Advantage's
expectations generally and with respect to its liquids development.
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, including as a result
of demand and supply effects resulting from the COVID-19 pandemic;
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; Advantage's success at
acquisition, exploitation and development of reserves; unexpected
drilling results; changes in commodity prices, currency exchange
rates, net 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 and processing
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; 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; 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; ability to access sufficient
capital from internal and external sources; that the five planned
days of downtime at Glacier in March for a plant turnaround will
not result in the construction of the Phase 1 CCS project being
completed; the trunk-line tying Advantage's oil battery to Keyera's
Pipestone Processing Facility will not provide Advantage with
access to a total of 40 mmcf/d of processing capacity in the area
once completed; that once on-stream, the Progress compressor
station will not provide the benefits as anticipated; that the
share buyback program will not provide returns to shareholders in a
tax efficient manner, improve per share metrics or help maintain an
efficient capital structure for the Corporation; and that growth in
adjusted funds flow per share with a strong balance sheet will not
maximize shareholder returns. 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
("SEDAR") 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;
the impact and duration thereof that the COVID-19 pandemic will
have on (i) the demand for crude oil, NGLs and natural gas, (ii)
the supply chain including the Corporation's ability to obtain the
equipment and services it requires, and (iii) the Corporation's
ability to produce, transport and/or sell its crude oil, NGLs and
natural gas; effects of regulation by governmental agencies;
current and future commodity prices and royalty regimes; the
Corporation's current and future hedging program; future exchange
rates; royalty rates; future operating costs; future transportation
costs and availability of product transportation capacity;
availability of skilled labor; availability of drilling and related
equipment; timing and amount of net capital expenditures; the
impact of increasing competition; the price of crude oil and
natural gas; the number of new wells required to achieve the budget
objectives; 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; current or, where applicable,
proposed assumed industry conditions, laws and regulations will
continue in effect or as anticipated; that the five planned days of
downtime at Glacier in March for a plant turnaround will allow the
Corporation to complete final construction of the Phase 1 CCS
project; that once completed, the trunk-line tying Advantage's oil
battery to Keyera's Pipestone Processing Facility will provide
Advantage with access to a total of 40 mmcf/d of processing
capacity in the area; that once on-stream, the Progress compressor
station will increase system capacity for Advantage wells and
service firm-contracted third-party volumes of 10 mmcf/d generating
$5.5 million of processing revenue on
an annualized basis; that a share buyback program will provide
returns to shareholders in a tax efficient manner, improve per
share metrics and to help maintain an efficient capital structure
for the Corporation; that growing adjusted funds flow per share
while maintaining a strong balance sheet will maximize shareholder
returns; future strip prices; and 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. Estimates of free cash flow
for 2022 are based on forward looking information from the
Corporation's Consolidated Management's Discussion & Analysis
for the quarter and year-ended December 31,
2021 ("MD&A") and can be found on page 3 of the MD&A
available on SEDAR at www.sedar.com and on the Corporation's
website at
https://www.advantageog.com/investors/financial-reports and
commodity price assumptions including average AECO $4.00/mcf, Henry Hub US$4.35/mmbtu, WTI US$78/bbl, and $US/$CDN
0.79. All forward looking estimates include current hedging
and market diversification transactions. Readers are cautioned that
the foregoing lists of factors are not exhaustive.
The future acquisition by the Corporation of the
Corporation's shares pursuant to a share buyback program, if any,
and the level thereof is uncertain. Any decision to implement a
share buyback program or acquire shares of the Corporation will be
subject to the discretion of the board of directors of the
Corporation and may depend on a variety of factors, including,
without limitation, the Corporation's business performance,
financial condition, financial requirements, growth plans, expected
capital requirements and other conditions existing at such future
time including, without limitation, contractual restrictions,
satisfaction of the solvency tests imposed on the Corporation under
applicable corporate law and receipt of regulatory approvals. There
can be no assurance that the Corporation will buyback any shares of
the Corporation in the future.
Management has included the above summary of assumptions and
risks related to forward-looking information above and in its
continuous disclosure filings on SEDAR 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
news 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.
This press release contains information that may be
considered a financial outlook under applicable securities laws
about the Corporation's potential financial position, including,
but not limited to, the Corporation's expected growth in adjusted
funds flow; the Corporation's expectations that it will generate
significant free cash flow of over $140
million in the first half of 2022 and approach zero net debt
in the third quarter of 2022; and Advantage's 2022 capital program
and its anticipated first quarter spending; all of which are
subject to numerous assumptions, risk factors, limitations and
qualifications, including those set forth in the above paragraphs.
The actual results of operations of the Corporation and the
resulting financial results will vary from the amounts set forth in
this press release and such variations may be material. This
information has been provided for illustration only and with
respect to future periods are based on budgets and forecasts that
are speculative and are subject to a variety of contingencies and
may not be appropriate for other purposes. Accordingly, these
estimates are not to be relied upon as indicative of future
results. Except as required by applicable securities laws, the
Corporation undertakes no obligation to update such financial
outlook. The financial outlook contained in this press release was
made as of the date of this press release and was provided for the
purpose of providing further information about the Corporation's
potential future business operations. Readers are cautioned that
the financial outlook contained in this press release is not
conclusive and is subject to change.
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.
Sproule was engaged as an independent qualified reserve
evaluator to evaluate Advantage's year-end reserves as of
December 31, 2021 ("Sproule 2021
Reserves Report") in accordance with National Instrument 51-101
("NI 51-101") and the Canadian Oil and Gas Evaluation Handbook
("COGE Handbook"). Reserves are stated on a gross (before
royalties) working interest basis unless otherwise indicated.
Additional details are provided in the accompanying tables to this
release and additional reserve information as required under NI
51-101 will be included in our Annual Information Form which will
be filed on SEDAR on or about February 24,
2022. The recovery and reserve estimates of reserves
provided in this news release are estimates only, and there is no
guarantee that the estimated reserves will be recovered. Actual
reserves may eventually prove to be greater than, or less than, the
estimates provided herein.
This press release discloses undeveloped drilling locations
in two categories: (i) proved locations; and (ii) probable
locations. Proved locations and probable locations are derived from
the Sproule 2021 Reserves Report and account for drilling locations
that have associated proved and/or probable reserves, as
applicable. Of the 339 total undeveloped drilling locations
identified herein, 287 are proved locations with 242 in Glacier, 15
in Valhalla, 22 in Wembley and 8 in Progress. Of the 52 probable
locations, 30 are in Glacier, 2 in Valhalla, 16 in Wembley and 4 in Progress.
References in this press release to short-term production
rates are useful in confirming the presence of hydrocarbons,
however such rates are not determinative of the rates at which such
wells will commence production and decline thereafter and are not
indicative of long term performance or of ultimate recovery.
Additionally, such rates may also include recovered "load oil"
fluids used in well completion stimulation. While encouraging,
readers are cautioned not to place reliance on such rates in
calculating the aggregate production of Advantage.
Specified Financial Measures
Throughout this news release, Advantage discloses certain
measures to analyze financial performance, financial position, and
cash flow. These non-GAAP and other financial measures do not have
any standardized meaning prescribed under IFRS and therefore may
not be comparable to similar measures presented by other entities.
The non-GAAP and other financial measures should not be considered
to be more meaningful than GAAP measures which are determined in
accordance with IFRS, such as net income (loss) and comprehensive
income (loss), cash provided by operating activities, and cash used
in investing activities, as indicators of Advantage's
performance.
Non-GAAP Financial Measures
Adjusted Funds Flow
The Corporation considers adjusted funds flow to be a useful
measure of Advantage's ability to generate cash from the production
of natural gas and liquids, which may be used to settle outstanding
debt and obligations, support future capital expenditures plans, or
return capital to shareholders. Changes in non-cash working capital
are excluded from adjusted funds flow as they may vary
significantly between periods and are not considered to be
indicative of the Corporation's operating performance as they are a
function of the timeliness of collecting receivables and paying
payables. Expenditures on decommissioning liabilities are excluded
from the calculation as the amount and timing of these expenditures
are unrelated to current production and are partially discretionary
due to the nature of our low liability. A reconciliation of the
most directly comparable financial measure has been provided
below:
|
Three months
ended December
31
|
Year
ended December
31
|
($000)
|
2021
|
2020
|
2021
|
2020
|
Cash provided by
operating activities
|
67,464
|
30,260
|
223,152
|
100,714
|
Expenditures on
decommissioning liability
|
253
|
610
|
1,033
|
1,080
|
Changes in non-cash
working capital
|
3,510
|
868
|
10,639
|
2,867
|
Adjusted funds
flow
|
71,227
|
31,738
|
234,824
|
104,661
|
Net Capital Expenditures
Net capital expenditures include total capital expenditures
related to property, plant and equipment, exploration and
evaluation assets and intangible assets. Management considers this
measure reflective of actual capital activity for the period as it
excludes changes in working capital related to other periods and
excludes cash receipts on government grants. A reconciliation of
the most directly comparable financial measure has been provided
below:
|
Three months
ended December
31
|
Year
ended December
31
|
($000)
|
2021
|
2020
|
2021
|
2020
|
Cash used in
investing activities
|
44,939
|
37,325
|
117,782
|
158,621
|
Changes in non-cash
working capital
|
13,431
|
(4,935)
|
11,564
|
(686)
|
Project funding
received
|
14
|
-
|
20,057
|
-
|
Net capital
expenditures
|
58,384
|
32,390
|
149,403
|
157,935
|
Free Cash Flow
Advantage computes free cash flow as adjusted funds flow less
net capital expenditures. Advantage uses free cash flow as an
indicator of the efficiency and liquidity of Advantage's business
by measuring its cash available after net capital expenditures to
settle outstanding debt and obligations and potentially return
capital to shareholders by paying dividends or buying back common
shares. A reconciliation of the most directly comparable financial
measure has been provided below:
|
Three months
ended December
31
|
Year
ended December
31
|
($000)
|
2021
|
2020
|
2021
|
2020
|
Cash provided by
operating activities
|
67,464
|
30,260
|
223,152
|
100,714
|
Cash used in
investing activities
|
(44,939)
|
(37,325)
|
(117,782)
|
(158,621)
|
Changes in non-cash
working capital
|
(9,921)
|
5,803
|
(925)
|
3,553
|
Expenditures on
decommissioning liability
|
253
|
610
|
1,033
|
1,080
|
Project funding
received
|
(14)
|
-
|
(20,057)
|
-
|
Free cash flow
(deficit)
|
12,843
|
(652)
|
85,421
|
(53,274)
|
Operating Netback
Operating netback is comprised of sales revenue and realized
gains (losses) on derivatives, net of expenses resulting from field
operations, including royalty expense, operating expense and
transportation expense. Operating netback provides Management and
users with a measure to compare the profitability of field
operations between companies, development areas and specific wells.
The composition of operating netback is as follows:
|
Three months
ended December
31
|
Year
ended December
31
|
($000)
|
2021
|
2020
|
2021
|
2020
|
Natural gas and
liquids sales
|
159,255
|
73,203
|
492,035
|
245,085
|
Realized losses on
derivatives
|
(37,088)
|
(2,949)
|
(74,578)
|
(4,640)
|
Royalty
expense
|
(8,928)
|
(3,067)
|
(27,530)
|
(10,474)
|
Operating
expense
|
(12,870)
|
(10,750)
|
(44,893)
|
(40,005)
|
Transportation
expense
|
(19,768)
|
(14,488)
|
(70,440)
|
(55,817)
|
Operating
netback
|
80,601
|
41,949
|
274,594
|
134,149
|
Non-GAAP Ratios
Adjusted Funds Flow per Share
Adjusted funds flow per share is derived by dividing adjusted
funds flow by the basic weighted average shares outstanding of the
Corporation. Management believes that adjusted funds flow per share
provides investors an indicator of funds generated from the
business that could be allocated to each shareholder's equity
position.
|
Three months
ended December
31
|
Year
ended December
31
|
($000, except as
otherwise indicated)
|
2021
|
2020
|
2021
|
2020
|
Adjusted funds
flow
|
71,227
|
31,738
|
234,824
|
104,661
|
Weighted average
shares outstanding (000)
|
190,829
|
188,113
|
190,077
|
187,761
|
Adjusted funds flow
per share ($/share)
|
0.37
|
0.17
|
1.24
|
0.56
|
Adjusted Funds Flow per boe
Adjusted funds flow per boe is derived by dividing adjusted
funds flow by the total production in boe for the reporting period.
Adjusted funds flow per boe is a useful ratio that allows users to
compare the Corporation's adjusted funds flow against other
competitor corporations with different rates of production.
|
Three months
ended December
31
|
Year
ended December
31
|
($000, except as
otherwise indicated)
|
2021
|
2020
|
2021
|
2020
|
Adjusted funds
flow
|
71,227
|
31,738
|
234,824
|
104,661
|
Total production
(boe/d)
|
47,940
|
43,532
|
49,445
|
44,922
|
Days in
period
|
92
|
92
|
365
|
366
|
Total production (000
boe)
|
4,410
|
4,005
|
18,047
|
16,441
|
Adjusted funds flow
per boe ($/boe)
|
16.15
|
7.92
|
13.01
|
6.37
|
Operating netback per boe
Operating netback per boe is derived by dividing each
component of the operating netback by the total production in boe
for the reporting period. Operating netback per boe provides
Management and users with a measure to compare the profitability of
field operations between companies, development areas and specific
wells against other competitor corporations with different rates of
production.
|
Three months
ended December
31
|
Year
ended December
31
|
($000, except as
otherwise indicated)
|
2021
|
2020
|
2021
|
2020
|
Operating
netback
|
80,600
|
41,949
|
274,593
|
134,149
|
|
|
|
|
|
Total production
(boe/d)
|
47,940
|
43,532
|
49,445
|
44,922
|
Days in
period
|
92
|
92
|
365
|
366
|
Total production (000
boe)
|
4,410
|
4,005
|
18,047
|
16,441
|
Operating
netback per boe ($/boe)
|
18.28
|
10.47
|
15.21
|
8.17
|
Payout Ratio
Payout ratio is calculated by dividing net capital
expenditures by adjusted funds flow. Advantage uses payout ratio as
an indicator of the efficiency and liquidity of Advantage's
business by measuring its cash available after net capital
expenditures to settle outstanding debt and obligations and
potentially return capital to shareholders by paying dividends or
buying back common shares.
|
Three months
ended December
31
|
Year
ended December
31
|
($000, except as
otherwise indicated)
|
2021
|
2020
|
2021
|
2020
|
Net capital
expenditures
|
58,384
|
32,390
|
149,403
|
157,935
|
Adjusted funds
flow
|
71,227
|
31,738
|
234,824
|
104,661
|
Payout
ratio
|
0.8
|
1.0
|
0.6
|
1.5
|
Net Debt to Adjusted Funds Flow Ratio
Net debt to adjusted funds flow is calculated by dividing net
debt by adjusted fund flow for the previous four quarters. Net debt
to adjusted funds flow is a coverage ratio that provides Management
and users the ability to determine how long it would take the
Corporation to repay its bank indebtedness if it devoted all its
adjusted funds flow to debt repayment.
|
Year
ended December
31
|
($000, except as
otherwise indicated)
|
2021
|
2020
|
Net Debt
|
165,253
|
251,397
|
Adjusted funds flow
(prior four quarters)
|
234,824
|
104,661
|
Net debt to adjusted
funds flow ratio
|
0.7
|
2.4
|
Finding, Development and Acquisition Costs
("FD&A")
FD&A cost is calculated based on adding net capital
expenditures and the net change in future development capital
("FDC"), divided by reserve additions for the year from the Sproule
2021 and 2020 Reserves Report.
Payout
The point at which all costs associated with a well are
recovered from the operating netback of the
well. Payout is considered by management to be a useful
performance measure as a common metric used to evaluate capital
allocation decisions.
Capital Efficiency
Capital efficiency is calculated by dividing net capital
expenditures by the average production additions of the applicable
year to replace the corporate decline rate and deliver production
growth, expressed in $/boe/d. Capital efficiency is considered by
management to be a useful performance measure as a common metric
used to evaluate the efficiency with which capital activity is
allocated to achieve production additions.
Recycle Ratio
Recycle ratio is calculated by dividing Advantage's fourth
quarter operating netback by the calculated FD&A cost of the
applicable year and expressed as a ratio. Management uses recycle
ratio to relate the cost of adding reserves to the expected
operating netback to be generated.
Capital Management Measures
Working Capital
Working capital is a capital management financial measure
that provides Management and users with a measure of the
Corporation's short-term operating liquidity. By excluding short
term derivatives and the current portion of provision and other
liabilities, Management and users can determine if the
Corporation's energy operations are sufficient to cover the
short-term operating requirements. Working capital is not a
standardized measure and therefore may not be comparable with the
calculation of similar measures by other entities.
A summary of working capital as at December 31, 2021 and 2020 is as follows:
|
December
31 2021
|
December
31 2020
|
Cash and cash
equivalents
|
25,238
|
3,279
|
Trade and other
receivables
|
54,769
|
28,491
|
Prepaid expenses and
deposits
|
3,483
|
2,021
|
Trade and other
accrued liabilities
|
(81,398)
|
(38,083)
|
Working capital
surplus (deficit)
|
2,092
|
(4,292)
|
Net Debt
Net debt is a capital management financial measure that
provides Management and users with a measure to assess the
Corporation's liquidity. Net debt is not a standardized measure and
therefore may not be comparable with the calculation of similar
measures by other entities.
A summary of the reconciliation of net debt as at
December 31, 2021 and 2020 is as
follows:
|
December
31 2021
|
December
31 2020
|
Bank indebtedness
(non-current)
|
167,345
|
247,105
|
Working capital
(surplus) deficit
|
(2,092)
|
4,292
|
Net
debt
|
165,253
|
251,397
|
Supplementary financial measures
Corporate Decline Rate
Corporate decline rate is calculated by identifying the
actual or forecasted production of all the wells onstream at the
start of the year, then tracking their cumulative decline by the
end of the year, expressed as a percentage.
Reserve additions replaced
Reserve additions replaced is calculated by dividing reserves
net volume additions by the current annual production and expressed
as a percentage. Management uses this measure to determine the
relative change of its reserves base over a period of time.
Reserves life index
Reserves life index is calculated by dividing the total
volume of reserves by the fourth quarter production rate and
expressed in years.
"Average realized prices (including realized derivatives)
natural gas" is comprised of natural gas sales, as determined in
accordance with IFRS, divided by the Company's natural gas
production.
"Average realized prices (including realized derivatives)
liquids" is comprised of crude oil, condensate and NGL's sales, as
determined in accordance with IFRS, divided by the Company's crude
oil, condensate and NGL's production.
"Natural gas and liquids sales per boe" is comprised of
natural gas sales and liquids sales, as determined in accordance
with IFRS, divided by the Corporation's total natural gas and
liquids production.
"Operating expense per boe" is comprised of operating
expense, as determined in accordance with IFRS, divided by the
Company's total production.
"Realized losses on derivatives per boe" is comprised of
realized losses on derivatives, as determined in accordance with
IFRS, divided by the Company's total production.
"Royalty expense per boe" is comprised of royalty expense, as
determined in accordance with IFRS, divided by the Company's total
production.
"Transportation expense per boe" is comprised of
transportation expense, as determined in accordance with IFRS,
divided by the Company's total production.
The following abbreviations used in this press release
have the meanings set forth below:
bbl
|
one
barrel
|
bbls
|
barrels
|
bbls/d
|
barrels per
day
|
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
|
boe/d
|
barrels of oil
equivalent of natural gas per day
|
mbbl
|
thousand
barrels
|
mboe
|
thousand barrels
of oil equivalent of natural gas
|
mcf
|
thousand cubic
feet
|
mcf/d
|
thousand 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
|
mmcf
|
million cubic
feet
|
mmcf/d
|
million cubic feet
per day
|
mmbtu
|
million British
thermal units
|
mmcfe/d
|
million cubic feet
equivalent per day
|
tcf
|
trillion cubic
feet
|
tcfe
|
trillion cubic
feet equivalent
|
Liquids
|
Includes NGLs,
condensate and crude oil
|
NGLs and
condensate
|
Natural Gas
Liquids as defined in National Instrument 51-101
|
Natural
Gas
|
Conventional
Natural Gas as defined in National Instrument 51-101
|
Crude
Oil
|
Light Crude Oil
and Medium Crude Oil as defined in National Instrument 51-
101
|
SOURCE Advantage Energy Ltd.