Crew Energy Inc. - Announces 2013 Year End Reserves
CALGARY, ALBERTA--(Marketwired - Feb 18, 2014) - Crew Energy
Inc. (TSX:CR) of Calgary, Alberta ("Crew" or the "Company") is
pleased to announce the results of its independent reserve
evaluation for the year ended December 31, 2013 as prepared by
Sproule Associates Ltd. ("Sproule").
2013
HIGHLIGHTS
- Achieved finding and development ("F&D") costs of $9.05 per
boe on proved plus probable reserves, including changes in future
development capital, resulting in a recycle ratio of 2.4
times;
- Achieved all-in finding, development and acquisition
("FD&A") costs of $9.65 per boe on proved plus probable
reserves, including changes in future development capital,
resulting in a recycle ratio of 2.3 times;
- Proved reserves increased 35% to 115.2 mmboe after production
of 10.0 mmboe and net acquisitions of 2.4 mmboe. Proved reserves
per share also increased 35%;
- Proved plus probable reserves increased 29% to 197.3 mmboe
after production of 10.0 mmboe and net acquisitions of 6.2 mmboe.
Proved plus probable reserves per share increased 28%;
- Generated a proved plus probable reserve replacement ratio on
production of 543% and a proved reserve replacement ratio on
production of 401%;
- Crew's Septimus Montney program achieved F&D costs of $6.38
per boe on proved plus probable reserves, including changes in
future development capital resulting in a recycle ratio of 3.1
times;
- Proved plus probable reserves at Crew's Septimus Montney
property increased 82% year over year. Average proved plus probable
undeveloped Montney natural gas reserves increased to 4.3 bcf per
well from 3.2 bcf per well in 2012 and 2.6 bcf per well in
2011;
- Proved plus probable reserves at Crew's Lloydminster property
increased 18% over 2012 as a result of a successful 2013 drilling
and recompletion program;
- Crew's net asset value increased 17% over 2012 to $13.99 per
share (reserves net present value discounted at 10%).
- Crew achieved its targeted exit production range with December
2013 production averaging 29,300 boe per day while fourth quarter
production averaged 28,682 boe per day.
RESERVES
The reserves data set forth below is based upon an independent
reserves assessment and evaluation prepared by Sproule with an
effective date of December 31, 2013 (the "Sproule Report"). The
following presentation summarizes the Company's crude oil, natural
gas liquids and natural gas reserves and the net present values
before income tax of future net revenue for the Company's reserves
using forecast prices and costs based on the Sproule Report. The
Sproule Report has been prepared in accordance with definitions,
standards, and procedures contained in the COGE Handbook and NI
51-101. The reserves evaluation was based on Sproule forecast
escalated pricing and foreign exchange rates at December 31, 2013
as outlined in the table herein entitled "Price Forecast".
All evaluations and summaries of future net revenue are stated
prior to any provisions for interest costs or general and
administrative costs and after the deduction of estimated future
capital expenditures for wells to which reserves have been
assigned. It should not be assumed that the estimates of future net
revenues presented in the tables below represent the fair market
value of the reserves. There is no assurance that the forecast
prices and cost assumptions will be attained and variances could be
material. The recovery and reserve estimates of our crude oil,
natural gas liquids and natural gas reserves provided herein are
estimates only and there is no guarantee that the estimated
reserves will be recovered. Actual crude oil, natural gas and
natural gas liquids reserves may be greater than or less than the
estimates provided herein. Reserves included herein are stated on a
company gross basis (working interest before deduction of royalties
without including any royalty interests) unless noted otherwise. In
addition to the detailed information disclosed in this news
release, more detailed information will be included in the
Company's Annual Information Form (the "AIF") which will be filed
on the Company's profile at www.sedar.com in March 2014.
See "Information Regarding Disclosure on Oil and Gas Reserves
and Operational Information" for additional cautionary language,
explanations and discussions and "Forward Looking Information and
Statements" for a statement of principal assumptions and risks that
may apply.
Reserves Summary
In 2013, the Company's total proved plus probable reserves
increased to 197.3 mmboe while proved reserves increased to 115.2
mmboe. The year over year growth in proved plus probable reserves
of 29% was achieved after 10.0 mmboe of 2013 production. Of the
increase in proved plus probable reserves, pool extensions and
improved recoveries accounted for 25.6 mmboe which was concentrated
at Crew's Septimus Montney property in northeast British Columbia.
In the Sproule Report, approximately 298 undeveloped locations are
booked in Crew's four core areas out of an inventory of over 2,500
potential drilling locations.
Northeast British Columbia Montney
At Crew's Septimus Montney property, proved plus probable
reserves increased 82% to 84.7 mmboe. The majority of this increase
occurred in the proved producing category recognizing better type
well performance as a result of improved completion techniques and
infrastructure enhancements. At Septimus, average proved plus
probable undeveloped Montney reserves increased to 4.3 bcf per well
from 3.2 bcf per well in 2012 and 2.6 bcf per well in 2011. Crew
currently has 69 undeveloped locations booked at Septimus at an
average proved plus probable reserve booking of 772 mboe per
location (15% ngls), with 52 of those locations booked in the
proved undeveloped category. The Company plans on drilling 14 net
wells targeting liquids rich natural gas in northeast British
Columbia in 2014.
At Tower, Crew drilled one well in 2013 and has booked proved
plus probable reserves per well of 155 mboe (60% liquids) from six
(4.6 net) locations. Evolving drilling and completion practices
continue to improve the estimated ultimate recoveries of this play.
The Company has over 130 sections of land that are prospective for
Montney oil production.
Deep Basin, Alberta
Proved plus probable reserves are unchanged after accounting for
production. Crew plans to drill one Falher well in 2014 while the
well drilled in 2012 continues to produce at over 10 mmcf per day
surpassing the previously booked type curve. The Company has 98
undeveloped Cardium locations booked in this area.
Princess, Alberta
Proved plus probable reserves decreased 5% to 22.7 mmboe after
accounting for production. The Company's limited 2013 capital
spending at Princess was focused on waterflood optimization in the
Pekisko and drilling on Crew's developing Mannville play. Crew
currently has 40 undeveloped locations booked at Princess with 22
of those locations booked in the Mannville. The average undeveloped
proved plus probable reserve booking in the Mannville oil play is
95 mboe per well. Crew plans to drill 16 net wells targeting
Mannville oil in 2014.
Lloydminster, Alberta/Saskatchewan
Proved plus probable reserves increased 18% to 12,452 mboe,
reflecting the successful 2013 drilling and recompletion program.
Crew currently has 62 undeveloped locations booked at Lloydminster
with 22 of those locations horizontal. The average undeveloped
proved plus probable horizontal booking is 61 mbbls per location
with vertical undeveloped proved plus probable reserve booking at
42 mbbls per location. Crew plans to drill 14 net horizontal and 11
net vertical wells at Lloydminster in 2014.
The following table provides summary reserve information based
upon the Sproule Report and using the published Sproule
(2013-12-31) price forecast.
|
Oil (3) |
Natural Gas Liquids |
Natural gas |
Barrels of oil equivalent(2) |
|
Gross(1) |
Gross(1) |
Gross(1) |
Gross(1) |
(mbbl) |
(mbbl) |
(mmcf) |
(mboe) |
Proved |
|
|
|
|
|
Producing |
10,015 |
6,185 |
165,775 |
43,829 |
|
Non-producing |
2,410 |
181 |
4,733 |
3,379 |
|
Undeveloped |
7,566 |
11,790 |
291,966 |
68,017 |
Total proved |
19,990 |
18,155 |
462,474 |
115,224 |
Probable |
14,430 |
13,195 |
326,722 |
82,078 |
Total proved plus probable |
34,420 |
31,350 |
789,198 |
197,302 |
|
Notes: |
(1) |
"Gross" reserves means Crew's working interest (operating and
non-operating) share before deduction of royalties and without
including any royalty interest of the Company. |
(2) |
Oil
equivalent amounts have been calculated using a conversion rate of
six thousand cubic feet of natural gas to one barrel of oil. |
(3) |
Includes light, medium, and heavy oil. See the Company's AIF for
detailed product type categorization. |
(4) |
May
not add due to rounding. |
Reserves Values
The estimated before tax future net revenues associated with
Crew's reserves effective December 31, 2013 and based on the
Sproule Report and the published Sproule (2013-12-31) future price
forecast are summarized in the following table:
(MM$) |
0% |
5% |
10% |
15% |
20% |
|
|
|
|
|
|
Proved |
|
|
|
|
|
|
Producing |
932,722 |
749,116 |
633,020 |
553,488 |
495,649 |
|
Non-producing |
102,317 |
80,409 |
65,937 |
55,769 |
48,281 |
|
Undeveloped |
1,095,908 |
647,576 |
406,710 |
264,723 |
174,885 |
Total proved |
2,130,947 |
1,477,102 |
1,105,668 |
873,980 |
718,816 |
Probable |
2,064,605 |
1,116,771 |
712,425 |
500,738 |
373,551 |
Total proved plus probable |
4,195,552 |
2,593,873 |
1,818,094 |
1,374,718 |
1,092,367 |
|
|
|
|
|
|
Notes: |
(1) |
The
estimated future net revenues are stated before deducting future
estimated site restoration costs and are reduced for estimated
future abandonment costs and estimated capital for future
development associated with the reserves. |
(2) |
See
the Company's AIF for the after-tax present values of future net
revenue attributed to Crew's reserves. |
(3) |
May
not add due to rounding. |
Price Forecast
The Sproule (2013-12-31) price forecast is summarized as
follows:
Year |
$US/$Cdn Exchange Rate |
WTI @ Cushing |
Edmonton light crude oil |
Western Canada Select |
Natural gas AECO/NIT spot |
Westcoast Station 2 |
|
|
(US$/bbl) |
(C$/bbl) |
(C$/bbl) |
(C$/mmbtu) |
(C$/mmbtu) |
2014 |
0.940 |
94.65 |
92.64 |
77.81 |
4.00 |
3.95 |
2015 |
0.940 |
88.37 |
89.31 |
75.02 |
3.99 |
3.94 |
2016 |
0.940 |
84.25 |
89.63 |
75.29 |
4.00 |
3.95 |
2017 |
0.940 |
95.52 |
101.62 |
85.36 |
4.93 |
4.88 |
2018 |
0.940 |
96.96 |
103.14 |
86.64 |
5.01 |
4.96 |
2019 |
0.940 |
98.41 |
104.69 |
87.94 |
5.09 |
5.04 |
2020 |
0.940 |
99.89 |
106.26 |
89.26 |
5.18 |
5.13 |
2021 |
0.940 |
101.38 |
107.86 |
90.60 |
5.26 |
5.21 |
2022 |
0.940 |
102.91 |
109.47 |
91.96 |
5.35 |
5.30 |
2023 |
0.940 |
104.45 |
111.12 |
93.34 |
5.43 |
5.38 |
2024 |
0.940 |
106.02 |
112.78 |
94.74 |
5.52 |
5.47 |
2025 + |
0.940 |
1.5%/yr |
1.5%/yr |
1.5%/yr |
1.5%/yr |
1.5%/yr |
|
Notes: |
(1) |
Inflation is accounted for at 1.5% per year. |
Reserves Reconciliation
The following summary reconciliation of Crew's gross reserves
compares changes in the Company's reserves as at December 31, 2013
to the reserves as at December 31, 2012 based on the Sproule
(2013-12-31) future price forecast.
TOTAL PROVED |
Oil (mbbls) (1) |
|
NGL's (mbbls) |
|
Natural Gas (mmcf) |
|
Oil Equivalent (mboe) |
|
Opening Balance |
20,617 |
|
14,483 |
|
299,922 |
|
85,087 |
|
Extensions & Improved Recovery |
2,601 |
|
841 |
|
47,372 |
|
11,337 |
|
Infill Drilling |
1,008 |
|
1,388 |
|
84,175 |
|
16,425 |
|
Technical Revisions |
(441 |
) |
2,074 |
|
52,366 |
|
10,361 |
|
Acquisitions |
0 |
|
556 |
|
14,785 |
|
3,020 |
|
Dispositions |
(68 |
) |
(102 |
) |
(2,625 |
) |
(608 |
) |
Economic Factors |
78 |
|
(1 |
) |
(2,790 |
) |
(387 |
) |
Production |
(3,805 |
) |
(1,084 |
) |
(30,731 |
) |
(10,011 |
) |
Closing Balance |
19,990 |
|
18,155 |
|
462,474 |
|
115,224 |
|
|
|
|
|
|
|
|
|
|
PROVED PLUS PROBABLE |
Oil (mbbls) (1) |
|
NGL's (mbbls) |
|
Natural Gas (mmcf) |
|
Oil Equivalent (mboe) |
|
Opening Balance |
34,691 |
|
25,794 |
|
554,945 |
|
152,976 |
|
Extensions & Improved Recovery |
4,519 |
|
2,462 |
|
111,933 |
|
25,636 |
|
Infill Drilling |
1,849 |
|
2,027 |
|
123,148 |
|
24,401 |
|
Technical Revisions |
(2,800 |
) |
939 |
|
(1,631 |
) |
(2,132 |
) |
Acquisitions |
0 |
|
1,393 |
|
37,003 |
|
7,560 |
|
Dispositions |
(166 |
) |
(202 |
) |
(5,872 |
) |
(1,347 |
) |
Economic Factors |
132 |
|
20 |
|
403 |
|
219 |
|
Production |
(3,805 |
) |
(1,084 |
) |
(30,731 |
) |
(10,011 |
) |
Closing Balance |
34,420 |
|
31,349 |
|
789,198 |
|
197,302 |
|
|
Notes: |
(1) |
Includes light, medium, and heavy oil. See the Company's AIF for
detailed product type categorization. |
(2) |
May
not add due to rounding |
Capital Program Efficiency
During 2013, Crew's capital expenditures (unaudited), net of
acquisitions and dispositions, resulted in proved plus probable
reserve additions of 54.3 mmboe at a net FD&A cost of $9.65 per
boe including changes in future development capital ("FDC"). Proved
reserve additions in 2013 were 40.1 mmboe which were added at a net
FD&A cost of $12.28 per boe including changes in FDC.
The efficiency of the Company's capital program for the year
ended December 31, 2013 and historical comparatives are summarized
below.
|
2013 |
|
2012 |
|
Three Year 2013-2011 |
|
Proved |
|
Proved plus Probable |
|
Proved |
|
Proved plus Probable |
|
Proved |
Proved plus Probable |
|
|
|
|
|
|
|
|
|
|
|
Exploration and Development expenditures(2) ($
thousands) |
220,034 |
|
220,034 |
|
258,791 |
|
258,791 |
|
854,699 |
854,699 |
Acquisitions/ (Dispositions) (1) ($ thousands) |
40,218 |
|
40,218 |
|
(96,557 |
) |
(96,557 |
) |
485,988 |
485,988 |
Change in future development capital (2) ($
thousands) |
|
|
|
|
|
|
|
|
|
|
|
-
Exploration and Development |
211,741 |
|
215,403 |
|
167,932 |
|
168,815 |
|
421,667 |
561,083 |
|
- Acquisitions/ Dispositions |
21,101 |
|
48,815 |
|
(34,940 |
) |
(119,180 |
) |
94,177 |
136,760 |
Reserves additions with revisions and economic factors
(Mboe) |
|
|
|
|
|
|
|
|
|
|
|
-
Exploration and Development |
37,736 |
|
48,124 |
|
22,777 |
|
36,504 |
|
77,902 |
115,534 |
|
- Acquisitions/ Dispositions |
2,412 |
|
6,213 |
|
(3,090 |
) |
(10,579 |
) |
20,272 |
35,624 |
|
40,148 |
|
54,337 |
|
19,687 |
|
25,925 |
|
98,174 |
151,158 |
|
|
|
|
|
|
|
|
|
|
|
Finding & Development Costs(2 & 3)($/boe) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
with revisions and economic factors |
11.44 |
|
9.05 |
|
18.73 |
|
11.71 |
|
16.27 |
12.25 |
|
|
|
|
|
|
|
|
|
|
|
Finding, Development & Acquisition Costs (3 &
4) ($/boe) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
with revisions and economic factors |
12.28 |
|
9.65 |
|
15.00 |
|
8.17 |
|
18.82 |
13.49 |
|
|
|
|
|
|
|
|
|
|
|
Recycle Ratio(5) (F,D,&A) |
1.8 |
|
2.3 |
|
1.5 |
|
2.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserves Replacement |
401 |
% |
543 |
% |
193 |
% |
254 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve Life Index based on annualized 2013 fourth
quarter production (years) |
11.0 |
|
18.9 |
|
8.6 |
|
15.5 |
|
|
|
|
|
(1) |
Acquisition costs related to the 2011 corporate acquisition of
Caltex reflects the consideration paid for the shares acquired plus
the net debt assumed, both valued at closing and does not reflect
the fair market value allocated to the acquired oil and gas assets
under International Financial Reporting Standards ("IFRS").
Acquisition costs in 2013 related to the announced Montney acreage
acquisition referenced in the July 9, 2013 press release. |
(2) |
The
aggregate of the exploration and development costs incurred in the
most recent financial year and the change during that year in
estimated future development costs generally will not reflect total
finding and development costs related to reserve additions for that
year. |
(3) |
Calculation includes changes in future development costs. |
(4) |
Crew calculates FD&A costs which incorporate both the costs and
associated reserve additions related to acquisitions net of any
dispositions during the year. Since acquisitions and divestitures
have had a significant impact on Crew's annual reserve replacement
costs, the Company believes that FD&A costs provide a
meaningful portrayal of Crew's cost structure. |
(5) |
The
2013 recycle ratio is calculated using the Company's Q4 2013
operating net back of $22.12 per boe (unaudited) which includes
commodity related hedging gains and losses for the quarter. |
Future Development Capital
The following table provides a summary of future development
capital based upon the Sproule Report.
|
Total |
Total Proved |
Future Development Capital ($thousands) |
Proved |
+ Probable |
2014 |
141,312 |
183,702 |
2015 |
118,176 |
233,412 |
2016 |
155,716 |
228,795 |
2017 |
136,566 |
178,547 |
2018 |
33,910 |
33,979 |
Remainder |
100,926 |
136,865 |
Total undiscounted |
686,606 |
995,300 |
Net Asset Value
The following table provides a calculation of Crew's estimated
net asset value at December 31, 2013 based on the estimated future
net revenues associated with Crew's proved plus probable reserves
before income tax as presented in the Sproule Report and including
Crew's internal assessment of undeveloped land values.
|
5% |
|
10% |
|
|
Discount |
|
Discount |
|
($
thousands) |
|
|
|
|
Proved plus probable reserves |
2,593,873 |
|
1,818,094 |
|
Undeveloped Land (1) |
297,330 |
|
297,330 |
|
Long-term debt as at December 31, 2013 (2) |
(343,311 |
) |
(343,311 |
) |
Estimated working capital deficiency as at December 31, 2013
(2&3) |
(40,103 |
) |
(40,103 |
) |
Proceeds from dilutive stock options |
15,035 |
|
15,035 |
|
Net asset value |
2,522,824 |
|
1,747,045 |
|
|
|
|
|
|
Diluted Common shares outstanding (thousands) |
124,891 |
|
124,891 |
|
Net asset value per share |
$20.20 |
|
$13.99 |
|
|
Notes: |
(1) |
Based
upon an internal evaluation of the fair market value of the
Company's undeveloped land holdings as at December 31, 2013, which
evaluation was completed principally using industry activity
levels, third party transactions and land acquisitions that
occurred in proximity to the Company's undeveloped lands during the
past year. |
(2) |
Figures include estimated information based on unaudited financial
results that may change. |
(3) |
Working capital deficiency includes an estimate of the Company's
accounts receivable less accounts payable and accrued liabilities
as at December 31, 2013. |
2014 Guidance
In December, Crew provided details of the Company's 2014 budget
including forecast average production of 29,500 to 30,500 boe per
day and exit production of 31,500 to 32,500 boe per day based upon
planned exploration and development capital expenditures of $246
million to facilitate the initial phases of the Company's five year
Montney development plan. Crew achieved its exit guidance with
December 2013 average production of 29,300 boe per day and average
fourth quarter 2013 production of 28,682 boe per day. Exploration
and development capital expenditures of $220 million were on budget
in 2013. For detailed information regarding our 2014 capital
program, please see our press release dated December 16, 2013.
CAUTIONARY
STATEMENTS
Unaudited financial information
Certain financial and operating information included in this
press release for the quarter and year ended December 31, 2013,
including finding and development costs and net asset value, are
based on estimated unaudited financial results for the quarter and
year then ended, and are subject to the same limitations as
discussed under Forward Looking Information set out below. These
estimated amounts may change upon the completion of audited
financial statements for the year ended December 31, 2013 and
changes could be material.
Information Regarding Disclosure on Oil and Gas Reserves and
Operational Information
Our oil and gas reserves statement for the year ended
December 31, 2013, which will include complete disclosure of our
oil and gas reserves and other oil and gas information in
accordance with NI 51-101, will be contained within our Annual
Information Form which will be available on our SEDAR profile at
www.sedar.com. The recovery and reserve estimates contained herein
are estimates only and there is no guarantee that the estimated
reserves will be recovered. In relation to the disclosure of
estimates for individual properties, such estimates may not reflect
the same confidence level as estimates of reserves and future net
revenue for all properties, due to the effects of aggregation.
The Company's belief that it will establish additional reserves
over time with conversion of probable undeveloped reserves into
proved reserves is a forward-looking statement and is based on
certain assumptions and is subject to certain risks, as discussed
below under the heading "Forward-Looking Information and
Statements".
In relation to the disclosure of net asset value
("NAV"), the NAV table shows what is normally
referred to as a "produce-out" NAV calculation under which the
current value of the Company's reserves would be produced at
forecast future prices and costs and do not necessarily represent a
"going concern" value of the Company. The value is a snapshot in
time and is based on various assumptions including commodity price
forecasts and foreign exchange rates that vary over time. It should
not be assumed that the future net revenues estimated by Sproule
represent the fair market value of the reserves, nor should it be
assumed that Crew's internally estimated value of its undeveloped
land holdings represent the fair market value of the
lands.
Resource Estimates
This news release contains references to estimates of oil
and gas classified as Total Petroleum Initially In Place ("TPIIP")
in the Septimus area of Crew's operations in northeastern British
Columbia which are not, and should not be confused with, oil and
gas reserves. Such estimates are based upon independent resource
evaluations effective as at April 30, 2013 and May 31, 2013,
respectively, prepared in accordance with the Canadian Oil and Gas
Evaluation Handbook. Such estimates are subject to a number of
cautionary statements, assumptions, risks, positive and negative
factors relevant to the estimates and contingencies, the details of
which were set forth in Crew's previously disseminated press
release dated July 9, 2013. Accordingly, readers are referred to
and encouraged to review the sections entitled "Montney Resource
Evaluation", "Definitions of Oil and Gas Resources and Reserves"
and "Information Regarding Disclosure on Oil and Gas Reserves,
Resources and Operational Information" in the July 9, 2013 press
release for applicable definitions, cautionary language,
explanations and discussion of resources estimated herein, all of
which is incorporated herein by reference.
Forward-looking information and statements
This news release contains certain forward-looking
information and statements within the meaning of applicable
securities laws. The use of any of the words "expect",
"anticipate", "continue", "estimate", "may", "will", "project",
"should", "believe", "plans", "intends" and similar expressions are
intended to identify forward-looking information or
statements. In particular, but without limiting the
foregoing, this news release contains forward-looking information
and statements pertaining to the following: the recognition of
significant additional reserves under the heading "Reserves", the
volumes and estimated value of Crew's oil and gas reserves; the
life of Crew's reserves; the volume and product mix of Crew's oil
and gas production; future oil and natural gas prices and Crew's
commodity risk management program; future results from operations
and operating metrics, future development, exploration, acquisition
and development activities (including drilling plans) and related
production including 2014 average and exit production forecasts and
reserves expectations.
The recovery and reserve estimates of Crew's reserves and
resources provided herein are estimates only and there is no
guarantee that the estimated reserves or resources with be
recovered. In addition, forward-looking statements or information
are based on a number of material factors, expectations or
assumptions of Crew which have been used to develop such statements
and information but which may prove to be incorrect. Although Crew
believes that the expectations reflected in such forward-looking
statements or information are reasonable, undue reliance should not
be placed on forward-looking statements because Crew can give no
assurance that such expectations will prove to be correct. In
addition to other factors and assumptions which may be identified
herein, assumptions have been made regarding, among other things:
that Crew will continue to conduct its operations in a manner
consistent with past operations; results from drilling and
development activities consistent with past operations; the quality
of the reservoirs in which Crew operates and continued performance
from existing wells; the continued and timely development of
infrastructure in areas of new production; the accuracy of the
estimates of Crew's reserve volumes; continued availability of debt
and equity financing and cash flow to fund Crew's current and
future plans and expenditures; the impact of increasing
competition; the general stability of the economic and political
environment in which Crew operates; the general continuance of
current industry conditions; the timely receipt of any required
regulatory approvals; the ability of Crew to obtain qualified
staff, equipment and services in a timely and cost efficient
manner; drilling results; the ability of the operator of the
projects in which Crew has an interest in to operate the field in a
safe, efficient and effective manner; the ability of Crew to obtain
financing on acceptable terms; field production rates and decline
rates; the ability to replace and expand oil and natural gas
reserves through acquisition, development and exploration; the
timing and cost of pipeline, storage and facility construction and
expansion and the ability of Crew to secure adequate product
transportation; future commodity prices; currency, exchange and
interest rates; regulatory framework regarding royalties, taxes and
environmental matters in the jurisdictions in which Crew operates;
and the ability of Crew to successfully market its oil and natural
gas products.
The forward-looking information and statements included in
this news release are not guarantees of future performance and
should not be unduly relied upon. Such information and statement,
including the assumptions made in respect thereof, involve known
and unknown risks, uncertainties and other factors that may cause
actual results or events to defer materially from those anticipated
in such forward-looking information or statements including,
without limitation: changes in commodity prices; changes in the
demand for or supply of Crew's products, the early stage of
development of some of the evaluated areas; the potential for
variation in the quality of the Montney formation; unanticipated
operating results or production declines; changes in tax or
environmental laws, royalty rates or other regulatory matters;
changes in development plans of Crew or by third party operators of
Crew's properties, increased debt levels or debt service
requirements; inaccurate estimation of Crew's oil and gas reserve
and resource volumes; limited, unfavourable or a lack of access to
capital markets; increased costs; a lack of adequate insurance
coverage; the impact of competitors; and certain other risks
detailed from time-to-time in Crew's public disclosure documents,
(including, without limitation, those risks identified in this news
release and Crew's Annual Information Form).
The forward-looking information and statements contained in
this news release speak only as of the date of this news release,
and Crew does not assume any obligation to publicly update or
revise any of the included forward-looking statements or
information, whether as a result of new information, future events
or otherwise, except as may be required by applicable securities
laws.
BOE equivalent
Barrel of oil equivalents or BOEs may be misleading,
particularly if used in isolation. A BOE 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 ration based on
the current price of crude oil as compared to natural gas is
significantly different than the energy equivalency of the 6:1
conversion ratio, utilizing the 6:1 ratio may be misleading as an
indication of value.
Crew is a Calgary, Alberta based oil and gas exploration,
development and production company whose shares are traded on The
Toronto Stock Exchange under the trading symbol "CR".
Crew Energy Inc.Dale ShwedPresident and C.E.O.(403) 231-8850Crew
Energy Inc.John LeachSenior Vice President and C.F.O.(403)
231-8859Crew Energy Inc.Rob MorganSenior Vice President and
C.O.O.(403) 513-9628www.crewenergy.com
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