BLACKPEARL ANNOUNCES ONION LAKE CONSTRUCTION UPDATE, PROVIDES Q4
PRODUCTION DATA AND 2017 YEAR-END RESERVES AND CONTINGENT RESOURCE
ESTIMATES
CALGARY, ALBERTA – BlackPearl Resources
Inc. (“we”, “our”, “us”, “BlackPearl” or the “Company”)
(TSX: PXX) (NASDAQ Stockholm: PXXS) is pleased to provide a
construction update on its Onion Lake thermal expansion project and
Q4 2017 production information, as well as, announce the results of
its 2017 independent year-end oil and gas reserve and resource
evaluation.
Highlights and accomplishments included:
- Construction of the Phase 2 expansion of the Onion Lake thermal
project is ahead of schedule and within budget. Commissioning of
the facilities has begun and steam injection is expected to begin
in February.
- Q4 2017 production averaged 10,600 boe/day; full year
production averaged 10,199 boe/day.
- 24% year over year increase in total proved (1P) reserves to
94.4 mmbbls. The increase primarily reflects positive technical
revisions due to the performance from Phase 1 of the Onion
Lake thermal project as well as an increase in the Onion Lake
thermal development area to which reserves were assigned.
- 48% increase in net present value, before tax, discounted at
10% of our 1P reserves to $1.1 billion, or $3.23 per common
share.
- 1P reserve additions replaced 583% of 2017 production.
- Net present value, before tax, discounted at 10% of our proved
plus probable (2P) reserves was $2 billion, or $6.00 per common
share. This value is comparable to 2016 despite a 48% drop in 2P
reserve volumes. The decrease in 2P reserve volumes was due to the
previously announced reclassification of the probable reserves to
resources associated with the first phase of the
Blackrod SAGD project. This reclassification is the result of a
change in the Company’s strategic plan to accelerate the expansion
of the Onion Lake thermal project before we commence development of
the first phase of the Blackrod SAGD project. The reclassification
does not impact management’s positive assessment of or its
commitment to develop the Blackrod project.
- 28% increase in 2P reserve volumes at Onion Lake.
- Risked contingent resources (best estimate) for our three core
properties totaled 640 million barrels of oil equivalent, a 28%
increase compared to year-end 2016 resource estimates. The increase
reflects the reclassification of the Blackrod reserves discussed
above.
John Festival, President of BlackPearl,
indicated that “we are very pleased with the progress of the Onion
Lake expansion project. Due to our committed operations staff and
favourable weather conditions we are going to complete the project
well ahead of schedule. We expect to commence steam injection in
February.
We are also pleased with the significant
increase in proved reserves, which reflects the positive results of
our Onion Lake thermal project. These results were one of the
primary reasons we made a change in our strategic plan to
accelerate the next expansion of Onion Lake before we tackle
development of our Blackrod SAGD project. Full cycle economics of
our Onion Lake thermal project are best in class compared to North
American oil projects. The increased cash flow generated from an
expanded Onion Lake project will put us in a better financial
position to develop the large Blackrod project. The consequence of
this shift in strategy is that regulatory rules necessitate the
reclassification of the Blackrod reserves to resources, but we are
still very committed to development of this large resource.”
Onion Lake Construction Update
We have made excellent progress over the last
two months on the construction of the 6,000 barrel per day phase 2
thermal expansion at Onion Lake and construction is nearing
completion, approximately five months ahead of our original
estimate. Capital costs are trending toward the low end of our
original estimates of $180- 185 million. We have started the
commissioning of the central processing facilities and steam is
expected to be delivered to the first pad of wells in February.
Steam injection to the second pad of wells will occur approximately
one month later. First oil is expected before the end of Q2 2018.
We anticipate reaching peak production approximately 12 months
after initial steam injection, a similar timeline to that achieved
for phase 1.
Production Update
BlackPearl’s Q4 2017 oil and gas sales volumes
were 10,600 boe per day, a 17% increase over production during the
third quarter. The increase in fourth quarter production is mainly
attributable to the successful restart of the Onion Lake thermal
facilities after completion of a facility turnaround during the
third quarter.
|
Three months ended December 31 |
Year ended December 31 |
Production by Area
(boe/d) |
2017 |
2016 |
2017 |
2016 |
Onion Lake - thermal |
6,204 |
6,119 |
5,686 |
5,520 |
Onion Lake - primary |
1,917 |
2,011 |
2,022 |
2,135 |
Mooney |
1,178 |
785 |
1,096 |
801 |
John Lake |
699 |
837 |
770 |
863 |
Blackrod |
481 |
523 |
490 |
556 |
Other |
121 |
204 |
135 |
202 |
Total
production |
10,600 |
10,479 |
10,199 |
10,077 |
Oil and Gas Reserves
The following tables summarize certain
information contained in the independent reserves report prepared
by Sproule Associates Limited (“Sproule”) as of December 31, 2017.
The report was prepared in accordance with definitions, standards
and procedures contained in the Canadian Oil and Gas Evaluation
Handbook (“COGE Handbook”) and National Instrument 51-101,
Standards of Disclosure for Oil and Gas Activities (“NI 51-101”).
Additional reserve information as required under NI 51-101 will be
included in the Company’s Annual Information Form which is expected
to be filed on SEDAR on February 22, 2018. It should not be assumed
that the net present value of reserves estimated by Sproule
represents the fair market value of these reserves.
Summary of Oil and Gas Reserves
(Company interest, before royalties) |
HeavyCrude Oil |
Bitumen |
NaturalGas |
2017Total |
2016Total |
|
(Mbbl) |
(Mbbl) |
(MMcf) |
(MBoe) |
(MBoe) |
|
|
|
|
|
|
Proved developed
producing |
18,378 |
426 |
- |
18,804 |
19,125 |
Proved developed
non-producing |
13,247 |
- |
5 |
13,248 |
3,428 |
Proved
undeveloped |
62,321 |
- |
3 |
62,322 |
53,840 |
Total proved |
93,946 |
426 |
8 |
94,374 |
76,393 |
Probable |
68,038 |
21 |
7 |
68,060 |
235,186 |
Total
proved plus probable |
161,984 |
447 |
15 |
162,434 |
311,579 |
Notes:1. BOE’s may be misleading, particularly if used in
isolation. In accordance with NI 51-101, a BOE conversion ratio of
6 Mcf: 1 barrel is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a
value equivalency at the wellhead. |
Net Present Value of Reserves
|
Net Present Value of Future Net Revenue Discounted at %/year |
($000s) |
0 |
% |
5 |
% |
10 |
% |
15 |
% |
20 |
% |
Before Tax |
|
|
|
|
|
Proved |
|
|
|
|
|
Developed producing |
455,399 |
|
402,162 |
|
354,620 |
|
314,838 |
|
282,110 |
|
Developed non-producing |
272,154 |
|
239,688 |
|
208,828 |
|
181,899 |
|
159,021 |
|
Undeveloped |
1,516,483 |
|
868,783 |
|
521,732 |
|
327,678 |
|
213,734 |
|
Total proved |
2,244,035 |
|
1,510,633 |
|
1,085,180 |
|
824,416 |
|
654,865 |
|
Probable |
3,143,580 |
|
1,619,000 |
|
932,438 |
|
588,985 |
|
399,242 |
|
Total proved plus probable |
5,387,615 |
|
3,129,634 |
|
2,017,618 |
|
1,413,400 |
|
1,054,106 |
|
After Tax |
|
|
|
|
|
Proved |
|
|
|
|
|
Developed producing |
455,399 |
|
402,162 |
|
354,620 |
|
314,838 |
|
282,110 |
|
Developed non-producing |
265,751 |
|
235,301 |
|
205,765 |
|
179,725 |
|
157,453 |
|
Undeveloped |
1,268,764 |
|
710,338 |
|
415,748 |
|
254,094 |
|
161,026 |
|
Total proved |
1,989,914 |
|
1,347,801 |
|
976,134 |
|
748,657 |
|
600,589 |
|
Probable |
2,594,909 |
|
1,295,166 |
|
725,135 |
|
447,556 |
|
297,872 |
|
Total proved plus probable |
4,584,823 |
|
2,642,967 |
|
1,701,269 |
|
1,196,212 |
|
898,461 |
|
Notes:
1. Based on Sproule’s December 31, 2017 forecast
prices.
2. Columns may not add due to rounding.
Estimated Future Development Capital
The following table summarizes the future development capital
(“FDC”) Sproule estimates is required to bring total proved and
total proved plus probable reserves on production.
($
Millions) |
Total Proved |
Total Proved + Probable |
2018 |
59.0 |
59.1 |
2019 |
36.5 |
86.6 |
2020 |
56.3 |
95.6 |
2021 |
29.4 |
42.0 |
2022 |
37.2 |
25.4 |
Remainder |
537.1 |
651.4 |
Total FDC undiscounted |
755.5 |
960.1 |
Total
FDC discounted at 10% |
376.6 |
450.5 |
Reconciliation of Changes in Reserves
The following table summarizes the changes in Sproule’s
evaluation of the Company’s share of oil and natural gas reserves
(before royalties) from December 31, 2016 to December 31, 2017.
|
|
HeavyCrude Oil |
Bitumen |
NaturalGas |
BOE |
|
|
(Mbbl) |
(Mbbl) |
(MMcf) |
(MBOE) |
Proved |
|
|
|
|
|
Balance, Dec 31, 2016 |
|
75,260 |
|
1,057 |
|
456 |
|
76,393 |
|
Extensions and improved
recovery |
|
18,284 |
|
|
8 |
|
18,285 |
|
Technical revisions |
|
3,931 |
|
(452 |
) |
(247 |
) |
3,438 |
|
Economic factors |
|
(20 |
) |
|
|
(20 |
) |
Production |
|
(3,509 |
) |
(179 |
) |
(209 |
) |
(3,723 |
) |
Balance, Dec 31, 2017 |
|
93,946 |
|
426 |
|
8 |
|
94,374 |
|
Probable |
|
|
|
|
|
Balance, Dec 31, 2016 |
|
56,374 |
|
178,742 |
|
421 |
|
235,186 |
|
Extensions and improved
recovery |
|
14,904 |
|
|
7 |
|
14,905 |
|
Technical revisions |
|
(3,348 |
) |
(178,721) (2) |
(421 |
) |
(182,139 |
) |
Economic factors |
|
108 |
|
|
|
108 |
|
Production |
|
|
|
|
|
Balance, Dec 31, 2017 |
|
68,038 |
|
21 |
|
7 |
|
68,061 |
|
Proved plus
Probable |
|
|
|
|
|
Balance, Dec 31, 2016 |
|
131,634 |
|
179,799 |
|
877 |
|
311,579 |
|
Extensions and improved
recovery |
|
33,188 |
|
|
15 |
|
33,191 |
|
Technical revisions |
|
583 |
|
(179,173 |
) |
(668 |
) |
(178,700 |
) |
Economic factors |
|
88 |
|
|
|
88 |
|
Production |
|
(3,509 |
) |
(179 |
) |
(209 |
) |
(3,723 |
) |
Balance, Dec 31, 2017 |
|
161,984 |
|
447 |
|
15 |
|
162,434 |
|
Note:
1. Columns may not add due to rounding
2. Includes technical revisions of bitumen
associated with the Blackrod SAGD project that were reclassified to
contingent resources
Pricing Assumptions
The pricing assumptions used in the Sproule
evaluation are summarized below.
Year |
WTICushing40° API |
Canadian Light Sweet Crude40° API |
WesternCanadian Select20.5° API |
AlbertaAECO-CSpot |
Inflation rate |
Exchange rate |
|
(US$/bbl) |
(CDN$/bbl) |
(CDN$/bbl) |
(CDN$/MMBtu) |
(%/yr) |
(US$/Cdn$) |
2018 |
55.00 |
65.44 |
51.05 |
2.85 |
0.0 |
0.790 |
2019 |
65.00 |
74.51 |
59.61 |
3.11 |
2.0 |
0.820 |
2020 |
70.00 |
78.24 |
64.94 |
3.65 |
2.0 |
0.850 |
2021 |
73.00 |
82.45 |
68.43 |
3.80 |
2.0 |
0.850 |
2022 |
74.46 |
84.10 |
69.80 |
3.95 |
2.0 |
0.850 |
2023 |
75.95 |
85.78 |
71.20 |
4.05 |
2.0 |
0.850 |
2024 |
77.47 |
87.49 |
72.62 |
4.15 |
2.0 |
0.850 |
2025 |
79.02 |
89.24 |
74.07 |
4.25 |
2.0 |
0.850 |
2026 |
80.60 |
91.03 |
75.55 |
4.36 |
2.0 |
0.850 |
2027 |
82.21 |
92.85 |
77.06 |
4.46 |
2.0 |
0.850 |
2028 |
83.85 |
94.71 |
78.61 |
4.57 |
2.0 |
0.850 |
Escalation rate of 2.0% thereafter |
Notes:
1. The pricing assumptions were provided by
Sproule.
2. None of the Company’s future production is
subject to a fixed or contractually committed price.
Definitions:
- "Proved" reserves are those reserves that can be estimated with
a high degree of certainty to be recoverable. It is likely
that the actual remaining quantities recovered will exceed the
estimated proved reserves.
- "Probable" reserves are those additional reserves that are less
certain to be recovered than proved reserves. It is equally
likely that the actual remaining quantities recovered will be
greater or less than the sum of the estimated proved plus probable
reserves.
- "Developed" reserves are those reserves that are expected to be
recovered from existing wells and installed facilities or, if
facilities have not been installed, that would involve a low
expenditure (e.g. when compared to the cost of drilling a well) to
put the reserves on production.
- "Developed Producing" reserves are those reserves that are
expected to be recovered from completion intervals open at the time
of the estimate. These reserves may be currently producing
or, if shut-in, they must have previously been on production, and
the date of resumption of production must be known with reasonable
certainty.
- "Developed Non-Producing" reserves are those reserves that
either have not been on production, or have previously been on
production, but are shut in, and the date of resumption of
production is unknown.
- "Undeveloped" reserves are those reserves expected to be
recovered from known accumulations where a significant expenditure
(for example, when compared to the cost of drilling a well) is
required to render them capable of production. They must
fully meet the requirements of the reserves classification (proved,
probable, possible) to which they are assigned.
- The Net Present Value (NPV) is based on Sproule forecast
pricing and costs. The estimated NPV does not necessarily
represent the fair market value of our reserves. There is no
assurance that forecast prices and costs assumed in the Sproule
evaluations will be attained, and variances could be material.
Contingent Resources
In addition to the reserve evaluation discussed
above, the Company also requested Sproule prepare resource
evaluations for each of its core properties: Blackrod, Onion Lake
and Mooney. The following tables summarize certain information
contained in the contingent resource evaluations prepared by
Sproule as of December 31, 2017. The reports were independently
prepared in accordance with definitions, standards and procedures
contained in the COGE Handbook.
It should not be assumed that the estimates of
recovery, production, and net revenue presented in the tables below
represent the fair market value of the Company’s contingent
resources. There are certain contingencies which currently prevent
the classification of these contingent resources as reserves.
Information on these contingencies is provided in the footnotes to
the tables below. There is no certainty that it will be
commercially viable to produce any portion of the contingent
resources. Please refer to our Annual Information Form (to be filed
on February 22, 2018) for a more detailed discussion of our
contingent resources.
Summary of Best Estimate Contingent Resource Volumes –
By Property (1)(2)
|
|
|
Unrisked Volumes |
Risked Volumes(4) |
|
|
|
Heavy Crude Oil |
Bitumen |
Heavy Crude Oil |
Bitumen |
Project |
MaturitySubclass (3) |
Chance of Development(4) |
Gross(5) |
Net (5) |
Gross(5) |
Net (5) |
Gross(5) |
Net |
Gross(5) |
Net (5) |
Blackrod (6) |
|
|
(Mbbl) |
(Mbbl) |
(Mbbl) |
(Mbbl) |
First phase |
Development/ pending |
94 |
% |
|
|
179,294 |
141,971 |
|
|
168,536 |
133,453 |
Future phases |
Development/ on hold |
77 |
% |
|
|
566,135 |
461,358 |
|
|
435,924 |
355,246 |
Onion Lake (7) |
|
|
|
|
|
|
|
|
|
|
Thermal |
Development/ pending |
85 |
% |
27,035 |
21,356 |
|
|
22,980 |
18,153 |
|
|
Primary |
Development/ pending |
90 |
% |
1,154 |
851 |
|
|
1,038 |
766 |
|
|
Mooney (8) |
Development/ on hold |
71 |
% |
15,904 |
13,791 |
|
|
11,292 |
9,792 |
|
|
Summary of Net Present Value of Future
Net Revenue of Development Pending Contingent
Resources
The following table sets forth the net present
value of BlackPearl’s best estimate risked contingent resources in
the development pending project maturity sub-class at December 31,
2017.
An estimate of risked net present value
of future net revenues of the “development pending” contingent
resources subclass is preliminary in nature and is provided to
assist the reader in reaching an opinion on the merit and
likelihood of the Company proceeding with the required investment.
It includes contingent resources that are considered too uncertain
with respect to the chance of development to be classified as
reserves. There is uncertainty that the risked net present value of
future net revenue will be realized. The other subclass of
resources (development on hold) is not included in this net present
value amount, and therefore, this is not reflective of the value of
the resources base.
|
|
|
Net Present Values of Future Net Revenue Before Income
Taxes |
|
|
|
Discounted at (%/year) |
|
|
|
0 |
% |
5 |
% |
10 |
% |
15 |
% |
20 |
% |
Project |
|
|
($M) |
|
|
|
|
|
|
|
|
Blackrod (6)(first phase) |
|
|
4,110,612 |
|
1,470,349 |
|
554,602 |
|
200,879 |
|
53,197 |
|
Onion Lake (7)(thermal) |
|
|
746,710 |
|
322,153 |
|
151,364 |
|
76,040 |
|
39,853 |
|
Onion Lake (7)(primary) |
|
|
13,247 |
|
9,349 |
|
6,643 |
|
4,762 |
|
3,446 |
|
Notes:
- Contingent Resources are defined in the COGE Handbook as those
quantities of petroleum estimated, as of a given date, to be
potentially recoverable from known accumulations using established
technology or technology under development, but are not currently
considered to be commercially recoverable due to one or more
contingencies. Contingencies may include factors such as economic,
legal, environmental, political and regulatory matters or a lack of
markets. It is also appropriate to classify as Contingent Resources
the estimated discovered recoverable quantities associated with a
project in the early evaluation stage.
- There are three classifications of contingent resources: Low
Estimate, Best Estimate and High Estimate. Best estimate is a
classification of estimated resources described in the COGE
Handbook as being considered to be the best estimate of the
quantity that will be actually recovered. It is equally likely that
the actual remaining quantities recovered will be greater or less
than the best estimate. If probabilistic methods are used, there
should be at least a 50% probability that the quantities actually
recovered will equal or exceed the best estimate.
- Contingent resources are further classified based on project
maturity. The project maturity subclasses include development
pending, development on hold, development unclarified and
development not viable. All of the Company’s contingent resources
are classified as either development pending or development on
hold:
(a) Development pending is where
resolution of the final conditions of development are being
actively pursued, indicating there is a high chance of
development.(b) Development on hold is where there is a
reasonable chance of development, but there are major non-technical
contingencies to be resolved that are usually beyond the control of
the operator.
- Chance of Development is defined as the probability
of a project being commercially viable. Sproule’s estimate of
unrisked contingent resources have been adjusted for risk based on
the chance of development (risked amounts represent unrisked values
multiplied by the Chance of Development).
- “Gross” means the Company’s working interest
share in the contingent resources before deducting royalties. “Net”
means the Company’s working interest share after the deduction of
royalty obligations. The Company has a 100% working interest at
Blackrod and Mooney and the Onion Lake thermal project, and a 50 to
100% working interest at Onion Lake Primary.
- The established recovery technology to be used to recover the
contingent resources of the Blackrod project is the SAGD process,
the same process that is being used in the successful pilot that is
currently being conducted within the Blackrod reservoir.
- The contingencies in the Sproule Report associated with the
Company’s contingent resources for the first phase of the Blackrod
project are due to (a) the absence of corporate commitment related
to the final investment decision and endorsement from the Board of
Directors of the Company to move forward with commercial
development and a final investment decision will not likely
occur for several years and (b) the estimated timing of production
and development may commence beyond the reasonable time periods
described in the COGE Handbook to be classified as reserves. For
the contingent resources associated with the first phase of the
Blackrod project, the estimated timing of first commercial
production is 2024 and the estimated capital to reach first
commercial production is $0.8 billion (unrisked and escalated for
inflation).
- The contingencies in the Sproule Report associated with the
Company’s contingent resources for the future phases of the
Blackrod project are due to the following: (a) the requirement for
more evaluation drilling, as required by the regulatory process, to
define the reservoir characteristics to assist in the
implementation and operation of the SAGD process; (b) the absence
of submission of an application to expand the commercial SAGD
development beyond the phase 1 project area; (c) the absence of
corporate commitment related to the final investment decision and
endorsement from the Board of Directors of the Company to move
forward with commercial development of future phases of the
Blackrod project and a final investment decision will not likely
occur for several years; and (d) the uncertainty of timing of
production and development of future phases of the Blackrod
project. For the contingent resources associated with future phases
of the Blackrod project, the estimated timing of first commercial
production is 2028 and the estimated capital to reach first
commercial production is $1.2 billion (unrisked and escalated for
inflation).
- The recovery of the Company’s Onion Lake contingent resources
will use a combination of production processes: the established
modified SAGD process for future phases of the Onion Lake thermal
project, the same process that is already utilized commercially in
phase 1 of the Onion Lake thermal project; and the established cold
heavy oil production with sand (CHOPS) process to extend the
primary development area, the same CHOPS process that has
already been extensively deployed throughout the field.
- For the Onion Lake thermal project, the contingencies in the
Sproule Report associated with the Company’s Onion Lake contingent
resources are due to the following: (a) the requirement for more
evaluation drilling to define the reservoir characteristics to
assist in the implementation and operation of the modified SAGD
recovery process; and (b) approvals between the Company and
OLCN/OLE and Saskatchewan Energy and Resources (SER) for thermal
EOR development in the lands currently leased by the Company but
outside the thermal EOR development area; and (c) the estimated
timing of production and development is beyond the reasonable time
periods described in the COGE Handbook to be classified as
reserves. For the Onion Lake thermal project contingent resources,
the estimated timing of first commercial production is 2022, while
the estimated capital to reach first commercial production is $61.2
million (unrisked and escalated for inflation).
- For the extension of the primary development area, the
contingencies in the Sproule Report associated with the Company’s
Onion Lake contingent resources are due to the following: (a) the
requirement for more evaluation drilling to confirm the geological
continuity of the reservoir and reduce the distance from proven
productivity; and (b) the potential for the current
agreements with the Onion Lake Cree Nation (OLCN), which are
subject to policies and approvals by Indian Oil and Gas Canada
(IOGC), required to be renegotiated due to changes imposed by IOGC.
First commercial production for the primary development area has
already been achieved and, as a result, estimated capital to reach
first commercial production is nil.
- The established recovery technology to be used for phases 3 and
4 of the Mooney project is the established ASP flood process, the
same process that is already deployed commercially in phase 1 of
the Mooney field. The contingencies in the Sproule Report
associated with the Company’s Mooney contingent resources are due
to the following: (a) the requirement for more evaluation wells to
confirm the reservoir characteristics needed for the ASP process;
(b) the absence of regulatory approvals to expand the ASP
development area beyond the phase 1 and phase 2 project areas; (c)
the absence of a final investment decision from the Board of
Directors of the Company to move forward with the ASP flood
expansion to phases 3 and 4 of the Mooney project and (d) the
uncertainty of timing of production and development of phases 3 and
4 of the Mooney project. First commercial production for the Mooney
ASP flood has already been achieved and, as a result, estimated
capital to reach first commercial production at the Mooney ASP
flood is nil.
- The pricing assumptions used by Sroule in the determination of
the NPV of the “development pending” contingent resources were the
same as those used to determine the NPV of the oil and gas
reserves.
Other
The Company is planning to release its 2017
year-end financial and operating results on February 22, 2018.At
December 31, 2017, the Company had 336,267,235 common shares
outstanding.
Forward-Looking Statements
This release contains certain forward-looking
statements and forward-looking information (collectively referred
to as “forward-looking statements”) within the
meaning of applicable Canadian securities laws. All statements
other than statements of historic fact are forward-looking
statements. Forward-looking statements are typically identified by
such words as "seek", "anticipate", "plan", "continue", "estimate",
"expect", "may", "will", "project", "potential", "targeting",
"intend", "could", "might", "should", "believe" or similar words
suggesting future events or future performance. In
particular, this release contains the following forward-looking
statements:
- The estimated volumes and net present values of BlackPearl’s
proved and probable reserves and contingent resources as well as
the estimated future development capital to bring the reserves on
production.
- The estimate that initial steam injection will occur in
February 2018 on phase 2 of the Onion Lake thermal project and that
peak production rates should occur within 12 months after initial
steam injection
- The estimated capital costs to construct phase 2 of the Onion
Lake thermal project of between $180 to $185 million.
The forward-looking information is based on,
among other things, expectations and assumptions by management
regarding its future growth, future production levels, future oil
and natural gas prices, continuation of existing tax, royalty and
regulatory regimes, foreign exchange rates, estimates of future
operating costs, timing and amount of capital expenditures,
performance of existing and future wells, recoverability of the
Company’s reserves and contingent resources, the ability to obtain
financing on acceptable terms, availability of skilled labour and
drilling and related equipment on a timely and cost efficient
basis, continuance of current general economic and financial market
conditions, environment matters and the ability to market oil and
natural gas successfully to current and new customers. Although
management considers these assumptions to be reasonable based on
information currently available to it, they may prove to be
incorrect.
By their nature, forward-looking statements
involve numerous known and unknown risks and uncertainties that
contribute to the possibility that actual results will differ from
those anticipated in the forward-looking statements. Further
information regarding these risk factors may be found under “Risk
Factors” in the Annual Information Form, which can be accessed on
SEDAR at www.sedar.com.
Undue reliance should not be placed on these
forward-looking statements. There can be no assurance that the
plans, intentions or expectations upon which forward-looking
statements are based will be realized. Actual results will differ,
and the differences may be material and adverse to the Company and
its shareholders. Furthermore, the forward-looking statements
contained in this release are made as of the date hereof, and the
Company does not undertake any obligation, except as required by
applicable securities legislation, to update publicly or to revise
any of the included forward-looking statements, whether as a result
of new information, future events or otherwise. The forward-looking
statements contained herein are expressly qualified by this
cautionary statement.
This is information that BlackPearl Resources Inc. is obliged to
make public pursuant to the EU Market Abuse Regulation and the
Swedish Securities Markets Act. The information was submitted for
publication at 3:00 p.m. Mountain Time on January 30, 2018.
http://prlibrary-eu.nasdaq.com/Resource/Download/606f1e96-f518-4b11-bc38-5e698f005708
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