CALGARY, Oct. 15, 2014 /CNW/ - Marquee Energy Ltd.
("Marquee" or the "Company") (TSXV: "MQL") is pleased to announce
an operations update and an upward revision to its corporate
guidance for 2014.
The Company has experienced strong drilling results and
operational performance, while it has also been successful in
improving its balance sheet strength by monetizing certain
non-core, gas weighted properties at accretive metrics.
As a result of its strengthened financial position and to better
position the Company for accelerated growth into early 2015,
Marquee is pleased to announce an expansion of its capital program
at both of its core properties of Michichi and Lloydminster as detailed below.
Michichi
Production at Michichi has increased to approximately
4,000boe/d. The company has achieved 100% drilling success
year-to-date, with 11 completed oil wells and a 12th
well now underway. Production history from this drilling has
contributed to positive revisions in the Company's type curve at
Michichi. Details of these changes are included in a new corporate
presentation which is posted on Marquee's website at
www.marquee-energy.com.
The first four wells drilled by Marquee since break-up were
completed and placed on production into its new oil battery at
4-9-32-17W4M during August 2014.
Currently, three of the four wells are on production at a combined
rate of 645boe/d (65% oil), an average of 215boe/d per well after
more than 30 days. The fourth well is awaiting additional
completion operations. The next two wells (the 8th and 9th for
2014), were completed in September and are now tied-in to the
Company's owned and operated infrastructure. Both wells have been
on production for less than a month, have recovered most of their
completion load fluid and are currently being optimized.
Additionally, the completion operations for wells 10 and 11 are
currently underway, with a plan for both of these wells to be tied
into the new oil battery by early November.
Marquee's drilling results continue to validate its assessment
that at least 80 low-risk drilling locations exist on the Company's
lands within its focus area out of a total area drilling inventory
of 175. In addition, the Company is currently evaluating the
possibility that Michichi will support downspacing from four to six
wells per section. A new 67 square mile 3D seismic survey is also
underway to evaluate further extensions to the Company's focus
area.
Lloydminster
Production at Lloydminster has
increased to approximately 700boe/d. Marquee drilled one vertical
well and one short leg horizontal well at Lloydminster in August of 2014. Both wells are
now on production with results exceeding the Company's type curve
expectations for this area. Upwardly revised type curve data for
future vertical and horizontal drilling prospects on this property
are detailed in Marquee's updated corporate presentation.
The vertical well drilled by the Company in August served to
positively delineate its exploration discovery, made in
September 2013, at 9-3-48-1W4M. The
horizontal well drilled by Marquee was its first at Lloydminster, and offsets other successful
competitor horizontal oil wells.
Marquee has identified at least 30 similar low-risk,
high-productivity drilling opportunities out of a total drilling
inventory of 50 locations on the property.
New Guidance
The past year has been a time of transformation and evolution
for Marquee. The Company has consolidated its land, infrastructure
and production base at Michichi. It has also been successful
in reducing its drilling, operating, and overhead costs throughout
2014.
The Company has also dramatically improved its balance sheet
throughout 2014, mainly due to increased operating cash flow,
continued execution of its non-core disposition program, and on
account of the financing that closed in early May 2014. Including the recent disposition of its
gas-weighted Pembina property, Marquee has sold approximately
425boe/d (25% oil and liquids) for net proceeds of $15.8 million.
As a result of the above-noted initiatives, Marquee is
increasing its capital budget to include the addition of two
horizontal wells at Michichi, two vertical wells and 0.5 horizontal
wells at Lloydminster, all of
which will be drilled in the fourth quarter of 2014 with the
majority of new production adds to be fully realized during the
first quarter of 2015. The Company will also accelerate certain
facilities improvements at its Drumheller oil battery and terminal in the
fourth quarter, subject to obtaining regulatory approvals in a
timely manner.
The new 2014 guidance is updated as follows:
Capital Budget (net
of dispositions)
|
$46mm
|
Exit
Production
|
5,600-5,800boe/d
|
Cash Flow
|
$38mm
|
Debt (Estimated Exit
2014)
|
$62mm
|
2014 Exit Debt to Q4
2014 Annualized Cash Flow (Estimated)
|
1.3x
|
Marquee Energy is participating in Canaccord Genuity's upcoming
8th Annual Global Resources Conference on October 15-16, 2014 in New York at the Palace Hotel. Marquee's
President & CEO, Richard
Thompson, presents at 1:00 p.m.
EST on Thursday October 16,
2014. Following the live presentation, the webcast will be
available to view at http://wsw.com/webcast/canaccord15/mql.v.
Marquee is also participating in FirstEnergy's Energy Growth
Conference in Toronto on
November 18-19, 2014 at the Ritz
Carlton Hotel. Details regarding Marquee's presentation schedule
and webcast registration will be posted to its website as they
become available.
ABOUT MARQUEE
Marquee Energy Ltd. is a Calgary based, junior oil and gas company
focused on high rate of return oil development and production.
Marquee is committed to growing the company through exploitation of
existing opportunities and continued consolidation within its core
area at Michichi. The Company's shares are traded on the Toronto
Stock Exchange under the trading symbol "MQL.V" and on the OTCQX
marketplace under the symbol "MQLXF". An updated presentation and
additional information about Marquee may be found on its website
www.marquee-energy.com and in its continuous disclosure documents
filed with Canadian securities regulators on the System for
Electronic Document Analysis and Retrieval (SEDAR) at
www.sedar.com.
FORWARD LOOKING STATEMENTS OR INFORMATION
Certain statements included or incorporated by reference in this
news release may constitute forward looking statements under
applicable securities legislation. Such forward looking
statements or information typically contain statements with words
such as "anticipate", "believe", "expect", "plan", "intend",
"estimate", "propose", or similar words suggesting future outcomes
or statements regarding an outlook. Forward looking
statements or information in this news release may include, but are
not limited to: the number and quality of future potential drilling
opportunities; anticipated capital budgets and expenditures;
petroleum and natural gas sales; anticipated 2014 exit production,
cashflow and debt; anticipated 2014 exit debt to 2014 annualized
cashflow; the timing of facility improvements; and business
strategies, objectives and outlook.
Such forward-looking statements or information are based on a
number of assumptions all or any of which may prove to be
incorrect. In addition to any other assumptions identified in
this document, assumptions have been made regarding, among other
things: the ability of the Company to obtain equipment, services
and supplies in a timely manner to carry out its activities; the
ability of the Company to market crude oil, natural gas liquids and
natural gas successfully to current and new customers; the ability
to secure adequate product transportation; the timely receipt of
required regulatory approvals; the ability of the Company to obtain
financing on acceptable terms; interest rates; regulatory framework
regarding taxes, royalties and environmental matters; future crude
oil, natural gas liquids and natural gas prices; and management's
expectations relating to the timing and results of development
activities.
Forward-looking information is based on current expectations,
estimates and projections that involve a number of risks and
uncertainties which could cause actual results to differ materially
from those anticipated by the Company and described in the
forward-looking information. The material risk factors affecting
the Company and its business are contained in Marquee's Annual
Information Form which is available under Marquee's issuer profile
on SEDAR at www.sedar.com.
The forward-looking information contained in this press release
is made as of the date hereof and the Company undertakes no
obligation to update publicly or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, unless required by applicable securities laws. The
forward looking information contained in this press release is
expressly qualified by this cautionary statement.
ADDITIONAL ADVISORIES
Boes are presented on the basis of one Boe for six Mcf of
natural gas. Disclosure provided herein in respect of Boe 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
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.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Marquee Energy Ltd.