Their calling Alexander Energy (AXL-T) the next Raging River Exploration (RRX-T)
Feb 20, 2014 - NR
Raging River Exploration Inc.'s estimated daily production reached a record of 9,000 barrels of oil equivalent per day (96 per cent oil) during the second half of December, 2013. Further, based on field estimates, the company's fourth quarter 2013 average production increased 37 per cent from the third quarter average to 7,700 boe per day (96 per cent oil), which is 5 per cent ahead of the company's previous fourth quarter guidance of 7,300 to 7,400 boe per day.
Raging River exited 2013 with 16 net wells awaiting completion and is off to a solid start in the first quarter with 17 gross (15.5 net) wells drilled since Jan. 1, 2014. With production averaging above 9,000 boe per day in the first two weeks of January, the company anticipates achieving its 2014 average production level of 9,500 boe per day in early February. Production is expected to be strong through the first quarter, followed by a modest reduction in the second quarter due to breakup, and the company is reaffirming its average 2014 production guidance of 9,500 boe per day.
The company is also pleased to report its 2013 year-end oil and gas reserves. Proven plus probable reserves for 2013 of 42.7 million boe represent a 148-per-cent increase from 2012. Finding, development and acquisition costs were reduced by 26 per cent from 2012 to $19.40 per boe, demonstrating the quality of the company's continuously expanding drilling inventory.
Reserve report highlights:
- The company increased its proved plus probable reserves by 148 per cent to 42.7 million boe (96.2 per cent oil) and its proven reserves by 171 per cent to 31.3 million boe (96.2 per cent oil).
- The net asset value per fully diluted share calculated on a present value before tax of 10 per cent increased 133 per cent to an estimated $6.42 per share at Dec. 31, 2013, inclusive of an internal land value of $108-million.
- Finding, development and acquisition costs, including the change in future development capital of $260-million, are $19.40 per boe on a proven plus probable basis.
- Finding, development and acquisition costs, including the change in future development capital of $298-million, are $26.29 per boe on a total proven basis.
- Total proven reserves represent 73.4 per cent of proven plus probable reserves as at Dec. 31, 2013.
- The FD&A recycle ratio was three times based on the company's estimated 2013 corporate netback of $57.25 per boe.
- The reserves life index increased to 13 years based on current production of 9,000 boe per day.
- Reserve additions replaced 2013 production by greater than nine times on a proved basis and by 12 times on a proved plus probable basis.
- Reserves per fully diluted share increased by 125 per cent to 218 boe per 1,000 shares from 97 boe per 1,000 shares.
- Raging River's development drilling inventory has increased to over 2,000 risked locations as at Jan. 1, 2014, of which approximately 75 per cent are currently unbooked.
- The average estimated ultimate recovery per horizontal well drilled in 2013 increased by 27 per cent to 47,500 stock tank barrels of oil per well from an average of 37,500 stock tank barrels per well for those drilled to the end 2012.
The attached tables summarize certain information contained in the independent reserves report prepared by Sproule Associates Ltd. as of Dec. 31, 2013. The report was prepared in accordance with definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook and National Instrument 51-101, standards of disclosure for oil and gas activities. Additional reserve information as required under NI 51-101 will be included in the company's annual information form, which will be filed on SEDAR by March 31, 2014.
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