Who cares?! Spartan Energy (SPE-T) Jan 11th 2016 field estimated production in December 2015 was approximately 9,100 boe/d, with fourth quarter production of approximately 9,000 boe/d. Due to the outperformance of our wells, we were able to meet our 2015 annual and exit production guidance despite deferring a portion of our capital program due to the low commodity price environment. We have recently activated two drilling rigs in southeast Saskatchewan, where our open-hole wells continue to deliver economic returns at oil prices below US$35 WTI. Spartan has in excess of 500 net open-hole development drilling locations, which represents in excess of 13 years of inventory at our 2015 drilling pace.
2016 Sensitivities
Based on internal modelling, Spartan is positioned to maintain our 2015 annual average production in 2016 within cash flow at US$40 WTI while maintaining a debt to cash flow ratio of 1.6 times. Our light oil production base offers significant torque to rising oil prices, with each US$5.00 increase in WTI price resulting in approximately $15 million in incremental cash flow or potential 5% to 6% growth in production per share. Please consult our updated corporate presentation for more detailed well economics and oil price sensitivities. We intend to release formal 2016 guidance in late January, with a focus on spending within cash flow, protecting our strong financial position and seeking out acquisition opportunities created by the prolonged commodity price weakness.
READER ADVISORY
BOE Disclosure. The term barrels of oil equivalent ("BOE") may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet per barrel (6mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All BOE conversions in the report are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil.
Spartan Energy Corp.
Richard (Rick) McHardy
President and Chief Executive Officer
Spartan Energy Corp.
Tim Sweeney
Manager, Business Development
Spartan Energy Corp.
Suite 500, 850 - 2nd Street S.W.
Calgary, Alberta T2P 0R8
403.355.2779
info@spartanenergy.ca |
