CALGARY, May 29, 2018 /CNW/ – Marquee Energy Ltd. (“Marquee” or the “Company”) (TSXV: “MQX”) is pleased to report its operational and financial results for the three months ended March 31, 2018. The Company’s Financial Statements as well as the corresponding Management’s Discussion and Analysis for the three months ended March 31, 2018 are available on its website www.marquee-energy.com as well as on SEDAR at www.sedar.com.
Q1 2018 HIGHLIGHTS
- Brought five new horizontal Banff wells on production during the quarter, incorporating higher fracture density in the completion design
- Production in Q1 averaged 2,768 boe per day (boe/d), comprising 52% oil and liquids; a 12% increase to total boe per day production over Q1 2017, and a 6% absolute increase to oil and liquids weighting over Q1 2017
FINANCIAL AND OPERATIONAL HIGHLIGHTS
|
(thousands of Canadian dollars, |
Three months ended March 31, |
||||
|
except per share and per boe amounts) |
2018 |
2017 |
|||
|
Financial |
|||||
|
Oil and natural gas sales and processing fee income (1) |
$ |
8,821 |
$ |
7,603 |
|
|
Funds flow from operations (2) |
$ |
707 |
$ |
1,105 |
|
|
Per share – basic and diluted |
$ |
0.00 |
$ |
0.00 |
|
|
Per boe |
$ |
2.84 |
$ |
5.76 |
|
|
Net income (loss) |
$ |
(4,912) |
$ |
(3,662) |
|
|
Per share – basic and diluted |
$ |
(0.01) |
$ |
(0.01) |
|
|
Capital expenditures |
$ |
11,045 |
$ |
6,611 |
|
|
Net debt (2) |
$ |
41,907 |
$ |
22,688 |
|
|
Total Assets |
$ |
166,809 |
$ |
174,239 |
|
|
Weighted average basic shares outstanding |
435,772,196 |
435,772,196 |
|||
|
Weighted average diluted shares outstanding |
435,772,196 |
435,772,196 |
|||
|
Operational |
|||||
|
Net wells drilled |
4 |
3 |
|||
|
Daily sales volumes |
|||||
|
Oil (bbls per day) |
1,274 |
1,000 |
|||
|
NGL’s (bbls per day) |
156 |
132 |
|||
|
Natural Gas (mcf per day) |
8,028 |
8,082 |
|||
|
Total (boe per day) |
2,768 |
2,479 |
|||
|
% Oil and NGL’s |
52% |
46% |
|||
|
Average realized prices |
|||||
|
Light Oil ($/bbl) |
$ |
55.42 |
$ |
52.69 |
|
|
NGL’s ($/bbl) |
$ |
51.14 |
$ |
41.58 |
|
|
Natural Gas ($/mcf) |
$ |
2.28 |
$ |
3.00 |
|
|
Netback |
|||||
|
Revenue ($/boe) |
$ |
35.41 |
$ |
33.27 |
|
|
Royalties ($/boe) |
$ |
(1.57) |
$ |
(2.65) |
|
|
Operating and transportation costs ($/boe) |
$ |
(21.42) |
$ |
(17.56) |
|
|
Operating netback prior to hedging (2) |
$ |
12.42 |
$ |
13.06 |
|
|
Realized hedging gain (loss) ($/boe) |
$ |
(1.46) |
$ |
– |
|
|
Operating netback ($/boe) (2) |
$ |
10.96 |
$ |
13.06 |
|
(1) |
Before royalties |
(2) |
Non-IFRS Measure. See Non-IFRS Measures advisory. |
OPERATIONAL UPDATE
Marquee completed field operations and brought all five wells of the previously announced Q1 2018 capital program at Michichi, Alberta on production. Each of these wells was drilled with cemented monobores and received 28 to 29 fracture stages. Including production from these wells, the field estimated production from May 1-26th is 3,200 boe/d (52% oil and liquids).
The first well from this program, 102/03-29-31-17W4M, was brought on production in mid-January with an average field estimated production rate over the first 90 days (IP90) of 181 boe/d (77% oil and liquids).
The final four wells in the program were drilled from a common surface location and commenced production in late March. These wells continue to clean up load water from the fracture stimulation, with three of the four wells taking longer than expected to reach the Michichi field average Banff formation watercuts of 40-60%. All production values below are field estimates.
|
Peak 30 Day Production Rate |
Most Recent 14 Day Production Rate |
|||||
|
Well |
BOE/D |
Oil and |
Average |
BOE/D |
Oil and |
Average |
|
102/16-33-31-17W4 |
246 |
80% |
58% |
230 |
80% |
48% |
|
103/16-33-31-17W4 |
195 |
79% |
59% |
228 |
80% |
52% |
|
100/09-33-31-17W4 |
128 |
71% |
73% |
142 |
73% |
69% |
|
102/09-33-31-17W4 |
118 |
76% |
77% |
101 |
69% |
75% |
The production rates and volumes shown are over a short time period, therefore, are not necessarily indicative of average daily production, long-term performance or the ultimate recovery from the wells. Peak 30-day rates are based on the peak consecutive 30 day production averages over the first 60 days of production.
CORPORATE UPDATE
The Company’s Bank has increased the lending availability to the senior credit facility to $10 million from $8.5 million on May 28, 2018.
As previously announced, Marquee commenced a review of strategic alternatives to enhance shareholder value. Given the nature of the process, the Company does not intend to provide updates with respect to the process until such time as the Board of Directors approves a definitive transaction or strategic alternatives, or otherwise determines that further disclosure is advisable. The Company cautions that there are no guarantees that the review of strategic alternatives will result in a transaction or if a transaction is undertaken, as to its terms or timing.
ABOUT MARQUEE
Marquee is a Calgary-based, junior energy company focused on light oil development and production in the Michichi area of eastern Alberta. Marquee’s shares trade on the TSX Venture Exchange under the trading symbol “MQX”. 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 SEDAR at www.sedar.com.
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