News

Pine Cliff's fourth quarter 2020 production averaged 19,130 Boe per day, weighted 91% to natural gas. This resulted in the average production for the year being 19,005 Boe per day, exceeding the Company's 18,500 to 19,000 annual 2020 guidance range. This production was achieved with the Company only spending $2.3 million on development drilling in 2020. Stable natural gas prices and the ability to produce natural gas into storage uninterrupted during 2020 enabled Pine Cliff to maximize production rates in 2020.

The third quarter of 2020 saw the steady recovery of crude oil prices along with stable natural gas prices. Pine Cliff benefited from AECO 5A benchmark pricing averaging $2.23 per mcf for the quarter, resulting in Pine Cliff generating positive adjusted funds flow of $809,000.

The second quarter of 2020 was dominated by the collapse of crude oil and liquids prices due to global over-supply combined with demand destruction from the coronavirus ("COVID-19") pandemic.

The first quarter of 2020 had a promising start with the production performance of all three of Pine Cliff's Pekisko oil wells continuing to outperform internal expectations.

All of the nominees proposed as directors were duly elected, including Ms. Jacqueline R. Ricci. Ms. Ricci has been a Vice President and Director at J. Zechner Associates, Toronto, Ontario, since 1997, where she is responsible for stock selection and portfolio mix in J. Zechner's Canadian Small/Mid-Capitalization Portfolios. In this position, Ms. Ricci has significant experience evaluating business plans and management performance in small and mid-capitalization companies in the Canadian market.

Pine Cliff's natural gas market diversification strategy was successful in generating positive adjusted funds flow in 2019, despite enduring one of the lowest AECO gas prices in 20 years. Pine Cliff was also able to use its extensive seismic database to expand the Company's prospect inventory by identifying a number of drilling locations on its existing land base and during the fourth quarter, drilled two 100% Pekisko oils wells.

Following up on the drilling of its initial horizontal oil well ("13-33") in the fourth quarter of 2018, Pine Cliff drilled two gross (2.0 net) Pekisko horizontal oil wells during the fourth quarter of 2019.

Pine Cliff's independent reserve report was prepared by McDaniel & Associates Limited ("McDaniel") in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101") with the effective date of December 31, 2019.

Pine Cliff's first horizontal oil well ("13-33") targeting the Pekisko formation in Central Alberta came on production on January 18, 2019, and has averaged 249 Boe/d (111 Bbl/d oil, 27 Bbl/d natural gas liquids and 666 Mcf/d natural gas) through the first 365 days of production.

The Company has appointed Alan MacDonald Chief Financial Officer and Corporate Secretary, effective December 4, 2019. Mr. MacDonald is a Chartered Accountant with over 30 years of experience in the oil and gas industry and held the position of Interim Chief Financial Officer and Corporate Secretary of Pine Cliff from September 2017 to September 2018 when Ms. Lowe was on maternity leave.