Pine Cliff is pleased to report significant increases in its reserve base in 2015. The increases are mainly a result of the acquisition of certain liquids rich natural gas assets in the McLeod area of Alberta in June 2015 and certain natural gas assets in Central Alberta in December 2015. Highlights of Pine Cliff's reserves for the 2015 year include:
In the current commodity price environment, Pine Cliff believes that it is more prudent for its shareholders to continue to focus management's attention on acquiring new assets rather than drilling existing reserves. Pine Cliff will continue to focus on acquiring cash flow positive, low risk, low decline production with drilling upside until such time when commodity prices warrant developing our extensive inventory of drilling and recompletion locations. As such, the McDaniel's reserve report reflects the Company's conservative future development capital program of $65 million over the next 5 years, which is indicative of our historical capital spending over the last 3 years.
McDaniel is using a price forecast of US$45.00 and US$53.60 per bbl for WTI oil in 2016 and 2017, respectively, and $2.70 and $3.20 per MMBtu for AECO natural gas in 2016 and 2017, respectively.
Pine Cliff's Reserves
About Pine Cliff
Pine Cliff is a natural gas company with a long-term view of creating shareholder value. Pine Cliff's current focus is on acquiring long life assets that are cash flow positive in a low commodity price environment. Further information relating to Pine Cliff may be found on www.sedar.com as well as on Pine Cliff's website at www.pinecliffenergy.com.
Cautionary statements and definitions:
Certain statements contained in this news release include statements which contain words such as "anticipate", "could", "should", "expect", "seek", "may", "intend", "likely", "will", "believe" and similar expressions, statements relating to matters that are not historical facts, and such statements of our beliefs, intentions and expectations about development, results and events which will or may occur in the future, constitute "forward-looking information" within the meaning of applicable Canadian securities legislation and are based on certain assumptions and analysis made by us derived from our experience and perceptions. Forward-looking information in this news release includes the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility, ability to access sufficient capital from internal and external sources, future acquisition opportunities, including the timing and nature thereof, development of drilling and recompletion locations, including the timing and nature thereof and future capital spending. All such forward-looking information is based on certain assumptions and analyses made by us in light of our current experience and expected future developments, as well as other factors we believe are appropriate in the circumstances. The risks, uncertainties, and assumptions are difficult to predict and may be impacted by other factors, many of which are beyond our control.
Actual results, performance or achievements could differ materially from those expressed in, or implied by, this forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do, what benefits will be derived there from. Except as required by law, Pine Cliff disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
The forward-looking information contained in this release is expressly qualified by this cautionary statement. This news release should not be considered a suitable source of information for readers who are unfamiliar with Pine Cliff and should not be considered in any way as a substitute for reading all of Pine Cliff's public disclosure.
Tables may not add due to rounding.
Where amounts are expressed in a BOE, natural gas volumes have been converted to barrels of oil equivalent on the basis that six Mcf of natural gas is equal to one bbl of oil. This conversion ratio is based on energy equivalence primarily at the burner tip and does not represent a value equivalency at the wellhead. The term BOE may be misleading, particularly if used in isolation.
Definitions and abbreviations
As defined in NI 51-101, proved reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves. Probable reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves.
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Pine Cliff Energy Ltd.
George F. Fink
Pine Cliff Energy Ltd.
Philip B. Hodge
President, CEO and Director
Pine Cliff Energy Ltd.
Interim CFO and Secretary
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