2013 Guidance Net asset value per share
The following table outlines LGX's NAV per Basic Common Share using the Proved plus Probable reserve value at December 31, 2012 and forecast pricing and costs:
| ($MM except share and per share amounts) | |
| Proved Plus Probable Reserve Value NPV10 BT (incl. future capital) | $75.8 |
| Undeveloped Land (186,477 acres @ $200/acre) | $37.3 |
| Net Debt | ($9.9) |
| Total Net Assets (basic) | $103.2 |
| Basic Common Shares Outstanding (MM) | 88.7 |
| Estimated NAV per Basic Common Share | $1.16 |
2013 GUIDANCE
LGX expects to spend $7.6 million in 2013 focused on light oil development with the majority of capital (78 percent) directed to drilling, completions and tie-ins on the Alberta Bakken play. The capital spending is distributed as follows: drilling, completions and tie-ins - $5.4 million; re-completions - $1.5 million; land and seismic - $0.5 million and other - $0.2 million.
LGX is planning to drill 2 gross (1.6 net) wells in 2013, targeting high quality light oil on the Alberta Bakken play. No capital has been budgeted for acquisitions, although the Company continues to evaluate new opportunities, both within and beyond its core areas.
LGX anticipates a 2013 average production rate and exit rate of 900 Boe per day. The operational parameters used in the budget are as follows:
- Exit Production - 900 Boe per day (72 percent light oil and NGL)
- Average Production - 900 Boe per day (69 percent light oil and NGL)
- Royalty Rate - 17 percent
- Operating Costs - $19.50 per Boe
- Transportation Costs - $2.25 per Boe
- Common Shares Outstanding (basic, weighted average) - 88.7 million
The reader is cautioned that the above production estimates include risked production additions resulting from exploration drilling. When the results of this drilling are known with greater certainty, the production estimates above will be revised accordingly.