Impressive Guidance
Marquee Energy estimates 2014 production at 4,860 boe/d
2015-01-20 06:48 ET - News Release
Mr. Richard Thompson reports
MARQUEE ENERGY LTD. MEETS 2014 EXIT PRODUCTION TARGET AND ANNOUNCES FIRST HALF 2015 CAPITAL BUDGET AND GUIDANCE
Marquee Energy Ltd. has achieved record production currently exceeding 5,600 barrels of oil equivalent per day. The company expects an additional 250 barrels of oil equivalent per day to come on after completing a pump reconfiguration on two of its recently drilled wells at Michichi. Given Marquee's continued drilling success, the company estimates fourth-quarter production of approximately 5,250 barrels of oil equivalent per day and 2014 average production of 4,860 barrels of oil equivalent per day based on field estimates, which is a 120-per-cent increase over 2013 production of 2,196 barrels of oil equivalent per day.
With world crude prices down by 50 per cent, Marquee is entering 2015 with a cautious outlook and at the present time, is only providing guidance for the first half of the year. The company is basing its budget on WTI $50 (U.S.) per barrel and AECO $2.65 per gigajoule with an exchange rate of $1 (U.S.) to 86 cents. Cash flow for the first half of 2015 is estimated at $13.1-million with capital spending limited to $5.6-million, with a view to use excess cash flow to organically reduce debt. The capital program includes the drilling of two strategic wells, one at Michichi and one at Lloydminster, as well as some necessary facility infrastructure expenses. Debt at the end of the first half is projected to be approximately $53.6-million (two times first-half 2015 annualized D/CF ratio). First-half production is expected to average 5,300 barrels of oil equivalent per day, in line with fourth-quarter 2014 production.
Excellent CF based on prices per bbl guided