TORC Oil closes acquisition of Sask. oil assets
TORC Oil closes acquisition of Sask. oil assets
2018-06-27 14:11 ET - News Release
An anonymous director reports
TORC OIL & GAS ANNOUNCES CLOSING OF STRATEGIC ACQUISITION IN SOUTHEAST SASKATCHEWAN; CONFIRMS GUIDANCE; INCREASES BANK LINE
TORC Oil & Gas Ltd. has closed its complementary asset acquisition in southeast Saskatchewan. The acquisition includes 15.5 mmboe (million barrels of oil equivalent) of proved plus probable reserves and over 3,200 boepd (barrels of oil equivalent per day) of high-quality, low-decline, high-net back light oil producing assets.
The Acquisition is consistent with TORC's strategy to capitalize on opportunities to enhance the quality of its asset base throughout the commodity price cycle. The Acquisition enhances TORC's decline profile, operating netback and light oil drilling inventory and is complementary to TORC's existing operations in southeast Saskatchewan providing operational and strategic synergies.
DISCIPLINED BUDGET
With the closing of the Acquisition, the Company confirms the previously announced 2018 budget of $180 million. The 2018 capital program will remain concentrated on the Company's primary core areas in southeast Saskatchewan, focused on both conventional and unconventional opportunities, and the Cardium play in central Alberta. TORC continues to focus on operational efficiencies with a goal of achieving results that exceed budget expectations.
TORC is pleased to confirm the upward revision to 2018 guidance comprised of average production of 24,700 boepd and 2018 exit production of 27,000 boepd, with and an oil and liquids weighting of approximately 88%.
INCREASE TO BANK LINE
TORC is pleased to announce that in conjunction with the Acquisition, the Company has expanded its available credit facility to $500 million from $400 million previously.
OUTLOOK
TORC has built a sustainable growth platform of light oil focused assets and continues to enhance this platform. The stability of the high quality, low decline, light oil assets in southeast Saskatchewan and the low risk Cardium development inventory in central Alberta, combined with exposure to unconventional light oil resource plays in southeast Saskatchewan, positions TORC to provide value creation through a disciplined long term focused growth strategy with a sustainable dividend.
TORC has the following key operational and financial attributes:
High Netback Production (1) 2018E Average: 24,700 boepd 2018E Exit: 27,000 boepd Total Proved plus Probable Reserves (2) Greater than 129 mmboe (~85% light oil & liquids) Southeast Saskatchewan Light Oil Development InventoryGreater than 400 net undrilled conventional locations Greater than 150 net undrilled Torquay/Three Forks locations Greater than 150 net undrilled unconventional Midale locations Cardium Light Oil Development Inventory Greater than 290 net undrilled locations Sustainability Assumptions (3) Corporate decline ~23% Capital Efficiency ~$26,000 per boepd (IP 365) 2018 Capital Program $180 million Monthly Dividend $0.022 per share Pro Forma Net Debt as at March 31, 2018 (4) $395 million; $358 million drawn Shares Outstanding 210 (basic) Tax Pools Approximately $1.8 billion
An updated corporate presentation can be found at www.torcoil.com.