CALGARY, Alberta, May 10, 2018 (GLOBE NEWSWIRE) -- Crew Energy Inc. (TSX:CR) (“Crew” or the “Company”) is
pleased to announce our operating and financial results for the three month period ended March 31, 2018. Our Financial
Statements and Notes, as well as Management’s Discussion and Analysis (“MD&A”) for the three month period ended March 31, 2018
are available on Crew’s website and filed on SEDAR.
HIGHLIGHTS
- Production Growth in Q1 2018: At 25,939 boe per day, average volumes were 12% higher than Q1 2017
reflecting Crew’s program focused on completion of condensate-rich wells at West Septimus in northeast British Columbia (“NE
BC”).
- Increased Montney Condensate Production: Crew’s continued focus on condensate-rich opportunities at
West Septimus resulted in Montney condensate production increasing 41% to average 2,699 bbls per day and other natural gas
liquids increasing 24% to average 1,792 bbls per day relative to Q1 2017. Realized prices in Q1 2018 for condensate and
other natural gas liquids were stronger relative to Q1 2017, averaging $73.82 per bbl and $24.81 per bbl, respectively.
- Robust Greater Septimus Netbacks Support Adjusted Funds Flow: Corporate operating netbacks averaged
$14.70 per boe in Q1 2018, while Greater Septimus operating netbacks were 18% higher averaging $17.30 per boe. Adjusted
Funds Flow (“AFF”) of $26.4 million ($0.17 per diluted share) was 5% lower than Q1 2017, with higher production and stronger
condensate and other natural gas liquids pricing offset by lower realized natural gas and heavy oil pricing.
- Capital Activity Focused on Completion of Condensate-Rich Wells: Net capital expenditures totaled
$23.9 million ($33.9 million before dispositions), directed to the completion of nine (7.7 net) previously-drilled wells at West
Septimus and the recompletion of 11 (10.5 net) heavy oil wells in Lloydminster. Three of the nine West Septimus wells were
brought on production during Q1 with the remaining six wells expected to be brought on in late Q2 or early Q3. The Company
also completed the majority of the construction of 83 km of line pipe from the West Septimus facility through Groundbirch to the
Saturn meter station.
- Balance Sheet Strength Maintained: Net debt declined $6.7 million from year end 2017 to $338.3
million, including $300 million of term debt that has no repayment required until 2024. Crew completed our annual bank review
maintaining the borrowing base of our syndicated credit facility at $235 million supported by our strong 2017 proved developed
producing reserve additions. The Company also closed a $10.0 million cash disposition of certain assets within the
Lloydminster area comprised of 882 acres of land with no associated production.
FINANCIAL & OPERATING HIGHLIGHTS
FINANCIAL
($ thousands, except per share amounts) |
|
|
Three months
ended
Mar. 31, 2018 |
|
Three months
ended
Mar. 31, 2017 |
|
Petroleum and natural gas sales |
|
|
59,427 |
|
57,298 |
|
Adjusted Funds Flow(1) |
|
|
26,373 |
|
27,719 |
|
Per share - basic |
|
|
0.18 |
|
0.19 |
|
-
diluted |
|
|
0.17 |
|
0.18 |
|
Net income |
|
|
4,148 |
|
8,056 |
|
Per share - basic |
|
|
0.03 |
|
0.05 |
|
-
diluted |
|
|
0.03 |
|
0.05 |
|
|
|
|
|
|
|
Exploration and Development expenditures |
|
|
33,921 |
|
75,164 |
|
Property acquisitions (net of dispositions) |
|
|
(10,007 |
) |
(352 |
) |
Net capital expenditures |
|
|
23,914 |
|
74,812 |
|
|
|
|
|
|
|
|
Capital Structure
($ thousands) |
|
|
As at
Mar. 31, 2018 |
|
As at
Dec. 31, 2017 |
|
Working capital (surplus) deficiency(2) |
|
|
(3,324 |
) |
29,143 |
|
Bank loan |
|
|
47,529 |
|
21,977 |
|
|
|
|
44,205 |
|
51,120 |
|
Senior Unsecured Notes |
|
|
294,121 |
|
293,862 |
|
Total Net Debt |
|
|
338,326 |
|
344,982 |
|
Common Shares Outstanding (thousands) |
|
|
149,346 |
|
149,328 |
|
Notes:
(1) Adjusted funds flow is calculated as cash provided by operating activities, adding the change in non-cash
working capital, decommissioning obligation expenditures and accretion of deferred financing costs. Adjusted funds flow is
used to analyze the Company’s operating performance and leverage. Adjusted funds flow does not have a standardized measure
prescribed by International Financial Reporting Standards and therefore may not be comparable with the calculations of similar
measures for other companies. See “Non-IFRS Measures” contained within Crew’s MD&A.
(2) Working capital (surplus) deficiency includes cash and cash equivalents plus accounts receivable less accounts payable and
accrued liabilities.
Operations |
|
|
Three months
ended
Mar. 31, 2018 |
Three months
ended
Mar. 31, 2017 |
Daily production |
|
|
|
|
Light crude oil (bbl/d) |
|
|
316 |
530 |
Heavy crude oil (bbl/d) |
|
|
1,747 |
1,857 |
Condensate (bbl/d) |
|
|
2,699 |
1,915 |
Other natural gas liquids (bbl/d) |
|
|
1,792 |
1,448 |
Natural gas (mcf/d) |
|
|
116,312 |
104,887 |
Total (boe/d @ 6:1) |
|
|
25,939 |
23,231 |
Average prices (1) |
|
|
|
|
Light crude oil ($/bbl) |
|
|
68.20 |
59.74 |
Heavy crude oil ($/bbl) |
|
|
36.09 |
42.93 |
Condensate ($/bbl) |
|
|
73.82 |
63.61 |
Natural gas liquids ($/bbl) |
|
|
24.81 |
22.06 |
Natural gas ($/mcf) |
|
|
2.85 |
3.54 |
Oil equivalent ($/boe) |
|
|
25.46 |
27.40 |
Notes:
(1) Average prices do not include gains and losses on financial instruments.
|
|
|
Three months
ended
Mar. 31, 2018 |
|
Three months
ended
Mar. 31, 2017 |
|
Netback ($/boe) |
|
|
|
|
Petroleum and natural gas sales |
|
|
25.46 |
|
27.40 |
|
Royalties |
|
|
(1.72 |
) |
(2.18 |
) |
Realized commodity hedging loss |
|
|
(0.93 |
) |
(0.39 |
) |
Marketing revenue (1) |
|
|
0.29 |
|
- |
|
Net operating costs |
|
|
(6.29 |
) |
(5.38 |
) |
Transportation costs |
|
|
(2.11 |
) |
(2.29 |
) |
Operating netback (2) |
|
|
14.70 |
|
17.16 |
|
G&A |
|
|
(1.39 |
) |
(1.50 |
) |
Other income |
|
|
0.43 |
|
- |
|
Financing costs on long-term debt |
|
|
(2.44 |
) |
(2.41 |
) |
Adjusted funds flow |
|
|
11.30 |
|
13.25 |
|
|
|
|
|
|
Drilling Activity |
|
|
|
|
Gross wells |
|
|
0 |
|
15 |
|
Working interest wells |
|
|
0.0 |
|
15.0 |
|
Success rate, net wells (%) |
|
|
- |
|
93 |
% |
Notes:
(1) Marketing revenue was recognized from the monetization of forward physical sales contracts in the period.
(2) Operating netback equals petroleum and natural gas sales including realized hedging gains and losses on commodity contracts
less royalties, operating costs and transportation costs calculated on a boe basis. Operating netback and adjusted funds flow
netback do not have a standardized measure prescribed by International Financial Reporting Standards and therefore may not be
comparable with the calculations of similar measures for other companies. See “Non IFRS Measures” within Crew’s MD&A.
FINANCIAL OVERVIEW
Higher Production from West Septimus
- Q1 2018 production of 25,939 boe per day is a 12% increase over the first quarter of 2017 and 3% higher than the previous
quarter and reflects continued strong results at West Septimus, with only three of the nine wells completed during Q1 2018
brought on stream through permanent facilities and two (1.6 net) wells that were flow-tested over an extended period.
- The Company continues to manage natural gas production given weak prices realized at delivery points in Canada. In
particular, legacy dry gas production, processed and transported through third party facilities, has been limited during times
when realized prices at Station II have fallen below $1.50 per GJ.
- Planned maintenance programs by all Canadian pipeline operators during Q2 2018 have impacted Canadian natural gas
prices. As such, Crew has budgeted to leave six of the West Septimus wells completed during the first quarter shut-in
through most of Q2. The Company currently plans to bring the wells on stream later in the year when prices are expected to
recover.
Adjusted Funds Flow Exceeds Net Capital Expenditures
- Q1 2018 AFF totaled $26.4 million ($0.17 per diluted share), exceeding net capital expenditures during the period. AFF
was 5% lower (6% on a diluted per share basis) relative to Q1 2017, and 23% lower on an absolute and per share basis compared to
Q4 2017, as higher production volumes were offset by lower realized natural gas and heavy oil pricing.
- Petroleum and natural gas sales in Q1 2018 increased 4% over Q1 2017 as a result of higher production volumes, in particular
higher condensate production, and improved pricing for light oil, condensate and other natural gas liquids prices. This was
partially offset by lower heavy oil and natural gas prices and higher cash costs.
- Cash costs per boe have increased 1% over Q1 2017 as lower royalties and general and administrative costs were offset by an
increase in operating costs. Operating costs have increased over the first and fourth quarter of 2017 with a full quarter
of fixed costs associated with the expanded West Septimus facility realized in Q1 2018. The expanded West Septimus facility
provides Crew with the processing capacity to increase corporate production by over 50% from current levels, including the
handling of an additional 5,000 barrels per day of incremental liquids production.
Greater Septimus Netbacks Remain Robust
- Greater Septimus operating netbacks were $17.30 per boe in Q1 2018, 18% higher than Crew’s corporate operating netback of
$14.70 per boe. Year over year netbacks at Greater Septimus reflect lower realized natural gas pricing and an increase in unit
operating costs at the recently expanded West Septimus gas processing facility, offset by an increase in condensate production,
higher prices for condensate and NGLs and lower royalties.
Strong Liquids Pricing Partially Offset Weak Natural Gas Prices
- Q1 2018 commodity prices averaged $25.46 per boe, a 7% decline over Q1 2017 and a 2% decline over the previous quarter.
- Realized total liquids prices increased 9% to $50.09 per boe compared to Q1 2017, a decrease of 7% over Q4 2017. Crew’s
liquids pricing in the first quarter benefited from increased condensate production relative to other, lower valued liquids and
stronger condensate pricing, offset by weaker pricing for the Company’s heavy oil sales. A stronger West Texas Intermediate
(“WTI”) benchmark price, which increased 13% quarter over quarter and 16% compared to Q1 2017, benefited Crew’s light oil and
condensate pricing. The WTI increase was supported by tightening world oil markets and geopolitical tensions that continue
to build between several nations.
- Conversely, Canadian heavy oil prices represented by the Western Canadian Select benchmark were 11% lower quarter over
quarter and 1% lower compared to Q1 2017. Canadian heavy oil prices were negatively impacted by limited export transportation
options out of western Canada and high inventory levels caused by a major export pipeline outage in the fourth quarter of 2017.
- Realized natural gas prices decreased 19% to $2.85 per mcf compared to Q1 2017, while increasing 8% over Q4 2017.
Natural gas prices year over year have been impacted by increasing natural gas production throughout North America. The
oversupplied market situation has been amplified in Canada as bottlenecks in our natural gas pipeline system have limited the
delivery of Canadian production to markets outside of western Canada. This has significantly widened the differential
between western Canadian benchmark prices and those outside of this region. Crew’s diversified marketing portfolio, which
had 42% exposure to Chicago City Gate prices in the first quarter, contributed to Crew outperforming the AECO 5A benchmark price
by 37%.
Capital Expenditures Focused at West Septimus
- Q1 2018 exploration and development expenditures of $33.9 million ($23.9 million net of the impact of dispositions) included
the completion of nine (7.7 net) liquids-rich wells in West Septimus, of which three were tied-in during the quarter.
- During the first quarter, Crew closed a $10.0 million cash disposition of certain assets in the Lloydminster area
comprised of 882 acres of land, directing the proceeds to offset a portion of the first quarter capital program.
Balance Sheet Strength and Financial Flexibility Remain a Priority
- Balance sheet strength and ongoing financial flexibility were strengthened with net debt declining to $338.3
million, including $300 million of term debt with no financial covenants and no repayment required until 2024.
- Crew exited the period 20% drawn on our $235 million bank facility. The Company’s bank syndicate recently
completed its annual review extending the facility for an additional one-year term and maintaining the borrowing base at $235
million, supported by our strong 2017 proved developed producing reserve additions.
TRANSPORTATION, MARKETING & HEDGING
- Natural Gas Pricing Exposure: Approximately 40% Chicago City Gate, 19% AECO, 16% Alliance ATP, 13%
Dawn, 8% Malin and 4% Sumas through the second and third quarters of 2018.
- Crystalizing Value: During Q1 the Company elected to monetize the value inherent in our Dawn and Malin
market exposure for Q2 and Q3 of 2018. As a result, the Company realized $0.7 million of marketing revenue in Q1 related to
the monetization of 50% of Crew’s Q2 and Q3 Malin exposure. An additional amount of approximately $3.0 million of marketing
revenue will be recognized over Q2 and Q3 related to the monetization of the remaining Malin and Crew’s Dawn exposure for those
periods.
- New Natural Gas Sales Exposure: Commencing in Q4 2018, the Company will benefit from additional
natural gas sales exposure that complements our long-standing market diversification strategy and offers access to further
natural gas delivery points, including Nymex.
Natural Gas & Liquids Hedging
- Approximately 24% of budgeted 2018 natural gas volumes are hedged at an average of $2.50 per GJ or approximately $2.64 per
mcf which increases to approximately $3.10 per mcf after adjusting for Crew’s heat conversion.
- Through 2018, 2,750 bbls per day of WTI are hedged at a minimum average price of C$72.57 per bbl, 500 bbls per day of Western
Canadian Select for the second half of 2018 at an average price of C$57.90 per bbl and 400 bbls per day of OPIS Conway propane
hedged at US$0.7863 per gallon or US$33.03 per bbl.
- The Company has started adding to our 2019 risk management program with 1,500 barrels per day of WTI hedged at an average
price of C$72.88 per barrel. As a result of the weak forward pricing for natural gas, the Company has only hedged 2,500
mmbtu per day of Chicago City Gate gas at C$3.16 per mmbtu.
OPERATIONS & AREA OVERVIEW
NE BC Montney - Greater Septimus
- Three (3.0 net) wells were placed on production at rates that were disclosed in Crew’s February 8, 2018 press release.
Six (4.7 net) new wells situated within the West Septimus core area were completed in the quarter with limited flow data.
To facilitate water management, two of the six wells were flow tested for an extended period and produced at an average rate of
7.4 mmcf per day and 325 bbls per day of NGLs (55% condensate) after ten days of post-frac flow at an average flowing casing
pressure of 2,258 psi over the last six hours of the test, equating to an average per well sales rate of 1,473 boe per day.
Crew expects to have additional flow data from these wells in our Q2 2018 press release in August. The cost for the
six wells averaged approximately $4.3 million per well.
- In the first quarter of 2018, Crew completed the majority of the construction of strategic line pipe infrastructure from the
West Septimus facility through our Groundbirch acreage connecting into the existing TCPL Saturn meter station and expects the
project to be finalized by the end of the third quarter. This will complete Crew’s goal of accessing all three major export
pipelines in BC.
- Crew continuously evaluates the drilling and completion evolution in the ultra-condensate rich (“UCR”) Montney reservoirs
across Western Canada and has developed a next generation plan for the development of this highly prospective area. Immediately
after spring breakup we plan to begin drilling the next four well pad in the UCR area at lengths that are 30-50% longer and we
intend to utilize a revised cased-hole plug and perf completion design which is expected to improve condensate
recovery.
Greater Septimus Operational Statistics
Production &
Drilling |
Q1
2018 |
Q4
2017 |
Q3
2017 |
Q2
2017 |
Q1
2017 |
Average daily production (boe/d) |
20,467 |
20,193 |
18,154 |
15,558 |
17,440 |
Wells drilled (gross / net) |
- |
5 / 3.9 |
13 / 12.3 |
5 / 5.0 |
10 / 10.0 |
Wells completed (gross / net) |
9 / 7.7 |
3 / 3.0 |
14 / 14.0 |
9 / 9.0 |
3 / 3.0 |
Operating
Netback(1)
($ per boe) |
Q1
2018 |
|
Q4
2017 |
|
Q3
2017 |
|
Q2
2017 |
|
Q1
2017 |
|
Revenue |
25.40 |
|
24.43 |
|
20.05 |
|
24.51 |
|
26.49 |
|
Royalties |
(1.50 |
) |
(1.19 |
) |
(0.89 |
) |
(1.57 |
) |
(1.66 |
) |
% basis |
5.9 |
% |
4.9 |
% |
4.4 |
% |
6.4 |
% |
6.3 |
% |
Realized commodity hedge (loss) / gain |
(1.01 |
) |
1.74 |
|
2.97 |
|
0.77 |
|
(0.41 |
) |
Marketing Income |
0.37 |
|
- |
|
- |
|
- |
|
- |
|
Operating costs |
(4.45 |
) |
(3.67 |
) |
(3.38 |
) |
(4.10 |
) |
(3.34 |
) |
Transportation costs |
(1.51 |
) |
(1.51 |
) |
(1.65 |
) |
(2.03 |
) |
(1.67 |
) |
Operating netback |
17.30 |
|
19.80 |
|
17.10 |
|
17.58 |
|
19.41 |
|
Notes:
(1) Operating netback equals petroleum and natural gas sales including realized hedging gains and losses on
commodity contracts less royalties, operating costs and transportation costs calculated on a boe basis. Operating netback
does not have a standardized measure prescribed by International Financial Reporting Standards and therefore may not be comparable
with the calculations of similar measures for other companies. See “Non IFRS Measures” within Crew’s MD&A.
NE BC Montney - Tower
- Production in the Tower area averaged 1,065 boe per day in Q1 2018. Crew continues to evaluate the relative economics of
Tower development as well as the encouraging early results from our peers in the Lower Montney.
- A strategic partner completed construction of a water handling facility at Tower during Q1 2018, and Crew is a priority
customer. In light of reduced operating costs associated with improved water handling coupled with the strength in oil
prices, Tower’s economics represent an attractive option for continued investment.
AB / SK Heavy Oil - Lloydminster
- Crew’s previously announced sales process in respect of our Lloydminster asset is ongoing, while netbacks in the area
continue to improve as benchmark crude oil prices have increased and differentials have narrowed. During the first quarter,
the Company divested of 882 acres of land at Lloydminster with no associated production and approximately $0.4 million of
abandonment and reclamation obligations for cash proceeds of $10.0 million.
- Despite limited capital investment, average production in the area was 1,748 boe per day during the first quarter,
representing a 3% decline over the previous quarter. Activities included the recompletion of 11 (10.5 net) oil wells for
total capital cost of $0.5 million.
OUTLOOK
Execution of Fully Funded Budget Remains on Track
- Crew’s Q2 capital expenditures are expected to be approximately $12 to $15 million, reflecting reduced activity and
restricted access typically associated with spring breakup. The capital expenditure budget has been maintained at $80 to 85
million (gross) or net $70 to 75 million after the impact of the Q1 disposition.
Annual Production on Budget with Second Quarter Forecast Reflecting Broader Market
Conditions
- Pipeline restrictions in Canada continue to plague the industry and have resulted in lower benchmark prices. Several
third-party pipeline maintenance activities are scheduled in Alberta and BC during Q2 2018, leading to interruptible export and
storage service restrictions that are currently being reflected in very low Western Canadian natural gas prices for May
and June.
- In light of weak pricing, Crew plans to shut-in volumes to preserve value. However, with our diversified marketing
strategy, the Company maintains optionality to reduce exposure to markets that do not offer economic pricing and we will continue
to closely monitor natural gas market dynamics and adjust production levels to generate optimal returns.
- Currently, Crew has six (4.7 net) completed wells and four (3.6 net) drilled uncompleted wells to bring on production when
prices are supportive. In addition, following spring breakup, the Company will commence drilling a four well pad in the UCR
area. Based on activity levels through spring break-up, the impact of shutting-in volumes and electing to defer producing
the six wells completed in the first quarter, Q2 production is expected to average 22,000 to 23,000 boe per day, which is in-line
with our original budget and supportive of Crew’s annual forecast average production of 23,500 to 24,500 boe per day.
We thank our employees, contractors and directors for their commitment and dedication through the current market
conditions, and we thank all of our shareholders and bondholders for their continued support of Crew.
Cautionary Statements
Information Regarding Disclosure on Oil and Gas and
Operational Information
This press release contains metrics commonly used in the oil and natural gas industry, such as “adjusted
funds flow” and "operating netbacks". These terms do not have standardized meanings or standardized methods of calculation
and therefore may not be comparable to similar measures presented by other companies, and therefore should not be used to make such
comparisons. Such metrics have been included herein to provide readers with additional information to evaluate the Company’s
performance, however such metrics should not be unduly relied upon. Management uses oil and gas metrics for its own performance
measurements and to provide shareholders with measures to compare Crew's operations over time. Readers are cautioned that the
information provided by these metrics, or that can be derived from the metrics presented in this press release, should not be
relied upon for investment or other purposes.
Forward-Looking Information and Statements
This news release contains certain forward–looking information and statements within the meaning of
applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will",
"project", "should", "believe", "plans", "intends" “forecast” and similar expressions are intended to identify forward-looking
information or statements. In particular, but without limiting the foregoing, this news release contains forward-looking
information and statements pertaining to the following: the estimated volumes, including shut-ins, and product mix of Crew's oil
and gas production; production estimates including Q2 and 2018 average production forecasts; commodity price
expectations including Crew’s estimates of natural gas pricing exposure; Crew's commodity risk management programs; marketing,
transportation and natural gas egress plans; future liquidity and financial capacity; future results from operations and operating
metrics; potential for lower costs and efficiencies going forward; future development, exploration, acquisition
and disposition activities (including drilling, completion and infrastructure plans and methodology and associated timing
and cost estimates); the amount and timing of capital projects; the potential sale of our heavy oil assets; Q2 and 2018
capital expenditure and operational plans and priorities; and Crew’s 2018 budget and methods of funding our
capital program.
In addition, forward-looking statements or information are based on a number of material factors,
expectations or assumptions of Crew which have been used to develop such statements and information but which may prove to be
incorrect. Although Crew believes that the expectations reflected in such forward-looking statements or information are
reasonable, undue reliance should not be placed on forward-looking statements because Crew can give no assurance that such
expectations will prove to be correct. In addition to other factors and assumptions which may be identified herein,
assumptions have been made regarding, among other things: that Crew will continue to conduct its operations in a manner
consistent with past operations; results from drilling and development activities consistent with past operations; the quality of
the reservoirs in which Crew operates and continued performance from existing wells; the continued and timely development of
infrastructure in areas of new production; the accuracy of the estimates of Crew’s reserve volumes; certain commodity price and
other cost assumptions; continued availability of debt and equity financing and cash flow to fund Crew’s current and future plans
and expenditures; the impact of increasing competition; the general stability of the economic and political environment in
which Crew operates; the general continuance of current industry conditions; the timely receipt of any required
regulatory approvals; the ability of Crew to obtain qualified staff, equipment and services in a timely and cost efficient manner;
drilling results; the ability of the operator of the projects in which Crew has an interest in to operate the field in a safe,
efficient and effective manner; the ability of Crew to obtain financing on acceptable terms; field production rates and decline
rates; the ability to replace and expand oil and natural gas reserves through acquisition, development and exploration; the timing
and cost of pipeline, storage and facility construction and expansion and the ability of Crew to secure adequate product
transportation; future commodity prices; currency, exchange and interest rates; regulatory framework regarding royalties, taxes and
environmental matters in the jurisdictions in which Crew operates; and the ability of Crew to successfully market its oil and
natural gas products.
The forward-looking information and statements included in this news release are not guarantees of future
performance and should not be unduly relied upon. Such information and statements, including the assumptions made in respect
thereof, involve known and unknown risks, uncertainties and other factors that may cause actual results or events to defer
materially from those anticipated in such forward-looking information or statements including, without limitation: changes in
commodity prices; changes in the demand for or supply of Crew's products, the early stage of development of some of the
evaluated areas and zones the potential for variation in the quality of the Montney formation; unanticipated operating
results or production declines; changes in tax or environmental laws, royalty rates or other regulatory matters; changes in
development plans of Crew or by third party operators of Crew's properties, increased debt levels or debt service requirements;
inaccurate estimation of Crew's oil and gas reserve volumes; limited, unfavourable or a lack of access to capital markets;
increased costs; a lack of adequate insurance coverage; the impact of competitors; and certain other risks detailed from
time-to-time in Crew's public disclosure documents (including, without limitation, those risks identified in this news release and
Crew's Annual Information Form).
The forward-looking information and statements contained in this news release speak only as of the date of
this news release, and Crew does not assume any obligation to publicly update or revise any of the included forward-looking
statements or information, whether as a result of new information, future events or otherwise, except as may be required by
applicable securities laws.
Test Results and Initial Production Rates
A pressure transient analysis or well-test interpretation has not been carried out and thus certain of the
test results provided herein should be considered to be preliminary until such analysis or interpretation has been completed.
Test results and initial production rates disclosed herein, particularly those short in duration, may not necessarily be indicative
of long term performance or of ultimate recovery.
BOE equivalent
Barrel of oil equivalents or BOEs may be misleading, particularly if used in isolation. A BOE
conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and
does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as
compared to natural gas is significantly different than the energy equivalency of 6:1, utilizing the 6:1 conversion ratio may be
misleading as an indication of value.
Crew is a growth-oriented oil and natural gas producer, committed to pursuing sustainable per share growth
through a balanced mix of financially responsible exploration and development complemented by strategic acquisitions. The
Company’s operations are primarily focused in the vast Montney resource, situated in northeast British Columbia, and include a
large contiguous land base. Crew's liquids-rich Septimus and West Septimus areas ("Greater Septimus") along with Groundbirch
and the light oil area at Tower in British Columbia offer significant development potential over the long-term. The Company
has access to diversified markets with operated infrastructure and access to multiple pipeline egress options. Crew’s common
shares are listed for trading on the Toronto Stock Exchange (“TSX”) under the symbol “CR”.
Financial statements and Management’s Discussion and Analysis for the three month periods ended March 31, 2018
and 2017 are filed on SEDAR at www.sedar.com and are
available on the Company’s website at www.crewenergy.com.
FOR DETAILED INFORMATION, PLEASE CONTACT:
Dale Shwed, President and C.E.O. |
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Phone: (403) 266-2088 |
John Leach, Senior Vice President and C.F.O. |
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Email: investor@crewenergy.com
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