Long Run Exploration Ltd. Announces Results for the Year Ended December 31, 2015
(firmenpresse) - CALGARY, ALBERTA -- (Marketwired) -- 03/10/16 -- Long Run Exploration Ltd. ("Long Run" or the "Company") (TSX: LRE) announces financial, reserves and operating results for the year ended December 31, 2015.
2015 ANNUAL HIGHLIGHTS
Selected financial and operational information outlined in this news release should be read in conjunction with Long Run''s financial statements and related Management''s Discussion and Analysis for the year ended December 31, 2015, which will be available for review at and on our website at .
SUMMARY OF ANNUAL RESULTS
2015 YEAR END RESERVES
Long Run''s 2015 year end reserves were evaluated by independent reserves evaluator Sproule Associates Limited ("Sproule"). Reserves estimates were prepared in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101") and the summary below represents Long Run''s gross reserves, which are the Company''s interest before deduction of royalties and without including any of the Company''s royalty interests. The reserves estimates set forth below are based upon the Sproule reserve report dated March 9, 2016.
Additional information with respect to the Company''s reserves as at December 31, 2015 will be contained in the Company''s annual information form for the year ended December 31, 2015 which will be filed on SEDAR at .
Reserves Pricing
Forecast prices, inflation, and exchange rates utilized by Sproule in its evaluation were based on rates published by Sproule as at December 31, 2015.
Summary of Before Tax Net Present Values of Future Net Revenue (1)
ADVISORIES
Non-GAAP Measures
The press release contains terms commonly used in the oil and gas industry, such as funds flow from operations and net debt. These terms are not defined by International Financial Reporting Standards ("IFRS") and should not be considered an alternative to, or more meaningful than, cash provided by operating activities as determined in accordance with IFRS as an indicator of Long Run''s performance. These measures are commonly used in the oil and gas industry and by Long Run to provide shareholders and potential investors with additional information regarding the Company''s liquidity and its ability to generate funds to finance its operations. Long Run''s determination of these measures may not be comparable to that reported by other companies. Funds flow from operations is calculated as cash flow from operating activities before changes in non-cash working capital and abandonment expenditures. Net debt is calculated as bank debt plus working capital deficiency and principal amount of outstanding convertible debentures. Long Run has provided information on how these measures are calculated in the Management''s Discussion and Analysis for the year ended December 31, 2015, which will be available under the Company''s SEDAR profile at .
Barrels of Oil Equivalent
Barrels of oil equivalent may be misleading, particularly if used in isolation. A Boe conversion ratio of six thousand cubic feet of natural gas to one barrel of crude oil 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 from the energy equivalency conversion ratio of 6:1, utilizing a conversion on a 6:1 basis is misleading as an indication of value.
Netbacks
Operating netback per Boe is calculated by subtracting royalties, transportation and operating costs from revenues, including the realized gain (loss) on financial derivatives and dividing by total production. Corporate netback per Boe is calculated as operating netback less interest and general and administration expense and divided by total production. Operating netback and corporate netback are commonly used metrics in the oil and gas industry; however, as these metrics do not have a standardized meaning, they may not be comparable to these metrics as reported by other companies.
Forward-Looking Statements
This press release contains forward-looking information within the meaning of applicable securities laws relating to the Company''s plans and other aspects of Long Run''s anticipated future operations, management focus, objectives, strategies and priorities including timing of closing of the Arrangement, expectation that the Company will not drill any new wells prior to close of the Arrangement and possible effects of EOR implementation. Forward-looking information typically uses words such as "anticipate", "believe", "project", "expect", "goal", "plan", "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future. The forward-looking information is based on certain key expectations and assumptions made by Long Run''s management, including expectations and assumptions concerning commodity prices, exchange rates, interest rates, applicable royalty rates and tax laws; future production rates and estimates of operating costs and general and administration costs; performance of existing and future wells; reserve volumes; anticipated timing and results of capital expenditures; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; the timing, location and extent of future drilling operations; the state of the economy and the exploration and production business; results of operations; performance; business prospects and opportunities; the availability and cost of financing, labor and services; the impact of increasing competition; ability to market oil and natural gas successfully; and Long Run''s ability to access capital, and obtaining the necessary regulatory approvals; and Long Run''s ability to dispose of assets to reduce debt.
Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Long Run can give no assurance that they will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature they involve inherent risks and uncertainties. The Company''s actual results, performance or achievement could differ materially from those expressed in, or implied by, the 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 so, what benefits that the Company will derive there from. Management has included the above summary of assumptions and risks related to forward-looking information provided in this press release in order to provide a more complete perspective on Long Run''s future operations and such information may not be appropriate for other purposes.
Readers are cautioned that the foregoing lists of factors are not exhaustive. Additional information on these and other factors that could affect the Company''s operations or financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website ().
These forward-looking statements are made as of the date of this press release and Long Run disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
Contacts:
Long Run Exploration Ltd.
William E. Andrew
Chair and Chief Executive Officer
(403) 261-6012
Long Run Exploration Ltd.
Corine Bushfield
Senior Vice President and Chief Financial Officer
(403) 261-6012
Long Run Exploration Ltd.
Lauren Kimak
Manager, Investor Relations
(403) 716-3222 or (888) 598-1330
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Datum: 10.03.2016 - 06:30 Uhr
Sprache: Deutsch
News-ID 1420924
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Oil & Gas
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