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Advantage Announces First Quarter 2014 Financial and Operating Results
Completed Transition to a Pure Play Montney Producer (TSX: AAV, NYSE: AAV) CA...
About this update from Advantage Energy Ltd
[{"type":"text","content":"\n\n\nCompleted Transition to a Pure Play Montney Producer \n\n\n(TSX: AAV, NYSE: AAV)\n\n\nCALGARY, May 13, 2014 /CNW/ - Advantage Oil & Gas Ltd. (\"Advantage\" or\n the \"Corporation\") is pleased to report the unconsolidated financial\n and operating results (excludes Longview Oil Corp. \"Longview\") for the\n three months ended March 31, 2014.\n\n\nIn the last twelve months, Advantage transitioned into a highly focused\n pure play Montney producer.  This has contributed to strong first\n quarter 2014 results which included:\n\n\n\n108% increase in funds from operations per share from $0.13/share to\n $0.27/share\n\n\n$111 million reduction in total debt to $188 million\n\n\n68% decrease in operating cost from $0.86/mcfe to $0.28/mcfe\n\n\n57% decrease in cash G&A costs from $0.47/mcfe to $0.20/mcfe\n\n\n\nDuring the first quarter of 2014, Advantage completed the final steps to\n simplify the Corporation's capital structure, reduce administration and\n costs. Advantage's capital structure was simplified and strengthened\n through the sale of the Longview shares for gross proceeds of $94\n million and the sale of our Questfire investments for gross proceeds of\n $17.5 million. On February 1, 2014, the technical services agreement\n between Advantage and Longview was terminated. This reduced our\n administrative costs and resulted in a motivated team of 25 employees\n who are focused on the Corporation's three year development plan.   \n\n\nAdvantage's industry leading cost structure resulted in a first quarter\n 2014 operating netback which represented 84% of our realized natural\n gas pricing.  This strong operating margin is a significant factor in\n Advantage's Glacier three year development plan which is based on an\n average natural gas price of AECO Cdn $3.75/GJ over the period.  The\n three year plan is targeted to deliver 100% production per share growth\n and 190% cash flow per share growth while maintaining an average total\n debt to cash flow ratio of 1.5.  Production is expected to grow to 183\n mmcfe/d in 2015, 205 mmcfe/d in 2016 and 245 mmcfe/d in 2017.\n Production growth at Glacier has already replaced the sale of\n approximately 33.6 mmcfe/d (5,600 boe/d) of non-core conventional\n assets which closed in April 2013.\n\n\nConsistent with our hedging strategy to maintain do...