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Pine Cliff Energy Ltd. Announces 2019 Year-End Reserves and 2020 Guidance
Calgary, Alberta--(Newsfile Corp. - February 12, 2020) - Pine Cliff Energy Ltd. ( TSX: PNE ) (...
About this update from Pine Cliff Energy Ltd.
[{"type":"text","content":"Pine Cliff Energy Ltd. Announces 2019 Year-End Reserves and 2020 GuidanceCalgary, Alberta--(Newsfile Corp. - February 12, 2020) - Pine Cliff Energy Ltd. (TSX: PNE) (\"Pine Cliff\", or the \"Company\") is pleased to announce 2019 year-end reserves and 2020 guidance.Reserve Report HighlightsPine Cliff's independent reserve report was prepared by McDaniel & Associates Limited (\"McDaniel\") in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities (\"NI 51-101\") with the effective date of December 31, 2019.Pine Cliff conducted a $10.3 million capital program in 2019 (excluding acquisitions and dispositions but including $2.5 million of major maintenance and other capital expenses, $5.5 million in development drilling, $0.4 million in seismic costs and $1.9 million in abandonment expenditures). Development capital included two gross (2.0 net) Pekisko oil drills. In May 2019, Pine Cliff executed a strategic acquisition to acquire oil and natural gas assets in the Ghost Pine area of Central Alberta for net cash consideration of $8.8 million, after closing adjustments (the \"Acquisition\"). The Acquisition added eight gross (8.0 net) booked Pekisko oil locations in Pine Cliff's 2019 Reserve Report.Highlights of the McDaniel reserve report include:Despite a decrease of 8.3 MMBoe from economic factors on a proved plus probable basis (\"P+P\"), Pine Cliff increased its 2019 P+P reserves by 3.2 MMBoe prior to adjusting for 2019 production, largely as a result of 4.4 MMBoe of positive technical revisions and 7.0 MMBoe from the Acquisition;Remaining P+P reserves of 57.8 MMBoe (88% natural gas) at December 31, 2019 decreased by 3.8 MMBoe (6%) from 61.6 MMBOE (92% natural gas) at December 31, 2018, mainly as a result of economic factors;Approximately 80% of total reserve volumes are classified as total proved (\"1P\") reserves and approximately 20% are classified as probable reserves; andNet present value for P+P reserves of $127.1 million, discounted at 10%, a decrease of $23.7 million, or 16%, from December 31, 2018, mainly as a result of decreases in forecast commodity prices.New and Revised Reserves Evaluation Practices For Pine Cliff's 2019 year-end reserves report, Pine Cliff has included all abandonment, decommissioning and reclamation costs (\"ADR\") for inactive wells and has also included i...