Business
Pine Cliff Energy Ltd. Announces First Quarter 2020 Results and Annual General Meeting Update
Calgary, Alberta--(Newsfile Corp. - May 6, 2020) - Pine Cliff Energy Ltd. ( TSX: PNE ) (" Pine...
About this update from Pine Cliff Energy Ltd.
[{"type":"text","content":"Pine Cliff Energy Ltd. Announces First Quarter 2020 Results and Annual General Meeting UpdateCalgary, Alberta--(Newsfile Corp. - May 6, 2020) - Pine Cliff Energy Ltd. (TSX: PNE) (\"Pine Cliff\" or the \"Company\") is pleased to announce the filing of its first quarter financial and operating results. Included in the filings were Pine Cliff's unaudited interim condensed consolidated financial statements and related management's discussion and analysis for the three months ended March 31, 2020 (the \"Q1-Report\"). Selected highlights are shown below and should be read in conjunction with the Q1-Report. First Quarter 2020 Highlights The first quarter of 2020 had a promising start with the production performance of all three of Pine Cliff's Pekisko oil wells continuing to outperform internal expectations. This good news however was dampened by the fact this past winter was an unusually warm winter and as a result, natural gas prices were not as strong as they were in Q1 2019. The first quarter of 2020 however was dominated by the unprecedented collapse of crude oil and liquids prices due to global over-supply combined with demand destruction from the novel coronavirus (\"COVID-19\"). Despite the fact that 91% of Pine Cliff's Q1 production volume was natural gas, those price drops impacted commodity sales. These negative impacts were mitigated to some degree by improving natural gas prices, which resulted in Pine Cliff still generating adjusted funds flow. Highlights from Pine Cliff's first quarter ended March 31, 2020 include: generated $1.2 million of adjusted funds flow for the three months ended March 31, 2020, despite the AECO 5A benchmark averaging only $2.02 per Mcf for the quarter; produced an average of 19,169 Boe/d (91% natural gas) in the three months ended March 31, 2020, a 2% increase compared to the same period in 2019; and tied-in production from the second of two Pekisko oil wells and one Edson oil well drilled in the fourth quarter of 2019. Outlook 2020 has had the most volatile start to a year that Pine Cliff has ever experienced. Although Q2 and Q3 may still experience unpredictable moves in natural gas pricing, the Company has entered into fixed price physical sales contracts for approximately 40% of our natural gas production during those two periods. The increase in AECO forward pricing to levels not witnessed f...