Business
Pine Cliff Energy Ltd. Announces Second Quarter 2019 Results
Calgary, Alberta--(Newsfile Corp. - August 6, 2019) - Pine Cliff Energy Ltd. ( TSX: PNE ) (" P...
About this update from Pine Cliff Energy Ltd.
[{"type":"text","content":"Pine Cliff Energy Ltd. Announces Second Quarter 2019 ResultsCalgary, Alberta--(Newsfile Corp. - August 6, 2019) - Pine Cliff Energy Ltd. (TSX: PNE) (\"Pine Cliff\" or the \"Company\") is pleased to announce the filing of its second 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 and six months ended June 30, 2019 (the \"Q2-Report\"). Selected highlights are shown below and should be read in conjunction with the Q2-Report.After a strong first quarter, the second quarter of 2019 was challenging with AECO 5A natural gas pricing averaging $1.03 per Mcf, the lowest in quarterly average in decades, resulting in adjusted funds used in operations. Significant highlights from Pine Cliff's second quarter were: realized $1.69 per Mcf gas price for the three months ended June 30, 2019, 43% higher than the AECO 5A benchmark of $1.03 per Mcf;realized $2.27 per Mcf gas price for the six months ended June 30, 2019, 24% higher than the AECO 5A benchmark of $1.82 per Mcf;closed an acquisition of oil and natural gas assets in the Ghost Pine area of Central Alberta for cash consideration of $8.6 million (after estimated closing adjustments) on May 31, which added over 1,600 Boe/d as of the closing date and increased the Company's Pekisko oil locations to 28 gross (27.0 net) from eight gross (six net); issued 14,492,754 flow-through common shares at a price of $0.276, resulting in gross proceeds of $4.0 million;issued 6,215,652 common shares at a price of $0.23 per share for gross proceeds of $1.4 million; andexited the quarter with $7.9 million of cash in the bank.Operations UpdateLast year Pine Cliff drilled its first Pekisko oil well in Central Alberta, and it continues to exceed expectations. In its first 180 days it has produced 325 Boe/d, consisting of 190 Bbl/d of oil and natural gas liquids along with 810 Mcf/d of gas and generated approximately $1.7 Million of adjusted funds flow. The cost of this well to drill, complete and tie in was approximately $3.0 Million, with projected payback of approximately 14 months, based on current strip pricing. Pine Cliff plans on drilling at least one more Pekisko oil well in the fourth quarter of 2019. Industry/Government Initiatives Involving Shal...