Business
Pine Cliff Energy Ltd. Announces Third Quarter 2019 Results
Calgary, Alberta--(Newsfile Corp. - November 5, 2019) - Pine Cliff Energy Ltd. ( TSX: PNE ) ("...
About this update from Pine Cliff Energy Ltd.
[{"type":"text","content":"Pine Cliff Energy Ltd. Announces Third Quarter 2019 ResultsCalgary, Alberta--(Newsfile Corp. - November 5, 2019) - Pine Cliff Energy Ltd. (TSX: PNE) (\"Pine Cliff\" or the \"Company\") is pleased to announce the filing of its third 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 nine months ended September 30, 2019 (the \"Q3-Report\"). Selected highlights are shown below and should be read in conjunction with the Q3-Report.The third quarter of 2019 was a difficult quarter for natural gas producers with AECO 5A natural gas pricing averaged $0.90 per Mcf, the lowest quarterly average in decades. Even with Pine Cliff's low cost structure and access to diverse natural gas markets, the Company was unable to avoid negative adjusted funds flow. Highlights from Pine Cliff's third quarter ending September 30, 2019: realized a gas price of $1.55 per Mcf, 172% of the AECO 5A benchmark of $0.90 per Mcf;realized a gas price of $2.02 per Mcf for the nine months ended September 30, 2019, 133% of the AECO 5A benchmark of $1.52 per Mcf;exited with $3.9 million of cash in the bank; andsubsequent to the third quarter, Pine Cliff entered into a credit agreement with AIMCo which extended the maturity dates of its $30 million in promissory notes from September 30, 2020 to December 31, 2024 and extended the term of its debt to insiders amounting to $12 million from September 30, 2020 to December 31, 2024.Operations UpdateIn the fourth quarter of 2018, Pine Cliff drilled its first Pekisko oil well in Central Alberta. To date, this well continues to exceed expectations, averaging 280 Boe/d (56% oil and natural gas liquids) and generating $2.1 million of adjusted funds flow in the first 290 days of production. That means over 70% of the $3 million cost of this well has been recovered. Following up on that success, Pine Cliff plans to drill two Pekisko oil wells in the fourth quarter of 2019 starting in mid-November. Pine Cliff is expected to have one of these wells completed and on production by the end of the year and the other well will be completed and on production in the first quarter of 2020. Both well locations are on lands that were part of the strategic acquisition earlier this year. ...