Crew Energy Inc. Announces Third Quarter 2015 Financial and Operating Results
CALGARY, ALBERTA–(Nov. 5, 2015) – Crew Energy Inc. (TSX:CR) of Calgary, Alberta (“Crew” or the “Company”) is pleased to provide our operating and financial results for the three and nine month periods ended September 30, 2015. Our Financial Statements and Notes, as well as Management’s Discussion and Analysis (“MD&A”) for the three and nine month periods ended September 30, 2015 are available on Crew’s website and filed on SEDAR.
- Produced an average 16,773 boe per day for the quarter, 5% lower than the second quarter of 2015 resulting from Crew’s decision to preserve value by shutting in approximately 8,000 boe per day for most of the quarter due to extremely weak natural gas pricing in Northeast British Columbia (“NE BC”) caused by multiple planned and unplanned pipeline service restrictions and curtailments;
- Generated funds from operations of $17.3 million or $0.12 per share, which reflects the curtailed production volumes and reduced commodity prices, supported by hedging gains of $6.17 per boe and significantly lower cash costs;
- Reduced cash costs in the third quarter by 35% compared to the same period in 2014, highlighted by a 76% reduction in royalties, a 23% reduction in operating costs per boe, and a 12% reduction in G&A per boe. Costs on a per boe basis also declined compared to the second quarter of 2015, as royalties were down 12%, operating costs declined 4% and G&A declined by 7%;
- Continued to outperform operationally at West Septimus with natural gas productivity and condensate rates tracking materially higher than forecasted in our 2014 reserve report. Substantial incremental production volumes are waiting to be brought on line, over and above shut in production at Septimus, as the Company has an estimated 20,000 boe per day of deliverability from 21 Montney wells drilled and completed plus 11 Montney wells drilled and uncompleted;
- Completed and production tested Crew’s first Lower Montney exploratory well early in the fourth quarter which at the end of an eight day flow and clean-up period was flowing at a rate of 7.4 mmcf per day with 147 bbls per day of wellhead condensate at a flowing casing pressure of 1,120 psi;
- Completed and production tested three new Montney wells at West Septimus with average per well production rates of 6.0 mmcf per day and 270 bbls per day of wellhead condensate and completed and tested two additional wells at Septimus with average per well production rates of 8.3 mmcf per day and 120 bbls per day of wellhead condensate over a four to eight day period;
- Successfully brought the new 60 mmcf per day West Septimus facility on stream in early August at a planned 30 mmcf per day, with the plant seamlessly processing volumes from six producing wells. Facility throughput is planned to increase to 40 mmcf per day to meet our forecast exit production guidance of over 26,000 boe per day when Crew’s natural gas sales market diversification occurs on December 1, 2015;
- Closed an innovative petroleum and natural gas rights exchange with the Province of BC which brought Crew’s total Montney acreage position to approximately 474 net sections, and increased our Montney Economic Contingent Resource estimate by approximately 12% to 8.3 Tcfe;
- Sold a non-core heavy oil asset package in Lloydminster for proceeds of $50.1 million, which further bolstered the Company’s balance sheet and financial flexibility;
- Achieved 5% improvement in net debt at the end of the third quarter over the second quarter which totaled $216 million and was 15% lower than the year-end 2014 net debt; and
- Confirmed with the Company’s lenders a borrowing base of $250 million and forecast a year end draw on the facility of less than 25%, inclusive of working capital deficit.
Read More: http://www.crewenergy.com/news-releases/crew-energy-inc-announces-third-quarter-2015-financial-and-operating-results