(TSX: AAV)
CALGARY,
AB, Dec. 1, 2022 /CNW/ - Advantage Energy Ltd.
("Advantage" or the "Corporation") is pleased to announce its 2023
budget and three-year strategic plan.
Advantage's 2023 capital program is focused on prudent cash flow
per share growth via high rate-of-return development drilling into
existing infrastructure. Top-line production is planned to
grow by 11% year-over-year, and all free cash flow
("FCF")(a) will remain allocated to the Corporation's
share buyback program.
2023 Budget Highlights
- Adjusted funds flow ("AFF") per share(b) is expected
to grow by 25% year-over-year, based on strip pricing dated
November 14, 2022 and planned share
buybacks.
- Corporate production is expected to average between 59,000 and
62,500 boe/d, an increase of approximately 11% year-over-year.
Production estimates include provisions for a major 14-day plant
turnaround at Glacier in May and likely NGTL restrictions during
the summer.
- Liquids production is expected to grow by more than 20%
year-over-year, driven by continued drilling at Wembley.
- Corporate production decline rate is expected to be
approximately 24%.
- Cash used in investing activities is planned to be between
$250 million and $280 million, representing a payout
ratio(b) of under 50% prior to share buybacks. Capital
estimates include provisions for inflation of 15-20% from a year
earlier, though Advantage is actively seeking lower cost service
providers and suppliers.
- Drilling for the year is planned to include approximately 25
net wells, with approximately 55% of the program focused at Glacier
and the remaining targeting oil and liquids at Wembley and Valhalla.
- The previously announced Glacier Gas Plant expansion to 425
mmcf/d capacity is planned to be completed early in the second
quarter of 2023.
- Net debt(a) target remains at $200 million, although net debt(a) is
currently under $80 million.
- Following the completion of our current substantial issuer bid
("SIB", see press release dated November 7,
2022) of up to $100 million on
December 16, 2022, Advantage will
resume its normal course issuer bid ("NCIB"). Advantage will plan
to renew the NCIB in April 2023 and
additional SIB's may be required to achieve our net
debt(a) target.
- Advantage expects it will not be subject to cash taxes until
calendar 2024 due to over $1 billion
in high-quality tax pools.
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a.
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Non-GAAP Financial Measure which does not have a
standardized meaning under IFRS and may not be comparable to
similar non-GAAP financial measures used by other entities. Please
see Advisory.
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b.
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Non-GAAP Ratio which does not have a standardized
meaning under IFRS and may not be comparable to similar non-GAAP
ratios used by other entities. Please see Advisory for a
description of how such non-GAAP ratio is calculated, including the
non-GAAP financial measures comprising such non-GAAP
ratio.
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Highlights of the Three-Year Strategic Plan
- Annual production is expected to grow by at least 10% in each
of the next three years, exceeding 75,000 boe/d by 2025.
- Cash used in investing activities is planned to remain between
$250 million and $300 million per year (including provisions for
inflation).
- On average, Advantage plans to drill approximately 26 net wells
per year to achieve growth targets, with current tier 1 inventory
estimated at 531 wells plus over 1,000 additional economic
locations.
- Gas and liquids processing capacity at the Glacier/Valhalla/Progress complex is expected to climb
in increments to 500 mmcf/d by the end of 2025 at a cost of
approximately $40 million per year
for three years.
- Planned production growth will be managed in conjunction with
transportation service growth and hedging, with a focus on non-AECO
markets prior to the commissioning of LNG Canada.
2023 Guidance Summary (1)
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Cash Used in Investing
Activities (2) (millions)
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$250 to
$280
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Average Production
(boe/day)
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59,000
to 62,500
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Liquids Production
(%)
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~12%
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Royalty Rate
(%)
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9% to 12%
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Operating Expense
($/boe)
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$3.25
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Transportation Expense
($/boe)
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$4.75
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G&A/Finance Expense
($/boe)
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$1.40
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Notes:
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(1)
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Forward-looking
statements and information representing Management estimates.
Refer to Advisory for cautionary statements regarding
Advantage's budget including material assumptions and risk
factors.
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(2)
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Cash Used in
Investing Activities is the same as Net Capital Expenditures as no
change in non-cash working capital is assumed between years and
other differences are immaterial. See
Advisory.
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(3)
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Budget and guidance
numbers are for Advantage Energy Ltd. only and exclude Entropy Inc.
("Entropy").
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Marketing Update
Advantage has hedged 16% of 2023 forecast natural gas production
at an average of US$4.19/mmbtu.
AECO market exposure continues to be the most volatile component of
our revenue portfolio due to recurring issues related to NGTL
expansion delays and unpredictable maintenance related operating
practices. Total exposure to AECO is now less than 25% of our
production over the 2023-2024 period and 9% during summer 2023.
Sustainability Update
Advantage is pleased to provide an update to its 2021
Sustainability Report, which is available on our website at
www.advantageog.com. Advantage's Board of Directors continues
to be actively engaged in the oversight of sustainability and ESG
matters as well as risk management. The update includes key
sustainability metrics for the year ended 2021, progress on prior
established sustainability targets, and ongoing initiatives to
prioritize ESG aspects in our operations and work towards our
target of "Net Zero" Scope 1 and 2 emissions by 2025.
Looking Forward
In order to maximize shareholder returns, Advantage's priority
is growing AFF per share(b). To optimize growth of
AFF(a), Advantage will target organic production growth
of over 10% per year throughout our three-year corporate plan,
depending on commodity pricing. Despite significant progress
with our share buybacks, our net debt(a) levels remain
below the corporate target of $200
million, so in the coming quarters, share repurchases are
expected to exceed FCF(a) materially.
Advantage continues to demonstrate enhanced well productivity
across the asset base as a result of advanced subsurface analysis
and well execution. Our most recent pad in the northeast
corner of Glacier has delivered IP30s of 11.0, 11.2, 13.1 and 15.4
mmcf/d (raw), amongst our best pads ever. One additional well
on this pad remains shut-in awaiting pipeline capacity. These
prolific results have been spread broadly across our assets, which
has resulted in Advantage promoting approximately 125
drilling locations into our top-tier inventory of 531 wells
(a 34% increase since 2020). Our three-year strategic plan
demonstrates how we will convert this inventory into production and
cash flow.
With commodity prices remaining robust, Advantage is in a strong
position to grow total shareholder returns by delivering moderate
production growth into existing infrastructure, enhancing corporate
resilience and scale. By growing our liquids assets more
rapidly than gas-weighted assets, revenue will be derived more
evenly from multiple commodities, reducing exposure to gas price
volatility. Cash-generating investments in infrastructure
will continue, and our energy transition subsidiary, Entropy, will
pursue rapid growth in carbon capture and storage ("CCS") projects.
Advantage is on the pathway to net-zero emissions by 2025[1],
primarily through Entropy's revenue-generating carbon capture and
storage projects, including the Glacier CCS project.
Advantage looks forward to advancing the Corporation's strategy
through the dynamic markets ahead.
_____________________________
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1 See
Advantage's 2021 Sustainability Report. Success in achieving
net-zero on this timeline is predicated on functional CCS
regulatory frameworks at both the federal and provincial
levels.
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For more details, Advantage has posted an updated corporate
presentation at www.advantageog.com.
Advantage Energy Ltd.
2200, 440 -
2nd Avenue SW
Calgary, Alberta T2P 5E9
Phone: (403) 718-8000
Fax: (403) 718-8332
Web Site: www.advantageog.com
E-mail: ir@advantageog.com
Forward Looking Information Advisory
The information in this press release contains certain
forward-looking statements, including within the meaning of
applicable securities laws. These statements relate to future
events or our future intentions or performance. All statements
other than statements of historical fact may be forward looking
statements. Forward-looking statements are often, but not always,
identified by the use of words such as "guidance", "anticipate",
"target", "objectives", "estimates", "continue", "demonstrate",
"expect", "may", "can", "will", "believe", "would" and similar
expressions and include statements relating to, among other things,
Advantage's focus, strategy, priorities and development plans; the
focus of Advantage's 2023 capital program including prudent cash
flow per share growth; Advantage's anticipated top-line production
growth; Advantage's expectations that it will allocate all FCF to
the Corporation's share buyback program; anticipated growth in
corporate production and the anticipated timing thereof;
anticipated growth in liquids production; anticipated corporate
production decline rate; anticipated cash used in investing
activities; Advantage's anticipated drilling plans in 2023 and the
focus thereof; the anticipated timing of the Glacier Gas Plant
expansion; anticipated net debt; Advantage's expectations that it
will resume its NCIB upon the completion of its SIB; Advantage's
expectations that it will plan to renew its NCIB in 2023 and that
additional SIBs may be required to achieve its net debt target;
anticipated growth in AFF; Advantage's expectations that it will
not be subject to cash taxes until calendar year 2024; Advantage's
three-year strategic plan, including its anticipated annual
production, cash used in investing activities, drilling activities,
and growth in gas processing capacity (including the anticipated
costs thereof); Advantage's 2023 capital guidance, including its
anticipated cash used in investing activities, average production,
liquids production, royalty rate, operating expense, transportation
expense and G&A/finance expense; Advantage's hedging program;
Advantage's priority of growing AFF per share and the anticipated
means of achieving such growth and the anticipated timing thereof;
Advantages sustainability targets; Advantage's expectations that
its share repurchases will exceed FCF; Advantage's ability to
convert its inventory into production and cash flow; Advantage's
expectations that it will grow total shareholder returns and
deliver moderate production growth into existing infrastructure
enhancing corporate resilience and scale; Advantage's expectations
that by growing its liquids assets more rapidly than gas-weighted
assets, revenue will be derived more evenly from multiple
commodities, reducing exposure to gas price volatility;
expectations that Entropy will pursue rapid growth in CCS projects;
and that Advantage will achieve net-zero emissions by 2025.
Advantage's actual decisions, activities, results, performance, or
achievement could differ materially from those expressed in, or
implied by, such forward-looking statements and accordingly, no
assurances can be given that any of the events anticipated by the
forward-looking statements will transpire or occur or, if any of
them do, what benefits that Advantage will derive from
them.
With respect to forward-looking statements contained in this
press release, Advantage has made assumptions regarding, but not
limited to: that Advantage's infrastructure investments will either
expand third-party processing revenue or advance its net-zero 2025
target; future oil and gas prices; anticipated NYMEX and WTI
prices; anticipated strip pricing; the third party processing
revenue available to Advantage; foreign exchange rates; conditions
in general economic and financial markets; the impact and duration
thereof that the COVID-19 pandemic will have on (i) the demand for
crude oil, NGLs and natural gas, (ii) the supply chain including
the Corporation's ability to obtain the equipment and services it
requires, and (iii) the Corporation's ability to produce, transport
and/or sell its crude oil, NGLs and natural gas; effects of
regulation by governmental agencies; current and future commodity
prices and royalty regimes; the Corporation's current and future
hedging program; future exchange rates; royalty rates; future
operating costs; future transportation costs and availability of
product transportation capacity; availability of skilled labor;
availability of drilling and related equipment; timing and amount
of net capital expenditures; the number of new wells required to
achieve the budget objectives; that the Corporation will have
sufficient adjusted funds flow, debt or equity sources or other
financial resources required to fund its capital and operating
expenditures and requirements as needed; that the Corporation's
conduct and results of operations will be consistent with its
expectations; that the Corporation will have the ability to develop
the Corporation's properties in the manner currently contemplated;
current or, where applicable, proposed assumed industry conditions,
laws and regulations will continue in effect or as anticipated;
that Entropy will have the ability to develop its technology in the
manner currently contemplated; that pursuing high rate-of-return
development drilling into existing infrastructure will lead to cash
flow per share growth; that the anticipated plant turnaround at
Glacier in May and NGTL restrictions during the summer will not
last longer than expected; that repurchasing its shares will allow
Advantage to achieve its net debt target; that Advantage will be
able to grow its liquids assets more rapidly than gas-weighted
assets; and the estimates of the Corporation's production and
reserves volumes and the assumptions related thereto (including
commodity prices and development costs) are accurate in all
material respects. Management has included the above summary of
assumptions and risks related to forward-looking information in
order to provide shareholders with a more complete perspective on
Advantage's future operations and such information may not be
appropriate for other purposes. Advantage's actual results,
performance or achievement could differ materially from those
expressed in, or implied by, these forward-looking statements and,
accordingly, no assurance can be given that any of the events
anticipated by the forward-looking statements will transpire or
occur, or if any of them do so, what benefits that Advantage will
derive therefrom. Readers are cautioned that the foregoing lists of
factors are not exhaustive. These forward-looking statements are
made as of the date of this press release and Advantage disclaims
any intent or obligation to update publicly any forward-looking
statements, whether as a result of new information, future events
or results or otherwise, other than as required by applicable
securities laws.
These statements involve substantial known and unknown risks
and uncertainties, certain of which are beyond Advantage's control,
including, but not limited to: changes in general economic, market
and business conditions; industry conditions, including as a result
of demand and supply effects resulting from the COVID-19 pandemic;
actions by governmental or regulatory authorities including
increasing taxes and changes in investment or other regulations;
changes in tax laws, royalty regimes and incentive programs
relating to the oil and gas industry; Advantage's success at
acquisition, exploitation and development of reserves; unexpected
drilling results; changes in commodity prices, currency exchange
rates, net capital expenditures, reserves or reserves estimates and
debt service requirements; the occurrence of unexpected events
involved in the exploration for, and the operation and development
of, oil and gas properties, including hazards such as fire,
explosion, blowouts, cratering, and spills, each of which could
result in substantial damage to wells, production and processing
facilities, other property and the environment or in personal
injury; changes or fluctuations in production levels; delays in
anticipated timing of drilling and completion of wells; individual
well productivity; competition from other producers; the lack of
availability of qualified personnel or management; credit risk;
changes in laws and regulations including the adoption of new
environmental laws and regulations and changes in how they are
interpreted and enforced; Advantage's ability to comply with
current and future environmental or other laws; stock market
volatility and market valuations; liabilities inherent in oil and
natural gas operations; competition for, among other things,
capital, acquisitions of reserves, undeveloped lands and skilled
personnel; incorrect assessments of the value of acquisitions;
geological, technical, drilling and processing problems and other
difficulties in producing petroleum reserves; ability to obtain
required approvals of regulatory authorities; ability to access
sufficient capital from internal and external sources; the risk
that that pursuing high rate-of-return development drilling into
existing infrastructure may not lead to cash flow per share growth;
the risk that Advantage's top-line production growth year-over-year
may be less than anticipated; the risk that Advantage may not
allocate all FCF to the Corporation's share buyback program; the
risk that the anticipated plant turnaround at Glacier in May and
NGTL restrictions during the summer may last longer than expected;
the risk that Advantage may not grow its AFF per share when
anticipated, or at all; the risk that Advantage's corporate
production, liquids production, corporate production decline rate,
cash used in investing activities and AFF may be less than
anticipated; the risk that Advantage may drill less wells than
anticipated; the risk that the Glacier Gas Plant expansion may
occur later than anticipated; the risk that Advantage's net debt
may be greater than anticipated; the risk that Advantage may not
resume its NCIB upon the completion of its SIB; the risk that
Advantage may not renew its NCIB in 2023 or announce additional
SIBs in the future; the risk that Advantage may be subject to cash
taxes prior calendar year 2024; the risk that the gas processing
capacity at the Glacier/Valhalla/Progress complex may be less than
anticipated; the risk that Advantage's share repurchases may not
exceed FCF; the risk that Advantage may not convert its inventory
into production and cash flow; the risk that Advantage may not grow
total shareholder returns, deliver moderate production growth into
existing infrastructure or enhance corporate resilience and scale;
the risk that Advantage may not grow its liquids assets more
rapidly than its gas-weighted assets; the risk that Entropy may not
pursue rapid growth in CCS projects; and the risk that Advantage
may not be able to achieve net-zero emissions by 2025. Many of
these risks and uncertainties and additional risk factors are
described in the Corporation's Annual Information Form which is
available at www.sedar.com ("SEDAR") and www.advantageog.com.
Readers are also referred to risk factors described in other
documents Advantage files with Canadian securities
authorities.
The future acquisition by the Corporation of the
Corporation's common shares pursuant to its share buyback program
(including through an NCIB or an SIB), if any, and the level
thereof is uncertain. Any decision to acquire common shares of the
Corporation pursuant to the share buyback program will be subject
to the discretion of the board of directors of the Corporation and
may depend on a variety of factors, including, without limitation,
the Corporation's business performance, financial condition,
financial requirements, growth plans, expected capital requirements
and other conditions existing at such future time including,
without limitation, contractual restrictions and satisfaction of
the solvency tests imposed on the Corporation under applicable
corporate law. There can be no assurance of the number of common
shares of the Corporation that the Corporation will acquire
pursuant to its share buyback program, if any, in the
future.
This press release contains information that may be
considered a financial outlook under applicable securities laws
about the Corporation's potential financial position, including,
but not limited to, Advantage's 2023 capital guidance, including
its anticipated cash used in investing activities, net debt, AFF
per share growth, average production, liquids production, royalty
rate, operating expense, transportation expense and G&A/finance
expense; Advantage's expectations that it will not be subject to
cash taxes until calendar year 2024; Advantage's anticipated cash
used in investing activities over the next three years; the
anticipated costs to be incurred by the Corporation over the next
three years towards growing its gas processing capacity at the
Glacier/Valhalla/Progress complex;
Advantage's hedging program; and Advantage's expectations that its
share repurchases will exceed its FCF; all of which are subject to
numerous assumptions, risk factors, limitations and qualifications,
including those set forth in the above paragraphs. The actual
results of operations of the Corporation and the resulting
financial results will vary from the amounts set forth in this
press release and such variations may be material. This information
has been provided for illustration only and with respect to future
periods are based on budgets and forecasts that are speculative and
are subject to a variety of contingencies and may not be
appropriate for other purposes. Accordingly, these estimates are
not to be relied upon as indicative of future results. Except as
required by applicable securities laws, the Corporation undertakes
no obligation to update such financial outlook. The financial
outlook contained in this press release was made as of the date of
this press release and was provided for the purpose of providing
further information about the Corporation's potential future
business operations. Readers are cautioned that the financial
outlook contained in this press release is not conclusive and is
subject to change.
Specified Financial Measures
The Corporation discloses several financial and performance
measures in this press release that do not have any standardized
meaning prescribed under GAAP. These financial and performance
measures include "net capital expenditures", "adjusted funds flow",
"adjusted funds flow per share", "free cash flow", "net debt",
"payout ratio" and "working capital", which should not be
considered as alternatives to, or more meaningful than "net
income", "comprehensive income", "cash provided by operating
activities", "cash used in investing activities", or "bank
indebtedness" presented within the consolidated financial
statements as determined in accordance with GAAP. Management
believes that these measures provide an indication of the results
generated by the Corporation's principal business activities and
provide useful supplemental information for analysis of the
Corporation's operating performance and liquidity. Advantage's
method of calculating these measures may differ from other
companies, and accordingly, they may not be comparable to similar
measures used by other companies.
Non-GAAP Financial Measures
Adjusted Funds Flow
The Corporation considers adjusted funds flow to be a useful
measure of Advantage's ability to generate cash from the production
of natural gas and liquids, which may be used to settle outstanding
debt and obligations, support future capital expenditures plans or
return capital to shareholders. Changes in non-cash working capital
are excluded from adjusted funds flow as they may vary
significantly between periods and are not considered to be
indicative of the Corporation's operating performance as they are a
function of the timeliness of collecting receivables and paying
payables. Expenditures on decommissioning liabilities are excluded
from the calculation as the amount and timing of these expenditures
are unrelated to current production and are partially discretionary
due to the nature of our low liability.
Net Capital Expenditures
Net capital expenditures include total capital expenditures
related to property, plant and equipment and exploration and
evaluation assets incurred during the period. Management considers
this measure reflective of actual capital activity for the period
as it excludes changes in working capital related to other
periods.
Free Cash Flow
Advantage computes free cash flow as adjusted funds flow less
net capital expenditures. Advantage uses free cash flow as an
indicator of the efficiency and liquidity of Advantage's business
by measuring its cash available after net capital expenditures to
settle outstanding debt and obligations and potentially return
capital to shareholders by paying dividends or buying back common
shares.
Non-GAAP Ratios
Payout Ratio
Payout ratio is calculated by dividing cash used in investing
activities or net capital expenditures by adjusted funds flow.
Advantage uses payout ratio as an indicator of the efficiency and
liquidity of Advantage's business by measuring its cash available
after cash used in investing activities or net capital expenditures
to settle outstanding debt and obligations and potentially return
capital to shareholders by paying dividends or buying back common
shares.
Adjusted Funds Flow per Share
Adjusted funds flow per share is derived by dividing adjusted
funds flow by the basic weighted average shares outstanding of the
Corporation. Management believes that adjusted funds flow per share
provides investors an indicator of funds generated from the
business that could be allocated to each shareholder's equity
position.
Capital Management Measures
Working Capital
Working capital includes cash and cash equivalents, trade and
other receivables, prepaid expenses and deposits and trade and
other accrued payables at the reporting date. Working capital
provides Management and users with a measure of the Corporation's
operating liquidity.
Net Debt
Net debt is comprised of bank indebtedness and working
capital. Net debt provides Management and users with a measure of
the Corporation's liquidity.
Supplementary Financial Measures
Dollars per BOE figures
Throughout this press release, the Corporation presents
certain financial figures, in accordance with IFRS, stated in
dollars per boe. These figures are determined by dividing the
applicable financial figure as prescribed under IFRS by the
Corporation's total production for the respective period. Below is
a list of figures which have been presented in this press release
in $ per boe:
- Finance expense per boe
- General and administrative expense per boe
- Operating expense per boe
- Transportation expense per boe
Refer to the Corporation's most recent Management's
Discussion and Analysis for the three and nine months ended
September 30, 2022, which is
available at www.sedar.com and
www.advantageog.com, for additional information about certain
non-GAAP financial measures, including reconciliations to the
nearest GAAP measures and disclosure of historical non-GAAP
financial measures, as applicable.
Oil and Gas Information
Barrels of oil equivalent (boe) and thousand cubic feet of
natural gas equivalent (mcfe) may be misleading, particularly if
used in isolation. Boe and mcfe conversion ratios have been
calculated using a conversion rate of six thousand cubic feet of
natural gas equivalent to one barrel of oil. A boe and mcfe
conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency
conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead. Given that the
value ratio based on the current price of crude oil as compared to
natural gas is significantly different from the energy equivalency
of 6:1, utilizing a conversion on a 6:1 basis may be misleading as
an indication of value.
References in this press release to short-term production
rates, such as IP30, are useful in confirming the presence of
hydrocarbons, however such rates are not determinative of the rates
at which such wells will commence production and decline thereafter
and are not indicative of long-term performance or of ultimate
recovery. Additionally, such rates may also include recovered "load
oil" fluids used in well completion stimulation. While encouraging,
readers are cautioned not to place reliance on such rates in
calculating the aggregate production of Advantage.
Production estimates contained herein are expressed as
anticipated average production over the calendar year. In
determining anticipated production for the year 2023 Advantage
considered historical drilling, completion and production results
for prior years and took into account the estimated impact on
production of the Corporation's 2023 expected drilling and
completion activities.
This press release discloses drilling inventory in three
categories: (i) proved locations; (ii) probable locations; and
(iii) unbooked locations. Proved locations and probable locations
are derived from Sproule Associates Limited reserves evaluation
effective December 31, 2021 and
account for drilling locations that have associated proved and/or
probable reserves, as applicable. Unbooked locations are internal
estimates based on our prospective acreage and an assumption as to
the number of wells that can be drilled per section based on
industry practice and internal review. Unbooked locations do not
have attributed reserves or resources. Of the over 1,531 total
drilling locations identified herein, 287 are proved locations, 52
are probable locations and over 1,192 are unbooked locations.
Unbooked locations have been identified by management as an
estimation of our multi-year drilling activities based on
evaluation of applicable geologic, seismic, engineering, production
and reserves information. There is no certainty that the
Corporation will drill all unbooked drilling locations and if
drilled there is no certainty that such locations will result in
additional oil and gas reserves, resources or production. The
drilling locations on which we actually drill wells will ultimately
depend upon the availability of capital, regulatory approvals,
seasonal restrictions, oil and natural gas prices, costs, actual
drilling results, additional reservoir information that is obtained
and other factors. While certain of the unbooked drilling locations
have been de-risked by drilling existing wells in relative close
proximity to such unbooked drilling locations, other unbooked
drilling locations are farther away from existing wells where
management has less information about the characteristics of the
reservoir and therefore there is more uncertainty whether wells
will be drilled in such locations and if drilled there is more
uncertainty that such wells will result in additional oil and gas
reserves, resources or production.earningshis news release
refer to conventional natural gas, light crude oil and medium crude
oil and natural gas liquids product types, respectively, as defined
in National Instrument 51-101.
The following terms and abbreviations used in this press
release have the meanings set forth below:
AECO
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A notational market
point on TransCanada Pipeline Limited's NGTL system where the
purchase and sale of natural gas is transacted
|
bbl
|
one
barrel
|
boe
|
barrels of oil
equivalent of natural gas, on the basis of one barrel of oil or
NGLs for six thousand cubic feet of natural gas
|
boe/d
|
barrels of oil
equivalent of natural gas per day
|
Crude oil and
condensate
|
Light crude oil and
medium crude oil as defined in National Instrument
51-101
|
IP30
|
Average initial
production rate over 30 consecutive days
|
Liquids
|
Includes crude oil
and condensate and NGLs
|
mcfe
|
thousand cubic feet
equivalent on the basis of six thousand cubic feet of natural gas
for one barrel of oil or NGLs
|
mmbtu
|
million British
thermal units
|
mmcf/d
|
million cubic feet
per day
|
Natural
gas
|
Conventional Natural
Gas as defined in National Instrument 51-101
|
NGLs
|
Natural Gas Liquids
as defined in National Instrument 51-101
|
NGTL
|
NOVA Gas
Transmission Ltd.
|
Payout
|
The point at which
all costs associated with a well are recovered from revenue from
the well.
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SOURCE Advantage Energy Ltd.