Birchcliff Energy Ltd. (“
Birchcliff” or the
“
Corporation”) (TSX: BIR) is pleased to announce
that it has filed its annual audited financial statements (the
“
financial statements”) and related management’s
discussion and analysis and its annual information form (the
“
AIF”) for the financial year ended December 31,
2023 (collectively, the “
Annual Filings”). The AIF
contains the reserves data and other oil and gas information as
required by National Instrument 51-101 – Standards of Disclosure
for Oil and Gas Activities. The financial and reserves information
contained in the Annual Filings is consistent with the unaudited
financial and reserves information disclosed in the press release
issued by Birchcliff on February 14, 2024.
The Annual Filings are available electronically
on Birchcliff’s website at www.birchcliffenergy.com and on SEDAR+
at www.sedarplus.ca.
CAPITAL PROGRAM UPDATE
Birchcliff’s disciplined capital budget of $240
million to $260 million for 2024 reflects its commitment to
maintaining a strong balance sheet, while focusing on sustainable
shareholder returns and the continued development of the
Corporation’s world-class asset base. Birchcliff expects to bring
29 wells on production in 2024 as part of its capital program,
which utilizes its latest wellbore and completions design and
targets high rate-of-return wells with strong capital efficiencies
and attractive paybacks.
As previously announced, Birchcliff is delaying
the drilling of 13 wells until late Q2 and into Q3 2024, with these
wells expected to come on production in Q4 2024, aligned with the
anticipated improvement in commodity prices. Birchcliff is closely
monitoring commodity prices and this deferral provides it with the
flexibility to further adjust its 2024 capital program if
necessary.
In Pouce Coupe, the Corporation completed the
drilling of its 5-well 04-30 pad in December 2023 and the wells
were turned over to production through Birchcliff’s permanent
facilities in late February 2024. This pad was drilled in the Lower
Montney and targeted high-rate natural gas.
In February 2024, Birchcliff completed the
drilling of its 5-well 16-17 pad in Pouce Coupe and the wells are
anticipated to be turned over to production in April 2024. This pad
targeted condensate-rich natural gas with three wells drilled in
the Lower Montney and two wells in the Upper Montney.
In Gordondale, Birchcliff completed the drilling
of its 2-well 02-27 pad targeting liquids-rich natural gas wells in
the Lower Montney in early March 2024, with the wells anticipated
to be turned over to production in Q2 2024.
Birchcliff currently has one drilling rig at
work in the Gordondale area drilling its 4-well 01-10 pad. This pad
is targeting oil wells in the Lower Montney and is anticipated to
be turned over to production in Q2 2024. Following the drilling of
this pad, it is currently expected that the drilling rigs will be
shut down until late Q2 2024.
With respect to Birchcliff’s future development
area in Elmworth, the formal planning is underway for the
construction of a proposed 100% owned and operated natural gas
processing plant in the area, including determining processing and
takeaway capacity and the specific timelines for consultation and
construction. Birchcliff may consider investing capital in 2024 to
continue to build, protect and optimize its Elmworth Montney land
position.
Birchcliff looks forward to providing an update
on its capital program and well results in conjunction with the
release of its Q1 2024 results on May 15, 2024. If required,
Birchcliff plans to provide updated guidance at that time.
Forward-Looking Statements
Certain statements contained in this press
release constitute forward‐looking statements and forward-looking
information (collectively referred to as “forward‐looking
statements”) within the meaning of applicable Canadian
securities laws. The forward-looking statements contained in this
press release relate to future events or Birchcliff’s future plans,
strategy, operations, performance or financial position and are
based on Birchcliff’s current expectations, estimates, projections,
beliefs and assumptions. Such forward-looking statements have been
made by Birchcliff in light of the information available to it at
the time the statements were made and reflect its experience and
perception of historical trends. All statements and information
other than historical fact may be forward‐looking statements. Such
forward‐looking statements are often, but not always, identified by
the use of words such as “plan”, “focus”, “future”, “outlook”,
“expect”, “anticipate”, “estimate”, “forecast”, “guidance”,
“budget”, “continue”, “targeting”, “may”, “will”, “could” and other
similar words and expressions.
By their nature, forward-looking statements
involve known and unknown risks, uncertainties and other factors
that may cause actual results or events to differ materially from
those anticipated in such forward‐looking statements. Accordingly,
readers are cautioned not to place undue reliance on such
forward-looking statements. Although Birchcliff believes that the
expectations reflected in the forward-looking statements are
reasonable, there can be no assurance that such expectations will
prove to be correct and Birchcliff makes no representation that
actual results achieved will be the same in whole or in part as
those set out in the forward-looking statements.
In particular, this press release contains
forward‐looking statements relating to the following: that
Birchcliff’s disciplined capital budget of $240 million to $260
million for 2024 reflects its commitment to maintaining a strong
balance sheet, while focusing on sustainable shareholder returns
and the continued development of the Corporation’s world-class
asset base; that Birchcliff expects to bring 29 wells on production
in 2024 as part of its capital program, which utilizes its latest
wellbore and completions design and targets high rate-of-return
wells with strong capital efficiencies and attractive paybacks;
that Birchcliff is delaying the drilling of 13 wells until late Q2
and into Q3 2024, with these wells expected to come on production
in Q4 2024, aligned with the anticipated improvement in commodity
prices; that this deferral provides Birchcliff with the flexibility
to further adjust its 2024 capital program if necessary; other
statements regarding Birchcliff’s 2024 capital program and its
exploration, production and development activities and the timing
thereof (including: targeted product types; the expected timing for
wells to be drilled and brought on production; and that following
the drilling of the 01-10 pad, the drilling rigs will be shut down
until late Q2 2024); statements regarding Elmworth (including: the
construction of a proposed 100% owned and operated natural gas
processing plant in the area; and that Birchcliff may consider
investing capital in 2024 to continue to build, protect and
optimize its Elmworth Montney land position); and that Birchcliff
will provide an update on its capital program in conjunction with
the release of its Q1 2024 results on May 15, 2024.
With respect to the forward‐looking statements
contained in this press release, assumptions have been made
regarding, among other things: prevailing and future commodity
prices and differentials, exchange rates, interest rates, inflation
rates, royalty rates and tax rates; the state of the economy,
financial markets and the exploration, development and production
business; the political environment in which Birchcliff operates;
the regulatory framework regarding royalties, taxes, environmental,
climate change and other laws; the Corporation’s ability to comply
with existing and future laws; future cash flow, debt and dividend
levels; future operating, transportation, general and
administrative and other expenses; Birchcliff’s ability to access
capital and obtain financing on acceptable terms; the timing and
amount of capital expenditures and the sources of funding for
capital expenditures and other activities; the sufficiency of
budgeted capital expenditures to carry out planned operations; the
successful and timely implementation of capital projects and the
timing, location and extent of future drilling and other
operations; results of operations; Birchcliff’s ability to continue
to develop its assets and obtain the anticipated benefits
therefrom; the performance of existing and future wells; the impact
of competition on Birchcliff; the availability of, demand for and
cost of labour, services and materials; the ability to obtain any
necessary regulatory or other approvals in a timely manner; the
satisfaction by third parties of their obligations to Birchcliff;
the ability of Birchcliff to secure adequate processing and
transportation for its products; Birchcliff’s ability to
successfully market natural gas and liquids; the results of the
Corporation’s risk management and market diversification
activities; and Birchcliff’s natural gas market exposure.
With respect to Birchcliff’s forecast of capital
expenditures for 2024, such forecast assumes that the 2024 capital
program will be carried out as currently contemplated and excludes
any potential acquisitions, dispositions and the capitalized
portion of cash incentive payments that have not been approved by
the Corporation’s board of directors. The amount and allocation of
capital expenditures for exploration and development activities by
area and the number and types of wells to be drilled and brought on
production is dependent upon results achieved and is subject to
review and modification by management on an ongoing basis
throughout the year. Actual spending may vary due to a variety of
factors, including commodity prices, economic conditions, results
of operations and costs of labour, services and materials. With
respect to statements regarding future wells to be drilled and
brought on production, such statements assume: the continuing
validity of the geological and other technical interpretations
performed by Birchcliff’s technical staff, which indicate that
commercially economic volumes can be recovered from Birchcliff’s
lands as a result of drilling future wells; and that commodity
prices and general economic conditions will warrant proceeding with
the drilling of such wells.
Birchcliff’s actual results, performance or
achievements could differ materially from those anticipated in the
forward-looking statements as a result of both known and unknown
risks and uncertainties including, but not limited to: the risks
posed by pandemics (including COVID-19), epidemics and global
conflict (including the Russian invasion of Ukraine and the
Israel-Hamas conflict) and their impacts on supply and demand and
commodity prices; actions taken by OPEC and other major producers
of crude oil and the impact such actions may have on supply and
demand and commodity prices; the uncertainty of estimates and
projections relating to production, revenue, costs, expenses and
reserves; the risk that any of the Corporation’s material
assumptions prove to be materially inaccurate; general economic,
market and business conditions which will, among other things,
impact the demand for and market prices of Birchcliff’s products
and Birchcliff’s access to capital; volatility of crude oil and
natural gas prices; risks associated with increasing costs, whether
due to high inflation rates, supply chain disruptions or other
factors; fluctuations in exchange and interest rates; stock market
volatility; loss of market demand; an inability to access
sufficient capital from internal and external sources on terms
acceptable to the Corporation; risks associated with Birchcliff’s
credit facilities, including a failure to comply with covenants
under the agreement governing Birchcliff’s credit facilities and
the risk that the borrowing base limit may be redetermined;
fluctuations in the costs of borrowing; operational risks and
liabilities inherent in oil and natural gas operations; the
occurrence of unexpected events such as fires, severe weather,
explosions, blow-outs, equipment failures, transportation incidents
and other similar events; an inability to access sufficient water
or other fluids needed for operations; uncertainty that development
activities in connection with Birchcliff’s assets will be economic;
an inability to access or implement some or all of the technology
necessary to operate its assets and achieve expected future
results; the accuracy of estimates of reserves, future net revenue
and production levels; geological, technical, drilling,
construction and processing problems; uncertainty of geological and
technical data; horizontal drilling and completions techniques and
the failure of drilling results to meet expectations for reserves
or production; delays or changes in plans with respect to
exploration or development projects or capital expenditures; the
accuracy of cost estimates and variances in Birchcliff’s actual
costs and economic returns from those anticipated; changes to the
regulatory framework in the locations where the Corporation
operates; political uncertainty and uncertainty associated with
government policy changes; actions by government authorities; an
inability of the Corporation to comply with existing and future
laws and the cost of compliance with such laws; dependence on
facilities, gathering lines and pipelines; uncertainties and risks
associated with pipeline restrictions and outages to third-party
infrastructure that could cause disruptions to production; the lack
of available pipeline capacity and an inability to secure adequate
and cost-effective processing and transportation for Birchcliff’s
products; an inability to satisfy obligations under Birchcliff’s
firm marketing and transportation arrangements; shortages in
equipment and skilled personnel; the absence or loss of key
employees; competition for, among other things, capital,
undeveloped lands, equipment and skilled personnel; management of
Birchcliff’s growth; environmental and climate change risks, claims
and liabilities; potential litigation; default under or breach of
agreements by counterparties and potential enforceability issues in
contracts; claims by Indigenous peoples; the reassessment by taxing
or regulatory authorities of the Corporation’s prior transactions
and filings; unforeseen title defects; third-party claims regarding
the Corporation’s right to use technology and equipment;
uncertainties associated with the outcome of litigation or other
proceedings involving Birchcliff; uncertainties associated with
counterparty credit risk; risks associated with Birchcliff’s risk
management and market diversification activities; risks associated
with the declaration and payment of future dividends; the failure
to obtain any required approvals in a timely manner or at all; the
failure to complete or realize the anticipated benefits of
acquisitions and dispositions and the risk of unforeseen
difficulties in integrating acquired assets into Birchcliff’s
operations; negative public perception of the oil and natural gas
industry and fossil fuels; the Corporation’s reliance on hydraulic
fracturing; market competition, including from alternative energy
sources; changing demand for petroleum products; the availability
of insurance and the risk that certain losses may not be insured;
breaches or failure of information systems and security (including
risks associated with cyber-attacks); risks associated with the
ownership of the Corporation’s securities; and the accuracy of the
Corporation’s accounting estimates and judgments.
Readers are cautioned that the foregoing lists
of factors are not exhaustive. Additional information on these and
other risk factors that could affect results of operations,
financial performance or financial results are included in the AIF
under the heading “Risk Factors” and in other reports filed with
Canadian securities regulatory authorities.
This press release contains information that may
constitute future-oriented financial information or financial
outlook information (collectively, “FOFI”) about
Birchcliff’s prospective financial performance, financial position
or cash flows, all of which is subject to the same assumptions,
risk factors, limitations and qualifications as set forth above.
Readers are cautioned that the assumptions used in the preparation
of such information, although considered reasonable at the time of
preparation, may prove to be imprecise or inaccurate and, as such,
undue reliance should not be placed on FOFI. Birchcliff’s actual
results, performance and achievements could differ materially from
those expressed in, or implied by, FOFI. Birchcliff has included
FOFI in order to provide readers with a more complete perspective
on Birchcliff’s future operations and management’s current
expectations relating to Birchcliff’s future performance. Readers
are cautioned that such information may not be appropriate for
other purposes.
Management has included the above summary of
assumptions and risks related to forward-looking statements
provided in this press release in order to provide readers with a
more complete perspective on Birchcliff’s future operations and
management’s current expectations relating to Birchcliff’s future
performance. Readers are cautioned that this information may not be
appropriate for other purposes.
The forward-looking statements and FOFI
contained in this press release are expressly qualified by the
foregoing cautionary statements. The forward-looking statements and
FOFI contained herein are made as of the date of this press
release. Unless required by applicable laws, Birchcliff does not
undertake any obligation to publicly update or revise any
forward-looking statements or FOFI, whether as a result of new
information, future events or otherwise.
ABOUT BIRCHCLIFF:
Birchcliff is a dividend-paying, intermediate
oil and natural gas company based in Calgary, Alberta with
operations focused on the Montney/Doig Resource Play in Alberta.
Birchcliff’s common shares are listed for trading on the Toronto
Stock Exchange under the symbol “BIR”.
For further
information, please contact: |
Birchcliff Energy Ltd.Suite 1000, 600 – 3rd Avenue
S.W. Calgary, Alberta T2P 0G5Telephone: (403) 261-6401Email:
info@birchcliffenergy.comwww.birchcliffenergy.com |
|
Chris Carlsen –
President and Chief Executive OfficerBruno Geremia
– Executive Vice President and Chief Financial Officer |
Birchcliff Energy (TSX:BIR)
Historical Stock Chart
From Nov 2024 to Dec 2024
Birchcliff Energy (TSX:BIR)
Historical Stock Chart
From Dec 2023 to Dec 2024