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| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| Forum Uranium Corp (delisted) | TSXV:FDC | TSX Venture | Common Stock |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0 | - |
Hot Features
Premium
Shoreline Energy Corp. (TSX:SEQ) ("Shoreline" or the "Corporation") is pleased
to report its 2013 year end oil and gas reserves, as well as 2013 year-end
financial and operating results. A complete copy of the Company's annual
information form, financial statements, along with management's discussion and
analysis may be obtained at www.sedar.com or on the Company's website at
www.shorelineenergy.ca.
Fourth Quarter 2013 Financial and Operating Highlights
-- Petroleum and natural gas sales increased 49% year-over-year to $28.5
million in 2013 compared to $19.1 million in 2012.
-- Funds from operations increased 15% to $6.0 million in 2013 compared to
$5.2 million last year.
-- Shoreline paid its common shareholders $1,998,844 in dividends in 2013.
-- Sales volumes for the fourth quarter of 2013 averaged 1,695 barrels of
oil equivalent per day (boe/d), an increase of 16% from the fourth
quarter of 2012.
-- Average production for 2013 was 1,997 boe/d, an increase of 24% from
1,614 boe/d in 2012.
-- Shoreline exited the year with production of 1,816 boe/d.
Reserve Highlights
-- Total Proved plus probable (2P) reserve value of $102 Million, or $5.23
per share (non-diluted, net of current indebtedness)
-- 2P reserves increased by 9.2% to 7.96 million boe (36% oil and NGLs) as
at December 31, 2013 from 7.28 million boe (35% oil and NGLs) as at
December 31, 2012.
-- Total Proved (1P) Reserves in Colorado increased by 947% to 576,000 boe
from 55,000 boe at year end 2012
-- Management believes that the year-end evaluation could represent less
than 15% of the ultimate potential from the Company's current Montney
and Niobrara/Codell land holdings.
-- Achieved finding, development and acquisition costs ("FD&A") of $19.91
per boe on proved plus probable reserves additions and $26.22 per boe on
total proved reserves additions, including future development capital
("FDC")
-- 2P Reserve additions replaced 201% of 2013 production and reserve
divestitures
-- Closed on three divestitures which reduced overall corporate
indebtedness by an estimated $18.7 million dollars
Corporate Highlights
Canada
-- New Montney pool discovery in 2013 with 2 wells brought on-stream. A
third Montney well (100% Shoreline) in the Peace River Arch is "behind
pipe" with initial rates forecast to be between 150 and 250 boe per day
-- Expanded Montney drilling inventory to between 22 and 30 lower risk
development horizontal wells immediately offsetting its previous
discoveries, all at 100% working interest and operated by the Company
-- On November 14, 2013 Shoreline acquired 27,171 net acres of land and
interests in 77 gross (25.2 net) wells within Shorelines Montney fairway
in the Peace River Arch area of Alberta. Included in the acquisition was
the purchase of a gross overriding royalty in its core Valhalla Montney
project, which significantly increases the rates of return from future
development.
United States
-- Acquired working interest position on the prolific Wattenberg
Niobrara/Codell light oil play in Colorado adding an additional 1,020
net acres to the existing land base and an interest in 8 horizontal
wells and over 95 vertical wells
-- 45 (0.17 net) royalty wells drilled on Company lands in Colorado with an
average 0.4% interest per well during the year. Royalty revenue has
grown to approximately $120,000 per month from $30,000 per month when
the properties were acquired
-- Area operators continue to aggressively develop the Niobrara and Codell
horizons in Wattenberg, with an estimated 20 to 25 rigs now working, and
between $3 and $5 Billion of potential investment in 2014. As such
Shoreline's monthly revenues are forecast to continue to grow in
conjunction with field development.
Financial Tables
----------------------------------------------------------------------------
Three months ended
December 31, Year ended December 31,
----------------------------------------------------------------------------
2013 2012 Change 2013 2012 Change
----------------------------------------------------------------------------
(in thousand
dollars except as
otherwise
indicated)
----------------------------------------------------------------------------
Financial
----------------------------------------------------------------------------
Revenue, before
royalties and
financial
instruments 5,492 5,656 (3%) 28,533 19,095 49%
----------------------------------------------------------------------------
Funds from
operations (1) 433 2,046 (79%) 6,024 5,223 15%
----------------------------------------------------------------------------
Basic & diluted
($/ common
share) 0.05 0.36 (86%) 0.74 0.92 (20%)
----------------------------------------------------------------------------
Net (loss) (3,567) (1,017) 251% (6,717) (3,341) 101%
----------------------------------------------------------------------------
Basic & diluted
($/common share)
(2) (0.42) (0.18) 133% (0.80) (0.59) 36%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Capital
expenditures
(excluding
acquisitions) 339 12,121 (97%) 5,998 23,656 (75%)
----------------------------------------------------------------------------
Acquisitions 1,994 15,779 -87% 25,569 15,779 62%
----------------------------------------------------------------------------
Dispositions - - NA -18,697 - NA
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total assets(3) 116,083 111,934 4% 116,083 111,934 4%
----------------------------------------------------------------------------
Bank debt 19,856 20,684 (4%) 19,856 20,684 (4%)
----------------------------------------------------------------------------
Working capital
(deficiency) (40,052) (31,611) 27% (40,052) (31,611) 27%
----------------------------------------------------------------------------
Shareholders'
equity 32,462 31,969 2% 32,462 31,969 2%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Weighted average
common shares
outstanding
----------------------------------------------------------------------------
Basic & diluted 9,037 5,656 60% 8,144 5,656 44%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three months ended
December 31, Year ended December 31,
----------------------------------------------------------------------------
2013 2012 Change 2013 2012 Change
----------------------------------------------------------------------------
Operating
----------------------------------------------------------------------------
Production
----------------------------------------------------------------------------
Oil & NGLs (bbls/d) 432 501 (14%) 597 430 39%
----------------------------------------------------------------------------
Gas (mcf/d) 7,583 5,747 32% 8,402 7,103 18%
----------------------------------------------------------------------------
Total (boe/d) (4) 1,695 1,459 16% 1,997 1,614 24%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Average realized
prices
----------------------------------------------------------------------------
Oil & NGLs ($/bbl) 70.36 76.95 (9%) 82.65 78.71 (5%)
----------------------------------------------------------------------------
Gas ($/mcf) 3.57 3.56 0% 3.25 2.36 38%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Operating netbacks
($/boe)
----------------------------------------------------------------------------
Petroleum and
natural gas
sales 35.22 42.14 (16%) 39.15 32.41 21%
----------------------------------------------------------------------------
Realized gain on
financial
instrument 0.90 0.95 (5%) 0.52 0.79 (34%)
----------------------------------------------------------------------------
Royalties (2.60) (3.12) (17%) (4.81) (2.26) 113%
----------------------------------------------------------------------------
Operating
expenses (11.97) (11.95) 0% (12.84) (13.28) (3%)
----------------------------------------------------------------------------
Transportation
expenses (1.43) (1.77) (19%) (1.22) (1.35) (10%)
----------------------------------------------------------------------------
Operating netback 20.12 26.25 (23%) 20.80 16.31 28%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Drilling activity
----------------------------------------------------------------------------
Gross wells 8 4 100% 12 9 33%
----------------------------------------------------------------------------
Net interest wells 0.26 3.10 (92%) 1.46 6.80 (79%)
----------------------------------------------------------------------------
(1) See "Non-GAAP Terms".
(2) The effect of outstanding options and warrants on loss per share for the
three month periods and years ended December 31, 2013 and 2012 is anti-
dilutive.
(3) Restated at December 31, 2012. See note 29 to the December 31, 2013
financial statements
(4) Boe means barrels of oil equivalent. Boe may be misleading, particularly
is used in isolation. A boe conversion rate of 1 boe: 6 mcf is based on
an energy equivalency conversion method primarily applicable at the
burner tip and does not represent a value equivalency at the wellhead
Reserves Information
Shoreline Energy Corp. ("Shoreline" or the "Company") (TSX:SEQ) is pleased to
report its 2013 year end oil and gas reserves. At December 31, 2013 Shoreline
has increased its proved plus probable reserves to 8.0 million barrels of oil
equivalent (boe) an increase of 9.2% over the prior year and with an associated
net present value of CDN$102 million dollars (discounted at 10%).
Shoreline's reserve additions were a result of acquisitions of additional assets
and low risk infill drilling activity on all of the lands it holds in the
prolific Wattenberg Niobrara/Codell light oil play in Colorado 1P increased by
947% and 2P reserves increased by 475% over year end 2012 levels. The Company
also brought on stream two of its three 100% owned and operated Montney
discovery wells in Alberta, converting previous proved developed non producing
reserves to proved developed producing.
The overall increase in the Company's reserves was achieved despite the
Company's 2013 asset divestitures, which were undertaken in order to reduce
overall indebtedness, and a lack of available drilling capital in the latter
half of 2013. Shoreline replaced 201% of its production and divestitures with
2013 finding, development, and acquisition costs (including future development
costs) of $19.91 per boe on a 2P basis.
Shoreline's Canadian petroleum and natural gas reserves as at December 31, 2013
were evaluated by the Company's independent reserve engineering firms, GLJ
Petroleum Consultants ("GLJ"), with the Company's holdings in Colorado evaluated
by DeGolyer and MacNaughton ("D&M"). The evaluations were conducted pursuant to
National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities
("NI 51-101") and the Canadian Oil and Gas Evaluation Handbook ("COGEH")
reserves definitions. Additional reserve information as required under NI 51-101
is included in the Company's Annual Information Form which will be filed on
SEDAR on March 31, 2014. Financial information presented above is based on
audited financial statements for the year ended December 31, 2013.
The Company's reserves are located in two main areas, the Peace River Arch (PRA)
area of northwest Alberta, and in the Wattenberg of the DJ Basin of northern
Colorado. The Company's PRA assets produce light oil, natural gas and natural
gas liquids from a variety of producing horizons and comprise 75% of the current
2P reserve volumes. Shoreline closed several acquisitions in Wattenberg in 2012
and 2013 and holds non-operated working interest and royalty interests in this
world class light oil project, which are being aggressively developed through
horizontal drilling and multiple stage fracture stimulation.
The following table represents the Company's reserves effective as at December
31, 2013 as evaluated by GLJ and D&M conducted pursuant to NI 51-101 and COGEH
reserves definitions.
----------------------------------------------------------------------------
Heavy
Light and Medium Crude Oil Crude Oil
----------------------------------------------------------------------------
Gross(1) Net(2) Gross (1) Net(2)
Mbbl) (Mbbl) (Mbbl) (Mbbl)
----------------------------------------------------------------------------
Proved
Developed
Producing 681 650 0 25
Developed Non-
producing 122 105 0 0
Undeveloped 205 204 0 0
----------------------------------------------------------------------------
Total Proved 1,007 959 0 25
Total Probable 1,316 1,093 0 8
----------------------------------------------------------------------------
Total Proved +
Probable 2,325 2,052 0 34
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Natural Gas
(Excluding Natural Natural Gas Total Oil
Gas Liquids) Liquids Equivalent
----------------------------------------------------------------------------
Gross(1) Net(2) Gross(1) Net(2) Gross(1) Net(2)
(MMcf) (MMcf) (Mbbl) (Mbbl) (Mbbl) (Mbbl)
----------------------------------------------------------------------------
Proved
Developed
Producing 13,251 12,643 145 154 3,035 2,937
Developed Non-
producing 799 716 6 4 262 229
Undeveloped 4,118 3,641 85 63 976 874
----------------------------------------------------------------------------
Total Proved 18,169 17,000 238 222 4,272 4,041
Total Probable 12,478 10,614 286 218 3,682 3,088
----------------------------------------------------------------------------
Total Proved +
Probable 30,647 27,615 523 441 7,956 7,129
----------------------------------------------------------------------------
(1) Gross refers to Company's working interest excluding royalty interests
and before royalty charges
(2) Net refers to the Companies working interest and royalty interests after
royalties charges
(3) Canada - GLJ Report
(4) United States -D&M Report
(5) Tables may not add due to rounding
The following table summarizes the Net Present Value of the Company's share of
oil and natural gas reserves effective as at December 31, 2013.
----------------------------------------------------------------------------
Unit Value(4)
Before Income Tax
Net Present Value of Future Net Revenue Discounted at 10%
Before Income Taxes Discounted at (%/year) per year
----------------------------------------------------------------------------
0 (M$) 5 (M$) 10 (M$) 15 (M$) 20 (M$) $/Boe $/Mcfe
----------------------------------------------------------------------------
Proved
Developed
Producing 80,701 61,906 51,041 43,843 38,672 $17.38 $2.90
Developed
Non-
producing 6,117 4,894 4,085 3,502 3,062 $17.83 $2.97
Undeveloped 25,399 15,284 10,212 7,196 5,203 $11.69 $1.95
----------------------------------------------------------------------------
Total Proved 112,217 82,084 65,338 54,541 46,937 $16.17 $2.70
Total
Probable 106,712 58,131 36,733 25,209 18,205 $11.89 $1.98
----------------------------------------------------------------------------
Total Proved
+ Probable 218,929 140,214 102,071 79,751 64,872 $14.32 $2.39
----------------------------------------------------------------------------
(1) Canada - GLJ Report
(2) United States -D&M Report
(3) All values are in Canadian dollars
(4) Unit values are calculated by dividing net present value at 10% by
Company Net volumes
(5) Tables may not add due to rounding
About Shoreline Energy Corp.
Shoreline is a Calgary, Alberta based corporation engaged in the exploration,
development and production of petroleum and natural gas. Shoreline offers
investors a combination of value growth via lower risk development of additional
oil reserves and production on its current lands.. Shoreline has 9,040,522
Common Shares outstanding and convertible debentures in the aggregate principal
amount of $17,000,000 outstanding. The Common Shares are currently listed on the
TSX under the trading symbol "SEQ" and the debentures under the trading symbol
"SEQ.DB". Additional information regarding Shoreline is available under the
Company's profile at www.sedar.com or at the Corporation's website,
www.shorelineenergy.ca.
Forward-Looking and Cautionary Statements
This news release contains forward-looking statements relating to the
Corporation's plans and other aspects of the Corporation's anticipated future
operations, strategies, financial and operating results and business
opportunities. These forward-looking statements may include opinions,
assumptions, estimates, management's assessment of value, reserves, future plans
and operations.
Forward-looking statements typically use words such as "will", "anticipate",
"believe", "estimate", "expect", "intend", "may", "project", "should", "plan",
and similar expressions suggesting future outcomes, and include statements that
actions, events or conditions "may", "would", "could", or "will" be taken or
occur in the future. The forward-looking statements are based on various
assumptions including expectations regarding the success of current or future
drill wells; the outlook for petroleum and natural gas prices; estimated amounts
and timing of capital expenditures; estimates of future production; assumptions
concerning the timing of regulatory approvals; the state of the economy and the
exploration and production business; results of operations; business prospects
and opportunities; future exchange and interest rates; the Corporation's ability
to obtain equipment in a timely manner to carry out development activities; and
the ability of the Corporation to access capital and credit. While the
Corporation considers these assumptions to be reasonable based on information
currently available to it, they may prove to be incorrect.
Forward-looking statements are subject to a wide range of assumptions, known and
unknown risks and uncertainties and other factors that contribute to the
possibility that the predicted outcome will not occur, including, without
limitation: risks associated with oil and gas exploration, development,
exploitation, production, marketing and transportation; loss of markets;
volatility of commodities prices; currency fluctuations; imprecision of reserves
estimates; environmental risks; competition from other producers; inability to
retain drilling rigs and other services; incorrect assessment of the value of
acquisitions; failure to realize the anticipated benefits of acquisitions;
general economic conditions; delays resulting from or inability to obtain
required regulatory approvals and to satisfy various closing conditions; and
ability to access sufficient capital from internal and external sources. Readers
are cautioned that the foregoing list of factors is not exhaustive.
Although Shoreline believes that the expectations represented by such
forward-looking statements are reasonable, there can be no assurance that such
expectations will be realized. As a consequence, actual results may differ
materially from those anticipated in the forward-looking statements and you
should not rely unduly on forward-looking statements. The forward-looking
statements contained in this news release are made as of the date of this news
release. Except as required by applicable law, Shoreline does not undertake any
obligation to publicly update or revise any forward-looking statements.
Non-GAAP Financial Measures
This press release contains references to measures used in the oil and natural
gas industry such as "netback" and "net debt". These measures do not have any
standardized meanings within International Financial Reporting Standards
("IFRS") and, therefore, reported amounts may not be comparable to similarly
titled measures reported by other companies. These measures have been described
and presented in this press release in order to provide shareholders and
potential investors with additional information regarding Shoreline's liquidity
and its ability to generate funds to finance its operations.
Netback, as used in this press release, denotes net earnings plus non-cash
items, including future income taxes expense (less any recovery), depletion,
depreciation and accretion expense and non-cash stock-based compensation
expense.
Shoreline uses net debt as a measure to assess its financial position. Net debt
includes current liabilities (including Shoreline's credit facility and
excluding the current portion of decommissioning obligations) less current
assets (excluding property, plant and equipment, held for sale and risk
management contracts).
Note Regarding BOEs
The term barrel of oil equivalent ("boe") may be misleading, particularly if
used in isolation. A conversion ratio for gas of 6 mcf:1 boe 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 equivalency conversion ratio of 6:1, utilizing a conversion on a
6:1 basis is misleading as an indication of value.
FOR FURTHER INFORMATION PLEASE CONTACT:
Shoreline Energy Corp.
Mr. Trevor Folk
Chief Executive Officer
(403) 398-4070
tfolk@shorelineenergy.ca
Shoreline Energy Corp.
Mr. Kevin Stromquist
President & Chief Operating Officer
(403) 398-4075
kstromquist@shorelineenergy.ca
Shoreline Energy Corp.
Head Office
Suite 500, 500-4th Ave SW
Calgary, Alberta, T2P 2V6
(403) 767-9066
www.shorelineenergy.ca
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