Altura Energy Announces 2017 Reserves

Altura Energy Inc. (TSXV:ATU) announced its oil and natural gas reserves for for the 2017 year.

Highlights are as follows:

2017 OPERATING HIGHLIGHTS

• Production volumes averaged 1,128 boe per day, a per share increase of 97% from 2016. Exceeded exit rate guidance of 1,350 boe per day in December and averaged 1,202 boe per day in the fourth quarter, a per share increase of 22% from the fourth quarter of 2016.
• Drilled eight 100% working interest (“WI”) horizontal wells, including three in the Leduc-Woodbend area, three in the Eyehill area, one in the Macklin area, and one in the Killam area.
• Capital expenditures totaled $21.2 million, including $14.7 million on drilling, completion and equipping, $1.8 million on land, $3.8 million on facilities and pipelines, $1.3 million on workovers and $0.7 million on other, less $1.1 million of property dispositions.
• Progressed its key growth property at Leduc-Woodbend with three new wells drilled, including two 1.5-mile extended reach horizontal wells (“ERH”), the conversion of two standing wells to water disposal wells, and constructed gas gathering, emulsion and water disposal pipelines, which will allow Altura to conserve natural gas and improve operating cost efficiencies by significantly reducing produced water trucking and disposal costs.
• Established a second growth area at Macklin with 9.5 sections of 100% WI land in a Sparky oil pool. Altura drilled one successful horizontal well in 2017, which was followed up with a second horizontal well drilled in January 2018 and a water disposal pipeline to improve operating cost efficiencies.
• Completed the water injection infrastructure at Eyehill and commenced the waterflood pilot project in AugustIan C. Dundas, president and CEO, commented:

2017 YEAR-END RESERVE HIGHLIGHTS

• The 2017 year-end reserves are indicative of the exploration and capture phase of Altura’s new LeducWoodbend and Macklin Upper Mannville oil pools where the capital focus has been on capturing land, delineation drilling and investing in infrastructure to position the Company as it transitions to the development phase in 2019.
• Proved developed producing (“PDP”) reserves increased by 45 percent from 1,099 mboe to 1,595 mboe. Total proved (“1P”) reserves increased by 71 percent from 1,821 mboe to 3,107 mboe. Total proved plus probable (“2P”) reserves increased by 68 percent from 3,195 mboe to 5,370 mboe.
• All-in finding, development and acquisition (“FD&A”) costs1 were $23.36 per boe for PDP, $21.97 per boe for 1P and $17.21 per boe for 2P reserves, including the changes in future development costs (“FDC”). This 1 “Operating netback”, “Finding, development & acquisitions costs” or “FD&A costs”, “Recycle ratio”, and “Reserve replacement” do not have standardized meanings. See “Oil and Gas Metrics” contained in this news release. 2 includes $5.6 million of non-reserve adding capital (27% of capital expenditures) to acquire undeveloped land and construct pipelines and facilities.
• Recycle ratio2 of 1.2 times for PDP, 1.3 times for 1P, and 1.6 times for 2P reserves based on the all-in 2017 FD&A costs and Altura’s estimated 2017 operating netback2 of $27.49 per boe. Using the Q4 2017 estimated operating netback of $29.39 per boe, the recycle ratios increase to 1.3 times for PDP, 1.3 times for 1P, and 1.7 times for 2P reserves. • Replaced2 220 percent of annual production with new PDP reserves, 412 percent of annual production with new 1P reserves and 628 percent of annual production with new 2P reserves, based on 2017 estimated production of 412 mboe.
• Based on the strong well results, the majority of 2P reserves additions (88%) were at Leduc-Woodbend.
• Increased PDP reserve life index2 (“RLI”) from 3.0 years to 3.6 years, 1P RLI from 5.0 years to 7.0 years, and 2P RLI from 8.8 years to 12.1 years, all from year-end 2016 to year-end 2017

Click here to read the full Altura Energy Inc. (TSXV:ATU) press release.