Marquee Energy Reports Q3 Financial and Operational Results

- November 20th, 2015

Marquee Energy (TSXV:MQL) announced its third quarter financial and operational results, which showed a 19 percent decrease in exit net debt, down to $51.9 million from $63.1 million in 2014.

Marquee Energy (TSXV:MQL) announced its third quarter financial and operational results, which showed a 19 percent decrease in exit net debt, down to $51.9 million from $63.1 million in 2014.
As quoted in the press release:

Marquee has completed its 2015 drilling program at Michichi. Due to ongoing cost optimization initiatives the summer drilling program was completed with drilling, completion, and tie-in costs of approximately $2 million per well, which is 25% lower than the program in 2014. All four light oil horizontal wells of the summer program are now on production and are at or above type curve in production performance. Drilling of Michichi light oil wells continues to demonstrate good economics in the current low price environment.

Highlights, as quoted in the press release:

  • Balance sheet strength was maintained through the third quarter with exit net debt of $51.9 million, down 19% from year end 2014 net debt of $63.1 million.
  • Drilled three Banff light oil horizontal wells from a single pad and drilled and completed one Banff light oil horizontal well on a separate pad during Q3. The three pad wells were completed subsequent to quarter end and all wells are now on stream. Production in the third quarter averaged 4,703 boe/d with an oil and liquids weighting of 45%. Production was impacted by the shut-in of approximately 200 boe/d of production deemed to be uneconomic in the current commodity price environment and production losses resulting from planned gas plant turnarounds. Completion and tie-in of three of the four wells drilled in the quarter were delayed until October to take advantage of lower completion service costs and as a result production additions from the new drilling won’t be realized until the fourth quarter.
  • Maintained a disciplined hedging program with hedging gains of $7.1 million during the nine month period and $1.3 million during the third quarter. Approximately 70% of our light oil is hedged at a WTI CAD price of $75.10/bbl and 40% of natural gas is hedged at a price of $2.83/GJ until year end.
  • A non-dilutive strategic consolidation acquisition at Michichi was completed in the third quarter for $12.7 million with a concurrent Facility Agreement where Marquee sold certain related gas processing infrastructure for $15 million where the Company will rent the facility, act as operator and retain third party processing revenues. This transaction expanded the Company’s land base, drilling inventory and gas gathering infrastructure and further strengthened Marquee’s control of its Michichi Banff light oil play.
  • The Company realized a net loss of $17.8 million for the third quarter primarily resulting from decreased netbacks due to the significant drop in commodity prices, $5.0 million in impairment charges, and $9.7 million in non-cash deferred tax expenses.

Click here to read the full Marquee Energy (TSXV:MQL) press release.

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