Pine Cliff Energy Ltd. announces more than 120% increase in 2015 year-end reserves

Friday, February 12, 2016      

Pine Cliff Energy Ltd. (TSX VENTURE:PNE) is pleased to announce its 2015 year-end reserves. Pine Cliff's independent reserve report was prepared by McDaniel & Associates Limited in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ('NI 51-101') with the effective date of December 31, 2015.

Pine Cliff is pleased to report significant increases in its reserve base in 2015. The increases are mainly a result of the acquisition of certain liquids rich natural gas assets in the McLeod area of Alberta in June 2015 and certain natural gas assets in Central Alberta in December 2015. Highlights of Pine Cliff's reserves for the 2015 year include:

  • Proved reserves increased to 59,452.3 MBOE (91% natural gas) at December 31, 2015 from 26,035.9 MBOE (96% natural gas) at December 31, 2014, an increase of 128% and 75% on a per basic share basis;
  • Proved plus probable reserves increased to 78,701.3 MBOE (91% natural gas) at December 31, 2015 from 35,063.9 MBOE (94% natural gas) at December 31, 2014, an increase of 124% and 72% on a per basic share basis;
  • Approximately 76% of total reserves are classified as proved reserves with 24% classified as probable reserves;
  • Approximately 97% of proved reserves are classified as proved developed; and
  • Net present value for proved plus probable reserves of $340 million, discounted at 10%; an increase of $101 million, or 42%, from December 31, 2014.

In the current commodity price environment, Pine Cliff believes that it is more prudent for its shareholders to continue to focus management's attention on acquiring new assets rather than drilling existing reserves. Pine Cliff will continue to focus on acquiring cash flow positive, low risk, low decline production with drilling upside until such time when commodity prices warrant developing our extensive inventory of drilling and recompletion locations. As such, the McDaniel's reserve report reflects the Company's conservative future development capital program of $65 million over the next 5 years, which is indicative of our historical capital spending over the last 3 years.

McDaniel is using a price forecast of US$45.00 and US$53.60 per bbl for WTI oil in 2016 and 2017, respectively, and $2.70 and $3.20 per MMBtu for AECO natural gas in 2016 and 2017, respectively.


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Pine Cliff Energy Ltd. Canada North America Finance Production Update

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser. More

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