(Stock Symbol "CLT" - TSX) February 13, 2012
Calgary, Alberta
Celtic Exploration Ltd. ("Celtic" or the "Company") has
released its operating results for the twelve months
ended
December 31, 2011. Summary of results are as follows:
Twelve months ended December 31, | |||
2011 | 2010 | Change | |
Reserves | |||
Oil [MBBLs] | 32,803 | 16,806 | 95% |
Gas [MMCF] | 636,992 | 304,197 | 109% |
Combined [MBOE] | 138,968 | 67,506 | 106% |
Finding, development & acquisition ("FD&A") costs | |||
Proved, including FDC ($/BOE) | 16.82 | 22.46 | -25% |
Proved plus probable, including FDC ($/BOE) | 12.80 | 17.71 | -28% |
Drilling activity | |||
Total wells | 58 | 62 | -6% |
Working interest wells | 40.1 | 41.9 | -4% |
Success rate on working interest wells | 96% | 90% | 7% |
Undeveloped land | |||
Gross acres | 794,137 | 685,993 | 16% |
Net acres | 689,893 | 621,199 | 11% |
Celtic retains Sproule Associates Limited ("Sproule"), an
independent qualified reserve evaluator to prepare a report
on 100% of its oil and gas reserves. The Company has a
Reserves Committee which oversees the selection,
qualifications and reporting procedures of the independent
engineering consultants. Reserves as at December 31, 2011
were determined using the guidelines and definitions set out
under National Instrument 51-
101 ("NI 51-101").
At December 31, 2011, Celtic's proved plus probable reserves
were 139.0 million BOE, up 106% from 67.5 million BOE at the
end of 2010. The Company's net present value of proved plus
probable reserves at December 31, 2011, discounted at 10%
before tax, was $1,377.2 million, up 48% from $930.7 million
at December 31, 2010. Despite lower forecasted natural gas
prices, the net present value was higher compared to the
previous year primarily due to the significant growth in
reserves.
The reserve life index for proved plus probable reserves was
13.0 years compared to 10.5 years at December
31, 2010. At December 31, 2011, the weighting of proved plus
probable reserves was 24% oil and 76% gas on a volume basis
and 44% oil and 56% gas on a revenue basis.
The following table outlines a summary of the Company's
reserves at December 31, 2011:
SUMMARY OF RESERVES | ||||
Oil [MBBLs] | Gas [MMCF] | Combined [MBOE] | % of 2P | |
Proved Developed Producing | 7,701 | 162,282 | 34,748 | 25% |
Proved Developed Non-producing | 1,324 | 24,337 | 5,380 | 4% |
Proved Undeveloped | 9,384 | 175,791 | 38,683 | 28% |
Total Proved ("1P") | 18,408 | 362,410 | 78,810 | 57% |
Probable Additional | 14,395 | 274,582 | 60,159 | 43% |
Total Proved plus Probable ("2P") | 32,803 | 636,992 | 138,968 | 100% |
Future development capital ("FDC") expenditures included in
the reserve evaluation for total proved reserves are expected
to be spent as follows: $246.2 million in 2012, $162.4
million in 2013 and $77.8 million thereafter. FDC included
for proved plus probable reserves are expected to be spent as
follows: $309.7 million in 2012,
$341.7 million in 2013 and $128.8 million thereafter.
The following table outlines FDC expenditures by major
prospect included in the December 31, 2011 reserve
evaluation:
FDC EXPENDITURES | ||||
1P FDC ($M) | 2P FDC ($M) | 2P Gross Drills | 2P Net Drills | |
Resthaven Montney | 209,830 | 364,530 | 40 | 39.0 |
Fir Montney | 112,909 | 125,309 | 20 | 19.3 |
Kaybob Duvernay | 34,630 | 95,043 | 15 | 8.8 |
Other Properties * | 129,059 | 195,281 | ||
Total FDC Expenditures | 486,428 | 780,163 |
* Other properties include Kaybob Montney, Cretaceous, Beaverhill Lake; Deep Basin Cretaceous and Inga Doig.
The following table outlines forecasted future prices that Sproule has used in their evaluation of the Company's reserves at December 31, 2011:
FUTURE COMMODITY PRICE FORECAST | |||
WTI Cushing Crude Oil [US$/BBL] | USD/CAD Exchange [US$] | AECO-C Natural Gas [$/GJ] | |
2012 | 98.07 | 1.012 | 3.00 |
2013 | 94.90 | 1.012 | 3.58 |
2014 | 92.00 | 1.012 | 3.92 |
Three Year Average | 94.99 | 1.012 | 3.49 |
After a precipitous decline in the average price of oil in
2009, compared to the previous year, the price of oil
steadily increased in 2010 and 2011. In 2011, WTI oil prices
averaged US$95.00 per bbl, up from US$79.43 per bbl in 2010.
Average annual natural gas prices at AECO-C have declined
every year since 2009. In 2010,
AECO-C averaged $3.94 per GJ and continued lower, averaging
$3.53 per GJ in 2011.
Sproule is forecasting WTI oil prices to average US$94.99 per
bbl over the next three years, 21% higher than the average
price of US$78.69 per bbl over the past three years. For
natural gas, AECO-C natural gas prices are forecasted to
average $3.49 per GJ over the 2012 to 2014 period, a decrease
of 9% from the average price of $3.82 per GJ during the 2009
to 2011 period.
The following table is a net present value summary (before
tax) as at December 31, 2011:
NET PRESENT VALUE SUMMARY (BEFORE TAX) | ||||
Undiscounted [$000's] | NPV 5% BT [$000's] | NPV 10% BT [$000's] | NPV 15% BT [$000's] | |
Proved Developed Producing | 839,648 | 628,213 | 514,172 | 441,383 |
Proved Developed Non-producing | 154,517 | 101,440 | 77,118 | 63,016 |
Proved Undeveloped | 803,089 | 415,317 | 235,796 | 134,223 |
Total Proved | 1,797,254 | 1,144,970 | 827,086 | 638,622 |
Probable Additional | 1,945,718 | 916,798 | 550,126 | 370,360 |
Total Proved plus Probable | 3,742,972 | 2,061,768 | 1,377,212 | 1,008,982 |
The following table is a net present value summary (after tax) as at December 31, 2011:
NET PRESENT VALUE SUMMARY (AFTER TAX) | ||||
Undiscounted [$000's] | NPV 5% AT [$000's] | NPV 10% AT [$000's] | NPV 15% AT [$000's] | |
Proved Developed Producing | 814,236 | 619,644 | 510,839 | 439,950 |
Proved Developed Non-producing | 115,868 | 81,237 | 65,383 | 55,780 |
Proved Undeveloped | 601,803 | 302,684 | 162,170 | 81,825 |
Total Proved | 1,531,907 | 1,003,565 | 738,392 | 577,555 |
Probable Additional | 1,458,142 | 681,258 | 402,487 | 265,255 |
Total Proved plus Probable | 2,990,049 | 1,684,823 | 1,140,879 | 842,810 |
The Company's net present value of proved plus probable
reserves, discounted at 10% before tax was $1,377.2 million,
up 48% from $930.7 million at December 31, 2010. As mentioned
above, lower forecasted natural gas prices negatively
affected the value of reserves as at December 31, 2011.
However, given the successful drilling results in the
Resthaven Montney, Fir Montney and Kaybob Duvernay resource
plays, Celtic was able to offset the effect of lower natural
gas prices by increasing its liquids-rich natural gas
reserves significantly.
The following table provides detailed calculations relating
to finding, development and acquisition ("FD&A")
costs and recycle ratios for 2011 and 2010:
Year ended December 31, 2011 | Year ended December 31, 2010 | Cumulative since Incorporation | |
1P RESERVES | |||
Capital expenditures [$000's] [unaudited] | 419,680 | 172,785 | 1,529,100 |
Change in FDC costs required to develop reserves [$000's] | 255,111 | 40,844 | 486,428 |
Total capital costs [$000's] | 774,791 | 213,629 | 2,015,528 |
Reserve additions, net [MBOE] | 46,077 | 9,512 | 108,742 |
FD&A cost, before FDC [$/BOE] | 9.11 | 18.16 | 14.06 |
FD&A cost, including FDC [$/BOE] | 16.82 | 22.46 | 18.53 |
Operating netback [$/BOE] [unaudited] | 24.71 | 23.38 | 28.41 |
Recycle ratio - proved | 1.5 x | 1.0 x | 1.5 x |
2P RESERVES | |||
Capital expenditures [$000's] [unaudited] | 419,680 | 172,785 | 1,529,100 |
Change in FDC costs required to develop reserves [$000's] | 570,444 | 64,702 | 780,163 |
Total capital costs [$000's] | 990,124 | 237,487 | 2,309,263 |
Reserve additions, net [MBOE] | 77,380 | 13,407 | 168,743 |
FD&A cost, before FDC [$/BOE] | 5.42 | 12.89 | 9.06 |
FD&A cost, including FDC [$/BOE] | 12.80 | 17.71 | 13.69 |
Operating netback [$/BOE] [unaudited] | 24.71 | 23.38 | 28.41 |
Recycle ratio - proved plus probable | 1.9 x | 1.3 x | 2.1 x |
During 2011, the Company's capital expenditures (unaudited),
net of dispositions, resulted in proved plus probable reserve
additions of 77.4 million BOE (13.4 million BOE in 2010),
resulting in FD&A costs of $12.80 per BOE ($17.71 per BOE in
2010), including FDC costs. Proved reserve additions in 2011
were 46.1 million BOE (9.5 million BOE in 2010), resulting in
FD&A costs of $16.82 per BOE ($22.46 per BOE in 2010),
including FDC costs.
Lower FD&A costs in 2011 compared to the previous year were a
result of the Company's successful exploration drilling
programs at Resthaven and Fir in the Montney formation and at
Kaybob in the Duvernay shale formation. At Resthaven
(Montney) and Kaybob (Duvernay), the Company is at an early
stage in the delineation and de-risking of two potentially
large multi-year development resource plays.
The recycle ratio is a measure for evaluating the
effectiveness of a company's re-investment program. The ratio
measures the efficiency of capital investment. It
accomplishes this by comparing the operating netback per BOE
to that years' reserve FD&A cost per BOE. Since
incorporation, Celtic has successfully achieved a recycle
ratio of 2.1 times on a proved plus probable basis. In 2011,
the recycle ratio was 1.9 times.
Celtic's 2011 capital investment program resulted in net
reserve additions that replaced 2011 production by a factor
of 7.8 (1.5 in 2010) times on a proved basis and 13.1 (2.1 in
2010) times on a proved plus probable basis.
This document contains expectations, beliefs, plans, goals,
objectives, assumptions, information and statements about
future events, conditions, results of operations or
performance that constitute "forward-looking
information" or "forward-looking statements" (collectively,
"forward-looking statements") under applicable securities
laws. Undue reliance should not be placed on forward-looking
statements. Forward-looking statements are based on current
expectations, estimates and projections that involve a number
of risks and
uncertainties, which could cause actual results to differ
materially from those anticipated by the Company and
described in the forward-looking statements. We caution that
the foregoing list of risks and uncertainties is not
exhaustive. Events or circumstances could cause actual dates
to differ materially from those estimated or projected and
expressed in, or implied by, these forward-looking
statements. The forward-looking statements contained in this
document are made as of the date hereof and the Company does
not intend, and does not assume any obligation, to update or
revise any forward-looking statements, whether as a result of
new information, future events or otherwise unless expressly
required by applicable securities laws.
All dollar amounts are referenced in Canadian dollars, except
when noted otherwise. Where amounts are expressed on a barrel
of oil equivalent ("BOE") basis, natural gas volumes have
been converted to oil equivalence at six thousand cubic feet
per barrel and sulphur volumes have been converted to oil
equivalence at 0.6 long tons per barrel. The term BOE may be
misleading, particularly if used in isolation. A BOE
conversion ratio of six thousand cubic feet per barrel is
based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent
a value equivalency at the wellhead. References to oil in
this discussion include crude oil and natural gas liquids
("NGLs"). NGLs include condensate, pentane,
propane, butane and ethane. References to gas in this
discussion include natural gas and sulphur.
Net present value is abbreviated as "NPV". Working interest
is abbreviated as "WI". Million cubic feet is abbreviated as
"MMCF". Thousand cubic feet is abbreviated as "MCF". Barrels
are abbreviated as "BBLS". Giga joules are abbreviated as
"GJ".
For further information, please contact:
Sadiq H. Lalani, Vice President, Finance and Chief Financial Officer (403) 215-5310. Or visit our website site at www.celticex.com.
distribué par | Ce noodl a été diffusé par Celtic Exploration Ltd. et initialement mise en ligne sur le site http://www.celticex.com. La version originale est disponible ici. Ce noodl a été distribué par noodls dans son format d'origine et sans modification sur 2012-02-14 02:45:39 AM et restera accessible depuis ce lien permanent. Cette annonce est protégée par les règles du droit d'auteur et toute autre loi applicable, et son propriétaire est seul responsable de sa véracité et de son originalité. |
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