Chinook Energy Inc. announced that it has positive working capital of approximately $75 million and is undrawn on its $125 million credit facility following the recent dispositions of its Karr and Gilby properties. The company also announced a decrease in its 2015 capital program as a result of significantly weaker commodity prices since announcing its original program on October 29, 2014. The company's original program targeted $135 million in capital expenditures with projected 2015 average production growth of approximately 33% over 2014 volumes.

The company has reduced its 2015 capital program to approximately $45 million to maintain its strong balance sheet and capital flexibility through 2015. Approximately $25.5 million of capital expenditures will be spent in the first quarter of 2015 and approximately $8.6 million in the second quarter. The company's production at the beginning of 2015 is estimated to be approximately 7,900 boe/d after giving effect to the completion of the Gilby and Karr asset dispositions announced on December 19, 2014 and January 6, 2015, respectively.

The company anticipates exiting 2015 at approximately 7,000 to 7,500 boe/d with average production in 2015 between 6,750 and 7,250 boe/d after factoring in voluntary production shut-ins, a major scheduled turnaround at Spectra's McMahon Gas Plant in June and July 2015 and production declines. Avarage production is expected to be 6,750-7,250 boe/d against 9,000-10,000 boe/d as previously reported.