HIGHLIGHTS
Commenced active oil and natural gas operations on
Completed the Vermilion private placement and management private placement as outlined in the Arrangement for proceeds of
Received proceeds of
Financial and operational results below present the carved-out historic financial position, results of operations and cash flows of Leucrotta's Two Rivers Assets for all prior periods up to and including
COMMON-CONTROL TRANSACTION
On
Pursuant to an asset conveyance agreement between Coelacanth and Leucrotta made as of
Since the shareholders of Coelacanth and Leucrotta were the same both before and after the conveyance of the Two Rivers Assets (at the time Coelacanth was a wholly-owned subsidiary of Leucrotta), this transaction was deemed a common-control transaction. The financial and operational results below present the historic financial position, results of operations and cash flows of the transferred Two Rivers Assets for all prior periods up to and including
FINANCINGS
Vermilion Financing
Pursuant to and concurrent with the closing of the Arrangement, Vermilion purchased 53.3 million Coelacanth Shares at a price of
Management Financing
On
Concurrently on
Arrangement Warrants
On
OPERATIONS UPDATE
Pursuant to the Arrangement, Coelacanth acquired approximately 150 net sections of
Coelacanth is in the planning stages of materially expanding the infrastructure as well as preparing for pad development. Coelacanth management successfully executed a test pad at Mica as part of Leucrotta using longer horizontal wells and increasing the frac intensity to improve returns and will look to expand on its success into the Two Rivers area that is located north of Mica.
Coelacanth has a business plan to reach production of 25,000 boe/d within a 4-year period as outlined in its latest presentation(2) and looks forward to updating on its progress in the near future.
(1) OGIP (
TPIIP, as defined in COGEH, is that quantity of petroleum that is estimated to exist originally in naturally occurring accumulations. It includes that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations, prior to production, plus those estimated quantities in accumulations yet to be discovered (equivalent to 'total resources'). There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.
(2) Corporate presentation available at www.coelacanth.ca.
OIL AND GAS TERMS
The Company uses the following frequently recurring oil and gas industry terms in the news release:
Liquids
Bbls
Barrels
Bbl/d
Barrels per day
NGLs
Natural gas liquids (includes condensate, pentane, butane, propane, and ethane)
Condensate
Pentane and heavier hydrocarbons
Natural Gas
Mcf
Thousands of cubic feet
Mcf/d
Thousands of cubic feet per day
MMbtu
Million of British thermal units
MMbtu/d
Million of British thermal units per day
Oil Equivalent
Boe
Barrels of oil equivalent
Boe/d
Barrels of oil equivalent per day
Disclosure provided herein in respect of a boe may be misleading, particularly if used in isolation. A boe conversion rate of six thousand cubic feet of natural gas to one barrel of oil equivalent has been used for the calculation of boe amounts in the news release. This boe conversion rate is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
FORWARD-LOOKING INFORMATION
This document contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words 'expect', 'anticipate', 'continue', 'estimate', 'may', 'will', 'should', 'believe', 'intends', 'forecast', 'plans', 'guidance' and similar expressions are intended to identify forward-looking statements or information.
More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's oil and condensate, other NGLs, and natural gas production, operating expenses, capital programs, and working capital. The forward-looking statements and information are based on certain key expectations and assumptions made by the Company, including expectations and assumptions relating to prevailing commodity prices and exchange rates, applicable royalty rates and tax laws, future well production rates, the performance of existing wells, the success of drilling new wells, the availability of capital to undertake planned activities, and the availability and cost of labour and services.
Although the Company believes that the expectations reflected in such forward-looking statements and information are reasonable, it can give no assurance that such expectations will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production, delays or changes in plans with respect to exploration or development projects or capital expenditures, the uncertainty of estimates and projections relating to production rates, costs, and expenses, commodity price and exchange rate fluctuations, marketing and transportation, environmental risks, competition, the ability to access sufficient capital from internal and external sources and changes in tax, royalty, and environmental legislation. The forward-looking statements and information contained in this document are made as of the date hereof for the purpose of providing the readers with the Company's expectations for the coming year. The forward-looking statements and information may not be appropriate for other purposes. The Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities law.
Coelacanth is an oil and natural gas company, actively engaged in the acquisition, development, exploration, and production of oil and natural gas reserves in northeastern
Contact:
Suite 2110,
Phone: (403) 705-4525
WEB: www.coelacanth.ca
Mr.
President and Chief Executive Officer
Mr.
Vice President
Finance and Chief Financial Officer
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