- Preliminary Q4 2022 average oil sales production, based on field estimates, of 2,180 bbl/d;
- Current oil sales production, based on field estimates, of over 2,700 bbl/d;
- Strong preliminary performance from new development wells rig released at
Marten Hills and in theFigure Lake area, relative to Rubellite's type curve; - Ongoing one-rig development program at
Figure Lake on track to deliver Q1 2023 oil sales production at the high end of previous corporate guidance of 2,200 – 2,600 bbl/d; - Continued expansion of
Figure Lake land base, adding 30.75 net sections in Q4 2022 andJanuary 2023 ; and - Spud of first well in
Dawson /Peavine area Northern Exploration Program.
Rubellite is pleased to report that the Company recorded preliminary fourth quarter oil sales production of 2,180 bbl/d, based on field estimates, at the high end of the fourth quarter guidance range of 1,950 – 2,200 bbl/d. The Company produced close to an additional 70 bbl/d which was not recorded as sales during the quarter, building inventory to fill new tank volumes for oil processing and water separation at pad sites.
Ten (7.9 net) wells were rig released in Rubellite's two-rig fourth quarter development drilling program at
Field estimates of production through the first two weeks of January averaged over 2,700 bbl/d, in excess of the high end of Rubellite's Q1 2023 production guidance, with three wells recently rig-released at
Three (0.9 net) new wells drilled in the fourth quarter at
At
Operationally, Rubellite intends to keep one drilling rig running continuously at
Rubellite began operations in its Northern Exploration Program in the fourth quarter with the drilling of a vertical evaluation well at 7-24-83-9W5, including coring operations to ascertain the nature of the
(1) | Type curve assumptions are based on the Total Proved plus Probable Undeveloped reserves contained in the McDaniel Reserve Report as disclosed in the Company's Annual Information Form which is available under the Company's profile on SEDAR at www.sedar.com. "McDaniel" means |
Rubellite is also pleased to announce that the Company has been successful in executing multiple land acquisition transactions in the
Rubellite is on track to achieve its combined Q4 2022 and Q1 2023 capital expenditure (see "Non-GAAP and Other Financial Measures") guidance released
Factoring in the positive initial performance from the Q4 2022 drilling program to date, production sales volumes for the first quarter of 2023 are expected to average at the high end of the previous
Rubellite also plans to continue exploration activities to pursue additional prospective land capture and de-risk acreage.
An updated Corporate Overview presentation has been posted to the Company's website at www.rubelliteenergy.com.
Rubellite is a Canadian energy company engaged in the exploration, development and production of heavy crude oil from the
Barrel of oil equivalent ("boe") may be misleading, particularly if used in isolation. In accordance with NI 51-101, a conversion ratio for conventional natural gas of 6 Mcf:1 bbl has been used, which is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. In addition, utilizing a conversion on a 6 Mcf:1 bbl basis may be misleading as an indicator of value as the value ratio between conventional natural gas and heavy crude oil, based on the current prices of natural gas and crude oil, differ significantly from the energy equivalency of 6 Mcf:1 bbl. A conversion ratio of 1 bbl of heavy crude oil to 1 bbl of NGL has also been used throughout this news release.
The following abbreviations used in this news release have the meanings set forth below:
bbl | barrels |
bbl/d | barrels per day |
boe | barrels of oil equivalent |
MMboe | million barrels of oil equivalent |
Any references in this news release to initial production rates and IP30 rates are useful in confirming the presence of hydrocarbons; however, such rates are not determinative of the rates at which such wells will continue production and decline thereafter and are not necessarily indicative of long-term performance or ultimate recovery. Readers are cautioned not to place reliance on such rates in calculating the aggregate production for the Company. Such rates are based on field estimates and may be based on limited data available at this time.
Certain anticipated operating and financial results for 2022 included in this news release such as production information and capital expenditures are based on unaudited estimated results. These estimated results are subject to change upon completion of the audited financial statements for the year ended
Throughout this news release and in other materials disclosed by the Company, Rubellite employs certain measures to analyze financial performance, financial position and cash flow. These non-GAAP and other financial measures do not have any standardized meaning prescribed under IFRS and therefore may not be comparable to similar measures presented by other entities. The non-GAAP and other financial measures should not be considered to be more meaningful than GAAP measures which are determined in accordance with IFRS, such as net income (loss), cash flow from operating activities, and cash flow from investing activities, as indicators of Rubellite's performance.
Non-GAAP Financial Measures
Capital Expenditures: Rubellite uses capital expenditures related to exploration and development to measure its capital investments compared to the Company's annual capital budgeted expenditures. Rubellite's capital budget excludes acquisition and disposition activities as well as the accounting impact of any accrual changes.
FORWARD-LOOKING INFORMATION
Certain information in this news release including management's assessment of future plans and operations, and including the information contained under the headings "Production", "Operations Update" and "Q1 2023 Outlook" may constitute forward-looking information or statements (together "forward-looking information") under applicable securities laws. The forward-looking information includes, without limitation, statements with respect to: future capital expenditure and production forecasts; the anticipated sources of funds to be used for capital expenditures; the number of drilling rigs to be operated over certain time periods; expectations as to drilling activity plans in various areas and the benefits to be derived from such drilling including the production growth; expectations respecting Rubellite's future exploration, development and drilling activities and Rubellite's business plan; and including the information and statements contained under the heading "Q1 2023 Outlook".
Forward-looking information is based on current expectations, estimates and projections that involve a number of known and unknown risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Rubellite and described in the forward-looking information contained in this news release. In particular and without limitation of the foregoing, material factors or assumptions on which the forward-looking information in this news release is based include: the successful operation of the its assets; forecast commodity prices and other pricing assumptions; forecast production volumes based on business and market conditions; foreign exchange and interest rates; near-term pricing and continued volatility of the market including inflationary pressures; accounting estimates and judgments; future use and development of technology and associated expected future results; the ability to obtain regulatory approvals; the successful and timely implementation of capital projects; ability to generate sufficient cash flow to meet current and future obligations; Rubellite's ability to operate under the management of Perpetual Energy Inc. pursuant to the management services and operating agreement; the ability of Rubellite to obtain and retain qualified staff and equipment in a timely and cost-efficient manner, as applicable; the retention of key properties; forecast inflation, supply chain access and other assumptions inherent in Rubellite's current guidance and estimates; the continuance of existing tax, royalty, and regulatory regimes; the accuracy of the estimates of reserves volumes; ability to access and implement technology necessary to efficiently and effectively operate assets; and the ongoing and future impact of the coronavirus and the war in
Undue reliance should not be placed on forward-looking information, which is not a guarantee of performance and is subject to a number of risks or uncertainties, including without limitation those described herein and under "Risk Factors" in Rubellite's Annual Information Form and MD&A for the year ended
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