Alta Mesa Resources, Inc. (NASDAQ:AMR) (NASDAQ:AMRWW) (“Alta Mesa”
or the “Company”) today announced a summary of year-end 2017 proved
reserves and provided an upstream operational update, including
associated production and drilling activity.
Year-End 2017 ReservesAlta
Mesa’s oil, natural gas and natural gas liquids reserves as of
December 31, 2017, were 176.2 million barrels of oil equivalent
(“MMBOE”) net to the Company, an increase of 46.6 MMBOE compared to
129.6 MMBOE at year-end 2016. Ryder Scott Company, LP, an
independent reserve engineering firm, audited Alta Mesa’s year-end
proved reserves estimates as of December 31, 2017. Proved
reserves consisted of 71.9 million barrels of oil, 36.1 million
barrels of natural gas liquids, and 409 billion cubic feet of
natural gas. Approximately 52 MMBOE of proved reserves at year-end
2017 were classified as proved developed producing (PDP) reserves,
and approximately 124 MMBOE were classified as proved undeveloped
(PUD) reserves. Through year-end 2017, the Company’s reserves
have grown in volume at a five-year compound annual growth rate of
over 80%.
Operational UpdateFull-year
2017 production net to the Company was approximately 21,000 BOE per
day, a greater than 50% increase over 2016 net production of
approximately 13,000 BOE per day. Total production mix for
full-year 2017 was 52% oil, 17% natural gas liquids and 31% natural
gas. Fourth quarter 2017 production was approximately 22,000 BOE
per day, a greater than 45% increase over approximately 15,000 BOE
per day in the fourth quarter 2016. Total production mix for the
fourth quarter 2017 was 55% oil, 18% natural gas liquids and 27%
natural gas. Through year-end 2017, the Company’s net production
has grown at a five-year compound annual growth rate of over
80%.
Alta Mesa deployed from four to six drilling
rigs during 2017, drilled 108 gross wells (approximately 60 net
wells), and completed 101 gross wells (approximately 56 net).
The Company has had six drilling rigs and four fracture stimulation
crews operating in early 2018, and has contracted for two
additional drilling rigs to begin operating in March and April of
2018.
"The drilling and completion activity Alta Mesa
has executed in the oil window of the STACK during 2017, coupled
with leasehold acquisitions, has set the stage for a deliberate
program of multi-well pattern development," stated Alta Mesa’s
Chief Executive Officer, Hal Chappelle. "Our capital and operating
cost structure and production mix have continued to foster economic
returns on capital for our investors. With the planned
increased level of activity in our 2018 program, we expect to
capitalize upon the efficiency gains and execution success we had
last year, resulting in what we believe will be continued long-term
corporate-level returns and value creation."
Fourth Quarter and Full Year 2017
Earnings Conference CallAlta Mesa will report fourth
quarter and full year 2017 financial results, and provide an
operational update and 2018 guidance on Thursday, March 29th, 2018.
The Company invites you to listen to its conference call to discuss
these results on that date at 11:00 a.m. Eastern Time. If you wish
to participate in this conference call, dial 888-347-8149 (toll
free in US/Canada) or 412-902-4228. A webcast of the call and any
related materials will be available on the Company’s website at
www.altamesa.net. Additionally, a replay of the conference call
will be available for one week following the live broadcast by
dialing 844-512-2921 (toll free in US/Canada) or 412-317-6671
(International calls), and referencing Conference ID #
10117607.
About Alta Mesa Resources,
Inc.Alta Mesa Resources, Inc. is an independent energy
company focused on the development and acquisition of
unconventional oil and natural gas reserves in the Anadarko Basin
in Oklahoma and provides midstream energy services, including crude
oil and gas gathering, processing and marketing to producers in the
STACK play region through Kingfisher Midstream, LLC.
Safe Harbor Statement and
Disclaimer
Alta Mesa has prepared the summary preliminary
data in this release based on the most current information
available to management. Alta Mesa’s normal financial
reporting processes with respect to the preliminary data herein
have not been fully completed and, as a result, its actual results
could be different from this summary preliminary information
presented herein, and any such differences could be material. The
information in this press release includes “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. All statements, other than statements of
present or historical fact included in this press release,
regarding Alta Mesa’s strategy, future operations, financial
position, estimated revenues and losses, projected costs,
prospects, plans and objectives of management are forward-looking
statements. When used in this press release, the words “could”,
“should”, “will”, “may”, “believe”, “anticipate”, “intend”,
“estimate”, “expect”, “project,” the negative of such terms and
similar expressions are intended to identify forward-looking
statements, although not all forward-looking statements contain
such identifying words. These forward-looking statements are based
on Alta Mesa’s current expectations and assumptions about future
events and are based on currently available information as to the
outcome and timing of future events. Alta Mesa cautions you that
these forward-looking statements are subject to all of the risks
and uncertainties, most of which are difficult to predict and many
of which are beyond its control, incident to the exploration for
and development and production, gathering and sale of oil, natural
gas, and natural gas liquids. These risks include, but are not
limited to: commodity price volatility, low prices for oil, natural
gas and/or natural gas liquids, global economic conditions,
inflation, increased operating costs, lack of availability of
drilling and production equipment supplies, services and qualified
personnel, processing volumes and pipeline throughput,
uncertainties related to new technologies, geographical
concentration of operations of our subsidiaries Alta Mesa Holdings,
LP (“Alta Mesa Holdings”) and Kingfisher Midstream, LLC (“KFM”),
environmental risks, weather risks, security risks, drilling and
other operating risks, regulatory changes, the uncertainty inherent
in estimating oil and natural gas reserves and in projecting future
rates of production, reductions in cash flow, lack of access to
capital, Alta Mesa Holdings and KFM’s ability to satisfy future
cash obligations, restrictions in existing or future debt
agreements of Alta Mesa Holdings or KFM, the timing of development
expenditures, managing Alta Mesa Holdings and KFM’s growth and
integration of acquisitions, failure to realize expected value
creation from property acquisitions, title defects and limited
control over non-operated properties, the Company’s ability to
complete an initial public offering of the KFM midstream business
and the other risks described in the Company’s filings with the
SEC. Reserve engineering is a process of estimating underground
accumulations of oil and natural gas that cannot be measured in an
exact way. The accuracy of any reserve estimate depends on the
quality of available data, the interpretation of such data and
price and cost assumptions made by reservoir engineers.
Specifically, future prices received for production and costs may
vary, perhaps significantly, from the prices and costs assumed for
purposes of these estimates. Sustained lower prices will
cause the twelve-month weighted average price to decrease over time
as the lower prices are reflected in the average price, which may
result in the estimated quantities and present values of Alta
Mesa’s reserves being reduced. In addition, the results of
drilling, testing and production activities may justify revisions
of estimates that were made previously. If significant, such
revisions would change the schedule of any further production and
development drilling. Accordingly, reserve estimates may differ
significantly from the quantities of oil and natural gas that are
ultimately recovered. Should one or more of the risks or
uncertainties described in this press release occur, or should
underlying assumptions prove incorrect, Alta Mesa’s actual results
and plans could differ materially from those expressed in any
forward-looking statements. All forward-looking statements,
expressed or implied, included in this press release are expressly
qualified in their entirety by this cautionary statement. This
cautionary statement should also be considered in connection with
any subsequent written or oral forward-looking statements that Alta
Mesa may issue. Except as otherwise required by applicable law,
Alta Mesa disclaims any duty to update any forward-looking
statements, all of which are expressly qualified by the statements
in this section, to reflect events or circumstances after the date
of this press release.
FOR MORE INFORMATION CONTACT:
Lance L. Weaver (281) 943-5597 lweaver@altamesa.net