Forent Energy-First Quarter 2014 Results
May 30 2014 - 9:00AM
Marketwired
Forent Energy-First Quarter 2014 Results
CALGARY, ALBERTA--(Marketwired - May 30, 2014) - The first
quarter of 2014 was very active for Forent Energy
(TSX-VENTURE:FEN). During the quarter, Forent completed a
non-brokered private placement, identified and licensed three
development wells at the Twining Property, and a second well was
drilled at Montgomery on Forent lands.
FINANCIAL
In early February, Forent concluded the second tranche of a
non-brokered private placement financing supporting the development
drilling program planned for the Twining property. Forent issued
7,077,500 common shares of the Company for gross proceeds of
$591,000.
During the first quarter, Forent's revenues increased to
$859,000 compared with $147,000 in the first quarter of the prior
year. Funds flow from operations for Q1 2014 was a positive
$150,000 compared with an outflow of $40,000 in Q1 2013. Capital
spending for Q1 2014 was $280,000 compared with $nil in Q1 2013.
Forent's net debt at March 31, 2014, was $1.6 million compared to
net debt of $1.9 million at the beginning of the year. The Company
has access to a credit facility of $7.0 million.
PRODUCTION
Forent's oil and natural gas sales during the first quarter
averaged 194 BOEd compared with 62 BOEd in Q1 2013. Oil production
was 107 bopd in Q1 2014 compared with 6 bopd for Q1 2013. Extended
time-periods of extremely low temperatures along with significant
snow accumulations challenged the operational staff during the
first quarter but Forent is pleased to report that field staff did
an excellent job of minimizing operation downtime.
OPERATIONS
During the first quarter, Forent identified eight infill
drilling locations based on a purchased 3-D seismic survey at
Twining. Three infill development locations were acquired, surveyed
and licensed in preparation for drilling in Q2. Drilling will
commence once the local road restrictions are removed, anticipated
before the end of May.
ONGOING
EXPLORATION
Forent reached a milestone at Montgomery, AB, with the drilling
of the second well on Forent lands, and the first well drilled in
an area interpreted to be naturally fractured. Our joint venture
partner spudded the Montgomery 14-12 well in February and after
significant drilling challenges with up-hole zones, the Second
White Speckled Shale Formation (2WS) was penetrated and the well
was cased for completion. Prior to casing the well, an ultrasonic
imaging log was run over the 2WS interval. This log revealed
multiple fractures in the 2WS formation across the interval
equivalent to the producing zone in the offsetting 06-06 well.
After cleaning the drilling fluid from the wellbore, the well was
acidized. During swabbing no inflow from the formation was noted.
Bottom hole pressure recorders were run to evaluate the reservoir
quality. The build-up pressure measured was significantly below
expected formation pressure. Forent is currently awaiting our joint
venture partners decision on future operations for this
wellbore.
In April 2014, Forent elected not to submit a work commitment to
renew the Alton block in Nova Scotia. Once regulatory requirements
around hydrocarbon resource stimulation are clarified by the
Province and a joint venture partner has been identified, Forent
can re-nominate these lands and submit a work commitment for
further exploration.
OUTLOOK
Forent will begin an initial three well infill development
drilling program at Twining immediately after local road bans have
been lifted. This is the first significant step in our plan to
increase our oil and associated gas production to over 300 BOEd by
the end of 2014. Additional drilling of low risk, development wells
within our current portfolio has the potential to far exceed that
goal.
At Wayne, several development strategies for the property are
under review with Forent's partner in the area. We hope to be able
to firm up a drilling schedule during the second half of 2014 for
up to three new horizontal wells.
At Provost, oil production is restricted by the water handling
capacity of the facilities. Forent has proposed an expansion of the
water handling equipment at the battery to enable increased oil
production. Once approvals have been obtained from our partners, we
will proceed with equipment installation which will increase fluid
handling capacity. The Company has identified a number of infill
horizontal oil development locations that will be considered for
drilling once the battery is capable of processing increased fluid
volumes.
Shares of Forent trade on the TSX Venture Exchange under the
symbol "FEN".
Forent has filed its Interim Financial Statements and MD&A
for the three months ended March 31, 2014, on SEDAR and its
website.
ADVISORY: Certain information in this news release, including
the operations at the Company's properties, constitute
forward-looking statements under applicable securities laws.
Although Forent believes that the expectations reflected in these
forward looking statements are reasonable, undue reliance should
not be placed on them because Forent can give no assurance that
they will prove to be correct. Since forward looking statements
address future events and conditions, by their very nature they
involve inherent risks and uncertainties. The forward-looking
statements contained in this news release are made as at the date
of this news release and the Corporation does not undertake any
obligation to update publicly or to revise any of the included
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required by applicable
securities laws.
This release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other
than statements of historical facts, that address future
production, reserve potential, exploration drilling, exploitation
activities and events or developments that the Company expects are
forward-looking statements. Although the Company believes the
expectations expressed in such forward looking statements are based
on reasonable assumptions, such statements are not guarantees of
future performance and actual results or developments may differ
materially from those in the forward-looking statements. Factors
that could cause actual results to differ materially from those in
forward looking statements include market prices, exploitation and
exploration successes, continued availability of capital and
financing, and general economic, market or business conditions.
Investors are cautioned that any such statements are not guarantees
of future performance and those actual results or developments may
differ materially from those projected in the forward-looking
statements. For more information on the Company, Investors should
review the Company's registered filings which are available at
www.sedar.com.
BOE presentation:
Barrel ("bbl") of oil equivalent ("boe") amounts may be
misleading particularly if used in isolation. All boe conversions
in this report are calculated using a conversion of six thousand
cubic feet of natural gas to one equivalent barrel of oil (6 mcf=1
bbl) and is based on an energy conversion method primarily
applicable at the burner tip and does not represent a value
equivalency at the well head.
NEITHER THE
TSX-VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT
TERM IS DEFINED IN THE POLICIES OF THE TSX-VENTURE EXCHANGE)
ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS
RELEASE.
Forent Energy Ltd.Richard WadePresident & CEO(403) 262-9444
#211rwade@forentenergy.comForent Energy Ltd.Brad R. PerryCFO(403)
262-9444 #208bperry@forentenergy.comwww.forentenergy.com
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