/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR
DISSEMINATION IN THE UNITED
STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY
CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW./
CALGARY, Nov. 21, 2019 /CNW/ - Return Energy Inc.
("Return" or the "Company") (RTN: TSXV) is
pleased to announce that it has entered into a definitive
reorganization and investment agreement
(the "Agreement") with Fotis
Kalantzis and Richard F.
McHardy (the "Initial Investors") which provides
for: (i) a non-brokered private placement for gross proceeds of up
to $25.0 million
(the "Private Placement"); and (ii) the appointment of
a new management team (the "New Management Team") and
new board of directors (the "New Board") of Return
(collectively, the "Transaction"). Completion of the
Transaction is subject to customary closing conditions, including
the approval of the TSX Venture Exchange (the "TSXV"). Upon
completion of the Transaction, the shareholders of Return will be
asked to approve, at a special meeting called for such purpose: (i)
a change of Return's name to "Spartan Delta Corp." (the "Name
Change"); and (ii) a consolidation of the common shares of
Return (the "Common Shares") on the basis of one
post-consolidation Common Share for up to every 40
pre-consolidation Common Shares
(the "Consolidation").
The New Management Team will be led by Richard F. McHardy as Executive Chairman and
Fotis Kalantzis as President and
Chief Executive Officer, Geri
Greenall as Chief Financial Officer, Thanos Natras as Vice President, Exploration,
Craig Martin as Vice President,
Operations, Mark Hodgson as Vice
President, Corporate Development, Brendan
Paton as Manager, Engineering and Ashley Hohm as Controller.
The New Board will be comprised of Richard F. McHardy, Fotis Kalantzis, Don
Archibald, Reginald
Greenslade, Kevin Overstrom
and Tamara MacDonald. Sanjib (Sony) Gill, a partner in the
Calgary office of the national law
firm Stikeman Elliott LLP, will act as Corporate Secretary.
New Management Team
The New Management Team has an established track record of
creating value across multiple business cycles in high-growth oil
and gas companies through an integrated strategy of acquiring,
exploiting and exploring. Most recently, the New Management Team
led Spartan Energy Corp. ("Spartan Energy"), a light oil
producer focused primarily on conventional open-hole horizontal
wells drilled on Mississippian oil plays in southeast
Saskatchewan. At Spartan Energy, the New Management Team grew
production from approximately 625 boepd to 23,000 boepd over a
four-year period prior to its sale to Vermilion Energy Inc.
("Vermilion") in May 2018 for
approximately $1.4 billion. During a
period of significant uncertainty in the energy markets, the New
Management Team stewarded capital efficiently and delivered above
market shareholder returns. Prior to Spartan Energy, the New
Management Team led Spartan Oil Corp. ("Spartan Oil"), a
light oil producer focused primarily in the Cardium light oil
resource play at Pembina in central Alberta. At Spartan Oil, the New Management
Team grew production from approximately 650 boepd to 5,500 boepd in
the 18 months prior to its sale to Bonterra Energy Corp.
("Bonterra") in January 2013
for approximately $500.0 million.
Prior to Spartan Oil, the New Management Team led Spartan
Exploration Ltd. ("Spartan Exploration"), a light oil
producer with operations focused in the Cardium light oil resource
play at Pembina and the Lower Shaunavon oil play in southwest
Saskatchewan. While at Spartan
Exploration, the New Management Team grew production from 0 boepd
to 2,500 boepd in just over 3 years prior to its sale to Penn West
Petroleum Ltd. in June 2011 for
approximately $228.0 million.
Having successfully founded, capitalized, grown and monetized a
number of previous companies, the New Management Team will apply
its past experience to grow the recapitalized Company through a
combination of organic growth and acquisitions.
Richard F.
McHardy
Executive
Chairman
|
Richard F. McHardy
has been a founder of several public oil and gas companies and has
extensive experience in leadership roles. Mr. McHardy was
President, Chief Executive Officer and a director of Spartan
Energy, Spartan Oil and Spartan Exploration. Previously, Mr.
McHardy was the President and a director of Titan Exploration Ltd.
("Titan"). In addition, Mr. McHardy has served as a board
member of, and as corporate secretary to, a number of other public
and private companies. Prior to founding Titan, Mr. McHardy
was a partner at one of Canada's largest national law firms, where
he practiced securities and corporate law. Mr. McHardy has over 24
years of experience in all aspects of securities and mergers and
acquisitions.
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Fotis
Kalantzis,
President,
Chief
Executive Officer
and
Director
|
Fotis Kalantzis has
been co-founder of several public companies and has over 25 years
of experience in oil and gas exploration and development in senior
technical and leadership positions. Dr. Kalantzis has been
instrumental in a number of significant transactions, including in
his capacity as a senior officer and founder of Spartan Energy from
December 2013 to May 2018, Spartan Oil from June 2011 to January
2013 and Spartan Exploration from January 2008 to June 2011.
Prior thereto, Dr. Kalantzis was the Exploration Manager at
Innova Exploration Ltd. He has also held technical positions at
Petro-Canada, Saudi Aramco, Suncor Energy Inc. ("Suncor"),
Wascana Energy Inc., Home Oil Company and Mobil Oil of Canada in
connection with oil and gas exploration and development in Canada
and internationally. Dr. Kalantzis holds a M.Sc. from the
University of Saskatchewan and a Ph.D. in Geophysics from the
University of Alberta.
|
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Geri
Greenall,
Chief Financial
Officer
|
Geri Greenall is a
capital markets executive with over 20 years of experience in the
energy and financial sectors. Ms. Greenall has over a decade
of experience as a Portfolio Manager and Chief Compliance Officer
for investment fund managers. Most recently, Ms.
Greenall co-founded and was the Chief Financial Officer at Camber
Capital Corp., a fund manager offering private client &
institutional fund management services. Prior thereto,
Ms. Greenall was the Chief Compliance Officer and an energy
portfolio manager with Canoe Financial. In addition to her
fund management work, Ms. Greenall has a strong background in both
public equity analysis and commodity trading. Ms. Greenall is
currently an independent director of Kelt Exploration Ltd.
("Kelt") and she serves as the Chair of the Reserves
Evaluation Committee and a member of the Audit Committee of
Kelt. Geri holds a B.Comm. in Finance from the University of
Calgary as well as the Chartered Financial Analyst and Institute of
Corporate Directors designations.
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Thanos
Natras,
Vice
President,
Exploration
|
Thanos Natras is a
professional geologist with over 22 years of experience in both
conventional and unconventional plays across the Western Canadian
and Williston Basins, most recently employed with Vermilion as the
Team Lead for southeast Saskatchewan operations. Prior thereto,
from 2014 to 2018, Mr. Natras was employed with Spartan Energy
where he held the roles of Manager, Geoscience, and Senior
Geologist. Before joining Spartan Energy, Mr. Natras held the
role of Vice President, Exploration, at Arcan Resources Ltd. from
2011 to 2013. Prior thereto, from 2004 to 2010, Mr. Natras
was employed by EnCana Corp. where he held various geoscience and
operational oriented roles. From 1996 to 2003, Mr. Natras provided
geological wellsite supervision on more than 170 wells across
western Canada. Mr. Natras hold a B.Sc. in Geology from the
University of Alberta and is an active member of the Canadian
Society of Petroleum Geologists and the Association of Professional
Engineers and Geoscientists of Alberta ("APEGA").
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Craig
Martin,
Vice
President,
Operations
|
Craig Martin is a
professional engineer with 14 years of industry experience, most
recently with Vermilion. Prior thereto, he held the role of
Manager, Drilling and Completions, at Spartan Energy and various
operational and production roles from the inception of Spartan
Energy, overseeing its growth from 625 boepd to 23,000 boepd at
sale. Prior thereto, Mr. Martin held the role of Operations
Engineer with Spartan Oil prior to its acquisition by Bonterra in
2013. Prior thereto, Mr. Martin held various operational roles with
Suncor and Weatherford. Mr. Martin holds a B.Sc. in Mechanical
Engineering from Dalhousie University and is an active member of
APEGA.
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Mark
Hodgson,
Vice
President,
Corporate
Development
|
Mark Hodgson has
worked with several public companies across multiple continents and
has over 19 years of experience in both capital markets and
upstream oil and gas in senior commercial, operational and
leadership positions. Mr. Hodgson was most recently with Obsidian
Energy Ltd. where he led departments across a broad spectrum of
commercial and operational functions as both Vice President,
Operations, and Vice President, Business Development. Prior
thereto, Mr. Hodgson was the Vice President, New Ventures, and
In-Country Manager for Bankers Petroleum Ltd. in Albania, as well
as the General Director for its subsidiaries in Croatia, Hungary
and Romania. Mr. Hodgson has also worked at Tristone Capital,
Sarbican Capital and Deutsche Bank in London, England, and on the
American Stock Exchange in New York City. Mr. Hodgson holds a
B.Sc. in Economics from the Wharton School of the University of
Pennsylvania.
|
|
|
Brendan
Paton,
Manager,
Engineering
|
Brendan Paton is the
founder and director of Canoe Point Energy Ltd., a private company
in the Alberta Montney oil play. Prior thereto, Mr. Paton has
held a variety of engineering roles at Shell Canada Limited
("Shell"), including Production Engineer for Shell's Gold
Creek Montney and Kaybob Duvernay assets. Prior thereto, Mr. Paton
worked on Shell's Exploration and Business Development team focused
on acquisitions, divestitures and new play maturation. Mr. Paton
holds a B.ASc. in Mechanical Engineering from the University of
British Columbia and is a member of APEGA.
|
|
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Ashley
Hohm,
Controller
|
Ashley Hohm has over
10 years of management, accounting and corporate finance
experience. Ms. Hohm served as Vice President, Finance, of
Kelt from 2016 to 2018 and as Controller from Kelt's inception
following its spin-out from Celtic Exploration Ltd.
("Celtic") in 2013. Ms. Hohm brings extensive
experience in a fast-paced, high-growth environment with particular
expertise in public company financial reporting, acquisition
integration and business process optimization. Prior to
joining Celtic as Manager of Financial Reporting in 2011, she
worked in the audit and assurance practice of
PricewaterhouseCoopers. Ms. Hohm holds a B.Comm. with
distinction from the University of Alberta and the Chartered
Professional Accountant designation.
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|
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Sanjib (Sony)
Gill,
Corporate
Secretary
|
Sanjib (Sony) Gill is
a partner at Stikeman Elliott LLP, a national law firm. Mr. Gill
has dealt with all aspects of a public and private company's
creation, growth, restructuring and value maximization. Mr. Gill
has extensive experience in the negotiation, structuring and
consummation of a broad spectrum of corporate finance, securities
and mergers and acquisitions transactions. He serves on the board
of directors of, and acts as corporate secretary to, numerous
public and private companies. Mr. Gill is recognized in Chambers
Canada as a leader in Corporate Commercial – Alberta. He also
appears in the Canadian Legal Lexpert Directory as a leading lawyer
in the area of Corporate Mid-Market, and as a leading lawyer in the
current edition of Who's Who Legal: Energy. In 2011, he was named
among Lexpert magazine's Rising Stars: Leading Lawyers Under
40.
|
New Board
The members of the New Board have strong track records and
distinguished careers in both the oil and gas industry and capital
markets, and have held prominent lead positions within a range of
successful companies. Their combined experience and expertise will
provide the New Management Team with invaluable advice, guidance
and support.
Don
Archibald
|
Don Archibald is an
independent businessman and the Chairman of Cequence Energy Ltd.
Mr. Archibald was a former director and Audit Committee
member of numerous public issuers, including Spartan Energy and
Spartan Oil. Mr. Archibald has held senior executive
positions with a number of public and private issuers, including
roles as President and Chief Executive Officer of Cypress Energy
Corp., Chairman and Chief Executive Officer of Cyries Energy Inc.
and President and Chief Executive Officer of Cequel Energy
Inc.
|
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Reginald
Greenslade
|
Reginald (Reg)
Greenslade is an independent businessman and former director and
committee member of numerous public issuers, including Spartan
Energy, Spartan Oil and Spartan Exploration. Mr. Greenslade
has held senior executive positions with a number of public and
private issuers, including roles as Chairman, President and Chief
Executive Officer of Big Horn Resources Ltd., Enterra Energy Corp.,
Enterra Energy Trust, JED
Oil Inc. and as President and a director of Tuscany International
Drilling Inc.
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Kevin
Overstrom
|
Kevin Overstrom is an
independent businessman and the founder and a principal of KO
Capital Advisors Ltd. Mr. Overstrom's experience in capital markets
and the energy sector spans more than 25 years. Mr. Overstrom was
most recently Vice Chairman, Co-Head of Energy Investment Banking
at GMP FirstEnergy, and a member of the GMP Securities Executive
Committee. During his 22-year career at GMP Securities, a leading
independent global investment bank, Mr. Overstrom held key
leadership roles in investment banking, capital markets and
institutional sales. Mr. Overstrom holds a B.A. in Management
and Economics from the University of Guelph and the Chartered
Financial Analyst designation.
|
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Tamara
MacDonald
|
Tamara MacDonald has
over 26 years of oil and gas industry experience and has been
involved in over 530 transactions totaling over $14.5
billion. Most recently, Ms. MacDonald was the Senior Vice
President, Corporate and Business Development, of Crescent Point
Energy Corp. ("Crescent Point"), a position she held from
October 2004 to July 2018. Prior to Crescent Point,
Ms. MacDonald worked with NCE Petrofund Corp., Merit Energy
Ltd., Tarragon Oil & Gas Ltd. and Northstar Energy Corp. Ms.
MacDonald currently sits on the boards of Southern Energy Corp. and
Equinor Canada. Ms. MacDonald holds a B.Comm. in Petroleum Land
Management from the University of Calgary and the Institute of
Corporate Directors designation.
|
Corporate Strategy
The New Management Team has extensive experience in creating
shareholder value through a focused full-cycle business plan and
believes the current depressed market environment provides an
excellent opportunity to reposition Return through the
consolidation of high-quality assets at attractive acquisition
values.
Following the completion of the Transaction, the New Management
Team expects to focus on predominantly light oil opportunities in
Western Canada, growing through a
targeted acquisition and consolidation strategy complemented by
development and exploration drilling. Although Return's current
production is only approximately 200 boepd, the recapitalized
corporate structure will allow for the exploitation of the current
drilling inventory and the expansion of Return's opportunity suite
through internally generated prospects and strategic
acquisitions. The New Management Team will focus on
maintaining a clean balance sheet while targeting high quality, oil
weighted assets with sustainable cash flow under current commodity
prices. The New Management Team expects to acquire and develop
underexploited, undercapitalized and distressed assets and
corporates. In addition, the New Management Team intends to
implement cost reduction strategies and focus on efficient capital
allocation to enhance investor returns. The recapitalized Company
will invest in the highest tier drilling inventory while generating
free cash flow to fund further acquisitions and potential
dividends.
In addition, the New Management Team will selectively evaluate
international opportunities to augment the recapitalized Company's
Canadian business plan. Leveraging a track record of
international operating success, the New Management Team will
target international assets with existing operations and meaningful
conventional and unconventional oil and gas resources in stable
jurisdictions. Focusing on Canada while augmenting its domestic
operations with select international opportunities will allow the
recapitalized Company to benefit from higher netbacks, global
commodity price exposure and project diversification, providing the
recapitalized Company with the flexibility to tailor the allocation
of capital to different projects depending on the prevailing
economic and political environments across various jurisdictions.
In reviewing potential opportunities in markets outside of
Canada, a number of factors will
be considered, including: the scale of existing operations;
sustainability of cash flow under current commodity prices; the
proved producing, total proved and proved plus probable reserves;
the potential for additional reservoir development; sufficient
existing infrastructure to provide for scaled activity and product
egress to market; the cost of any potential development; the
ability to enhance the value of acquired properties through
additional exploitation efforts and development drilling; and the
political, fiscal and regulatory regimes in the region.
Upon completion of the Transaction, the recapitalized Company is
expected to have a net cash position of approximately $24.5 million, assuming the Private Placement is
fully subscribed. The New Management Team believes that this
starting point will provide it with a platform for aggressive
growth through strategic acquisitions and internally generated
prospects, both domestically and abroad.
Upon completion of the Transaction and subject to all regulatory
and shareholder approvals, it is anticipated that the New
Management Team will change the name of Return from "Return Energy
Inc." to "Spartan Delta Corp."
Private Placement
Pursuant to the Private Placement, the Initial Investors,
together with additional subscribers identified by the Initial
Investors, will subscribe for up to a maximum of 2.5 billion Common
Shares and units (the "Units") of Return at a price of
$0.01 per Common Share and Unit, as
applicable, for maximum gross proceeds of $25.0 million. The completion of the Private
Placement is expected to occur on or about December 16, 2019 (the "Closing").
Units will be issued to subscribers that are members of the New
Management Team and the New Board, together with certain additional
subscribers identified by such persons. Common Shares will be
issued to all other subscribers.
Each Unit shall be comprised of one Common Share and one Common
Share purchase warrant (each, a "Warrant"). Each Warrant
will entitle the holder to purchase one Common Share at a price of
$0.01 (the "Exercise
Price") for a period of five years. The Warrants will vest and
become exercisable as to one-third upon the 10-day weighted average
trading price of the Common Shares (the "Market Price")
equaling or exceeding 100% of the Exercise Price, an additional
one-third upon the Market Price equaling or exceeding 150% of the
Exercise Price and a final one-third upon the Market Price equaling
or exceeding 200% of the Exercise Price.
The resignation of the current board of directors and management
team of Return and the appointment of the New Management Team and
New Board will occur contemporaneous with the Closing.
Proceeds from the Private Placement will be used to fund
additional working capital and possible acquisition
opportunities.
The Private Placement will not result in the creation of a new
control person.
Shareholder and Stock Exchange Approvals
Completion of the Transaction is subject to a number of
conditions and approvals including, but not limited to, the
approval of the TSXV and shareholder approval. Under the policies
of the TSXV, the completion of the Private Placement and
appointment of the New Management Team and New Board is subject to
the approval of the shareholders of Return. The required
disinterested shareholder approval may be obtained by written
consents of the holders of more than 50% of the issued and
outstanding voting shares of Return (the "Written
Consent"). Pursuant to the Agreement, Return has agreed to
obtain the Written Consent on or before November 22, 2019.
Directors, officers and significant shareholders of Return who,
in aggregate, own, directly or indirectly or exercise control or
direction over 50.1% of the Common Shares, have entered into
support agreements or agreed to enter into support agreements
pursuant to which they have agreed or will agree, among other
things, to execute a Written Consent.
Return has also committed, at the request of the TSXV, to seek
shareholder approval of the Consolidation at a meeting of
shareholders within 6 months of the Closing, and effect the
Consolidation as soon as possible thereafter. The Written
Consents will include confirmation that the signing shareholder
will vote in favour of the Consolidation, with the Name Change also
being approved at such meeting.
Return
Return consists of approximately 200 boepd of production (19%
oil and natural gas liquids) in northwest Alberta and has approximately 110.6 million
Common Shares outstanding. Upon completion of the Private
Placement, Return will have approximately 2.6 billion Common Shares
outstanding.
As part of the Transaction, an aggregate of: (i) 2,000,000
preferred shares of Return (the "Preferred Shares"), being
all of the currently issued and outstanding Preferred Shares; (ii)
66,666,666 Common Share purchase warrants of Return (the "Legacy
Warrants"), being all of the currently issued and outstanding
Legacy Warrants; and (iii) 6,925,000 stock options of Return (the
"Options"), being all of the currently granted and
outstanding Options, shall be cancelled for nominal
consideration.
Board of Directors' Recommendation
The board of directors of Return has determined that the
transactions contemplated by the Agreement are in the best
interests of Return's shareholders, has unanimously approved such
transactions and recommends that Return's shareholders approve the
Agreement and the Transaction and execute the Written Consent. Any
shareholder of Return wishing to obtain and execute the Written
Consent should contact Return as set forth below.
The Agreement
The Agreement contains a number of customary representations,
warranties and conditions. The complete Agreement will be
accessible on Return's SEDAR profile at www.sedar.com.
Financial Advisors
TD Securities Inc. and National Bank Financial Inc. acted as
financial advisors to the New Management Team in connection with
the Transaction. Stikeman Elliott LLP is acting as counsel to
the Initial Investors and will act as counsel to the recapitalized
Company upon completion of the Transaction. Sayer Energy
Advisors and DLA Piper (Canada)
LLP acted as financial advisor and counsel to Return, respectively,
in connection with the Transaction.
About Return
Return Energy Inc. is a Calgary,
Alberta based company engaged in the oil and gas exploration
and development industry. Return's Common Shares are listed on the
TSXV under the trading symbol "RTN".
Reader Advisory
Completion of the Transaction is subject to a number of
conditions, including but not limited to, the acceptance of the
TSXV. There can be no assurance that the Transaction will be
completed as proposed or at all.
This press release is not an offer of the securities for sale in
the United States. The securities
have not been registered under the U.S. Securities Act of 1933, as
amended, and may not be offered or sold in the United States absent registration or an
exemption from registration. This press release shall not
constitute an offer to sell or the solicitation of an offer to buy
nor shall there be any sale of the securities in any state in which
such offer, solicitation or sale would be unlawful.
Investors are cautioned that, except as disclosed in a
management information circular to be prepared in connection with
the Name Change and Consolidation, any information released or
received with respect to the Transaction may not be accurate or
complete and should not be relied upon. Trading in the securities
of Return should be considered highly speculative.
The TSX Venture Exchange has in no way passed upon the merits
of the Transaction and has neither approved nor disapproved of the
contents of this press release.
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.
Forward-Looking and Cautionary Statements
This news release 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", "objective", "ongoing",
"may", "will", "project", "should", "believe", "plans", "intends"
and similar expressions are intended to identify forward-looking
information or statements. More particularly and without
limitation, this news release contains forward looking statements
and information concerning: the Transaction, including the size,
terms and completion of the Private Placement and the expected
composition of the board of directors of and management; the
application to the TSXV in respect of the Transaction; the
completion and timing of the Consolidation and Name Change; the
recapitalized Company's corporate strategy; the financial
performance of the recapitalized Company, including dividend
policies; and other anticipated benefits of the Transaction.
The forward-looking statements and information are based on
certain key expectations and assumptions made by Return, including
expectations and assumptions concerning the Transaction, the TSXV
and regulatory approvals, shareholder approvals, the satisfaction
of other closing conditions in accordance with the terms of the
Agreement and the ability of the New Management Team to implement
the corporate strategy of the recapitalized Company. Although
Return believes that the expectations and assumptions on which such
forward-looking statements and information are based are
reasonable, undue reliance should not be placed on the forward
looking statements and information because Return can give no
assurance that they will prove to be correct. By its nature, such
forward-looking information is subject to various risks and
uncertainties, which could cause the actual results and
expectations to differ materially from the anticipated results or
expectations expressed. These risks and uncertainties, include, but
are not limited to, the parties being unable to obtain the required
TSXV approvals, fluctuations in commodity prices, changes in
industry regulations and political landscape both domestically and
abroad, foreign exchange or interest rates, stock market
volatility, the availability of assets and corporate acquisitions
meeting the New Management Team's acquisition criteria, the
retention of key management and employees and obtaining required
approvals of regulatory authorities. Readers are cautioned not to
place undue reliance on this forward-looking information, which is
given as of the date hereof, and to not use such forward-looking
information for anything other than its intended purpose. Return
undertakes no obligation to update publicly or revise any
forward-looking information, whether as a result of new
information, future events or otherwise, except as required by
law.
FOFI Disclosure
This press release contains future-oriented financial
information and financial outlook information (collectively,
"FOFI") about the recapitalized Company's prospective
financial condition, results of operations, production and
components thereof including information on net cash position, all
of which are subject to the same assumptions, risk factors,
limitations and qualifications as set forth in the above
paragraphs. FOFI contained in this press release was approved by
management as of the date of this press release and was provided
for the purpose of providing further information about the
recapitalized Company's anticipated future business operations.
Return disclaims any intention or obligation to update or revise
any FOFI contained in this press release, whether as a result of
new information, future events or otherwise, unless required
pursuant to applicable law. Readers are cautioned that the FOFI
contained in this press release should not be used for purposes
other than for which it is disclosed herein. All FOFI contained in
this press release complies with the requirements of Canadian
securities legislation.
BOE Disclosure
The term barrels of oil equivalent ("boe") may be
misleading, particularly if used in isolation. A boe conversion
ratio of six thousand cubic feet per barrel (6mcf:1bbl) of natural
gas to barrels of oil equivalence is based on an energy equivalency
conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead. All boe
conversions in the report are derived from converting gas to oil in
the ratio mix of six thousand cubic feet of gas to one barrel of
oil.
Abbreviations
boe
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barrels of oil
equivalent
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boepd
|
barrels of oil
equivalent per day
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SOURCE Return Energy Inc