Wild Stream Exploration Inc.

March 08, 2010 11:03 ET

Wild Stream Exploration Inc. Announces Operational and Reserves Update and 2010 Guidance

CALGARY, ALBERTA--(Marketwire - March 8, 2010) - Wild Stream Exploration Inc. ("Wild Stream" or the "Company") (TSX VENTURE:WSX) is pleased to announce that its acquisitions and capital development program completed since the recapitalization in October, 2009 have substantially increased the reserves and value of the Company. The Company has a strong commitment to the development of its four resource oil plays, and this development is rapidly occurring with three drilling rigs currently operating on our lands. The Company has not released its audited 2009 financial results and accordingly the capital expenditure numbers included in the calculations below are unaudited.

2009 Highlights:

- Net asset value per share calculated on a present value before tax of 10% ("PVBT10") increased to an estimated $4.65 per share at December 31, 2009.

- Total Proved plus Probable ("P+P") reserves of 4.8 million BOE, an increase of 94% over December 2008 reserves of 2.5 million BOE.

- PVBT10 of P+P reserves of $105.9 million, an increase of 114% over the $49.5 million as at December 2008.

- Oil and natural gas liquids comprise 96% of P+P reserves.

- Reserves life index increased to 16.0 years based on our December 2009 exit production of 800 boepd.

- Producing reserves increased to 67% of P+P reserves as at December 31, 2009.

- Finding and development costs, including the change in future development capital of $9.9 million are $16.94 per boe on a P+P basis and $20.20 per boe including acquisitions.

- Reserve additions replaced 2009 production by a factor of 9.7 times on a proved basis and 12.7 times on a proved plus probable basis.

- Wild Stream has in excess of 250 net resource oil wells in its inventory with only 8.9 net undeveloped locations currently booked in the independent engineering report as of December 31, 2009.

On January 20, 2010, Wild Stream completed the acquisition of Dorado Energy Inc., which added undeveloped lands, reserves and production to our core area of Garrington, Alberta. Additionally, on January 18, 2010, Wild Stream announced that is has entered into agreements to acquire properties located in our core areas of southwest Saskatchewan.

2010 Subsequent Reserve changes:

- Proforma PVBT10 net asset value per share has increased to an estimated $4.90 per share.

- The acquisition of Dorado Energy Inc. which closed on January 20, 2010 increased P+P reserves by an additional 1.0 million BOE (1).

- Upon closing the multiple acquisitions announced on January 18, 2010 the P+P reserves increased by an additional 0.8 million BOE.

- Proforma corporate P+P reserves of 6.6 million BOE comprised of 92% oil and natural gas liquids.

- Proforma PVBT10 of P+P reserves of $140.2 million.

- Increased our producing reserves to 72% of P+P reserves

- Increased our undeveloped land holdings from 60,000 to in excess of 105,000 acres with 44,000 acres concentrated on our four key resource oil plays.

1. Reserves based on independent reports prepared by Fekette Associates Inc. and Martin & Brusset Associates.

Sproule Associates Limited and GLJ Petroleum Consultants Ltd. have prepared an independent assessment of the Company's reserves dated December 31, 2009, summarized as follows (using forecast prices and costs):

December 31, 2009 Present Value Before Tax
Oil Discount Discount Discount
Reserves Category Oil NGL Gas Equivalent 5% 8% 10%
Gross Working
Interest Mbbl Mbbl MMcf mBOE M$'s M$'s M$'s

Proved Developed
Producing 2,369 19 859 2,532 79,758 67,734 61,766
Proven Undeveloped 623 - - 623 18,667 15,538 13,871
Total Proven 2,993 19 859 3,155 98,425 83,272 75,637

Probable Developed
Producing 617 6 252 665 19,795 14,147 11,754
Probable Undeveloped 972 4 97 992 29,228 22,037 18,579
Total Proven Plus
Probable 4,581 29 1,208 4,811 147,448 119,456 105,970

1. The December 31, 2009 reserves report has been prepared in accordance
with the definitions, procedures and standards contained in the Canadian
Oil and Gas Evaluation Handbook and the Canadian Securities
Administrators National Instrument; National Instrument 51-101 -
Standards of Disclosure for Oil and Gas Activities.
2. Barrels of Oil Equivalent ('BOE") may be misleading, particularly if
used in isolation. A BOE conversion ratio of 6 mcf:1 bbl is based on an
energy equivalency conversion method primarily applicable at the burner
tip and does not represent a value equivalency at the wellhead.
3. The estimated net present value of future net revenue is based on
current legislation in place at December 31, 2009.
4. Prices for oil F.O.B. Edmonton are based upon 40 degrees API oil having
less than 0.4% sulphur. The wellhead oil prices were adjusted for quality
and transportation based on historical actual prices.
5. Prices and volumes for natural gas are based upon a base pressure of
14.65 pounds per square inch and base temperature of 60 degrees F. The
natural gas prices were adjusted, where necessary, based on historical
pricing based on heating values and the differing costs of service
applied by various purchasers.
6. The natural gas liquids prices were adjusted to reflect historical
average prices received.
7. The forecast prices and cost case assumes no legislative or regulatory
amendments and includes the effects of inflation. The estimated future
net revenue to be derived from the production of the reserves includes an
inflation rate of 2.0% per year.

Operations and Activity Update

During the first quarter of 2010, Wild Stream has been actively drilling to begin to unlock the potential of our four key resource oil plays. Wild Stream has increased its capital expenditure program for the first quarter to $25 million from $20 million to facilitate increased drilling, land sale and recompletion activity.

To date this quarter, Wild Stream has drilled a total of 8 gross (6.5 net) horizontal resource oil wells. Three of the horizontal wells have been recently placed on production while the other 5 wells are in various stages of completion. Three gross (2.9 net) wells are currently drilling with the expectation that they will be completed by the end of March.

Wild Stream was also successful in acquiring an additional 10,300 net acres of exploration acreage in the Lower Shaunavon fairway. It is anticipated that an exploration test will be drilled on this acreage in the third quarter to begin to evaluate the prospectivity of these lands.

Wild Stream has also completed the construction of the first phase of its Upper Shaunavon waterflood in the Shaunavon area. Water is currently being injected into the reservoir with production response from the waterflood expected in late 2010.

Outlook; 2010 Guidance

Wild Stream expects to spend $50-$55 million in 2010. This capital will be focused on drilling additional wells into our key resource plays at Shaunavon, Dodsland and Garrington. For 2010 Wild Stream expects to drill 30 gross (26.3 net) wells. Twenty eight gross (24.8 net) wells will focus on horizontal development of our resource oil plays while the remaining 2 gross (1.5 net) wells will be drilled on our conventional oil assets. No capital has been budgeted for acquisitions however, the Company is continuously evaluating opportunities to expand our existing core areas and develop new ones as opportunities present themselves.

Wild Stream now expects to average in excess of 1,600 boepd (90% oil) and achieve a 2010 exit rate in excess of 2,000 boepd. This represents 250% growth based on our 2009 exit rate. Based on recent strip pricing, our budgeted cashflow for 2010 is $25 million which would see us exit 2010 with a net debt of $5-$10 million. Our $26 million dollar credit facility is currently undrawn and we anticipate that it will be increased at the end of the first quarter as a result of the Dorado Energy Inc. and property acquisitions completed this quarter.

Wild Stream is also pleased to announce that Mr. David Burton P. Eng. has joined the Company as Vice President Engineering. David has extensive senior management and engineering experience in growing public Canadian companies and he is a welcome addition to the Wild Stream team.

Wild Stream trades on the TSXV under the symbol "WSX". Wild Stream currently has 36.9 million common shares outstanding as well as 7.7 million common share purchase warrants and 0.8 million common share stock options.


The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Wild Stream, including the anticipated accretive impact of the transaction on Wild Stream, expectations and assumptions concerning the success of future drilling and development activities, the performance of existing wells, the performance of new wells and prevailing commodity prices and capital expenditures.

Although Wild Stream believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Wild Stream 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. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the failure to obtain necessary regulatory approvals or satisfy the conditions to closing the transactions, risks associated with the oil and gas industry in general (e.g., 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 reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Certain of these risks are set out in more detail in Wild Stream's Annual Information Form which has been filed on SEDAR and can be accessed at www.sedar.com.

The forward-looking statements contained in this document are made as of the date hereof and Wild Stream 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 laws.


When used in this press release, BOE means a barrel of oil equivalent on the basis of 1 BOE to thousand cubic feet of natural gas. boepd means a barrel of oil equivalent per day.

BOE's may be misleading, particularly if used in isolation. A BOE conversion ratio of 1 BOE for 6 thousand cubic feet of natural gas is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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.

Contact Information

  • Wild Stream Exploration Inc.
    Neil Roszell, P.Eng.
    President and CEO
    (403) 767-1250
    (403) 232-8083 (FAX)
    Wild Stream Exploration Inc.
    Jerry Sapieha, CA
    Vice-President, Finance and CFO
    (403) 767-1265
    (403) 232-8083 (FAX)
    Wild Stream Exploration Inc.
    710, 400-5th Ave SW
    Calgary, AB T2P 0L6