CALGARY, AB--(Marketwired - November 24, 2016) -
Not for distribution to United States newswire services or for dissemination in the United States.
Front Range Resources Ltd. ("Front Range" or the "Company") (TSX VENTURE: FRK) reports that operations on the Company's initial two well, Montney horizontal drilling program are underway on the 33 contiguous section block at Pepper, Alberta. The 3-23 horizontal Montney well (100% W.I.) spud on October 14, 2016 and is currently drilling horizontally in the Montney formation. Subject to the final length of the horizontal leg of the 3-23 wellbore, the well completion is expected to include up to 36 slickwater stages at 85 tonnes per stage. Completion operations at the 3-23 location will commence after rig release, subject to weather and crew availability, with flow test results to follow. Immediately after finishing the 3-23 drilling operation, the drilling rig will be mobilized to the Company's horizontal Montney re-entry well at 3-21 (100% W.I.).
Front Range also reports that it has entered into an asset purchase and sale agreement and sold its petroleum and natural gas assets in the Bigstone area of Alberta (the "Bigstone Assets") for a purchase price of $3.75 million. The Bigstone Assets include three gross (net 1.25) horizontal Montney natural gas wells and 8 gross (3.5 net) sections of land with petroleum and natural gas rights in the Montney formation. The Company's net production associated with the Bigstone Assets for the nine months ended September 30, 2016, was approximately 8 boe/day (comprised of 36 mcf/d of natural gas and 2 bbls/d of NGLs) over the 274 days in the period. Total proved plus probable reserves assigned to Bigstone by GLJ Petroleum Consultants Ltd. as at December 31, 2015 was approximately 3.4 MMboe.
Further information relating to the Company is also available on its website at www.frrl.ca.
ADVISORY ON FORWARD-LOOKING STATEMENTS:
This press release contains forward-looking statements and forward-looking information (collectively "forward- looking statements") within the meaning of applicable securities laws. In particular and without limitation, this news release contains forward-looking statements concerning: the completion of the 3-23 horizontal Montney well and the the drilling of the 3-21 horizontal Montney re-entry well.
NEITHER 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 NEWS RELEASE.
SUITE 700, 717 SEVENTH AVENUE SOUTHWEST, CALGARY, ALBERTA, T2P 0Z3 TEL: 403-237-5700 FAX: 403-265-3506
Forward-looking statements are based on a number of material factors, expectations or assumptions of the Company which have been used to develop such statements and information but which may prove to be incorrect. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because the Company 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, including but not limited to: failure to obtain, in a timely manner, regulatory, stock exchange and other required approvals in connection with the Financings. Additional information regarding some of these risks, expectations, assumptions and other factors may be found in the Company's Annual Information Form and Management's Discussion and Analysis prepared for the year ended December 31, 2015. The reader is cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements contained in this news release are made as of the date hereof and the Company undertakes no obligations to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Where amounts are expressed on a barrel of oil equivalent ("BOE") basis, natural gas volumes have been converted to oil equivalence at six thousand cubic feet per barrel. The term BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value. References to oil in this discussion include crude oil and natural gas liquids ("NGLs"). NGLs include condensate, propane, butane and ethane. References to gas in this discussion include natural gas.
The estimates of reserves for individual properties may not reflect the same confidence level as estimates of reserves for all properties, due to the effects of aggregation. The total proved plus probable reserves assigned to all of the Company's properties by GLJ Petroleum Consultants Ltd. as at December 31, 2015 was 4.488 MMboe.