Hyperion Exploration Corp.

Hyperion Exploration Corp.

December 15, 2011 11:12 ET

Hyperion Exploration Corp. Achieves 2011 Production and Capital Expenditure Guidance and Provides Operations Update

CALGARY, ALBERTA--(Marketwire - Dec. 15, 2011) - Hyperion Exploration Corp. ("Hyperion" or the "Company") (TSX VENTURE:HYX) remains focussed on per share growth in the fourth quarter of 2011 through the disciplined execution of the capital budget. The following are operations highlights in the fourth quarter of 2011:

Q4 2011 Operations Highlights:

  • Achieved a production rate consistently over Hyperion's 2011 exit guidance of 1,500 boe/d for the first two weeks of December; an increase of over 172% over 2010 exit production of 550 boe/d.

  • Increased the Company's light oil and NGL weighting to approximately 69% in December 2011 from 42% in Q1 2011.

  • Completed the tie in of 2 gross (2.0 net) Pembina Cardium oil wells in early December 2011. Hyperion will release more comprehensive production data (IP30) on these two wells after production is optimized and indicative rates are available.

  • Achieved more production from less capital. Exceeded all 2011 growth measures and guidance as a result of Hyperion's second half 2011 drilling program of 5 gross (4.6 net wells) versus budget of 6 gross (5.2 net wells). Production from new Cardium oil wells has consistently exceeded the Company's initial expectations and industry average results.

  • Drilling operations to continue in Pembina with the next well (0.5 net) expected to spud in late December 2011.

  • Significant financial flexibility remains with net debt of less than $10 million as of mid-December 2011.

  • Hyperion currently has an $18 million unused credit facility that will be reviewed for possible increase in January 2012.

  • 2012 production and capital expenditure guidance is expected to be released in late January 2012.

Hyperion commenced operations in July 2010 with the recapitalization of Triple 8 Energy Ltd ("Triple 8"). Hyperion has completed four acquisitions since the recapitalization, adding production, reserves, and future upside to the corporate portfolio. The acquired assets provide the platform to execute Hyperion's strategy of providing high growth through acquisitions which lead to lower risk, scalable and repeatable light oil development drilling.

Forward Looking and Cautionary Statements

This press release contains certain forward-looking statements (forecasts) under applicable securities laws relating to future events or future performance. Forward-looking statements are necessarily based upon assumptions and judgements with respect to the future including, but not limited to, the outlook for commodity markets and capital markets, the performance of producing wells and reservoirs, well development and operating performance, general economic and business conditions, weather, the regulatory and legal environment and other risks associated with oil and gas operations. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "projects", "plans", "anticipates" and similar expressions. These statements represent management's expectations or beliefs concerning, among other things, future operating results and various components thereof affecting the economic performance of Hyperion. Undue reliance should not be placed on these forward-looking statements which are based upon management's assumptions and are subject to known and unknown risks and uncertainties, including the business risks discussed above, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted.

In the interest of providing Hyperion shareholders and potential investors with information regarding the Company, including management's assessment of Hyperion's future plans and operation, certain statements throughout this press release constitute forward looking statements. All forward-looking statements are based on the Company's beliefs and assumptions based on information available at the time the assumption was made. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward looking statements. By its nature, such forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward looking statements. Hyperion believes the expectations reflected in those forward looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward looking statements contained throughout this press release should not be unduly relied upon. These statements speak only as of the date specified in the statements.

In particular, this press release may contain forward looking statements pertaining to the following:

  • the performance characteristics of the Company's oil and natural gas properties;

  • oil and natural gas production levels;

  • capital expenditure programs;

  • the quantity of the Company's oil and natural gas reserves and anticipated future cash flows from such reserves;

  • projections of commodity prices and costs;

  • supply and demand for oil and natural gas;

  • expectations regarding the ability to raise capital and to continually add to reserves through acquisitions and development; and

  • treatment under governmental regulatory regimes.

The material assumptions in making these forward-looking statements include certain assumptions disclosed in the Company's most recent management's discussion and analysis included in the material available on this press release.

The Company's actual results could differ materially from those anticipated in the forward looking statements contained throughout this press release as a result of the material risk factors set forth below, and elsewhere in this press release:

  • volatility in market prices for oil and natural gas;

  • liabilities inherent in oil and natural gas operations;

  • uncertainties associated with estimating oil and natural gas reserves;

  • competition for, among other things, capital, acquisitions of reserves, undeveloped lands and skilled personnel;

  • incorrect assessments of the value of acquisitions and exploration and development programs;

  • geological, technical, drilling and processing problems;

  • fluctuations in foreign exchange or interest rates and stock market volatility;

  • failure to realize the anticipated benefits of acquisitions;

  • general business and market conditions; and

  • changes in income tax laws or changes in tax laws and incentive programs relating to the oil and gas industry.

These factors should not be construed as exhaustive. Unless required by law, Hyperion does not undertake any obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

Barrels of oil equivalent (boe) may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet (mcf) of natural gas to one barrel (bbl) of oil is based on an energy conversion method primarily applicable at the burner tip and is not intended to represent a value equivalency at the wellhead. All boe conversions in this press release are derived by converting natural gas to oil in the ratio of six thousand cubic feet of natural gas to one barrel of oil. Certain financial amounts are presented on a per boe basis, such measurements may not be consistent with those used by other companies.

Estimated values contained in this press release do not represent fair market value.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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