Painted Pony Petroleum Ltd.
TSX : PPY

Painted Pony Petroleum Ltd.

December 08, 2014 17:03 ET

Painted Pony Announces 2015 Capital Expenditure Program and Increased Credit Facilities

CALGARY, ALBERTA--(Marketwired - Dec. 8, 2014) - Painted Pony Petroleum Ltd. (TSX:PPY) ("Painted Pony" or the "Corporation") is pleased to announce its 2015 capital budget and increased credit facilities. Highlights include:

  • 2015 capital expenditure budget of $295 million.
  • Anticipated 2015 average production of 21,500 boe/d, a 59% increase over anticipated 2014 average production of 13,500 boe/d.
  • Planned drilling in 2015 of 39 (37.0 net) Montney horizontal natural gas wells.
  • Increase in available credit facilities to $175 million from $150 million.

2015 CAPITAL BUDGET

Painted Pony's Board of Directors has approved the Corporation's 2015 capital budget of $295 million, subject to review on a quarterly basis. The Corporation currently has three rigs active and plans to add a fourth rig in May 2015.

Painted Pony intends to drill 39 (37.0 net) Montney horizontal natural gas wells, predominantly on its high working interest lands in the Blair and Townsend areas, of which 29 (27.0 net) wells will be on pads constructed prior to 2015. During 2015, Painted Pony intends to drill 11 (11.0 net) wells in the Blair area, 4 (4.0 net) wells in the West Blair area and 4 (2.0 net) wells in the Daiber area. In the liquids-rich Townsend area, the Corporation intends to drill 20 (20.0 net) wells, of which 18 (18.0 net) wells are anticipated to be brought on production when the AltaGas Ltd. ("AltaGas") natural gas processing facility (the "AltaGas Townsend Facility") is completed. This facility, to be constructed by AltaGas as part of the strategic alliance with Painted Pony, is currently estimated to begin processing natural gas by the end of the first quarter of 2016. Commercial operation of the AltaGas Townsend Facility is subject to regulatory and other customary approvals.

2015 PRODUCTION

Average production for 2015 is expected to be 21,500 boe/d, which will include 1,500 bbl/d of natural gas liquids. This estimate represents an increase of 59% over estimated average production in 2014 of 13,500 boe/d.

INCREASED CREDIT FACILITIES

Following the successful review of the Corporation by its syndicate members, Painted Pony has increased its available credit facilities to $175 million from its previous level of $150 million. The facilities are provided by four Chartered Canadian Institutions including the National Bank of Canada (as administrative agent), Alberta Treasury Branches, the Canadian Imperial Bank of Commerce, and the Bank of Nova Scotia. The Facilities revolve for a 364 day period plus a one year term-out, are extendible annually, and are subject to semi-annual review. The Corporation currently has no bank debt outstanding on its syndicated credit facilities.

ADVISORY

Forward-Looking Information: This press release contains certain forward-looking information within the meaning of Canadian securities laws. Forward-looking information relates to future events or future performance and is based upon the Corporation's current internal expectations, estimates, projections, assumptions and beliefs. All information other than historical fact is forward-looking information. In particular, this press release contains forward-looking information relating to: annual production expectations for 2014 and 2015, the amount of capital to be spent in 2015, the number of wells to be drilled in 2015 and the estimated timing of gas processing at the AltaGas Townsend Facility.

Undue reliance should not be placed on forward-looking information, as there can be no assurance that the plans, intentions or expectations on which they are based will occur. Although the Corporation's management believes that the expectations in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct.

Forward-looking information necessarily involves both known and unknown risks including risks associated with general economic conditions affecting the Corporation's ability to access sufficient capital. Additional information on risk factors that could affect operational or financial results are included in the Corporation's most recent Annual Information form and in other reports filed with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) or Painted Pony's website (www.paintedpony.ca).

Forward-looking information is based on estimates and opinions of management at the time the information is presented. The Corporation is not under any duty to update the forward-looking information after the date of this press release to revise such information to actual results or to changes in the Corporation's plans or expectations, except as required by applicable securities laws.

ABOUT PAINTED PONY: Painted Pony is a publicly-traded natural gas company based in Western Canada. The Corporation is primarily focused on natural gas and natural gas liquids from the Montney formation in northeast British Columbia. Painted Pony's philosophy is to grow through exploration and development drilling and strategic acquisitions. Painted Pony's common shares trade on the Toronto Stock Exchange under the symbol "PPY".

For more information please visit www.paintedpony.ca.

Contact Information

  • Painted Pony Petroleum Ltd.
    1800, 736 - 6th Ave SW
    Calgary AB T2P 3T7
    (403) 475-0440

    Patrick R. Ward
    President & CEO

    John H. Van de Pol
    Vice President, Finance & CFO

    Mark Polak
    Director, Investor Relations