Spyglass Resources Corp. Announces 2014 Year End, Fourth Quarter Results and Reserves
All values are in Canadian dollars unless otherwise indicated. Conversion of natural gas volumes to barrels of oil equivalent (boe) are at 6:1.
CALGARY, March 11, 2015 /CNW/ - Spyglass Resources Corp. ("Spyglass", or the "Company") (TSX: SGL, OTCQX: SGLRF) announces annual financial and operating results for the year ended and fourth quarter ended December 31, 2014. Selected financial and operational information is outlined below along with 2014 reserves evaluated in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). This information should be read in conjunction with Spyglass' Audited Consolidated Financial Statements and Management's Discussion and Analysis for the years ended December 31, 2014 and 2013 on www.sedar.com and also available at www.spyglassresources.com.
In 2014, Spyglass made progress towards its objectives with a reduction in net debt by $107 million reflecting the completion of key property dispositions, including the sale of a 50 percent working interest in the Dixonville field and ongoing initiatives to reduce operating and administrative costs. Highlighting the year was the execution of the Company's $65 million low risk, light oil drilling and optimization program incorporating 21 (17.3 net) successful wells. During 2014 the Company spent an additional $12.5 million on pipeline remediation at Dixonville as a result of the previously reported pipeline incidents.
Fourth Quarter and 2014 Summary
- Spyglass generated cash proceeds of $163.9 million from property dispositions net of acquisitions in 2014 through the sale of approximately 2,700 boe/d of production and 10.2 MMboe PDP reserves, 14.4 MMboe total proved ("TP") reserves and 23.2 MMboe proved plus probable ("2P") reserves. Disposition metrics were approximately $60,350 per boe/d and 8.0x trailing cash flow.
- Production for 2014 averaged 13,798 boe/d, a decrease from 15,215 boe/d in 2013 reflecting the Company's 2014 disposition program and downtime at Dixonville partially offset by the successful light oil and natural gas drilling and optimization program.
- Production for the fourth quarter of 2014 averaged 12,666 boe/d (45 percent oil and liquids), incorporating the impact of successful non-core asset dispositions (approximately 1,400 boe/d) and Dixonville downtime (approximately 850 boe/d) as compared to the same period in 2013.
- Capital expenditures (prior to dispositions) for 2014 were $77.5 million which included successfully drilling 20 (16.3 net) horizontal light oil wells in Southern and Central Alberta, 1 (1 net) natural gas well at Noel in northeast British Columbia and remediation of the Dixonville property following the pipeline incidents in 2014.
- During the fourth quarter of 2014, capital expenditures (prior to dispositions) were $15.2 million. Development capital in the quarter was focused on the drilling and completion of 2.0 (2.0 net) oil wells in the Halkirk-Provost area, completing the tie in of wells drilled in the third quarter and pipeline remediation at Dixonville.
- Operating costs for the fourth quarter and full year of 2014 were better than guidance at $19.11 per boe and $19.82 per boe respectively.
- 2014 Cash general and administrative expenses were $3.22 per boe, consistent with guidance. Fourth quarter 2014 cash general and administrative expenses were $2.53 per boe, largely achieved through staff reductions related to the sale of non-core assets throughout the year.
- Funds flow from operations for the fourth quarter of 2014 was $11.9 million ($0.09 per share), reflecting lower crude oil pricing during the quarter.
- Funds flow from operations in 2014 totalled $58.9 million ($0.46 per share) compared to $60.6 million ($0.54 per share) in 2013. The 2014 results were impacted by downtime at Dixonville that resulted in approximately $15 million less cash flow contributed by the Dixonville property than in 2013.
- Net loss of $155.8 million in 2014 is driven by non-cash impairment charges of $126.6 million and a valuation allowance taken against the deferred tax asset of $49.3 million; both charges reflecting the significant decline in commodity price forecasts.
- Net debt at December 31, 2014 was $193.8 million, comprised of $174.7 million in long-term bank debt and a $19.1 million working capital deficit, lower by $107 million as compared to net debt of $300.5 million at December 31, 2013.
Selected Financial and Operating Information
| Operating |
Q4 2014 |
Q4 2013 |
2014 |
2013(1) |
|
| Average daily production |
|||||
| Oil (bbls/d) |
5,389 |
7,198 |
5,839 |
7,000 |
|
| NGLs (bbls/d) |
280 |
647 |
404 |
450 |
|
| Natural Gas (Mcf/d) |
41,981 |
48,164 |
45,332 |
46,588 |
|
| Total (boe/d) |
12,666 |
15,873 |
13,798 |
15,215 |
|
| Realized prices |
|||||
| Oil ($/bbl) |
$66.21 |
$72.89 |
$85.33 |
$82.09 |
|
| NGLs ($/bbl) |
50.61 |
43.46 |
60.23 |
50.96 |
|
| Natural Gas ($/mcf) |
3.82 |
3.40 |
4.48 |
3.23 |
|
| Total Revenue ($/boe) |
$41.95 |
$45.13 |
$52.59 |
$49.16 |
|
| Netback ($/boe) |
|||||
| Revenue |
$41.95 |
$45.13 |
$52.59 |
$49.16 |
|
| Royalties |
(7.48) |
(9.42) |
(9.35) |
(10.21) |
|
| Operating expense |
(19.11) |
(18.33) |
(19.82) |
(18.89) |
|
| Transportation expense |
(1.87) |
(2.29) |
(2.06) |
(2.20) |
|
| Operating Netback(2) |
13.49 |
15.09 |
21.36 |
17.86 |
|
| Cash General & Administrative Expense |
(2.53) |
(2.45) |
(3.22) |
(3.01) |
|
| Realized hedging gain (loss) |
1.59 |
(2.01) |
(3.65) |
(1.77) |
|
| Interest, Financing & Other |
(2.34) |
(2.80) |
(2.81) |
(2.17) |
|
| Cash netback(2) |
$10.21 |
$7.83 |
$11.68 |
$10.91 |
|
| Financial ($000)(except per share figures) |
Q4 2014 |
Q4 2013 |
2014 |
2013(1) |
|
| Funds Flow from Operations(2) |
$11,883 |
$11,426 |
$58,854 |
$60,584 |
|
| per share |
0.09 |
0.09 |
0.46 |
0.54 |
|
| Net Income (Loss) |
(140,753) |
(16,866) |
(155,823) |
43,331 |
|
| per share |
(1.10) |
(0.13) |
(1.22) |
0.39 |
|
| Dividends |
3,843 |
8,645 |
27,857 |
25,934 |
|
| per share(3) |
0.0300 |
0.0675 |
0.2175 |
0.2025 |
|
| Capital Expenditures |
15,205 |
14,991 |
77,532 |
59,654 |
|
| Capital Expenditures (net of dispositions) |
(95,730) |
2,476 |
(166,381) |
36,940 |
|
| Net Debt(2) |
$193,819 |
$300,508 |
$193,819 |
$300,508 |
|
| Share Information (000's) |
Q4 2014 |
Q4 2013 |
2014 |
2013(1) |
|
| Common shares outstanding, end of period |
127,805 |
128,077 |
127,805 |
128,077 |
|
| Weighted average shares outstanding |
128,062 |
128,077 |
128,073 |
112,086 |
|
| (1) |
2013 Year to date results are presented as Pace standalone from January 1 to March 28, 2013 and incorporate the Arrangement and combined financial and operating results for the three companies from March 29 to December 31, 2013. |
| (2) |
See Non-GAAP measures. |
| (3) |
2013 YTD dividends are calculated based on 128,076,720 shares outstanding on the initial record date of April 26, 2013. |
2014 Oil and Natural Gas Reserves
Spyglass' year ending December 31, 2014 reserves were evaluated by independent reserves evaluator McDaniel & Associates Consultants Ltd. ("McDaniel"). Reserves are stated on a gross company working interest basis unless otherwise noted. The evaluation of Spyglass' oil and gas properties was done in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook") and National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). In addition to the information disclosed below more detailed information will be included in Spyglass' AIF which will be filed by March 31, 2015.
Highlights of the 2014 reserve evaluation include:
- December 31, 2014 2P reserves decreased to 54.1 MMboe from 82.4 MMboe at December 31, 2013. Production and dispositions accounted for the majority of changes in the reserves with dispositions representing a reduction in 2P reserves of 23.2 MMboe in 2014.
- December 31, 2014 TP decreased to 36.0 MMboe from 54.7 MMboe at December 31, 2013, largely as a result of production and property dispositions throughout the year.
- December 31, 2014 proved developed producing reserves ("PDP") decreased to 23.9 MMboe from 38.7 MMboe at December 31, 2013, primarily due to production and property dispositions throughout the year.
- Maintained a reserve life index of 11.7 years for 2P reserves and 7.8 years for TP reserves, based on fourth quarter 2014 production of 12,666 boe/d.
- Present value of reserves before tax at a 10 percent discount rate ("PV10") was $517.9 million on a 2P basis, $357.0 million on a TP basis and $267.0 million on a proved developed producing basis, using McDaniel's January 1, 2015 forecast prices.
- Net asset value calculated on a 2P basis is approximately $367 million or $2.87 per share.
Summary of Reserves
| Working Interest Reserves (1)(2) |
||||||||
| Category |
Oil (Mbbl) |
Natural Gas (MMcf) |
NGL (Mbbl) |
Total (Mboe) |
||||
| Proved producing |
13,041 |
62,193 |
509 |
23,915 |
||||
| Proved non-producing |
555 |
16,358 |
183 |
3,465 |
||||
| Proved Undeveloped |
4,475 |
23,893 |
156 |
8,612 |
||||
| Total Proved(3) |
18,071 |
102,444 |
848 |
35,993 |
||||
| Probable |
8,880 |
52,449 |
514 |
18,136 |
||||
| Total proved plus probable(3) |
26,951 |
154,893 |
1,362 |
54,129 |
||||
| (1) |
Based on the McDaniel January 1, 2015 forecast prices. |
| (2) |
Working interest reserves are total working interest before the deduction of any royalties. |
| (3) |
Numbers may not add due to rounding. |
| Summary of Before Tax Net Present Values ($MM)(1) |
||||||||||
| Category |
0% |
5% |
10% |
15% |
20% |
|||||
| Proved producing |
$509 |
$349 |
$267 |
$218 |
$186 |
|||||
| Proved non-producing |
67 |
46 |
34 |
26 |
22 |
|||||
| Proved Undeveloped |
162 |
93 |
56 |
34 |
20 |
|||||
| Total Proved(2) |
738 |
488 |
357 |
278 |
227 |
|||||
| Probable |
503 |
255 |
161 |
114 |
86 |
|||||
| Total proved plus probable(2) |
$1,241 |
$744 |
$518 |
$392 |
$312 |
|||||
| Summary of After Tax Net Present Values ($MM)(1) |
||||||||||
| Category |
0% |
5% |
10% |
15% |
20% |
|||||
| Proved producing |
$509 |
$349 |
$267 |
$218 |
$186 |
|||||
| Proved non-producing |
67 |
46 |
34 |
26 |
22 |
|||||
| Proved Undeveloped |
162 |
93 |
56 |
34 |
20 |
|||||
| Total Proved(2) |
738 |
488 |
357 |
278 |
227 |
|||||
| Probable |
413 |
227 |
151 |
110 |
84 |
|||||
| Total proved plus probable(2) |
$1,151 |
$716 |
$508 |
$388 |
$311 |
|||||
| (1) |
Based on the McDaniel January 1, 2015 forecast prices. |
| (2) |
Numbers may not add due to rounding. |
| Net Asset Value as at Dec. 31, 2014 ($MM) |
TP |
2P |
| BTAX NPV10 |
$357 |
$518 |
| Net Debt(1) |
(194) |
(194) |
| Undeveloped Land(2) |
42 |
42 |
| NAV(3) |
$206 |
$367 |
| per Share |
$1.61 |
$2.87 |
| (1) Net debt at December 31, 2014. (2) Undeveloped land value is based on an internally generated estimate of $100 / acre. (3) May not add due to rounding. |
||
Reconciliation of Gross (Working Interest) Reserves by Product
| Light & Medium Oil |
Heavy Oil |
Assoc & Non Assoc Gas |
NGL |
Total Oil Equivalent |
|
| Proved Developed Producing |
(Mstb) |
(Mstb) |
(MMcf) |
(Mstb) |
(Mboe) |
| Opening balance as of Dec. 31, 2013 |
21,055 |
1,746 |
90,565 |
763 |
38,658 |
| Discoveries |
0 |
0 |
0 |
0 |
0 |
| Extensions and Improved Recovery(1) |
546 |
69 |
6,827 |
36 |
1,789 |
| Technical Revisions |
(523) |
(7) |
(2,806) |
33 |
(965) |
| Acquisitions |
100 |
0 |
894 |
9 |
258 |
| Dispositions |
(7,632) |
(135) |
(13,353) |
(167) |
(10,210) |
| Production |
(1,807) |
(306) |
(16,147) |
(144) |
(4,948) |
| Economic factors |
(2) |
(12) |
(3,787) |
(21) |
(667) |
| Closing Balance as of Dec. 31, 2014 |
11,687 |
1,354 |
62,193 |
509 |
23,915 |
| Light & Medium Oil |
Heavy Oil |
Assoc & Non Assoc Gas |
NGL |
Total Oil Equivalent |
|
| Total Proved |
(Mstb) |
(Mstb) |
(MMcf) |
(Mstb) |
(Mboe) |
| Opening balance as of Dec. 31, 2013 |
26,971 |
2,096 |
146,960 |
1,114 |
54,675 |
| Discoveries |
0 |
0 |
0 |
0 |
0 |
| Extensions and Improved Recovery(1) |
868 |
93 |
7,161 |
31 |
2,185 |
| Technical Revisions |
(793) |
66 |
(3,449) |
205 |
(1,097) |
| Acquisitions |
103 |
9 |
871 |
11 |
269 |
| Dispositions |
(9,076) |
(135) |
(29,038) |
(346) |
(14,397) |
| Production |
(1,807) |
(306) |
(16,147) |
(144) |
(4,948) |
| Economic factors |
3 |
(23) |
(3,914) |
(22) |
(694) |
| Closing Balance as of Dec. 31, 2014 |
16,271 |
1,800 |
102,444 |
848 |
35,993 |
| Light & Medium Oil |
Heavy Oil |
Assoc & Non Assoc Gas |
NGL |
Total Oil Equivalent |
|
| Total Proved plus Probable |
(Mstb) |
(Mstb) |
(MMcf) |
(Mstb) |
(Mboe) |
| Opening balance as of Dec. 31, 2013 |
39,838 |
2,769 |
228,228 |
1,801 |
82,447 |
| Discoveries |
0 |
0 |
0 |
0 |
0 |
| Extensions and Improved Recovery(1) |
1,508 |
115 |
9,839 |
43 |
3,306 |
| Technical Revisions |
(1,707) |
62 |
(12,788) |
303 |
(3,473) |
| Acquisitions |
124 |
13 |
1,069 |
13 |
328 |
| Dispositions |
(13,545) |
(176) |
(53,119) |
(643) |
(23,217) |
| Production |
(1,807) |
(306) |
(16,147) |
(144) |
(4,948) |
| Economic factors |
64 |
(2) |
(2,190) |
(12) |
(315) |
| Closing Balance as of Dec. 31, 2014 |
24,475 |
2,476 |
154,893 |
1,362 |
54,129 |
| (1) |
Extensions: Reserves added as a result of the development of an oil or gas pool by drilling wells which extend the pool boundaries. Improved Recovery: Reserves added by improving the recovery from a pool by infill drilling, installation of a secondary or tertiary recovery scheme or installation of field facilities such as compression, line looping, etc. |
Finding and Development Costs
Finding and development costs (F&D costs) include all costs to develop reserves, including land and seismic costs. The methodology to calculate F&D costs under NI 51-101 requires that F&D costs incorporate changes in the future development capital (FDC), which is included in the reserve evaluation. This development capital is part of the ongoing development process to bring production on stream and generate cash flow. F&D costs for 2014 were $23.57/boe TP and $13.10/boe 2P. Including technical revisions, F&D costs were $47.32/boe TP. The following table presents the details of the 2014 F&D cost calculations.
2014 F&D Costs(1,2):
| Working Interest Reserves Changes, Mboe |
Total Proved |
Total Proved plus Probable |
| Drilling Extensions & Improved Recovery |
2,185 |
3,306 |
| Capital (000s) |
||
| 2014 Capital(3) |
$71,824 |
$71,824 |
| Change in FDC (excluding dispositions) |
(20,319) |
(28,527) |
| Total Capital |
$51,505 |
$43,297 |
| F&D ($/boe) |
$23.57 |
$13.10 |
| F&D including Technical Revisions |
||
| Working Interest Reserve Changes, Mboe |
||
| Drilling Extensions & Improved Recovery |
2,185 |
3,306 |
| Technical Revisions |
(1,097) |
(3,473) |
| Total Reserve Additions & Technical Revisions |
1,088 |
(167) |
| Capital (000s) |
||
| 2014 Capital(3) |
$71,824 |
$71,824 |
| Change in FDC |
(20,319) |
(28,527) |
| Total Capital |
$51,505 |
$43,297 |
| F&D including Technical Revisions ($/boe) |
$47.32 |
N/A(4) |
| Notes: |
|
| 1. |
The aggregate of the exploration and development costs incurred during the most recent financial year and the change during that year in estimated future development costs generally will not reflect total finding and development costs related to reserve additions for that year. |
| 2. |
Finding and development costs are calculated on the basis of barrels of oil equivalent. BOEs 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 capital expenditures exclude capitalized administration and office costs and include $12.5 million spent on pipeline remediation at Dixonville. |
| 4. |
Results are not applicable as total additions plus technical revisions are negative. |
2015 Capital Program and Outlook
Lower commodity prices present a challenging business environment for the Company as 2015 progresses. Spyglass has prudently managed costs through reductions in staffing levels, renegotiating contract rates with business partners, and scaling back the capital program to $8 million, with spending focused primarily on maintenance capital initiatives with the majority of drilling projects deferred until commodity prices improve.
Management anticipates that the 2015 capital program coupled with the Company's 21 percent decline rate is expected to result in average production of approximately 9,000 boe/d for the year.
Spyglass will continue to focus on strengthening its financial position in 2015 using proceeds from asset sales to reduce debt, fund organic growth opportunities and streamline operations. The focus remains on managing through a difficult commodity price environment and balancing development activity in preparation for future growth with necessary debt reduction.
Risk Management Update
Spyglass uses a commodity price risk management program to mitigate the impact of crude oil and natural gas price volatility on cash flow which is intended to support the dividend and capital program. Spyglass hedges production up to 24 months forward, using a combination of fixed price and participating products. Please refer to the Company's website at www.spyglassresources.com under Investors for a detailed list of the Company's risk management contracts.
For calendar 2015, Spyglass currently has approximately 1,350 bbl/d of its crude oil production hedged at an average fixed price of WTI CDN$99.23/bbl. In addition, the Company has hedged WCS at CDN$22.80/bbl for 2015 on 500 bbls/day. The Company has hedged approximately 5,750 Mcf/d of its natural gas production at an average fixed price of $3.82/Mcf.
Power costs are a significant driver of operating costs and as a result, the Company has hedged power usage in order to reduce operating cost volatility. Currently, 40 percent of 2015 power requirements are hedged at $51.33/MWH.
Non-GAAP Measures
This press release includes terms commonly referred to in the oil and gas industry that are considered non-GAAP measures. These non-GAAP measures do not have a standardized meaning prescribed by International Financial Reporting Standards ("IFRS" or, alternatively, "GAAP") and therefore may not be comparable with the calculation of similar measures by other companies.
"Funds from operations" represents cash flow from operating activities adjusted for changes in non-cash working capital, transaction costs and decommissioning expenditures.
"Operating netbacks" are determined by deducting royalties, operating and transportation expenses from oil and gas revenue, calculated on a per boe basis.
"Cash netbacks" are determined by deducting cash general and administrative, realized hedging losses, interest expense and other income from Operating netbacks, calculated on a per boe basis.
"Net debt" is calculated as bank debt plus working capital deficiency excluding current portion of risk management contracts and liabilities associated with assets held for sale.
Information Regarding Disclosure on Oil and Gas Reserves, Resources and Operational Information
In accordance with NI 51-101, McDaniel evaluated, as at December 31, 2014, the oil, natural gas and NGL reserves attributable to the properties of Spyglass. The tables contained in this press release are a summary of the oil, natural gas and NGL reserves attributable to the properties of Spyglass and the net present value of future net revenue attributable to such reserves as evaluated by McDaniel based on forecast price and cost assumptions. The tables summarize the data contained in the McDaniel Report and, as a result, may contain slightly different numbers than such report due to rounding. Also due to rounding, certain columns may not add exactly. The net present value of future net revenue attributable to reserves is stated without provision for interest costs and general and administrative costs, but after providing for estimated royalties, production costs, development costs, other income, future capital expenditures and well abandonment costs for only those wells assigned reserves by McDaniel. It should not be assumed that the undiscounted or discounted net present value of future net revenue attributable to reserves estimated by McDaniel represent the fair market value of those reserves. The recovery and reserve estimates of oil, NGL and natural gas reserves provided herein are estimates only. Actual reserves may be greater than or less than the estimates provided herein.
All amounts in this news release are stated in Canadian dollars unless otherwise specified. Where applicable, natural gas has been converted to barrels of oil equivalent ("BOE") based on 6 Mcf:1 BOE. The BOE rate is based on an energy equivalent conversion method primarily applicable at the burner tip and does not represent a value equivalent at the wellhead. Use of BOE in isolation may be misleading. All reserves volumes in this press release (and all information derived therefrom) are based on company gross reserves, before deduction of Crown and other royalties, unless otherwise stated. Spyglass' oil and gas reserves statement for the year-ended December 31, 2014, which will include complete disclosure of our oil and gas reserves and other oil and gas information in accordance with NI 51-101, will be contained within our Annual Information Form which will be available on our SEDAR profile at www.sedar.com.
Reader Advisory and Note Regarding Forward Looking Information
Certain statements contained within this press release, and in certain documents incorporated by reference into this document constitute forward looking statements. These statements relate to future events or future performance. All statements, other than statements of historical fact, may be forward looking statements. Forward looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve 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.
In particular, this press release contains the following forward looking statements pertaining to, without limitation, the following: Spyglass' (i) future production volumes and the timing of when additional production volumes will come on stream; Spyglass' (ii) realized price of commodities in relation to reference prices; (iii) future commodity mix; (iv) future commodity prices; (v) expectations regarding future royalty rates and the realization of royalty incentives; (vi) expectation of future operating costs on a per unit basis; (vii) the relationship of Spyglass' interest expense and the Bank of Canada interest rates; (viii) future general and administrative expenses; future development and exploration activities and the timing thereof; (ix) deferred tax liability; * estimated future contractual obligations; (xi) future liquidity and financial capacity of the Company; (xii) ability to raise capital and to add to reserves through exploration and development; (xiii) ability to obtain equipment in a timely manner to carry out exploration and development activities; (xiv) ability to obtain financing on acceptable terms, and (xv) ability to fund working capital and forecasted capital expenditures. In addition, statements relating to "reserves" or "resources" are deemed to be forward looking statements, as they involve assessments based on certain estimates and assumptions that the resources and reserves described can be profitably produced in the future.
We believe the expectations reflected in the forward looking statements are reasonable but no assurance can be given that our expectations will prove to be correct and consequently, such forward looking statements included in, or incorporated by reference into, this press release should not be unduly relied upon. These statements speak only as of the date of this press release or as of the date specified in the documents incorporated by reference in this press release. The actual results could differ materially from those anticipated as a result of the risk factors set forth below and elsewhere in this press release which include: (i) volatility in market prices for oil and natural gas; (ii) counterparty credit risk; (iii) access to capital; (iv) changes or fluctuations in production levels; (v) liabilities inherent in oil and natural gas operations; (vi) uncertainties associated with estimating oil and natural gas reserves; (vii) competition for, among other things, capital, acquisitions of reserves, undeveloped lands and skilled personnel; (viii) stock market volatility and market valuation of Spyglass' stock; (ix)geological, technical, drilling and processing capabilities; * limitations on insurance; (xi) changes in environmental or legislation applicable to our operations, (xii) our ability to comply with current and future environmental and other laws; (xiii) changes in tax laws and incentive programs relating to the oil and gas industry, and (xiv) the other factors discussed under "Risk Factors" in the Company's 2013 Annual Information Form.
Readers are cautioned that the foregoing lists of factors are not exhaustive. The forward looking statements contained in this press release and the documents incorporated by reference herein are expressly qualified by this cautionary statement. The forward looking statements contained in this press release speak only as of the date thereof and Spyglass does not assume any obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable securities laws.
Barrel of oil equivalents or BOEs 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. As the value ratio between natural gas and crude oil based on the current prices of natural gas and crude oil 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.
This press release shall not constitute an offer to sell, nor the solicitation of an offer to buy, any securities in the United States, nor shall there be any sale of securities mentioned in this press release in any State in the United States in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities law of any such State.
SOURCE Spyglass Resources
Dan O'Byrne, President & CEO; Dallas McConnell, VP Corporate Development & Investor Relations; Ashley Nuell, Senior Investor Relations Advisor; IR# 403.930.3524, [email protected], www.spyglassresources.com
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