|By Marketwired .||
|February 5, 2013 07:37 PM EST||
CALGARY, ALBERTA -- (Marketwire) -- 02/06/13 -- Santonia Energy Inc. (TSX:STE) ("Santonia" or the "Company") provides the following update.
The Company achieved its published exit production target of 5,000 boe/d in November with the month of November's production averaging in excess of 5,000 boe/d. The increase in production from the October 1, 2012 level of 4,500 boe/d, post the closing of asset sales associated with the Strategic Review Process, is a result of additional volumes from the Company's Cardium resource development brought on production in early November. Based on field estimates, fourth quarter volumes were 4,920 boe/d (30% oil and NGL's) compared to the Company's original guidance of 4,750 boe/d (25% oil and NGL's).
Santonia has also focused on increasing its liquids production. Based on fourth quarter 2012 field estimates, liquids production was 1,460 bbls/d, an increase of 20% from its liquids level on October 1, 2012. Fourth quarter liquids volumes were comprised of 983 bbls/d of condensate and light oil and 477 bbls/d of natural gas liquids.
Current production is between 4,500 and 4,600 boe/d. Production volumes have tracked forecasted declines from November of 2012 (the last date of new well production additions) and current production includes approximately 200 boe/d of temporary restrictions at the Company's Wild River and Clive properties.
During the fourth quarter of 2012 Santonia drilled a horizontal Cardium well (33% WI) at North Harlech located at 1-6-46-17W5. The well has a 1,200 metre horizontal section in the Cardium and completion operations are underway. The well has a planned tie-in distance of approximately eight miles and will likely commence production in the third quarter of 2013.
The Company also recently finished the drilling of a multi-zone vertical well at Harlech. The well is being completed in four zones and is expected to be on production in late February. Recent results from these multi-zone vertical wells have been impressive with 30 day initial rates of 300 boe/d (including 150 bbls/d of condensate) resulting in netbacks of $30/boe, on-stream costs of $11,000 per boe/d and rates of return of approximately 45%.
Santonia recently announced a revised credit facility of $80 million. Year end 2012 net debt is estimated to be $16 million ($2 million lower than previous guidance of $18 million) and the Company anticipates that it will spend approximately $15 million of capital in the first half of 2013.
Based on field estimates the Company had fourth quarter operating costs of $9.12 per boe and a field netback in excess of $24 per boe.
The Company anticipates releasing its full year results, including reserves, on Monday March 4, 2013.
Mr. Steven VanSickle, President and CEO of Santonia, will be presenting at the National Bank Intermediate Energy and Growth and Yield Conference on February 14th, 2013 at the Ritz-Carlton in Toronto, Ontario. In conjunction with the energy conference a new corporate presentation is available on Santonia's website.
Santonia is a crude oil and natural gas exploration, development and production company headquartered in Calgary, Alberta, Canada. Santonia's common shares trade on the Toronto Stock Exchange under the symbol "STE".
Certain information set forth in this press release contain forward-looking statements including management's assessment of future plans including drilling plans and timing of completion operations, production rates, estimated net debt at the end of the second quarter of 2013 and commodity mix. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Santonia's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, delays resulting from or the inability to obtain required regulatory approvals, inability to retain and delays in retaining drilling rigs and other services, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions and ability to access sufficient capital from internal and external sources. The foregoing list is not exhaustive. Additional information on these and other risks that could affect Santonia's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com), or at Santonia's website (www.santoniaenergy.com). Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The actual results, performance or achievement of Santonia could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Santonia will derive there from. Santonia disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
Barrels of Oil Equivalency
Natural gas volumes are converted to barrels of oil equivalent (boe) on the basis of 6,000 cubic feet (mcf) of gas for 1 barrel (bbl) of oil. The term "barrels of oil equivalent" may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf to 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. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different than the energy equivalency of the 6:1 conversion ratio, utilizing the 6:1 conversion ratio may be misleading as an indication of value.
Initial Production Rates
Initial production rates disclosed herein may not necessarily be indicative of long-term performance or ultimate recovery.
Netbacks are calculated by subtracting royalties, transportation costs and operating costs from revenue.
The 5th International DevOps Summit, co-located with 17th International Cloud Expo – being held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the...
Jun. 3, 2015 06:15 AM EDT Reads: 4,321
"Ulunsoft is a start-up that focuses on how enterprises build cloud-based IT infrastructure for business," explained Haibo Zhu, President of Ulunsoft Corp, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jun. 3, 2015 06:15 AM EDT Reads: 2,416
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jun. 3, 2015 06:00 AM EDT Reads: 6,419
The 4th International Internet of @ThingsExpo, co-located with the 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - announces that its Call for Papers is open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Jun. 3, 2015 05:30 AM EDT Reads: 2,036
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding bu...
Jun. 3, 2015 05:30 AM EDT Reads: 4,456
"SOASTA built the concept of cloud testing in 2008. It's grown from rather meager beginnings to where now we are provisioning hundreds of thousands of servers on a daily basis on behalf of customers around the world to test their applications," explained Tom Lounibos, CEO of SOASTA, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jun. 3, 2015 05:00 AM EDT Reads: 4,494
The basic integration architecture, as defined by ESBs, hasn’t changed for more than a decade. Most cloud integration providers still rely on an ESB architecture and their proprietary connectors. As a result, enterprise integration projects suffer from constraints of availability and reliability of these connectors that are not re-usable across other integration vendors. However, the rapid adoption of APIs and almost ubiquitous availability of APIs amongst most SaaS and Cloud applications are ra...
Jun. 3, 2015 04:00 AM EDT Reads: 827
"We have developers who are really passionate about getting their code out to customers, no matter what, in the shortest possible time. Operations are very focused on procedures and policies," explained Stan Klimoff, CTO of Qubell, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jun. 3, 2015 04:00 AM EDT Reads: 5,050
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading in...
Jun. 3, 2015 04:00 AM EDT Reads: 2,739
SYS-CON Events announced today that SUSE, a pioneer in open source software, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. SUSE provides reliable, interoperable Linux, cloud infrastructure and storage solutions that give enterprises greater control and flexibility. More than 20 years of engineering excellence, exceptional service and an unrivaled partner ecosystem power the products and support that help ...
Jun. 3, 2015 04:00 AM EDT Reads: 1,271
DevOps Summit, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developmen...
Jun. 3, 2015 03:15 AM EDT Reads: 2,433
“Will Jaya is a direct source for server integration and storage solutions. If you are looking for any specific configurations for a project we can help you configure based on your needs and requirements," explained Netty Goya, CEO of Will Jaya, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jun. 3, 2015 03:15 AM EDT Reads: 3,592
"SendGrid sends about 15 billion emails a month and process all the events associated with that, about a trillion events a year," explained Aaron Beach, Senior Data Scientist at SendGrid, in this SYS-CON.tv interview at Cloud Expo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jun. 3, 2015 03:00 AM EDT Reads: 865
Health care systems across the globe are under enormous strain, as facilities reach capacity and costs continue to rise. M2M and the Internet of Things have the potential to transform the industry through connected health solutions that can make care more efficient while reducing costs. In fact, Vodafone's annual M2M Barometer Report forecasts M2M applications rising to 57 percent in health care and life sciences by 2016. Lively is one of Vodafone's health care partners, whose solutions enable o...
Jun. 3, 2015 02:30 AM EDT Reads: 2,986
“Connect2Me is basically a game changer in the IoT industry. We have created IoT connecter middleware that can enable a connection to any kind of device," explained Yasser Khan, CTO of Connect2Me, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jun. 3, 2015 02:15 AM EDT Reads: 3,141