|By Marketwired .||
|January 20, 2014 05:23 PM EST||
CALGARY, ALBERTA -- (Marketwired) -- 01/20/14 -- Raging River Exploration Inc. ("Raging River" or the "Company") (TSX: RRX) is pleased to report that estimated daily production reached a record of 9,000 boe/d (96% oil) during the second half of December 2013. Further, based on field estimates the Company's fourth quarter 2013 average production increased 37% from the third quarter average to 7,700 boe/d (96% oil) which is 5% ahead of our previous fourth quarter guidance of 7,300-7,400 boe/d.
Raging River exited 2013 with 16 net wells awaiting completion and is off to a solid start in the first quarter with 17 gross (15.5 net) wells drilled since January 1, 2014. With production averaging above 9,000 boe/d in the first two weeks of January, we anticipate achieving our 2014 average production level of 9,500 boe/d in early February. Production is expected to be strong through the first quarter followed by a modest reduction in the second quarter due to breakup and we are reaffirming our average 2014 production guidance of 9,500 boe/d.
The Company is also pleased to report its 2013 year-end oil and gas reserves. 2013 proven plus probable reserves of 42.7 mmboe represent a 148% increase from 2012. Finding, development and acquisition costs were reduced by 26% from 2012 to $19.40/boe demonstrating the quality of the Company's continuously expanding drilling inventory.
Reserve Report Highlights:
-- Increased proved plus probable reserves by 148% to 42.7 mmboe (96.2% oil) and proven reserves by 171% to 31.3 mmboe (96.2% oil). -- Net asset value per fully diluted share calculated on a present value before tax of 10% ("PVBT10") increased 133% to an estimated $6.42 per share at December 31, 2013 inclusive of an internal land value of $108 million. -- Finding, development and acquisition costs, including the change in future development capital of $260 million are $19.40 per boe on a proven plus probable basis. -- Finding, development and acquisition costs, including the change in future development capital of $298 million are $26.29 per boe on a total proven basis. -- Total proven reserves represent 73.4% of proven plus probable reserves as at December 31, 2013. -- The FD&A recycle ratio was 3.0 times based on our estimated 2013 corporate netback of $57.25 per boe. -- The reserves life index increased to 13.0 years based on current production of 9,000 boe/d. -- Reserve additions replaced 2013 production by greater than 9 times on a proved basis and 12 times on a proved plus probable basis. -- Reserves per fully diluted share increased by 125% to 218 boe per 1,000 shares from 97 boe per 1,000 shares. -- Raging River's development drilling inventory has increased to 2,000+ risked locations as at January 1, 2014 of which approximately 75% are currently unbooked. -- Average estimated ultimate recovery ("EUR") per horizontal well drilled in 2013 increased by 27% to 47.5 mstb per well from an average of 37.5 mstb per well for those drilled to the end 2012.
The following tables summarize certain information contained in the independent reserves report prepared by Sproule Associates Ltd. ("Sproule") as of December 31, 2013. The report was prepared in accordance with definition, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook and National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). Additional reserve information as required under NI 51-101 will be included in the Company's Annual Information Form which will be filed on SEDAR by March 31, 2014.
December 31, 2013 Future Net Reserves Category Oil BTAX PV Development Undeveloped Gross Working Oil Gas Equivalent 10% Capital Wells Interest Mbbl MMcf mBOE M$'s M$'s Booked ---------------------------------------------------------------------------- Proved Developed Producing 11,450 3,244 12,004 440,021 - - Proven Undeveloped 18,653 3,948 19,372 403,879 481,851 525.8 ---------------------------------------------------------- Total Proven 30,103 7,192 31,376 843,900 481,851 525.8 Probable Developed Producing 4,673 1,336 4,904 138,715 - - Probable Undeveloped 6,216 1,282 6,450 209,169 3,640 4.5 ---------------------------------------------------------- Total Proven Plus Probable 40,993 9,810 42,729 1,191,785 485,491 530.3 ---------------------------------------------------------- ----------------------------------------------------------
1. Gross Company reserves are the Company's total working interest share before the deduction of any royalties and without including any royalty interests of the Company. 2. Based on Sproule's December 31, 2013 escalated price forecast. 3. It should not be assumed that the present worth of estimated future net revenue presented in the tables above represents the fair market value of the reserves. There is no assurance that the forecast prices and costs assumptions will be attained and variances could be material. The recovery and reserves estimates of Raging River's crude oil, natural gas liquids and natural gas reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual crude oil, natural gas and natural gas liquids reserves may be greater than or less than the estimates provided herein. 4. All future net revenues are stated prior to provision for interest, general and administrative expenses and after deduction of royalties, operating costs, estimated abandonment costs and estimated future capital expenditures. Future net revenues have been presented on a before tax basis. Estimated values of future net revenue disclosed herein do not represent fair market value. 5. Finding and development costs both including and excluding acquisitions and dispositions have been presented below. While NI 51-101 requires that the effects of acquisitions and dispositions be excluded, FD&A costs have been presented because acquisitions and dispositions can have a significant impact on the Company's ongoing reserve replacement costs and excluding these amounts could result in an inaccurate portrayal of the Company's cost structure. 6. The aggregate of the exploration and development costs incurred in 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 reserves additions for that year. 7. Figures are subject to audit. 8. The capital expenditures include the announced purchase price of corporate acquisitions rather than the amounts allocated to property, plant and equipment for accounting purposes. The capital expenditures also exclude capitalized administration costs. 2013 FD&A Costs ($000's) Proved Proved plus Probable Development 172,000 172,000 Net Acquisitions 104,000 104,000 Change in FDC 298,429 259,940 Total Capital 574,429 535,940 2013 Reserve Additions Mboe Acquisitions 3,492 4,726 Additions/Revisions 18,359 22,893 Total 21,851 27,619 2013 FD&A ($/boe) 26.29 19.40
Raging River is in the midst of another active quarter in which we anticipate drilling 60 net horizontal wells. We currently have two drilling rigs operational and have drilled 17 gross (15.5 net) wells this quarter at a 100% success rate. With completion operations well under way a new well is being placed on production every day and it is expected that trend will continue throughout the quarter.
To date this quarter we have successfully tested four previously undrilled sections at Beadle with expectations that an additional 12-15 previously undrilled sections will be tested this quarter.
In the recently acquired Forgan area, the operations team has been actively working towards obtaining our first drilling licenses in the area and it is now expected that we will be able to drill up to four wells testing previously undrilled sections in this area during the first quarter.
Raging River continues to be active on adding additional lands in the Viking light oil fairway. Since early December 2013, 15 additional sections of land have been added in the greater Beadle area. Our total prospective Viking light oil land holdings are now in excess of 215 net sections.
Raging River's team remains dauntless in its pursuit of operational and executional excellence to continue delivering per share production, reserves and value growth to our shareholders while maintaining a pristine balance sheet.
FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements. More particularly, this press release contains forward looking statements relating to: expectations as to drilling and completion activity in the first quarter of 2014, including the timing thereof, expectations of achieving certain production levels in the first quarter of 2014, expectations as to Raging River's drilling inventory, estimates of future development capital associated with the Company's reserves, expectations about drilling and testing plans in the Beadle and Forgan areas, and, Raging River's intent to deliver per share production, reserves and value growth to its shareholders while maintaining a pristine balance sheet . Statements relating to "reserves" are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions that the resources and reserves described can be profitably produced in the future. In addition, the use of any of the words "guidance", "initial, "scheduled", "can", "will", "prior to", "estimate", "anticipate", "believe", "potential", "should", "unaudited", "forecast", "future", "continue", "may", "expect", "project", and similar expressions are intended to identify forward-looking statements.
The forward-looking statements contained herein are based on certain key expectations and assumptions made by the Company, including but not limited to the success of optimization and efficiency improvement projects, the availability of capital, current legislation, receipt of required regulatory approval, the success of future drilling and development activities, the performance of existing wells, the performance of new wells, the ability of the Company to effectively manage price differentials, Raging River's growth strategy, general economic conditions, availability of required equipment and services and prevailing commodity prices. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements 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. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; as the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations, changes in legislation affecting the oil and gas industry and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Refer to Raging River's most recent annual information form dated March 20, 2013 on SEDAR at www.sedar.com and risks contained therein.
The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Finding, Development and Acquisition ("FD&A") Costs: Finding and development costs including acquisitions and dispositions have been presented herein. While NI 51-101 requires that the effects of acquisitions and dispositions be excluded, FD&A costs have been presented because acquisitions and dispositions can have a significant impact on the Company's ongoing reserve replacement costs and excluding these amounts could result in an inaccurate portrayal of the Company's cost structure. The Company's finding and development costs, excluding the effects of acquisitions and dispositions, for 2013 were $25.62/boe on a proved basis and $18.87/boe on a proved plus probable basis. The Company's finding and development costs, excluding the effects of acquisitions and dispositions, for 2012 were $31.02/boe on a proved basis and $26.36/boe on a proved plus probable basis (the additions to reserves used for the 2012 finding and development costs represent a comparison to the opening reserves balance which were the reserves acquired from Wild Stream Exploration Inc. by Raging River on March 16, 2012). The average finding and development costs over the last three years have not been presented herein because the Company only began active operations in March 2012. The aggregate of the exploration and development costs incurred in 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 reserves additions for that year.
Net Asset Value per Share: Net asset value per share as presented herein is based on the PVBT10 of proven plus probable reserves as at December 31, 2013 of $1,192 million, an internal estimate of Raging River's undeveloped land value of $108 million, estimated 2013 year end net debt of $101 million, dilutive securities proceeds of $55 million for total net asset value of $1,254 million and with 195.2 million shares outstanding on a fully diluted basis a net asset value per share of $6.42/share
Meaning of Boe: When used in this press release, Boe means a barrel of oil equivalent on the basis of 1 Boe to 6 thousand cubic feet of natural gas. Boe per day means a barrel of oil equivalent per day. Boe's may be misleading, particularly if used in isolation. A Boe conversion ratio of 1 Boe for 6 thousand cubic feet of natural gas 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.
Non-IFRS Measures: The Company uses terms in this press release that are not measures recognized by International Financial Reporting Standards ("IFRS") and do not have standardized meanings prescribed by IFRS, including "net debt" and "operating netback". Therefore, they may not be comparable to performance measures presented by others. For additional information relating to these measures and how the Company calculates these measures, see management's discussion and analysis for the period ended September 30, 2013, which is available on the SEDAR website at www.sedar.com.
Raging River Exploration Inc.
Mr. Neil Roszell
President and CEO
(403) 387-2951 (FAX)
Raging River Exploration Inc.
Mr. Jerry Sapieha, CA
Vice President, Finance and CFO
(403) 387-2951 (FAX)
“We help people build clusters, in the classical sense of the cluster. We help people put a full stack on top of every single one of those machines. We do the full bare metal install," explained Greg Bruno, Vice President of Engineering and co-founder of StackIQ, 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.
Jan. 31, 2015 02:45 PM EST Reads: 2,569
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 31, 2015 02:30 PM EST Reads: 2,732
In this demo at 15th Cloud Expo, John Meza, Product Engineer at Esri, showed how Esri products hook into Hadoop cluster to allow you to do spatial analysis on the spatial data within your cluster, and he demonstrated rendering from a data center with ArcGIS Pro, a new product that has a brand new rendering engine.
Jan. 31, 2015 02:30 PM EST Reads: 1,795
"Blue Box has been around for 10-11 years, and last year we launched Blue Box Cloud. We like the term 'Private Cloud as a Service' because we think that embodies what we are launching as a product - it's a managed hosted private cloud," explained Giles Frith, Vice President of Customer Operations at Blue Box, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 31, 2015 02:30 PM EST Reads: 2,761
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
Jan. 31, 2015 02:15 PM EST Reads: 1,681
CloudBees, Inc., has announced a $23.5 million financing round, led by longtime CloudBees investor Lightspeed Venture Partners. Existing investors Matrix Partners, Verizon Ventures and Blue Cloud Ventures also participated in the round. The latest funding announcement follows earlier rounds of $4 million, $10.5 million and $10.8 million, bringing the total investment in CloudBees to just under $50 million since the company’s inception in 2010. Previous venture investment rounds were led by Ma...
Jan. 31, 2015 02:00 PM EST Reads: 890
“We are strong believers in the DevOps movement and our staff has been doing DevOps for large enterprise environments for a number of years. The solution that we build is intended to allow DevOps teams to do security at the speed of DevOps," explained Justin Lundy, Founder & CTO of Evident.io, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 31, 2015 02:00 PM EST Reads: 2,277
SYS-CON Media announced that Splunk, a provider of the leading software platform for real-time Operational Intelligence, has launched an ad campaign on Big Data Journal. Splunk software and cloud services enable organizations to search, monitor, analyze and visualize machine-generated big data coming from websites, applications, servers, networks, sensors and mobile devices. The ads focus on delivering ROI - how improved uptime delivered $6M in annual ROI, improving customer operations by minin...
Jan. 31, 2015 02:00 PM EST Reads: 3,887
The move in recent years to cloud computing services and architectures has added significant pace to the application development and deployment environment. When enterprise IT can spin up large computing instances in just minutes, developers can also design and deploy in small time frames that were unimaginable a few years ago. The consequent move toward lean, agile, and fast development leads to the need for the development and operations sides to work very closely together. Thus, DevOps become...
Jan. 31, 2015 02:00 PM EST Reads: 2,852
Puppet Labs on Wednesday released the DevOps Salary Report, based on salary data gathered from Puppet Labs' industry-recognized State of DevOps Report. The data confirms that market demand for DevOps skills is growing, and that DevOps engineers are among the highest paid IT practitioners today. That's because IT organizations today are grappling with how to be more agile and responsive to the business, while maintaining the stability of their infrastructure. DevOps practices, such as continuous ...
Jan. 31, 2015 02:00 PM EST Reads: 1,503
AppDynamics, the application intelligence leader for software-defined businesses, announced the general availability of the AppDynamics Fall '14 Release. Serving the combined needs of IT and business teams across the enterprise, the latest release provides a comprehensive view across all aspects of digital performance in ultra large scale deployments. AppDynamics delivers Application Intelligence by building out advanced capabilities across the key areas of analytics, unified monitoring and D...
Jan. 31, 2015 02:00 PM EST Reads: 2,054
Can the spatial component of your Big Data be harnessed and visualized, adding another dimension of power and analytics to your data? In his session at Big Data Expo®, John Meza, Product Engineer and Performance Engineering Team Lead at Esri, discussed the spatial queries that can be used within the Hadoop ecosystem and their integration with GeoSpatial applications. The GIS Tools for Hadoop project was also discussed and its implementation to discover location-based patterns and relationships...
Jan. 31, 2015 01:45 PM EST Reads: 1,734
The cloud is becoming the de-facto way for enterprises to leverage common infrastructure while innovating and one of the biggest obstacles facing public cloud computing is security. In his session at 15th Cloud Expo, Jeff Aliber, a global marketing executive at Verizon, discussed how the best place for web security is in the cloud. Benefits include: Functions as the first layer of defense Easy operation –CNAME change Implement an integrated solution Best architecture for addressing network-l...
Jan. 31, 2015 01:30 PM EST Reads: 2,304
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. 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 development cycles that produce software that is obsolete...
Jan. 31, 2015 01:15 PM EST Reads: 2,695
Software AG and Wipro Ltd. have announced a joint solution platform for streaming analytics that provides real-time actionable intelligence for the Internet of Things (IoT) market. “The key to successfully addressing the IoT market is the ability to rapidly build and evolve apps that tap into, analyze and make smart decisions on fast, big data”, said John Bates, Global Head of Industry Solutions and CMO, Software AG. To address the huge market potential created by streaming analytics in conj...
Jan. 31, 2015 01:00 PM EST Reads: 1,148