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Spyglass Resources Corp. Announces 2013 Reserves, 2013 Full Year and Fourth Quarter Results, 2014 Guidance and March Monthly Dividend

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, ALBERTA -- (Marketwired) -- 03/12/14 -- Spyglass Resources Corp. (TSX:SGL)(OTCQX:SGLRF) ("Spyglass", or the "Company") is pleased to announce annual financial and operating results for the year ended December 31, 2013. Selected financial and operational information for the full year and fourth quarter of 2013 is outlined below along with 2013 reserves evaluated in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101") and should be read in conjunction with Spyglass' Audited Consolidated Financial Statements and Management's Discussion and Analysis for the years ended December 31, 2013 and 2012 on www.sedar.com and also available at www.spyglassresources.com.

The first quarter of 2013 was highlighted by the completion of a Plan of Arrangement (the "Arrangement") combining Pace Oil and Gas Ltd. ("Pace"), AvenEx Energy Corp. ("AvenEx") and Charger Energy Corp. ("Charger"). For the following three quarters of the year, Spyglass made substantial progress towards its objectives with the successful execution of its low risk, high netback light oil drilling and optimization program, completing key non-core dispositions and ongoing initiatives to reduce operating and administrative costs.

Fourth Quarter and 2013 Summary


--  2013 funds flow from operations was $60.6 million ($0.54 per share). 
--  Funds flow from operations for the fourth quarter of 2013 was $11.4
    million ($0.09 per share), primarily reflecting wider Canadian crude oil
    price differentials during the quarter. 
--  Capital expenditures (prior to dispositions) for 2013 were $59.7 million
    which included successfully drilling 14 (10.9 net) horizontal and 2 (2.0
    net) vertical light oil wells in Southern and Central Alberta. 
--  During the fourth quarter of 2013, capital expenditures (prior to
    dispositions) were $15.0 million. In addition to other capital activity,
    Spyglass drilled and completed 2 (2.0 net) Pekisko light oil wells at
    Matziwin which came on production in December 2013. On a combined basis,
    the 30 day initial production rates for these two most recent wells was
    450 boe/d, with current stabilized combined production rates of
    approximately 420 boe/d. 
--  Production for 2013 increased by 15 percent to 15,215 boe/d from 13,223
    boe/d in 2012 as a result of the Arrangement and the successful light
    oil drilling and optimization program. 
--  Production for the fourth quarter of 2013 averaged 15,873 boe/d, 49
    percent oil and liquids. The quarter incorporates the impact of
    successful non-core asset dispositions (approximately 275 boe/d), the
    shut in of uneconomic natural gas production (approximately 200 boe/d)
    and a planned turn around at Dixonville (approximately 140 boe/d).
    Severe winter weather and shut-ins related to gas conservation also
    affected the Company's production volumes in the fourth quarter and into
    the first quarter of 2014. 
--  Spyglass generated $22.7 million in net proceeds from non-core property
    dispositions and $1.4 million from seismic sales in 2013. 
--  During 2013 Spyglass declared dividends of $0.2025 per share resulting
    in an all-in payout ratio of 104% for the year. 
--  Operating costs for the fourth quarter of 2013 were $18.33 per boe, in
    line with guidance, while cash general and administrative expenses were
    $2.45 per boe, which was better than guidance. 
--  Net debt at December 31, 2013 was $300.5 million, comprised of $287.0
    million in long-term bank debt and a $13.5 million working capital
    deficit. 

Selected Financial and Operating Information


Operating                                     Q4 2013     2013(1)    2012(2)
---------------------------------------------------------------------------
Average daily production                                                   
  Oil (bbls/d)                                  7,198      7,000      6,050
  NGLs (bbls/d)                                   647        450        324
  Natural Gas (Mcf/d)                          48,164     46,588     41,093
---------------------------------------------------------------------------
Total (boe/d)                                  15,873     15,215     13,223
---------------------------------------------------------------------------
Realized prices                                                            
  Oil ($/bbl)                                   72.89      82.09      76.28
  NGLs ($/bbl)                                  43.46      50.96      58.36
  Natural Gas ($/mcf)                            3.40       3.23       2.43
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Total Revenue ($/boe)                           45.13      49.16      43.88
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Netback ($/boe)                                                            
  Revenue                                       45.13      49.16      43.88
  Royalties                                     (9.42)    (10.21)     (9.70)
  Operating expense                            (18.33)    (18.89)    (16.15)
  Transportation expense                        (2.29)     (2.20)     (2.09)
---------------------------------------------------------------------------
Operating Netback(3)                            15.09      17.86      15.94
---------------------------------------------------------------------------
  Cash General & Administrative Expense         (2.45)     (3.01)     (3.69)
  Realized hedging gain (loss)                  (2.01)     (1.77)      1.51
  Interest & Financing & Other                  (2.80)     (2.17)     (1.60)
---------------------------------------------------------------------------
Cash Netback(3)                                  7.83      10.91      12.16
---------------------------------------------------------------------------
                                                                           
Financial ($000)(except per share figures)    Q4 2013     2013(1)    2012(2)
---------------------------------------------------------------------------
Funds Flow from Operations(3)                  11,426     60,584     58,849
  per share                                      0.09       0.54       0.96
Net Income (Loss)                             (16,866)    43,331   (152,991)
  per share                                     (0.13)      0.39      (2.50)
Dividends                                       8,645     25,934          -
  per share(4)                                 0.0675     0.2025          -
Capital Expenditures                           14,991     59,654     83,217
Capital Expenditures (net of dispositions)      2,476     36,940     83,217
All-in Payout Ratio (%)(3)                        97%       104%          -
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Net Debt(3)                                   300,508    300,508    215,817
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Share Information (000's)                     Q4 2013     2013(1)    2012(2)
---------------------------------------------------------------------------
Common shares outstanding, end of period      128,077    128,077     60,991
Weighted average shares outstanding           128,077    112,086     61,157
---------------------------------------------------------------------------
(1) Year to date results for 2013 are presented as Pace standalone from    
    January 1 to March 28, 2013 and incorporate the Arrangement and the    
    combined financial and operating results for the three companies from  
    March 29 to December 31, 2013.                                         
(2) 2012 results reflect Pace as a standalone entity.                      
(3) See Non-GAAP measures.                                                 
(4) 2013 YTD dividends are calculated based on 128,076,720 shares          
    outstanding on the initial record date of April 26, 2013.              

2013 Oil and Natural Gas Reserves

Spyglass' year ending December 31, 2013 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.

Highlights of the 2013 reserve evaluation include:


--  December 31, 2013 proved plus probable reserves ("2P") increased by 35
    percent to 82.4 MMboe from 61.2 MMboe at December 31, 2012. 
--  December 31, 2013 total proved reserves ("TP") increased by 33 percent
    to 54.7 MMboe from 41.1 MMboe at December 31, 2012. 
--  Maintained a reserve life index of 14.2 years for 2P reserves and 9.4
    years for TP reserves, based on fourth quarter 2013 production of 15,873
    boe/d. 
--  Finding, development and acquisition ("FD&A") costs were $17.02 per 2P
    boe and $21.14 per TP boe, including technical revisions and changes in
    FDC. 
--  Present value of reserves at a 10 percent discount rate ("PV10") was
    $868.5 million on a 2P basis, $642.5 million on a TP basis and $555.8
    million on a proved developed producing basis. 
--  Net asset value on a 2P basis is approximately $626.4 million or $4.89
    per share. 

Summary of Reserves


Working Interest Reserves(1)(2)                                            
                                              Natural                      
                                       Oil        Gas        NGL      Total
Category                             (Mbbl)     (MMcf)     (Mbbl)     (Mboe)
---------------------------------------------------------------------------
Proved producing                    22,801     90,565        763     38,658
Proved non-producing                   530     17,813        118      3,617
Proved Undeveloped                   5,737     38,582        233     12,400
  Total Proved(3)                   29,068    146,960      1,114     54,675
Probable                            13,540     81,268        687     27,771
  Total proved plus probable(3)     42,607    228,228      1,801     82,447
---------------------------------------------------------------------------
(1) Based on the McDaniel January 1, 2014 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       $1,049.9     $721.0     $555.8     $458.5     $394.4
Proved non-producing       63.2       44.2       33.4       26.5       21.7
Proved Undeveloped        181.6       99.2       53.3       25.5        7.7
  Total Proved          1,294.7      864.4      642.5      510.5      423.8
Probable                  787.2      374.5      226.0      154.5      113.2
  Total proved plus                                                        
   probable            $2,081.9   $1,238.9     $868.5     $665.0     $537.0
---------------------------------------------------------------------------

Summary of After Tax Net Present Values ($MM)(1)                           
Category                     0%         5%        10%        15%        20%
---------------------------------------------------------------------------
Proved producing       $1,043.4     $719.5     $555.4     $458.4     $394.4
Proved non-producing       47.4       39.7       32.0       26.0       21.6
Proved Undeveloped        136.3       80.6       45.3       21.8        5.9
  Total Proved          1,227.0      839.8      632.7      506.3      421.9
Probable                  590.7      289.8      181.6      128.7       97.3
  Total proved plus                                                        
   probable            $1,817.7   $1,129.6     $814.3     $635.0     $519.2
---------------------------------------------------------------------------
(1) Based on the McDaniel January 1, 2014 forecast prices.                 

Reconciliation of Gross (Working Interest) Reserves by Product


                                   Proved Developed Producing              
                                                Assoc             Total Oil
                        Light &                 & Non                  Equi-
                     Medium Oil  Heavy Oil  Assoc Gas        NGL     valent
                          (Mstb)     (Mstb)     (MMcf)     (Mstb)     (Mboe)
---------------------------------------------------------------------------
Opening balance as                                                         
 of Dec. 31, 2012(1)     20,198        913     66,843        498     32,749
Production               (2,155)      (400)   (17,005)      (164)    (5,554)
Technical revisions         254        137      3,263         62        996
Extensions and                                                             
 Improved                                                                  
 Recovery(2)                621          3      1,313          6        849
Acquisitions(3)           2,295      1,093     36,609        387      9,876
Dispositions               (103)         0     (1,186)       (26)      (327)
Economic factors            (55)         0        728          2         69
Closing Balance as                                                         
 of Dec. 31, 2013        21,055      1,746     90,565        763     38,658
---------------------------------------------------------------------------
                                                                           
                                          Total Proved                     
                                                Assoc             Total Oil
                        Light &                 & Non                  Equi-
                     Medium Oil  Heavy Oil  Assoc Gas        NGL     valent
                          (Mstb)     (Mstb)     (MMcf)     (Mstb)     (Mboe)
---------------------------------------------------------------------------
Opening balance as                                                         
 of Dec. 31, 2012(1)     22,489        985    101,809        635     41,077
Production               (2,155)      (400)   (17,005)      (164)    (5,554)
Technical revisions         173        138      3,084         61        886
Extensions and                                                             
 Improved                                                                  
 Recovery(2)                603         64      1,544         23        947
Acquisitions(3)           6,019      1,309     58,843        597     17,731
Dispositions               (103)         0     (2,418)       (52)      (558)
Economic factors            (55)         1      1,103         15        145
Closing Balance as                                                         
 of Dec. 31, 2013        26,971      2,097    146,960      1,114     54,675
---------------------------------------------------------------------------
                                                                           
                                   Total Proved plus Probable              
                                                Assoc             Total Oil
                        Light &                 & Non                  Equi-
                     Medium Oil  Heavy Oil  Assoc Gas        NGL     valent
                          (Mstb)     (Mstb)     (MMcf)     (Mstb)     (Mboe)
---------------------------------------------------------------------------
Opening balance as                                                         
 of Dec. 31, 2012(1)     31,507      1,337    164,598        942     61,220
Production               (2,155)      (400)   (17,005)      (164)    (5,554)
Technical revisions        (330)        67      2,212         54       (578)
Extensions and                                                             
 Improved                                                                  
 Recovery(2)                728         81      1,963         32      1,169
Acquisitions(3)          10,175      1,682     89,215        992     27,719
Dispositions               (145)         0     (3,332)       (70)      (770)
Economic factors             58          1     (4,999)        15       (759)
Closing Balance as                                                         
 of Dec. 31, 2013        39,838      2,769    228,228      1,801     82,447
---------------------------------------------------------------------------
(1) Opening balance at December 31, 2012 represents reserves of Pace, the  
    continuing reporting issuer following the Arrangement.                 
(2) 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.                                                          
(3) Reserve additions from wells drilled on acquired lands are included in 
    Acquisitions volumes.                                                  

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. Since the major business activity of the Company during 2013 was the Arrangement, finding, development and acquisition (FD&A) costs are more representative metric of the Company's 2013 activity. The reserves of AvenEx and Charger are reported as acquisitions in the reserves reconciliation table. FD&A costs for 2013 were $22.17/boe proved and $16.67/boe proved plus probable. Including technical revisions, FD&A costs were $21.14/boe proved and $17.02/boe proved plus probable. The following table presents the details of the 2013 FD&A cost calculations.

2013 FD&A Costs:


                                                                      Total
                                                                     Proved
                                                           Total       plus
Working Interest Reserves Changes, Mboe                   Proved   Probable
---------------------------------------------------------------------------
Drilling Extensions & Improved Recovery                      947      1,169
Acquisitions                                              17,731     27,718
Dispositions                                                (558)      (770)
---------------------------------------------------------------------------
Total Reserve Additions, Acquisitions & Dispositions      18,120     28,117
                                                                           
Capital (000s)                                                             
2013 Capital                                            $248,877   $248,877
Change in FDC                                            152,834    219,892
---------------------------------------------------------------------------
Total Capital                                           $401,711   $468,769
---------------------------------------------------------------------------
FD&A ($/boe)                                              $22.17     $16.67
---------------------------------------------------------------------------
                                                                           
FD&A including Technical Revisions                                         
Working Interest Reserve Changes, Mboe                                     
---------------------------------------------------------------------------
Drilling Extensions & Improved Recovery                      947      1,169
Acquisitions                                              17,731     27,718
Dispositions                                                (558)      (770)
Technical Revisions                                          886       (578)
---------------------------------------------------------------------------
Total Reserve Additions, Acquisitions, Dispositions &                      
 Technical Revisions                                      19,006     27,539
                                                                           
Capital (000s)                                                             
2013 Capital                                            $248,877   $248,877
Change in FDC                                            152,834    219,892
---------------------------------------------------------------------------
Total Capital                                           $401,711   $468,769
---------------------------------------------------------------------------
FD&A including Technical Revisions ($/boe)                $21.14     $17.02
---------------------------------------------------------------------------
Notes:                                                                     
1. The 2013 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 and office costs.               
2. 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.                                                                   
3. 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.                 

Net Asset Value as at Dec. 31, 2013                           TP         2P
---------------------------------------------------------------------------
BTAX NPV10                                               $ 642.5    $ 868.5
Net Debt(1)                                               (300.5)    (300.5)
Undeveloped Land(2)                                         58.4       58.4
---------------------------------------------------------------------------
NAV                                                      $ 400.4    $ 626.4
---------------------------------------------------------------------------
per Share                                                 $ 3.13     $ 4.89
---------------------------------------------------------------------------
(1) Net debt at December 31, 2013.                                         
(2) Undeveloped land value is based on an internally generated estimate of 
    $100 / acre.                                                           

2014 Capital Program and Outlook

The capital program continues to focus on low risk development opportunities intended to increase overall liquids weighting and improve netbacks. Management anticipates the 2014 capital program will total approximately $60 million (prior to property dispositions) and will include approximately $40 million for drilling 21 gross (19.6 net) development wells, primarily in Southern and Central Alberta. In 2014, Spyglass plans to direct additional capital towards the Viking play at Halkirk-Provost while also following up on its successful southern Alberta drilling program targeting the Pekisko and Glauconite zones at Matziwin, Cessford and Retlaw/Enchant. Capital activity will be weighted towards the first and third quarters of 2014.

Further detail on the 2014 capital program is presented in the below table:


2014 Drilling Locations                                    Gross        Net
---------------------------------------------------------------------------
Halkirk-Provost Viking                                        10       10.0
Southern Alberta Pekisko                                       5        4.3
Southern Alberta Glauconite                                    6        5.3
---------------------------------------------------------------------------
Total                                                         21       19.6
---------------------------------------------------------------------------

The drilling program for the year is underway with 2 (1.3 net) vertical wells targeting the Glauconite zone at Retlaw/Enchant, 1 (1 net) horizontal Glauconite oil well in Enchant/Retlaw, 1 (1 net) horizontal Glauconite oil well in Cessford and 1 (1 net) horizontal Pekisko oil well at Matziwin drilled to date in 2014 in southern Alberta. These new wells are expected to be put on production late in the first quarter of 2014.

With continued improvement and stability in forward natural gas prices, Spyglass' Cadomin resource play at Noel has become economically competitive with the Company's light oil opportunities. Should natural gas pricing remain strong, the Company may add one or more Noel locations to the 2014 drilling program. Spyglass has an extensive drilling inventory at Noel, with over 90 Cadomin horizontal locations identified.

Management anticipates that the planned level of development activity coupled with the Company's 20 percent base decline rate is expected to result in 2014 average production of approximately 15,000 boe/d. Management continues to anticipate operating expenses of $17.00 to $18.50 per boe and cash general and administrative expenses of approximately $3.00 per boe.

Spyglass' capital program is expected to result in a target all-in payout ratio of approximately 100 percent.

The Company will continue to pursue non-core asset dispositions throughout 2014 to reduce debt, accelerate capital spending and further focus operations. To date in 2014, Spyglass has completed dispositions totaling approximately $3.9 million (prior to closing adjustments).

Management continues to evaluate opportunities that would improve financial flexibility and allow the Company to accelerate the development of its large inventory of low risk light oil and natural gas drilling locations.

March Dividend

The Board has approved the March cash dividend of $0.0225 per share payable on April 15, 2014 to shareholders of record on March 27, 2014. The ex-dividend date will be March 25, 2014.

The dividend policy of Spyglass is at the discretion of the Board and is reviewed monthly in the context of a number of factors including current and forecast commodity prices, foreign exchange rates, an active commodity price risk management program, status of current operations and future investment opportunities.

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 2014, Spyglass has approximately 47 percent of its estimated crude oil production hedged at an average fixed price of WTI CDN$94.50/bbl. In addition, Spyglass has hedged the Western Canadian Select ("WCS") oil differential at CDN$23.35/bbl for 2014 on 1,000 bbls/day. The company has hedged approximately 56 percent of its estimated natural gas production at an average fixed price of $3.79/Mcf. Spyglass has protected an additional 4 percent of its estimated natural gas production by purchasing put options with an average floor price of $3.59/Mcf.

For calendar 2015, Spyglass currently has approximately 12 percent of its estimated crude oil production hedged at an average fixed price of WTI CDN$98.12/bbl. In addition, the Company has hedged WCS at CDN$22.80/bbl for 2015 on 500 bbls/day. The Company has hedged approximately 4 percent of its estimated natural gas production at an average fixed price of $4.24/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, 50 percent of 2014 power requirements are hedged at $54.12 per Megawatt hour ("MWH") and 40 percent of 2015 power requirements are hedged at $51.33/MWH.

The Company's mature, low decline producing assets coupled with its extensive capital efficient light oil development opportunities provide the scale, stability and diversification to support a sustainable monthly cash dividend to shareholders.

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.

"Cash dividends per share" represents cash dividends declared per share by Spyglass.

"Basic Payout ratio" is calculated as cash dividends declared divided by funds from operations.

"All-in payout ratio" is calculated as cash dividends declared plus capital expenditures (net of dispositions) divided by funds from operations.

"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, 2013, 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, 2013, 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; (x) 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; (x) 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 2012 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.

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