Spartan Energy Corp. Announces Drilling Update; Provides Production Guidance for the Year 2014
Sep 8 14
Spartan Energy Corp. has managed to drill just 13 (11.1 net) horizontal wells and had nine (7.6 net) wells on production at the end of August, 2014 instead of the budgeted 25 (19 net) wells between June 2014 through the end of August 2014, with 19 (16.8 net) wells expected to be on production by the end of August 2014. Wet weather has continued to plague southeast Saskatchewan during the spring and summer. The drilling program included wells in a number of areas within the Frobisher fairway, several of which were designed to test the more unproven parts of the company's asset base. To date, Spartan has drilled six (5.3 net) Frobisher wells in the Cantal, Hastings, Wauchope and Queensdale areas, three (2.8 net) Frobisher and two (1.5 net) open-hole Midale horizontal wells in the Workman area, and one (0.5 net) horizontal well at Crystal Hills in the Souris Valley formation. The company also drilled its first well in the fracture-stimulated Midale play, where it has accumulated approximately 47 sections of land with potential for frac Midale wells. The well was drilled in the Elcott area and is currently being completed. The company plans to drill an additional 10 Viking horizontal wells in 2014, resulting in a total of 20.5 net wells planned for the year 2014.
The company provided production guidance of the year 2014 is unchanged at an annual average of 5,700 boe per day and an exit rate of 8,600 boe per day.
Spartan Energy Corp. Reports Earnings and Operating Results for the Second Quarter and Six Months Ended June 30, 2014; Provides Production Guidance for the Third Quarter of 2014; Announces Executive Changes
Aug 14 14
Spartan Energy Corp. reported earnings and operating results for the second quarter and six months ended June 30, 2014. For the quarter, the company reported funds flow from operations of CAD 24,371,000 or CAD 0.09 per diluted share. Net income was CAD 1,357,000 or CAD 0.01 per diluted share. Capital expenditures were CAD 6,578,000. The company's balance sheet remains strong with approximately CAD 59 million of net debt at the end of the quarter.
For the six months, the company reported funds flow from operations of CAD 27,466,000 or CAD 0.10 per diluted share. Net income was CAD 16,357,000 or CAD 0.09 per diluted share. Capital expenditures were CAD 10,584,000.
The company improved production 666% during the second quarter of 2014, to 6,396 boe per day compared to 835 boe per day during the same quarter in 2013, primarily a result of acquiring Renegade Petroleum Ltd. (DOB, Feb. 12, 2014) and property in Area 5 earlier in 2014. In just six months, management has grown production from 664 boe per day in the fourth quarter of 2013 to 6,396 boe per day in the second quarter of 2014.
For the six months, the company reported average daily production of 3,638 boe/d.
Although downtime and delays to capital program experienced due to the rain and flooding in June and July are expected to impact average production levels in the third quarter, the company remains positioned to meet its stated 2014 average production rate of 5,700 boe/d and exit production rate of 8,600 boe/d.
Spartan Energy Corp. announced that Michelle Wiggins, Vice-President Finance and Chief Financial Officer, has tendered her resignation to the company to address certain health issues. In addition to her current role with the Company, Ms. Wiggins was a founder and officer of each of Spartan Oil Corp. and Spartan Exploration Ltd. Ms. Wiggins will be replaced on an interim basis by Mr. Adam MacDonald. Mr. MacDonald is currently the Company's Controller and served as Controller of Renegade Petroleum Ltd. prior to its acquisition by Spartan.
Spartan Energy Seeks Acquisitions
Aug 14 14
Spartan Energy Corp. (TSX:SPE) plans to make acquisitions. Spartan Energy has a strong balance sheet with CAD 59 million of net debt and accredit facility of CAD 250 million providing flexibility to pursue additional per share growth through accretive acquisition opportunities.