Coelacanth Energy Inc. Announces $52 Million Revolving Bank Credit Facility and Fall Drilling Program
Coelacanth Energy Inc. (TSXV: CEI) has announced a $52 million revolving bank credit facility and the commencement of a 4-well drilling program at Two Rivers East. The program includes drilling and completing 3 Lower Montney wells, completing 1 previously drilled Upper Montney well, and drilling a Bluesky disposal well, with a total cost of approximately $36 million. The company has also secured a $22 million commitment from a Mid-Stream company to finance a pipeline. Coelacanth estimates it will have approximately $40 million net debt plus the mid-stream commitment once the drilling program is completed and the facility is operational. The company's production is expected to stabilize at over 6,000 boe/d until additional wells are drilled in summer 2025. Additionally, Coelacanth plans to extend the expiry date of its share purchase warrants to June 30, 2025.
Coelacanth Energy Inc. (TSXV: CEI) ha annunciato un linea di credito bancario revolving di 52 milioni di dollari e l'avvio di un programma di perforazione di 4 pozzi a Two Rivers East. Il programma prevede la perforazione e completamento di 3 pozzi Lower Montney, il completamento di 1 pozzo Upper Montney già perforato, e la perforazione di un pozzo di smaltimento Bluesky, con un costo totale di circa 36 milioni di dollari. L'azienda ha anche ottenuto un impegno di 22 milioni di dollari da parte di una compagnia Mid-Stream per finanziare un gasdotto. Coelacanth stima che avrà circa 40 milioni di dollari di debito netto più l'impegno mid-stream una volta completato il programma di perforazione e operativa la linea di credito. Si prevede che la produzione dell'azienda si stabilizzerà a oltre 6.000 boe/d fino a quando non saranno perforati ulteriori pozzi nell'estate del 2025. Inoltre, Coelacanth intende estendere la data di scadenza dei suoi warrant per l'acquisto di azioni al 30 giugno 2025.
Coelacanth Energy Inc. (TSXV: CEI) ha anunciado una línea de crédito bancario revolvente de 52 millones de dólares y el inicio de un programa de perforación de 4 pozos en Two Rivers East. El programa incluye la perforación y finalización de 3 pozos Lower Montney, la finalización de 1 pozo Upper Montney previamente perforado, y la perforación de un pozo de desecho Bluesky, con un costo total de aproximadamente 36 millones de dólares. La empresa también ha asegurado un compromiso de 22 millones de dólares de una compañía Mid-Stream para financiar un oleoducto. Coelacanth estima que tendrá aproximadamente 40 millones de dólares en deuda neta más el compromiso mid-stream una vez que se complete el programa de perforación y la línea de crédito esté operativa. Se espera que la producción de la empresa se estabilice en más de 6,000 boe/d hasta que se perforen más pozos en el verano de 2025. Además, Coelacanth planea extender la fecha de vencimiento de sus warrants de compra de acciones hasta el 30 de junio de 2025.
Coelacanth Energy Inc. (TSXV: CEI)는 5천2백만 달러 규모의 회전식 은행 신용 시설을 발표하고 Two Rivers East에서 4개 우물의 시추 프로그램을 시작했습니다. 이 프로그램은 3개의 Lower Montney 우물을 시추 및 완료하고, 이전에 시추된 1개의 Upper Montney 우물을 완료하며, Bluesky 폐기물 처분 우물을 시추하는 것을 포함하며, 총 비용은 약 3천6백만 달러입니다. 회사는 또한 파이프라인 자금을 지원하기 위해 Mid-Stream 회사로부터 2천2백만 달러의 약속을 확보했습니다. Coelacanth는 시추 프로그램이 완료되고 시설이 운영되면 약 4천만 달러의 순부채와 함께 mid-stream 약속이 있을 것으로 추정하고 있습니다. 이 회사의 생산량은 2025년 여름에 추가 우물이 시추되기 전까지 6,000 boe/d 이상으로 안정될 것으로 예상됩니다. 또한, Coelacanth는 주식 매수권의 만료일을 2025년 6월 30일로 연장할 계획입니다.
Coelacanth Energy Inc. (TSXV: CEI) a annoncé une facilité de crédit bancaire revolving de 52 millions de dollars et le lancement d'un programme de forage de 4 puits à Two Rivers East. Le programme comprend le forage et l'achèvement de 3 puits Lower Montney, l'achèvement d'un puits Upper Montney déjà foré et le forage d'un puits d'élimination Bluesky, avec un coût total d'environ 36 millions de dollars. La société a également obtenu un engagement de 22 millions de dollars d'une entreprise Mid-Stream pour financer un pipeline. Coelacanth estime qu'elle aura environ 40 millions de dollars de dette nette plus l'engagement mid-stream une fois le programme de forage terminé et la facilité opérationnelle. La production de la société devrait se stabiliser à plus de 6 000 boe/j jusqu'à ce que d'autres puits soient forés à l'été 2025. De plus, Coelacanth prévoit de prolonger la date d'expiration de ses bons d'achat d'actions au 30 juin 2025.
Coelacanth Energy Inc. (TSXV: CEI) hat eine revolvierende Bankkreditfazilität in Höhe von 52 Millionen Dollar und den Beginn eines Bohrprogramms mit 4 Brunnen in Two Rivers East angekündigt. Das Programm umfasst die Bohrung und Fertigstellung von 3 Lower Montney-Brunnen, die Fertigstellung eines zuvor gebohrten Upper Montney-Brunnens und die Bohrung eines Bluesky-Entsorgungsbrunnens, mit Gesamtkosten von etwa 36 Millionen Dollar. Das Unternehmen hat außerdem ein Engagement über 22 Millionen Dollar von einem Mid-Stream-Unternehmen gesichert, um eine Pipeline zu finanzieren. Coelacanth schätzt, dass es nach Abschluss des Bohrprogramms und dem Betrieb der Fazilität etwa 40 Millionen Dollar Nettoverschuldung plus das Mid-Stream-Engagement haben wird. Es wird erwartet, dass die Produktion des Unternehmens bei über 6.000 boe/d stabil bleibt, bis im Sommer 2025 weitere Brunnen gebohrt werden. Darüber hinaus plant Coelacanth, das Ablaufdatum seiner Bezugsrechte auf den 30. Juni 2025 zu verlängern.
- Secured $52 million revolving bank credit facility
- Commenced 4-well drilling program at Two Rivers East
- Obtained $22 million commitment from Mid-Stream company for pipeline financing
- Expected production to stabilize at over 6,000 boe/d after facility becomes operational
- Previously drilled Lower Montney wells tested at average 1,338 boe/d per well
- Estimated $40 million net debt plus mid-stream commitment after drilling program completion
- Share purchase warrants expiry date extension may lead to potential dilution
Calgary, Alberta--(Newsfile Corp. - October 7, 2024) - Coelacanth Energy Inc. (TSXV: CEI) ("Coelacanth" or the "Company") announces that it has secured a
TWO RIVERS EAST PROJECT
Coelacanth has commenced drilling on the 5-19 Pad at Two Rivers East with the first well spud on September 1st. The complete program consists of drilling and completing 3 Lower Montney wells, completing 1 previously drilled Upper Montney well, and drilling a Bluesky disposal well for a total cost of approximately
As previously released, the three 5-19 Lower Montney wells drilled in 2023 had tested at a per well average of 1,338 boe/d for a combined rate of 4,014 boe/d (
Strategic benefits of this program are as follows:
- Accelerating the growth profile of the overall company
- Adding material drilling inventory through proving commerciality of Upper Montney
- Reducing risk in processing and transportation commitments
- Minimizing disruptions on start-up of new facility by having wells completed in advance
- Increasing financial and operational flexibility in 2025 capital program
- Creating additional production certainty for future decisions on third-party processing and build-out of additional facilities
Also as previously released, Coelacanth obtained all regulatory approvals to construct a new battery facility ("Facility") at Two Rivers East designed for gas compression/dehydration, oil treating and water handling, plus gathering and transport lines to connect from the 5-19 Pad through the Facility to a mid-stream gathering line. Construction of the pipelines and the facility site have already commenced and estimated to be operational in April 2025.
BANK CREDIT FACILITY AND FINANCIAL UPDATE
Coelacanth secured 2 revolving bank credit facilities for a total of
Coelacanth had also previously secured a commitment for approximately
With over
SHARE PURCHASE WARRANTS
As part of the
Proceeds of the Warrant exercise, if any, would be used for additional pad drilling at Two Rivers East scheduled for summer of 2025.
FOR FURTHER INFORMATION PLEASE CONTACT:
COELACANTH ENERGY INC.
2110, 530 - 8th Ave SW
Calgary, Alberta T2P 3S8
Phone: 403-705-4525
www.coelacanth.ca
Mr. Robert J. Zakresky
President and Chief Executive Officer
Mr. Nolan Chicoine
Vice President, Finance and Chief Financial Officer
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Oil and Gas Terms
The Company uses the following frequently recurring oil and gas industry terms in the news release:
| Liquids | |
| Bbls | Barrels |
| Bbls/d | Barrels per day |
| NGLs | Natural gas liquids (includes condensate, pentane, butane, propane, and ethane) |
| Natural Gas | |
| Mcf | Thousands of cubic feet |
| Mcf/d | Thousands of cubic feet per day |
| MMcf/d | Millions of cubic feet per day |
| Oil Equivalent | |
| Boe | Barrels of oil equivalent |
| Boe/d | Barrels of oil equivalent per day |
Disclosure provided herein in respect of a boe may be misleading, particularly if used in isolation. A boe conversion rate of six thousand cubic feet of natural gas to one barrel of oil equivalent has been used for the calculation of boe amounts in the news release. This boe conversion rate is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Product Types
The Company uses the following references to sales volumes in the news release:
Natural gas refers to shale gas
Oil refers to tight oil
NGLs refers to butane, propane and pentanes combined
Liquids refers to tight oil and NGLs combined
Oil equivalent refers to the total oil equivalent of shale gas, tight oil, and NGLs combined, using the conversion rate of six thousand cubic feet of shale gas to one barrel of oil equivalent as described above.
Forward-Looking Information
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "should", "believe", "intends", "forecast", "plans", "guidance" and similar expressions are intended to identify forward-looking statements or information.
More particularly and without limitation, this document contains forward-looking statements and information relating to the Company's oil, NGLs and natural gas production and capital programs. The forward-looking statements and information are based on certain key expectations and assumptions made by the Company, including expectations and assumptions relating to prevailing commodity prices and exchange rates, applicable royalty rates and tax laws, future well production rates, the performance of existing wells, the success of drilling new wells, the availability of capital to undertake planned activities and the availability and cost of labor and services.
Although the Company believes that the expectations reflected in such forward-looking statements and information are reasonable, it can give no assurance that such expectations will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production, delays or changes in plans with respect to exploration or development projects or capital expenditures, the uncertainty of estimates and projections relating to production rates, costs and expenses, commodity price and exchange rate fluctuations, marketing and transportation, environmental risks, competition, the ability to access sufficient capital from internal and external sources and changes in tax, royalty and environmental legislation. The forward-looking statements and information contained in this document are made as of the date hereof for the purpose of providing the readers with the Company's expectations for the coming year. The forward-looking statements and information may not be appropriate for other purposes. 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.
Test Results and Initial Production Rates
The C5-19 Lower Montney well was production tested for 5.8 days and produced at an average rate of 736 bbl/d oil and 2,660 mcf/d gas (net of load fluid and energizing fluid) over that period which includes the initial cleanup where only load water was being recovered. At the end of the test, flowing wellhead pressure and production rates were stable.
The D5-19 Lower Montney well was production tested for 12.6 days and produced at an average rate of 170 bbl/d oil and 580 mcf/d gas (net of load fluid and energizing fluid) over that period which includes the initial cleanup where only load water was being recovered. At the end of the test, flowing wellhead pressure and production rates were stable.
The E5-19 Lower Montney well was production tested for 11.4 days and produced at an average rate of 312 bbl/d oil and 890 mcf/d gas (net of load fluid and energizing fluid) over that period which includes the initial cleanup where only load water was being recovered. At the end of the test, flowing wellhead pressure was stable, and production was starting to decline.
A pressure transient analysis or well-test interpretation has not been carried out on these four wells and thus certain of the test results provided herein should be considered to be preliminary until such analysis or interpretation has been completed. Test results and initial production rates disclosed herein, particularly those short in duration, may not necessarily be indicative of long-term performance or of ultimate recovery.
Production Rates
Any references to peak rates, test rates, IP30, IP90, IP180 or initial production rates or declines are useful for confirming the presence of hydrocarbons, however, such rates and declines are not determinative of the rates at which such wells will continue production and decline thereafter and are not indicative of long-term performance or ultimate recovery. IP30 is defined as an average production rate over 30 consecutive days, IP90 is defined as an average production rate over 90 consecutive days and IP180 is defined as an average production rate over 180 consecutive days. Readers are cautioned not to place reliance on such rates in calculating aggregate production for the Company.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/225700
FAQ
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When is Coelacanth Energy's (CEIEF) Two Rivers East facility expected to be operational?
