Marquee Energy Ltd. Announces Corporate Update, Year-End 2016 Financial and Operating Results and Year-End 2016 Reserves
Marquee Energy Ltd. ("Marquee" or the "Company") (TSX VENTURE: MQX) announces a corporate update, its fourth quarter operational results and financial results for the three and twelve months ended December 31, 2016, and year-end 2016 reserves. The Company's financial statements and Management's Discussion and Analysis ("MD&A") for the three months and twelve months ended December 31, 2016 are available on SEDAR at www.sedar.com and on Marquee's website at www.marquee-energy.com.
In response to persistent low commodity prices throughout 2016, the Company reduced its capital budget and focused its efforts over the past year on improving its balance sheet and liquidity position in order to re-position the Company to resume development of its light oil asset at Michichi, Alberta.
During the second quarter of 2016, the Company disposed of non-core shallow gas assets and heavy oil assets for net proceeds of $5.1 million, reducing decommissioning liabilities by $31.5 million and eliminating future capital commitments of $22.3 million.
On December 6, 2016, Alberta Oilsands Inc. ("AOS") and Marquee Energy Ltd. ("Old Marquee"), completed a plan of arrangement pursuant to which AOS acquired all of the issued and outstanding shares of Old Marquee and Old Marquee became a wholly-owned subsidiary of AOS (the "Arrangement"). Immediately following the Arrangement, Old Marquee was amalgamated into AOS by way of short-form vertical amalgamation, to form the Company, which operates under the name of "Marquee Energy Ltd". The Company reports on SEDAR under the previous AOS profile. This transaction, in combination with the rationalization of non-core properties during 2016, reduced bank debt to $15.8 million at December 31, 2016 representing a reduction of $36.6 million from December 31, 2015.
Highlights of the Company's asset base include:
The Company's Board of Directors approved a capital program of approximately $7.0 million for the first half of 2017. Marquee remains focused on the management of its balance sheet and believes it is prudent to limit capital spending to free corporate cash flow at this time. Details on guidance for 2017 and further capital plans for the year will be forthcoming.
The Company recently completed its Q1 2017 drilling program at Michichi with all three wells being placed on production in early April. The three wells continue to clean-up post completion, and over the last week have averaged 180 boe/d per well (based on field estimates). Marquee will provide further well performance updates as it becomes available.
ANNUAL GENERAL MEETING OF SHAREHOLDERS
The Company's Annual General Meeting of Shareholders is scheduled for 2:00 PM on Monday June 26, 2017 in the Strand/Tivoli room at the Metropolitan Conference Centre in Calgary, AB. The record date for the meeting has been set as May 23, 2017.
Marquee is a Calgary based, junior energy company focused on light oil development and production in the Michichi area of eastern Alberta through the exploitation of existing opportunities and possible consolidation. Marquee's shares trade on the TSX Venture Exchange under the trading symbol "MQX". Additional information about Marquee may be found on its website www.marquee-energy.com and in its continuous disclosure documents filed with Canadian securities regulators on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.
SOURCE: Marquee Energy Ltd.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.