Marquee Energy Ltd. Announces First Quarter 2017 Financial Results and 2017 Corporate Budget and Guidance
Marquee Energy Ltd. ("Marquee" or the "Company") (TSX VENTURE: MQX) announces its first quarter operational and financial results for the three months ended March 31, 2017. The Company's financial statements and Management's Discussion and Analysis ("MD&A") for the three months ended March 31, 2017 are available on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com and on Marquee's website at www.marquee-energy.com.
FIRST QUARTER 2017 FINANCIAL AND OPERATING HIGHLIGHTS
2017 CAPITAL BUDGET AND GUIDANCE
Further to its earlier press release also dated May 30, 2017, announcing the entering into of a term loan with Crown Capital Fund IV, LP, an investment fund managed by Crown Capital Partners Inc., and a new credit facility with a major Canadian bank (the "Credit Facility"), the Board of Directors of Marquee has approved a capital budget of approximately $15 million for the second half of 2017. The budgeting is based on an oil price of US$50WTI/barrel and a natural gas price of $2.75/GJ AECO. The capital program is expected to increase cashflow, production and reserves while leaving the Company undrawn on its Credit Facility at year-end.
Marquee is planning to drill six light oil horizontal Banff wells in the second half of 2017, and expects a year end corporate exit rate of 3,000 boe/d - 3,300 boe/d (25-37% production growth exit to exit). The production growth in 2017 is expected to increase the Company's oil and liquids weighting and reduce corporate unit operating costs generating an expected improvement of field netbacks by more than 40%.
The second half 2017 drilling program is anticipated to commence mid-June to early July, and expects to incorporate mono-bore drilling with increased frack stages to improve productivity and reserves recoveries while maintaining similar well costs as recent drilling. The capital spending also includes legacy horizontal well optimization, operating capital, normal course abandonment and reclamations costs as well as seismic and land acquisition expenditures.
Marquee's latest well results were press released on May 23, 2017 and the wells continue to perform above expected rates. The wells demonstrate strong economics at current commodity prices and provide high rates of return and cash netbacks.
ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS
The Company's Annual and Special Meeting of Shareholders (the "Meeting") is scheduled for 2:00 PM on Monday, June 26, 2017 in the Strand/Tivoli room at the Metropolitan Conference Centre in Calgary, Alberta. The record date for the meeting has been set at May 23, 2017.
At the Meeting, shareholders ("Shareholders") of Marquee's common shares ("Common Shares") will be asked to approve a special resolution (the "Consolidation Resolution") authorizing the Company to amend its Articles to effect a consolidation (the "Consolidation") of the Common Shares on the basis of one (1) post-consolidation Common Share for every thirty (30) pre-consolidation Common Shares then issued and outstanding, or such other number of pre-consolidation Common Shares as may be determined by the Board in its sole discretion, subject to the requirements of the TSX Venture Exchange. As of the date hereof, the Company has 435,772,196 Common Shares outstanding. Notwithstanding approval of the proposed Consolidation by the Shareholders, the Board may, in its sole discretion, revoke the Consolidation Resolution, and abandon the Consolidation without further approval or action by, or prior notice to, the Shareholders.
The Company believes that, if implemented, the Consolidation will help attract a new investor base and potentially increase liquidity. The Board believes that the Consolidation is in the best interest of the Company, and that the Consolidation will more closely align the issued and outstanding share capital of the Company with its financial valuation.
If approved and implemented, the Consolidation will occur simultaneously for all of the Company's issued and outstanding Common Shares and the consolidation ratio will be same for all such Common Shares. The Consolidation will affect all holders of Common Shares uniformly and will not affect any Shareholder's percentage ownership interest in the Company, except to the extent that the Consolidation would otherwise result in a Shareholder owning a fractional Common Share. No fractional post-consolidation Common Shares will be issued and no cash will be paid in lieu of fractional post-consolidation Common Shares. Any fractional Common Shares resulting from the Consolidation will be rounded to the nearest whole Common Share.
Marquee is a Calgary-based, junior energy company focused on light oil development and production in the Michichi area of eastern Alberta. 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 SEDAR at www.sedar.com.
SOURCE: Marquee Energy Ltd.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.