Pacific Exploration & Production Corporation (TSX: PEN) ("Pacific" or the "Company") announced today the release of its interim condensed consolidated financial statements for the first quarter of 2017, together with its management discussion and analysis. These documents will be posted on the Company's website at www.pacific.energy and SEDAR at www.sedar.com. All values in this news release and the Company's financial disclosures are in United States dollars unless otherwise stated.
Barry Larson, Chief Executive Officer of the Company, commented:
"Pacific is off to a great start and is positioned to perform well in 2017, a critical year, as the Company shifts focus and resources towards sustainable production through development drilling and growth through low-risk exploration. Our efforts to maximize the value of non-E&P related assets and reduce overall costs are evident in this quarter's results. Pacific's goal is to improve margins and drive higher returns for invested capital. The Company continues to negotiate field commitments to focus on high impact development drilling, while reviewing the broad set of upstream and midstream assets within the Company's portfolio with an emphasis on value-maximizing initiatives, reducing its commitments by $67.6 million during 2017. The first quarter of 2017 is a clear indication that everyone at Pacific is making the necessary adjustments to improve the Company's operational and financial performance."
First Quarter 2017 Results
During the first quarter of 2017, net production after royalties and internal consumption totalled 72,524 boe/d representing an increase of 4% compared with the fourth quarter of 2016. Drilling reactivation at the Company's heavy oil fields and incremental production from Block 192 in Peru were the main drivers for increased production in the quarter. The first quarter production decreased 69,813 boe/d (49%) from the average net production of 142,337 boe/d reported in the same period of 2016. The reduction was mainly attributable to the expiration of the Rubiales-Piriri contract on June 30, 2016; excluding Rubiales-Piriri barrels, production decreased 22% as a result of the lower drilling activity, natural declination and operational issues related to water disposal capacity experienced throughout 2016.
During the first quarter of 2017, heavy oil production from Quifa SW and other fields increased by 12% in comparison with the fourth quarter of 2016. During the first quarter of 2017, 21 development wells were drilled in the Quifa SW and CPE-6 fields. Light and medium net oil and gas production in Colombia totalled 40,666 bbl/d, decreasing by 4% compared the fourth quarter of 2016 (42,385 bbl/d). During the first quarter of 2017, five development wells have been drilled in the Cubiro, Guatiquia and Orito fields. Light and medium oil and heavy oil production now represent 52% and 39%, respectively, of total net oil and gas production. Additionally, gas production decreased by 10% compared with the year 2016, due to reservoir water encroachment issues, and, as of March 31, 2017, represented 9% of the total production.
First Quarter 2017 Conference Call Details:
As previously disclosed, a conference call for investors and analysts is scheduled for Tuesday, May 9, 2017 at 8:00 a.m. (Toronto time) and 7:00 a.m. (Bogotá time). Participants will include Barry Larson, Chief Executive Officer, Camilo McAllister, Chief Financial Officer and select members of the senior management team.
A presentation and webcast link will be available on the Company's website prior to the call, which can be accessed at www.pacific.energy.
Analysts and interested investors are invited to participate using the following dial-in numbers:
Participant Number (International/Local):
Participant Number (Toll free Colombia):
Participant Number (Toll free North America):
A replay of the conference call will be available until 11:59 p.m. (Toronto time) and 10:59 p.m. (Bogotá time), Tuesday, May 23, 2017 and can be accessed using the following dial-in numbers:
Encore Toll Free Dial-in Number:
Encore ID: 13779386
Pacific is a Canadian public company and a leading explorer and producer of natural gas and crude oil, with operations focused in Latin America. The Company has a diversified portfolio of assets with interests in more than 30 exploration and production blocks in Colombia and Peru. The Company's strategy is focused on sustainable growth in production & reserves and cash generation. Pacific is committed to conducting business safely, in a socially and environmentally responsible manner.
The Company's common shares trade on the Toronto Stock Exchange under the ticker symbol "PEN".
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.