Raging River Exploration Inc. Announces First Quarter Operating and Financial Results, Increases 2017 Guidance and Reaffirms Credit Facilities
Raging River Exploration Inc. (the "Company" or "Raging River") (TSX:RRX) announces its operating and financial results for the three months ended March 31, 2017. Selected financial and operational information is outlined below and should be read in conjunction with the unaudited interim financial statements and the related management's discussion and analysis ("MD&A"). These filings will be available at www.sedar.com and the Company's website at www.rrexploration.com.
FIRST QUARTER 2017 HIGHLIGHTS
REAFFIRMS CREDIT FACILITIES
Raging River's borrowing base was reviewed and we are pleased to announce that the syndicate of lenders underwriting the Company's credit facilities have unanimously reaffirmed the borrowing base at $400 million, on similar terms. The next borrowing base redetermination is scheduled for October 2017.
UPDATED 2017 GUIDANCE
The board of directors have approved an updated capital budget of $340 million, an increase of 10% from the previously approved $310 million budget. The continued strength of the balance sheet has given the Company the flexibility to increase the budget to fund several key initiatives including:
Break-up conditions to date have been normal. Three of 31 drilled but uncompleted wells were completed in mid-April and are currently on-stream. We anticipate that completion activities on the remaining drilled but uncompleted wells will begin around May 15th. Raging River's four operated drilling rigs are expected to commence operations prior to June 1st.
With limited new production additions not expected until late in the second quarter of 2017, we estimate that the second quarter production levels will be approximately 3% lower than first quarter production levels with significant growth in the second half of 2017.
Extended reach horizontal ("ERH") well results continue to be strong. To date, the Company has placed 73.3 net ERH wells on production with 50% of the wells on stream for six months. Average per well results show a 1.8 to 2.0 times improvement over the comparable offsetting short lateral wells. As a result of the ERH success, we continue to optimize our drilling program and expect that 50% of the remaining wells drilled in 2017 will now be ERH wells.
Raging River has successfully adjusted for the new paradigm in long term WTI crude oil prices of approximately US$50/bbl. From January 2015 through to March 2017, WTI crude oil prices have averaged US$46.70/bbl. During this period of time Raging River has:
Additional corporate information can be found in our corporate presentation on our website at www.rrexploration.com.
Raging River Exploration Inc. is a junior oil and gas producer currently focused in the Kindersley area of Saskatchewan. The experienced management of RRX has had a successful track record of building four previously successful oil and gas production companies including Wild Stream Exploration and Wild River Resources which were both sold to Crescent Point Energy Corp.
RRX commenced active operations with the closing of an arrangement agreement with Crescent Point on March 15, 2012.
SOURCE: Raging River Exploration Inc.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.