TSX Venture Exchange: IKM
CALGARY, Oct. 6, 2014 /CNW/ - Ikkuma Resources Corp. ("Ikkuma" or the "Corporation") is pleased to announce that the Corporation's Q4 2014 & 2015 capital expenditure budget, in the amount of $65 million, has been approved by the Corporation's Board of Directors. Ikkuma has built a drilling schedule consisting of approximately 25 (19 net) drill locations, based on by-pass pay, which represents more than 2 years of drilling inventory.
Most of Ikkuma's operations are expected to be executed during 2015. The capital expenditure budget has been designed to exploit conventional by-pass pay opportunities in the Canadian Foothills. Based on the nature of these conventional pools, Ikkuma is anticipating 2015 as a high-growth year and expects exit rate production to increase by approximately 34% to approximately 8,000 BOE/d (95% natural gas).
2014-2015 Guidance Highlights
The Company's guidance for 2014-2015 (15 months) is as follows:
|2014 exit production rate(1)||5,900 BOE/d (100% natural gas)|
|2015 exit production rate||8,000 BOE/d (95% natural gas)|
|2015 average production rate||6,500-7,500 BOE/d (96% natural gas)|
|Operating Cash flow(2)||$36 million ($11.67 / BOE)|
|G&A & Interest||$6 million ($2.00 / BOE)|
|2015 year end net debt||$9 million|
|Available Credit Facility(3)||$46 million|
|Drilling, completion & equipping||$45 million|
|Land & seismic||$13 million|
|Recompletion and optimization||$ 7 million|
|(1) Assuming no unscheduled facilities and pipeline restrictions.|
|(2) Pricing assumptions: 98$CDN/bbl Edmonton light; AECO price: $3.96/Mcf.|
|(3) Estimated as of December 31, 2015.|
Production volumes and associated cash flow which may result from Ikkuma's proposed asset acquisition announced on August 20, 2014 have not been included in this guidance. Subject to the closing of that acquisition, including compliance with all rights of first refusals relating thereto, the Corporation will revise its guidance in order to reflect additional volumes, higher cash flow, and lower declines resulting therefrom.
About Ikkuma Resources Corp.
Ikkuma Resources Corp is a diversified junior public oil and gas company listed on the TSX-V under the symbol "IKM", with holdings in both conventional and unconventional projects in Western Canada. The technical team has worked together for over a decade in the Foothills Region of Western Canada, through two successful, publicly traded companies. The unique skills and repeat success at exploiting a complex, potentially prolific play type are fundamental ingredients for a successful growth-oriented company in Western Canada. Corporation information can be found at: www.panterraresource.com.
Forward-Looking Statements and Information and Cautionary Statements
This press 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", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking statements or information. In particular, this press release contains forward-looking statements and information relating to the drilling inventory of the Corporation, 2015 being a high-growth year, the completion of the previously announced proposed asset acquisition, the timing of the commencement of drilling operations in late Q4 2014 or early Q1 2015, the commencement of an optimization and recompletion program inOctober 2014 and the operations to be carried out in connection therewith and the use of the data acquired therefrom and the Corporation's future financial position and operating results. Although Ikkuma believes that the expectations and assumptions on which the forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because Ikkuma cannot give any assurance that they 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 could differ materially from those currently anticipated due to a number of factors and risk. These include but are not limited to the risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital epxenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses; failure to obtain necessary regulatory approvals for planned operations; health, safety and environmental risks; uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures; volatility of commodity prices, currency exchange rate fluctuations; imprecision of reserve estimates; and competition from other explorers) as well as general economic conditions, stock market volatility, and the ability to access sufficient capital. We caution that the foregoing list of risks and uncertainties is not exhaustive.
In addition, the reader is cautioned that historical results are not necessarily indicative of future performance. The forward-looking statements and information contained in this press release are made as of the date hereof and Ikkuma undertakes no obligation to update publicly or revise any forward-looking statement or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Certain information set out herein may be considered as "financial outlook" within the meaning of applicable securities laws. The purpose of this financial outlook is to provide readers with disclosure regarding Ikkuma's reasonable expectations as to the anticipated results of its proposed business activities for the periods indicated. Readers are cautioned that the financial outlook may not be appropriate for other purposes.
Oil and Gas Advisory
In this press release, the abbreviation BOE means a barrel of oil equivalent derived by converting gas to oil in the ratio of 6 Mcf of gas to 1 bbl of oil (6 Mcf:1 bbl). BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6 Mcf:1 bbl, utilizing a conversion ratio on a 6 Mcf of gas to 1 bbl of oil basis may be misleading as an indication of value.
Neither 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.
SOURCE Ikkuma Resources Corp.
For further information:
Tim de Freitas
President and CEO
VP Finance & CFO
Ikkuma Resources Corp.
400, 540-5th Avenue S.W.
Calgary, AB, T2P 0M2
Phone : 403-261-5900
Fax : 403-261-5902