Lone Pine Resources Announces Financial And Operations Update, Second Half 2011 Guidance And Executive Appointments
Lone Pine Resources Inc. (“Lone Pine” or the “Company”) (NYSE:LPR; TSX:LPR) today announced guidance for the second half of 2011, certain financial and operational information for the first six months of 2011 and executive appointments to the finance group. The following are highlights from the first six months of 2011:
- Estimated second quarter 2011 net production of 92 – 97 MMcfe/d including net production of 3,000 – 3,120 Bbls/d of liquids, which represents an increase of 13% and 58% compared to the first quarter of 2011, respectively.
- Drilled 17 gross (17 net) horizontal wells targeting the Slave Point light oil resource in the Evi field with a 100% success rate.
- Drilled 4 gross (3.5 net) wells in the Nikanassin resource play at Narraway with a 100% success rate including the drilling of 1 gross (1 net) horizontal well.
- Recently resumed drilling and completion operations at Evi and Narraway following spring break-up.
- Completed initial public offering on June 1, 2011 at a price of US$13.00 per common share raising total gross proceeds of US$195 million. Following the offering, Forest Oil Corporation (“Forest”) owns 82.3% of the outstanding common shares of Lone Pine. To our knowledge, Forest currently intends to distribute, or spin-off, to Forest’s shareholders its remaining ownership in Lone Pine approximately four months following the offering.
David M. Anderson, President and CEO, stated, “We are pleased to report our company guidance for the second half of 2011, which demonstrates the high quality nature of our asset base. Our capital plan for the remainder of the year is focused in our Evi light oil play in Northern Alberta and the Nikanassin resource play in the Deep Basin and is expected to yield equivalent production growth of approximately 26% compared to the second half of 2010. Approximately 60% of our capital will be allocated to our Evi light oil property, and importantly, provides for significant oil production growth of approximately 68% compared to the second half of 2010. Our portfolio of assets, including Evi, the Nikanassin resource play and our shale assets in Quebec and the Liard Basin, provide us with the ability to grow production while allocating capital to projects with the best returns. Each of these assets contain a significant inventory of drilling opportunities that have the ability to carry us well into the future. We feel our portfolio approach, and strict adherence to cost controls enables us to be one of the most efficient and profitable operators in Canada.”
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