CALGARY, ALBERTA — (Marketwire) — 05/15/12 — Shoreline Energy Corporation (“Shoreline” or the “Company”) (TSX: SEQ) announced today its first quarter 2012 financial and operating results, as well as record production levels. A complete copy of the Company–s financial statements along with management–s discussion and analysis may be obtained at or via the Corporation–s website at .
Highlights
During the quarter Shoreline continued to execute on its business plan of developing highly profitable light oil production and reserves in the Peace River Arch area of northwest Alberta, through drilling of relatively low cost conventional horizontal wells, and through drilling of vertical delineation wells in newly discovered pools. Over the period, Shoreline;
Q1 Financial Summary
Operational and Progress Area Update
Shoreline is pleased to announce that production commenced from the first horizontal Charlie Lake oil well (44.8% WI) drilled into the Company–s Progress core area on May 12, 2012. The well produced 195 barrels of light crude oil during a 14 hour in-line flow test (334 barrels per day) plus 70 mcf of natural gas (120 mcf per day). At these production levels, the 150 barrels per day of oil net to Shoreline–s working interest represents a 40% increase over the Company–s average Q1 2012 liquids production rate.
Following the tremendous results from Shoreline–s first horizontal oil well in the area the Company plans on accelerating the capital program in the Progress area in order to increase the company–s cash flow, and to decrease the dividend payout ratio. To accomplish this goal Shoreline will commence the drilling of the next two wells in June 2012, following spring breakup. The Company is anticipating drilling a total of four additional horizontal oil wells (1.8 net) in the Progress area during the remainder of 2012. The additional drilling locations are located in close proximity to the first well and will target the same Charlie Lake reservoir unit. All production from Progress will be produced through existing oil and gas pipelines to facilities where the Company owns a working interest.
Net Asset Value
Investor Information
Currently, Shoreline has 5,642,916 common shares outstanding. Shoreline is a Calgary, Alberta based corporation engaged in the exploration, development and production of petroleum and natural gas. Shoreline offers investors a combination of value growth via lower risk development of additional oil and gas reserves and production on its current lands, as well as through a quarterly dividend. The Corporation–s common shares are currently listed on the TSX under the trading symbol “SEQ.” Additional information regarding Shoreline is available under the Corporation–s profile at or at the Corporation–s website, .
Forward Looking and Cautionary Statements
This news release contains forward-looking statements relating to the Corporation–s plans and other aspects of the Corporation–s anticipated future operations, strategies, financial and operating results and business opportunities. These forward-looking statements may include opinions, assumptions, estimates, management–s assessment of value, reserves, future plans and operations.
Forward-looking statements typically use words such as “will,” “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “project,” “should,” “plan,” and similar expressions suggesting future outcomes, and include statements that actions, events or conditions “may,” “would,” “could,” or “will” be taken or occur in the future. The forward-looking statements are based on various assumptions including expectations regarding the success of current or future drill wells; the outlook for petroleum and natural gas prices; estimated amounts and timing of capital expenditures; estimates of future production; assumptions concerning the timing of regulatory approvals; the state of the economy and the exploration and production business; results of operations; business prospects and opportunities; future exchange and interest rates; the Corporation–s ability to obtain equipment in a timely manner to carry out development activities; and the ability of the Corporation to access capital and credit. While the Corporation considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
Forward-looking statements are subject to a wide range of assumptions, known and unknown risks and uncertainties and other factors that contribute to the possibility that the predicted outcome will not occur, including, without limitation: risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation; loss of markets; volatility of commodities prices; currency fluctuations; imprecision of reserves estimates; environmental risks; competition from other producers; inability to retain drilling rigs and other services; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions; general economic conditions; delays resulting from or inability to obtain required regulatory approvals and to satisfy various closing conditions; and ability to access sufficient capital from internal and external sources. Readers are cautioned that the foregoing list of factors is not exhaustive.
Although Shoreline believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements and you should not rely unduly on forward-looking statements. The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by applicable law, Shoreline does not undertake any obligation to publicly update or revise any forward-looking statements.
Note Regarding BOEs
The term barrel of oil equivalent (“boe”) may be misleading, particularly if used in isolation. A conversion ratio for gas of 6 mcf:1 boe 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 equivalency conversion ratio of 6:1, utilizing a conversion on a 6:1 basis is misleading as an indication of value.
Contacts:
Shoreline Energy Corporation
Mr. Trevor Folk
Chief Executive Officer
Shoreline Energy Corporation
Mr. Kevin Stromquist
President & Chief Operating Officer
Shoreline Energy Corporation
Calgary Office
c/o Suite 400, 209-8th Ave SW
Calgary, Alberta, T2P 1B8
(403) 767-9066
Shoreline Energy Corporation
Toronto Office
Suite 103, 145 King Street West
Toronto, Ontario, M5H 1J8