CALGARY, ALBERTA — (Marketwired) — 05/15/13 — Shoreline Energy Corp. (“Shoreline” or the “Company”) (TSX: SEQ) is pleased to announce financial and operating results from the first quarter of 2013. The Company generated record revenue of $6.5 million during the quarter as a direct result of wells drilled during Shoreline–s successful 2012 drilling program and through recent acquisitions. During the quarter, total proved plus probable reserve value increased to over $141 million upon the Company–s fourth and fifth acquisitions in the highly prolific Niobrara and Codell light oil play in Colorado. At present, the Company is producing at record levels, which based on field estimates is over 2,200 BOED, increasing its light oil and natural gas liquids weighting to approximately 35%. Cash flow and production for the Company is expected to increase materially in subsequent quarters as the effect of US acquisitions and successful Canadian drilling program are realized. A complete copy of the Company–s financial statements along with management–s discussion and analysis may be obtained at or on the Company–s website at .
Investor Information
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 reserves and production on its current lands and pays a quarterly dividend. Shoreline has 8,255,600 common shares outstanding. The Company–s common shares are currently listed on the TSX under the trading symbol “SEQ” and its debentures under the trading symbol “SEQ.DB”. Additional information regarding Shoreline is available under the Company–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 sign ificantl gy equivalency conversion ratio of 6:1, utilizing a conversion on a 6:1 basis is misleading as an indication of value.
Contacts:
Shoreline Energy Corp.
Mr. Trevor Folk
Chief Executive Officer
(403) 398-4070
Shoreline Energy Corp.
Mr. Kevin Stromquist
President & Chief Operating Officer
(403) 398-4075
Calgary Office
Suite 400, 209-8th Ave SW
Calgary, Alberta, T2P 1B8
(403) 767-9066
Investor Relations: MZ Group North America
Derek Gradwell
Senior Vice President, Natural Resources
949-259-4995