Canada NewsWire
CALGARY, March 19, 2020
CALGARY, March 19, 2020 /CNW/ - Paramount Resources Ltd. ("Paramount" or the "Company") (TSX:POU) announces that, in response to the recent significant decline in global energy prices, it has revised its 2020 capital guidance to a range of $185 million to $250 million, a reduction of approximately 46% at mid-point from the originally planned range of $350 million to $450 million.
Forecast average sales volumes for 2020 under the revised capital guidance are expected to range between 70,000 Boe/d to 75,000 Boe/d (41% liquids), a reduction of approximately 6% at mid-point from the originally forecast range of 75,000 Boe/d to 80,000 Boe/d.
Revised Forecast | Original Forecast | |
Annual | 70,000 Boe/d to 75,000 Boe/d | 75,000 Boe/d to 80,000 Boe/d |
First Half | 70,000 Boe/d to 72,000 Boe/d | 70,000 Boe/d to 74,000 Boe/d |
Fourth Quarter | 70,000 Boe/d to 82,000 Boe/d | 84,000 Boe/d to 90,000 Boe/d |
The revised capital plans remain focused on the Company's liquids-rich Montney assets in the Grande Prairie Region. The Company will closely monitor commodity prices and market conditions as the capital program progresses and continue to aggressively pursue cost reduction opportunities. Paramount can further adjust its spending plans, if required, to prudently manage its capital resources.
ABOUT PARAMOUNT
Paramount is an independent, publicly traded, liquids-focused Canadian energy company that explores for and develops both conventional and unconventional petroleum and natural gas reserves and resources, including longer-term strategic exploration and pre-development plays, and holds a portfolio of investments in other entities. The Company's principal properties are located in Alberta and British Columbia. Paramount's Class A common shares are listed on the Toronto Stock Exchange under the symbol "POU".
ADVISORIES
Forward-looking Information
Certain statements in this press release constitute forward-looking information under applicable securities legislation. Forward-looking information typically contains statements with words such as "anticipate", "believe", "estimate", "will", "expect", "plan", "schedule", "intend", "propose", or similar words suggesting future outcomes or an outlook. Forward-looking information in this press release includes, but is not limited to:
Such forward-looking information is based on a number of assumptions which may prove to be incorrect. Assumptions have been made with respect to the following matters, in addition to any other assumptions identified in this press release:
Although Paramount believes that the expectations reflected in such forward-looking information are reasonable based on the information available at the time of this press release, undue reliance should not be placed on the forward-looking information as Paramount can give no assurance that such expectations will prove to be correct. Forward-looking information is based on expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by Paramount and described in the forward-looking information. The material risks and uncertainties include, but are not limited to:
The foregoing list of risks is not exhaustive. For more information relating to risks, see the section titled "Risk Factors" in Paramount's annual information form for the year ended December 31, 2019, which is available on SEDAR at www.sedar.com. The forward-looking information contained in this press release is made as of the date hereof and, except as required by applicable securities law, Paramount undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise.
Oil and Gas Measures and Definitions
The term "liquids" includes oil, condensate and other natural gas liquids (ethane, propane and butane).
This press release contains disclosures expressed as "Boe" and "Boe/d". "Boe" means barrel of oil equivalent and "Boe/d" means barrels of oil equivalent per day. Natural gas equivalency volumes have been derived using the ratio of six thousand cubic feet of natural gas to one barrel of oil when converting natural gas to Boe. Equivalency measures may be misleading, particularly if used in isolation. A conversion ratio of six thousand cubic feet of natural gas to one barrel of oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the well head. For the year ended December 31, 2019, the value ratio between crude oil and natural gas was approximately 45:1. This value ratio is significantly different from the energy equivalency ratio of 6:1. Using a 6:1 ratio would be misleading as an indication of value.
Additional information respecting the Company's oil and gas properties and operations, including a breakdown of 2019 annual and quarterly production volumes by product type, is provided in the Company's annual information form for the year ended December 31, 2019 which is available on SEDAR at www.sedar.com.
SOURCE Paramount Resources Ltd.
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