Charger Energy Corp. Announces 2012 First Quarter Results
05/28/2012| 08:19pm US/Eastern
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CALGARY, ALBERTA--(Marketwire - May 28, 2012) -
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Conversion of natural gas volumes to barrels of oil
equivalent (boe) are at 6:1.
Charger Energy Corp. ("Charger", the
"Company") (TSX VENTURE:CHX) announces its
unaudited interim financial and operating results for the
quarter ended March 31, 2012. Charger has filed interim
Financial Statements and Management's Discussion and
Analysis on www.sedar.com
and on the Company's website at www.chargerenergy.com
.
Activities and Results for the First Quarter of 2012
-
Closed strategic four-company business combination,
creating a publicly traded company with a large, light oil
focused land base and drilling inventory in the Viking
resource play in the Halkirk-Provost area of Alberta (see
'Plan of Arrangement' below);
-
Capital spending totalled $10.8 million during the first
quarter of 2012 and was focused primarily on development of
the Viking light oil play in the Halkirk-Provost core area
where the Company successfully drilled 2 and completed and
equipped 5 horizontal oil wells during the quarter;
-
As a result of encouraging initial drilling results and the
acquisition of the Silverback lands, Charger has moved to
infill drilling in 3 high priority Viking oil prone areas
at Halkirk, Neutral Hills and Consort;
-
The Company has achieved stabilized 30-day production rates
ranging from 80 to 140 boe/d per well from several recent
wells in the Neutral Hills and Consort areas that were
placed on production in late 2011 and the first quarter of
2012;
-
Commenced drilling a 4 well pad at Neutral Hills in March
which is expected to be completed, equipped, tied-in and
placed on production by mid-June 2012. The Company is very
encouraged by the initial production rates from these new
wells which are consistent with Charger's previous
successful results in the Neutral Hills area; and
-
First quarter exit production was approximately 3,250 boe/d
(30% oil and liquids), reflecting encouraging results in
the Halkirk-Provost area offsetting production declines at
Wapiti.
Plan of Arrangement
On March 6, 2012, Charger completed a business combination by
way of a plan of arrangement ("the Arrangement")
with Seaview Energy Inc. ("Seaview"), Silverback
Energy Ltd. ("Silverback") and Sirius Energy Inc.
("Sirius") whereby Charger, Silverback and Sirius
(all private companies) exchanged all of their issued and
outstanding shares for Class A shares of Seaview. On
completion of the Arrangement, the resulting entity was
renamed Charger Energy Corp. The Class A shares outstanding
upon closing of the Arrangement totaled approximately 67.3
million.
The Arrangement was considered a "reverse takeover"
transaction under applicable securities legislation, and as a
result, Charger became the reporting issuer. As such, results
for the first quarter of 2012 are presented on a standalone
basis from January 1 to March 5, 2012 and from March 6 to
March 31, 2012, incorporate the Arrangement and the combined
financial and operating results for the four companies.
Additional details concerning the Arrangement are included in
the Joint Information Circular of Charger, Seaview,
Silverback and Sirius dated February 2, 2012 which is filed
on SEDAR at www.sedar.com.
Outlook
Charger expects to commence producing 4 new Viking horizontal
wells in the Neutral Hills area in June. These wells have
been drilled and completed and are currently being equipped
and tied in. The Company is also constructing a multi-well
battery at Neutral Hills which will provide 4,000 bbl/d of
processing capacity for Charger's Viking light oil
production in the area.
Charger has identified 3 high priority development areas at
Neutral Hills, Consort and Halkirk within the Viking light
oil resource play based on promising initial drilling
results. In the Neutral Hills and Consort areas, the Company
has drilled several wells with 30-day stabilized production
rates of 80 to 140 boe/d. As a result of this initial
success, development has moved to multi-well pads which are
intended to enhance capital efficiencies and to optimize
development of the Viking play. The Company has identified
approximately 100 sections (64,000 net acres) which are
highly prospective for Viking light oil development from its
extensive land position in the Halkirk-Provost area.
Charger will focus its 2012 capital program in the
Halkirk-Provost area on Viking light oil development
opportunities. The Company will also continue to evaluate
strategic acquisition and capital market opportunities and
monitor commodity market conditions, in order to prudently
manage capital spending and financial resources in the best
interest of shareholders. Management may choose to revise its
$60 million 2012 capital program in the context of such
evaluation.
Charger's strategy is to grow shareholder value by
focusing primarily on acquiring, developing and producing
light oil resource plays in Western Canada using horizontal
drilling and multi-stage fracturing technology. The Company
is pursuing a growth strategy focused on building a large
undeveloped land base and drilling inventory through a
combination of strategic acquisitions, farm-ins and crown
land acquisitions.
About Charger Energy Corp.
Charger is a Calgary, Alberta based crude oil and natural gas
company that trades on the TSX Venture Exchange under the
symbol "CHX". The Company is committed to
maximizing value for its shareholders through successful
drilling of internally
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