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Lone Pine Resources Announces 2012 Capital Budget and Guidance

Lone Pine Resources Inc. (LPR.TO), which lost 2% on Monday, today announced its capital budget and guidance for 2012, which will focus almost entirely on light oil opportunities within the company's deep portfolio of assets. Lone Pine has elected to pursue a 2012 capital program designed to maintain financial flexibility while focusing on high margin light oil projects. Lone Pine intends to invest $200-$220 million in 2012 and anticipates this capital budget will be approximately 1.1x forecasted adjusted discretionary cash flow.

Selected highlights from the company's 2012 capital budget and guidance include:

- Plans to allocate approximately $165 million, or approximately 80% of the total capital budget, to light oil at Evi.

- Plans to drill and complete up to 48 gross (48 net) horizontal wells at Evi

- Continue to advance Evi development through further downspacing and additional infill drilling.

- Average daily oil & NGLs net sales volumes of 5,500 bbls/d, representing an approximate 70% increase from 2011.

- Average daily equivalent net sales volumes of 95 - 99 MMcfe/d, representing an approximate 3% increase from 2011

- Average net liquids production weighting expected to increase from 21% in 2011 to 35% in 2012 including a 2012 exit weighting of approximately 40%

- Adjusted discretionary cash flow expected to increase by over 50% in 2012

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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