Longview Announces 2012 Guidance and Capital Budget
Longview Oil Corp. (LNV.TO), which rose 17 cents or 1.7% yesterday, announced that the Board of Directors had approved operational guidance and a capital budget of approximately $73 million for the year ending December 31, 2012. The following summarizes operational guidance for Longview for the year ending December 31, 2012: Production 6,600 boe/d to 6,800 boe/d; percentage of oil & liquids 77%; Exit rate 6,800 boe/d to 7,000 boe/d; production growth 8.0%; Royalty rate 18% to 20%; Operating expenses $16.00/boe to $17.00/boe; Capital expenditures $70 million to $75 million.
Based on the mid-range of guidance, funds from operations for 2012 is estimated at $91 million. Commodity price assumptions include: WTI oil price of $94.09 US/bbl, a Cdn/U.S. exchange rate of $0.96 and a Nymex natural gas price of $3.39 US/mmbtu. Longview's commodity price hedging positions are included in the funds from operations estimate. Also, virtually 100% of the capital budget is focused on oil or oil with liquids rich solution gas projects.
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