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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.

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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