Lone Pine Resources Announces Increased 2011 Capital Budget and
CALGARY, ALBERTA -- (Marketwire) -- 11/21/11 -- Lone Pine Resources
Inc. ("Lone Pine" or the "Company") (NYSE:LPR)(TSX:LPR) today
announced an operational update from the fourth quarter of 2011
including an increase to the Company's 2011 capital budget, a
commodity risk management update, certain management and board of
director appointments and participation in an upcoming investor
Operational Update & Capital Budget Increase
To date in the fourth quarter of 2011, Lone Pine has drilled 9 gross
(9 net) wells at Evi with a 100% success rate and has completed and
brought onstream 8 gross (8 net) wells. Lone Pine has had
considerable success in the second half of 2012 in decreasing the
drilling time of its Evi wells. As a result of this improved
operational efficiency, the Company is currently drilling the last
two of its previously planned 42 net wells.
Based on the early completion of its planned 2011 Evi drilling
program, Lone Pine has increased its 2011 capital budget (excluding
acquisitions) to US$250 - US$260 million. The increase in the capital
budget will be allocated to Evi light oil drilling where the Company
plans to drill up to an additional 8 net wells prior to year-end. The
increased capital will accelerate the Company's first quarter of 2012
capital spending and it is not expected that any of the incremental
wells will be completed and brought onstream until 2012. Lone Pine
plans to announce its detailed 2012 capital budget and public
guidance in early January 2012.
Lone Pine has entered into additional commodity risk management
contracts on 1,000 bbls/d of crude oil for the period of January 1,
2012 to December 31, 2012. As of November 21, 2011, Lone Pine had
NYMEX natural gas and crude oil derivatives in place for the
remainder of 2011 and for 2012 covering the aggregate average daily
volumes and weighted average prices shown below.
Fourth Quarter 2011 Calendar 2012
Natural Gas Swaps:
Contract Volumes (MMBtu/d) 30,000 25,000
Weighted Average Price (US$/MMBtu) $ 4.85 $ 5.09
Crude Oil Swaps:
Contract Volumes (bbls/d) 2,000 2,000
Weighted Average Price (US$/bbl) $ 100.29 $ 102.35
Contract Volumes (bbls/d) - 1,000
Weighted Average Price (CDN$/bbl) - $ 100.98
Executive & Board of Director Appointments
Lone Pine is pleased to announce the appointment of Lyle H. Burke as
Vice President New Ventures & Technology. Mr. Burke has over 30 years
of petroleum engineering experience and joins Lone Pine from RPS
Energy, an international petroleum consulting firm, where he most
recently held the position of Vice President, Consulting Services.
Prior to joining RPS Energy's predecessor APA Petroleum Engineering
in 1987, Mr. Burke held various engineering positions with
Petro-Canada. Mr. Burke received a Bachelor of Science in Civil
Engineering from the University of Calgary and is a member of APEGGA
and the Society of Petroleum Engineers.
Lone Pine is also pleased to announce that Dale J. Hohm was appointed
to the Company's board of directors on November 17, 2011. Mr. Hohm
will serve as Chairman of the Audit and Reserves Committee. Mr. Hohm
is the Chief Financial Officer of MEG Energy Corp., a position he has
held since March 2004. Mr. Hohm has over 30 years of corporate
finance and accounting experience with 14 years of experience as the
Vice President, Finance or Chief Financial Officer of TSX-listed
companies engaged in oil and gas, upstream and services businesses.
Mr. Hohm received a Bachelor of Commerce from the University of
Alberta and is a Chartered Accountant.
Upcoming Investor Event
Edward J. Bereznicki, Executive Vice President & Chief Financial
Officer, will be presenting at the J.P. Morgan "SMid" Cap Conference
in New York City on Thursday, December 1, 2011 at 8:00am Eastern
Time. Interested parties can listen to a live webcast and view the
presentation slides at http://jpmorgan.metameetings.com/webcasts/smid
cap11/directlink?ticker=LPR.A replay of the presentation will be available on
Lone Pine's website
at www.lonepineresources.com for 30 days following the presentation.
Lone Pine Resources Inc. is engaged in the exploration and
development of natural gas and light oil in Canada. Lone Pine's
principal reserves, producing properties, and exploration prospects
are located in Canada in the provinces of Alberta, British Columbia,
and Quebec and the Northwest Territories. Lone Pine's common stock
trades on the New York Stock Exchange and the Toronto Stock Exchange
under the symbol LPR. For more information about Lone Pine, please
visit its website at www.lonepineresources.com.
Lone Pine Resources Inc.
President & Chief Executive Officer
Lone Pine Resources Inc.
Executive Vice President & Chief Financial Officer
Press spacebar to pause and continue. Press esc to stop.