Kelt Provides 2013 Financial and Operating Guidance

Kelt Provides 2013 Financial and Operating Guidance 
CALGARY, ALBERTA -- (Marketwire) -- 03/07/13 -- Kelt Exploration Ltd.
("Kelt" or the "Company") (TSX:KEL) is pleased to provide financial
and operating guidance for 2013. Common shares of Kelt commenced
trading on the Toronto Stock Exchange on March 1, 2013 under the
symbol "KEL". 
2013 Guidance  
Kelt was recently formed as a junior oil and gas exploration and
development company resulting from a plan of arrangement involving
Celtic Exploration Ltd., ExxonMobil Canada Ltd., ExxonMobil Celtic
ULC, and Kelt (the "Arrangement"). As a result, guidance for 2013 is
based on a short year, commencing February 26, 2013 and ending
December 31, 2013.  
Kelt is optimistic about its future prospects. The Company is
opportunity driven and is confident that it can grow its production
base by building on its current inventory of development prospects
and by adding new exploration prospects. Kelt will endeavour to
maintain a high quality product stream that on a historical basis
receives a superior price with reasonably low production costs. In
addition, the Company will focus its exploration efforts in areas of
multi-zone hydrocarbon potential, primarily in west central Alberta
and north-eastern British Columbia.  
Kelt's Board of Directors has approved a 2013 capital expenditure
budget of $52.0 million. In addition, and in connection with the
Arrangement, approximately $25.0 million was incurred by Kelt with
respect to capital projects, including land acquisitions, prior to
the completion of the Arrangement on February 26, 2013. In aggregate,
the Company expects to spend $54.7 million on drilling and completing
wells, $11.0 million on facilities, equipment and pipelines, and
$11.3 million on land and seismic.  
Kelt expects production in 2013 to average between 3,700 and 3,900
BOE per day. At the mid-level of the range of 2013's average
production forecast, production is expected to be weighted 22% oil
and 78% gas; however, operating income in 2013 is expected to be
generated 59% from oil production and 41% from gas production. 
The Company's average commodity price assumptions for the period from
February 26, 2013 to December 31, 2013 are US$87.50 per barrel for
WTI oil, US$4.00 per MMBTU for NYMEX natural gas, $3.50 per GJ for 
AECO natural gas and a US/Canadian dollar exchange rate of US$0.9732.
These prices compare to average calendar 2012 prices of US$94.20 per
barrel for WTI oil, US$2.80 per MMBTU for NYMEX natural gas, $2.26
per GJ for AECO natural gas and a US/Canadian dollar exchange rate of
US$0.9994. After giving effect to the aforementioned production and
commodity price assumptions, funds from operations for 2013 is
forecasted to be approximately $20.5 million or $0.30 per common
share, diluted.  
Changes in forecasted commodity prices and variances in production
estimates can have a significant impact on estimated funds from
operations and profit. Please refer to the cautionary statement on
forward-looking statements and information set out below.  
The information set out herein under the heading "2013 Guidance" is
"financial outlook" within the meaning of applicable securities laws.
The purpose of this financial outlook is to provide readers with
disclosure regarding Kelt's reasonable expectations as to the
anticipated results of its proposed business activities for 2013.
Readers are cautioned that this financial outlook may not be
appropriate for other purposes. 
Financial Position and Land Holdings  
Kelt estimates 2013 year-end bank debt, net of working capital, will
be approximately $42.0 million. Kelt has established a demand
operating loan facility with the National Bank of Canada with an
authorized borrowing limit of $40.0 million. The Company expects to
increase its authorized borrowing limit during the year, as new
production and reserves are added.  
Kelt's current land holdings include 195,703 gross (105,915 net)
acres of land, of which 130,153 gross (70,084 net) acres are
undeveloped. The following table summarizes the Company's Triassic
Montney and Doig rights in its core areas at Inga, British Columbia
and Karr, Alberta: 

Property            Gross Acres      Net Acres    Average WI    Net Sections
Inga - Doig              39,207         15,023            38%           22.8
Inga - Montney           49,493         19,797            40%           30.0
Karr - Montney           17,280         16,960            98%           26.5

Kelt has entered into several farm-in arrangements whereby the
Company has committed to drill 3.75 net wells. In doing so, Kelt will
earn an additional 8.45 net sections (5,408 net acres) of Montney
land rights. 
Common Share Information  
Kelt current has approximately 67.1 million common shares issued and
outstanding, of which approximately 14.2 million (21.1%) are held by
officers and directors of the Company.  
Kelt's Board of Directors have also determined to approve, subject to
all necessary regulatory approvals, the grant of 1.5 million
restricted share units under its Restricted Share Unit Plan and 2.1
million stock options under its Stock Option Plan, to certain
directors, officers and employees of the Company, all in accordance
with the terms and conditions of those plans. The foregoing grants of
restricted share units and stock options are expected to represent
approximately 5.3% of Kelt's issued and outstanding common shares as
at the date hereof. 
About Kelt  
Kelt is a Calgary, Alberta, Canada-based oil and gas company focused
on exploration, development and production of crude oil and natural
gas resources, primarily in west central Alberta and northeastern
British Columbia. Kelt's land holdings are located in three core
areas: (a) a natural gas property at Grande Cache, Alberta; (b) a
liquids-rich natural gas property at Inga, British Columbia; and (c)
an oil prospect at Karr, Alberta. 
Cautionary Statement on Forward-Looking Statements and Information  
This press release contains forward-looking statements and
forward-looking information within the meaning of applicable
securities laws. The use of any of the words "expect", "anticipate",
"continue", "estimate", "objective", "ongoing", "may", "will",
"project", "should", "believe", "plans", "intends" and similar
expressions are intended to identify forward-looking information or
statements. In particular, forward-looking statements and information
in this press release include, but are not limited to: the ongoing
operations of Kelt.  
The forward-looking statements and information contained in this
press release are based on certain key expectations and assumptions
made by Kelt. Although Kelt believes that the expectations and
assumptions on which such forward-looking statements and information
are based are reasonable, undue reliance should not be placed on the
forward-looking statements and information because there can be no
assurance that they will prove to be correct.  
Since forward-looking statements and information address future
events and conditions, by their very nature they involve inherent
risks and uncertainties. Actual results could differ materially from
those currently 
anticipated due to a number of factors and risks.
These include, but are not limited to: operational risks in
development, exploration and production for oil and gas; delays or
changes in plans with respect to exploration or development projects
or capital expenditures; the uncertainty of reserve and resource
estimates; health, safety and environmental risks; commodity price
and exchange rate fluctuations; marketing and transportation; loss of
markets; environmental risks; competition, incorrect assessment of
the value of acquisitions; ability to access sufficient capital from
internal and external sources; management's assessment of future
plans and operations, production levels and the weighting thereof,
operating income, the 2013 capital expenditure budget, the nature of
capital expenditures, 2013 year-end bank debt, the grant of
restricted share units and stock options; and changes in legislation,
including but not limited to tax laws, royalties and environmental
regulations. Readers are cautioned that the forgoing list of factors
is not exhaustive.  
Management has included the above summary of assumptions and risks
related to the forward-looking statements and information provided in
this press release in order to provide Kelt shareholders with a more
complete perspective on the ongoing operations of Kelt and such
information may not be appropriate for other purposes. Actual
results, performance or achievement could differ materially from
those expressed in, or implied by, these forward-looking statements
and information and, accordingly, no assurance can be given that any
of the events anticipated by the forward-looking statements and
information contained in this press release will transpire or occur,
or if any of them do so, what benefits may be derived therefrom.  
The forward-looking statements and information contained in this
press release are made as of the date hereof and Kelt undertakes no
obligation to update publicly or revise any forward-looking
statements or information, whether as a result of new information,
future events, or results or otherwise, other than as required by
applicable securities laws. 
Measurements and Abbreviations  
All dollar amounts are referenced in Canadian dollars, except if
noted otherwise. Where amounts are expressed on a barrel of oil
equivalent ("BOE") basis, natural gas volumes have been converted to
oil equivalence at six thousand cubic feet per barrel and sulphur
volumes have been converted to oil equivalence at 0.6 long tons per
barrel. The term BOE may be misleading, particularly if used in
isolation. A BOE conversion ratio of six thousand cubic feet per
barrel is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value
equivalency at the wellhead. References to oil in this discussion
include crude oil and natural gas liquids ("NGLs"). NGLs include
condensate, pentane, propane, butane and ethane. References to gas in
this discussion include natural gas and sulphur.  
Working interest is abbreviated as "WI". Million cubic feet is
abbreviated as "mmcf". Thousand cubic feet is abbreviated as "mcf".
Barrels are abbreviated as "bbls". Giga joules are abbreviated as
"GJ". West Texas Intermediate is abbreviated as "WTI". New York
Mercantile Exchange is abbreviated as "NYMEX". The Alberta Energy
Company "C" Meter Station of the Nova Pipeline System is abbreviated
as "AECO".
Kelt Exploration Ltd.,
David J. Wilson
President and Chief Executive Officer
(403) 201-5340 
Kelt Exploration Ltd.,
Sadiq H. Lalani
Vice President, Finance and Chief Financial Officer
(403) 215-5310 
Kelt Exploration Ltd.,
Suite 600, 321 - 6th Avenue SW
Calgary, Alberta, Canada T2P 3H3
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