Peyto Production Reaches 75,000 boe/d in 2013, Reserves Top 467 Million BOEs

Peyto Production Reaches 75,000 boe/d in 2013, Reserves Top 467 Million BOEs 
CALGARY, ALBERTA -- (Marketwired) -- 02/12/14 --   Peyto Exploration
& Development Corp. ("Peyto" or the "Company") (TSX: PEY) is pleased
to present the results and analysis of the independent reserve report
effective December 31, 2013. The evaluation encompassed 100% of
Peyto's reserve assets and was conducted by InSite Petroleum
Consultants ("InSite").  
This year marks the company's 15th year of profitable reserves
development and the largest organic capital program in Peyto's
history. Reserves per share grew in all categories with total
reserves now exceeding 2.8 Trillion Cubic Feet equivalent ("TCFe") or
467.8 Million Barrels of Oil equivalent ("MMBOE") at year end.  
Historical 


 
 
--  Over the past 15 years, Peyto has explored for and discovered 3.5 TCFe
    of Alberta Deep Basin natural gas and associated liquids, over 55% of
    which has now been developed. Each year the Company invests in the
    discovery of new reserves and the efficient and profitable development
    of existing reserves into high netback natural gas production. 
--  In total, $3.45 billion has been invested in the acquisition and
    development of the 2.0 TCFe of developed reserves at an average cost of
    $1.76/MCFe, while a weighted average field netback(1) of $4.93/MCFe has
    resulted in a cumulative recycle ratio(2) of 2.8 times. 
--  Based on the December 31, 2013 evaluation, the debt adjusted, Net
    Present Value of the company's remaining Proved plus Probable Additional
    reserves ("P+P NPV" - debt adjusted, 5% discount) was $38/share,
    comprised of $23/share of developed reserves and $15/share of
    undeveloped reserves. 

2013 Highlights 


 
 
--  For the year ended December 31, 2013, Peyto invested $578 million of
    capital to build a record 38,400 boe/d of new production(1) at a cost of
    $15,100/boe/d. This is the fourth year in a row that Peyto has built new
    production for less than $17,600/boe/d, inclusive of land, seismic,
    facilities and all well costs. 
--  Peyto developed over 246 BCFe (41 MMBOEs) of new Proved Producing ("PP")
    reserves at a Finding, Development and Acquisition ("FD&A") cost of
    $2.35/MCFe ($14.08/boe) while the average field netback(1) was
    $3.65/MCFe ($21.89/boe), resulting in a 1.6 times recycle ratio(2).
    Facility investments of $112 million in 2013 represented 19% of the
    total capital expenditures, or double that of the previous 3 year
    average, which contributed to the 6% year over year increase in PP FD&A.
    Excluding the facility capital, the 2013 PP F&D was 3% lower than 2012. 
--  Peyto replaced 230% of annual production with new Total Proved ("TP")
    reserves at a FD&A cost of $2.23/MCFe ($13.39/boe) and 450% of annual
    production with new Proved plus Probable Additional ("P+P") reserves at
    a FD&A cost of $1.86/MCFe ($11.16/boe) (including increases in Future
    Development Capital ("FDC") of $87.9 million and $508.7 million for the
    respective categories). For comparative purposes, FD&A costs before
    changes in FDC were $1.94/MCFe ($11.62/boe) and $0.99/MCFe ($5.93/boe),
    respectively. 
--  Company reserves increased by 12%, 10% and 19% to 1.1 TCFe, 1.8 TCFe and
    2.8 TCFe for PP, TP and P+P, respectively. Per share reserves were up
    the same for these respective categories. 
--  The Reserve Life Index ("RLI") for the PP, TP and P+P reserves decreased
    to 7, 12 and 19 years as production grew faster than reserves. 
--  At year end, P+P reserves of 468 MMboes (inclusive of 628 future
    locations) had been assigned to just 12% of Peyto's total Deep Basin
    rights. 

2014 Capital Budget 


 
 
--  Peyto is ahead of its 2014 budgeted volumes with current production of
    75,000 boe/d. In total, the company anticipates investing $575 to $625
    million, drilling approximately 110-122 gross wells, and adding 32,000
    boe/d to 36,000 boe/d of new production by the end of the year. 

(1) Capital Expenditure, Field Netback (Revenue less Royalties,
Operating costs and Transportation), and Production are estimated and
remain unaudited at this time. 
(2) Recycle Ratio is Field Netback divided by FD&A. 
2013 RESERVES 
The following table summarizes Peyto's reserves and the discounted
Net Present Value of future cash flows, before income tax, using
variable pricing, at December 31, 2013.  


 
 
                            Before Tax Net Present Value ($thousands)       
                                          Discounted at                     
                                     Gas   Oil & NGL        BCFe        MBOE
Reserve Category                  (mmcf)      (mstb)       (6:1)       (6:1)
----------------------------------------------------------------------------
Proved Producing                 921,408      23,314   1,061,292     176,882
Proved Non-producing              26,944         668      30,954       5,159
Proved Undeveloped               615,222      19,916     734,718     122,453
----------------------------------------------------------------------------
Total Proved                   1,563,574      43,898   1,826,964     304,494
Probable Additional              840,368      23,283     980,064     163,344
----------------------------------------------------------------------------
Proved + Probable Additional   2,403,942      67,181   2,807,028     467,838
----------------------------------------------------------------------------
----------------------------------------------------------------------------
 
                            Before Tax Net Present Value ($thousands)       
                                          Discounted at                     
Reserve Category                      0%          5%          8%         10%
----------------------------------------------------------------------------
Proved Producing              $5,100,751  $3,156,464  $2,580,906  $2,309,672
Proved Non-producing            $132,173     $72,879     $55,929     $48,230
Proved Undeveloped            $2,640,312  $1,314,973    $903,803    $709,340
----------------------------------------------------------------------------
Total Proved                  $7,873,236  $4,544,316  $3,540,638  $3,067,242
Probable Additional           $4,361,816  $2,042,451  $1,422,742  $1,146,143
----------------------------------------------------------------------------
Proved + Probable Additional $12,235,052  $6,586,767  $4,963,380  $4,213,385
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Note: Based on the InSite report effective December 31, 2013. Tables
may not add due to rounding. 
ANALYSIS 
Each year Peyto analyzes the reserve evaluation in order to answer
three basic but fundamental questions for shareholders: 


 
 
1.  Base Reserves - How did the "base reserves" that were on production at
    the time of the last reserve report perform during the year, and how did
    any change in commodity price forecast affect their value? 
2.  Value Creation - How much value did the 2013 capital investments create,
    both in current producing reserves and in undeveloped potential? 
3.  Growth and Income - Are the projected cash flows capable of funding the
    growing number of undeveloped opportunities and a sustainable dividend
    stream to shareholders without sacrificing Peyto's financial
    flexibility? 

Base Reserves 
Peyto's existing Proved Producing reserves at the start of 2013 (base
reserves) were evaluated and adjusted for 2013 production as well as
any technical revisions resulting from the additional twelve months
of data. As part of InSite's independent engineering analysis, all
909 producing entities were evaluated. These producing wells and
zones represent a total gross Estimated Ultimate Recoverable (EUR)
volume of 1.8 TCF plus associated liquids. In aggregate, Peyto is
pleased to report that its total base reserves continue to meet with
expectation, which increases the confidence in the prediction of
future recoveries. 
For 2014, InSite is forecasting the total base production (all wells
on production at Dec. 31, 2013) to decline to approximately 45,300
boe/d by December, 2014. This implies a base decline rate of 37% from
December 2013. This forecast decline rate is higher than 2013 as
Peyto added more production in late Q4 2013 than originally planned.
The historical base decline rates and capital programs are shown in
the following table: 


 
 
                                                                      ------
                2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014F
----------------------------------------------------------------------------
Base Decline                                                                
 (%/yr)          31%  27%  30%  29%  23%  26%  20%  22%  33%  35%  34%   37%
Capital                                                                     
 Expenditure                                                                
 ($MM)          $139 $231 $358 $312 $122 $139  $73 $261 $379 $618 $578  $625
----------------------------------------------------------------------------
(i)The base decline represents the aggregate annual decline of all wells on 
production at the end of the previous year.                                 

The commodity price forecast used by the independent engineers in this
year's evaluation was less than last year which had the effect of
reducing the Net Present Value of all reserve categories. The debt
adjusted NPV, discounted at 5%, of last year's Proved Producing
reserves, decreased $145 million, or 7%, due to the change in
commodity price forecasts and with Peyto's realized offset to posted
prices. InSite's price forecast used in the variable dollar economics
is available on their website at www.insitepc.com. 
Value Creation/Reconciliation 
During 2013, Peyto invested a total of $578 million to drill 99 gross
(93.4 net) horizontal gas wells. In keeping with Peyto's strategy of
maximizing shareholder returns, an evaluation of the economic results
of this capital investment is necessary in order to determine, on a
go-forward basis, the best use of shareholders' capital. Not only
does this look back analysis give shareholders a report card on the
capital that was invested, it also helps illustrate the potential
returns that can be generated from similar future undeveloped
opportunities.  
Exploration and Development Activity 
Of the total capital invested in exploration and development
activities, 2% was spent on acquiring lands and seismic, 19% on
facilities, and the remaining 79% was spent drilling, completing and
connecting existing and new reserves. Of the 99 gross (93.4 net)
wells drilled, 70% or 69 gross wells were previously identified as
undeveloped reserves in last year's reserve report (48 Proved, 21
Probable Additional). The remaining 30 wells were not recognized in
last year's report. As is the case in most years, a portion of the
drilling program was drawn from the company's total internal drilling
inventory which is larger and more comprehensive than that identified
in the InSite report. 
The undeveloped reserves booked to the 69 locations at year end 2012
totaled 206 BCFe (3.0 BCFe/well) of Proved Undeveloped plus Probable
Additional reserves for a forecast capital investment of $332 million
($1.61/Mcfe). In actuality, $310 million of capital ($1.42/Mcfe) was
spent on these 69 wells during 2013, yielding Proved Producing plus
Probable Additional reserves of 218 BCFe (3.2 BCFe/well).  
With less capital yielding even more reserves, the development of
these 69 booked locations produced an even better result than was
originally projected. This analysis helps to validate the accuracy of
the reserve and capital assignments of past undeveloped locations and
provides confidence in the quality of the estimates for future
undeveloped locations. 
Value Reconciliation 
In order to measure the success of all of the capital invested in
2013, it is necessary to quantify the total amount of value added
during the year and compare that to the total amount of capital
invested. The independent engineers have run last year's reserve
evaluation with this year's price forecast to remove the change in
value attributable to both commodity prices and changing royalties.
This approach isolates the value created by the Peyto team from the
value created (or lost) by those changes outside of their control
(ie. commodity prices). Since the capital investments in 2013 were
funded from a combination of cash flow, debt and equity, it is
necessary to know the change in debt and the change in shares
outstanding to see if the change in value is truly accretive to
shareholders. 
At year end 2013, Peyto's estimated net debt had increased by $284.1
million to $946.5 million while the number of shares outstanding had
increased by 0.276 million shares to 148.949 million shares. The
change in debt includes all of the capital expenditures, as well as
any acquisitions, and the total fixed and performance based
compensation paid out for the year. Although these estimates are
believed to be accurate, they remain unaudited at this time and are
subject to change.  
Based on this reconciliation of changes in BT NPV, the Peyto team was
able to create $867 million of Proved Producing, $1.129 billion of
Total Proven, and $2.307 billion of Proved plus Probable Additional
undiscounted reserve value, with $578 million of capital investment.
The ratio of capital expenditures to value creation is what Peyto
refers to as the NPV recycle ratio, which is simply the undiscounted
value addition, resulting from the capital program, divided by the
capital investment. For 2013, the Proved Producing NPV recycle ratio
is 1.5. 
The historic NPV recycle ratios are presented in the following
table. 


 
 
-----------------------------------------------------------------------
-----
Value Creation                 31-Dec-06   31-Dec-07   31-Dec-08   31-Dec-09
----------------------------------------------------------------------------
NPV0 Recycle Ratio                                                          
  Proved Producing                   2.9         4.7         2.1         5.4
  Total Proved                       2.9         5.5         2.5        18.9
  Proved + Probable                                                         
   Additional                        3.8         3.8         2.2        27.1
----------------------------------------------------------------------------
 
----------------------------------------------------------------------------
Value Creation                 31-Dec-10   31-Dec-11   31-Dec-12   31-Dec-13
----------------------------------------------------------------------------
NPV0 Recycle Ratio                                                          
  Proved Producing                   3.5         2.4         1.6         1.5
  Total Proved                       6.1         4.7         2.2         2.0
  Proved + Probable                                                         
   Additional                       10.3         6.6         3.2         4.0
----------------------------------------------------------------------------

(i)NPV0 (net present value) recycle ratio is calculated by dividing the
undiscounted NPV of reserves added in the year by the total capital
cost for the period (eg. Proved Producing ($867/$578) = 1.5). 
Growth and Income 
As a dividend paying growth corporation, Peyto's objective is to
profitably grow the resources which generate sustainable income
(dividends) for shareholders. In order for income to be more
sustainable and grow, Peyto must profitably find and develop more
reserves. Simply increasing production from the existing reserves
will not make that income more sustainable. Reserve Life Index (RLI),
or a reserve to production ratio, provides a measure of this long
term sustainability. 
During 2013, the Company was successful in replacing 190% of annual
production with new Proved Producing reserves, which resulted in a
12% increase in total PP reserves. Fourth quarter production,
however, increased 35%, from 49,754 boe/d to 67,296 boe/d, which had
the effect of reducing the Proved Producing reserve life index 17%
from 8.7 years to 7.2 years. This year over year reduction in reserve
life was amplified by a facility outage that reduced Q4 2012
production, while Q4 2013 production was higher than originally
planned due to the delayed timing of new well additions. Despite
these fourth quarter production variances, reserve life index in all
categories has declined since the adoption of horizontal multi-stage
fracture well designs due to the large initial production rates
combined with steep initial declines. 
For comparative purposes, the Total Proved and P+P reserve life index
was 12 and 19 years, respectively, similarly affected by the fourth
quarter production variances described above. Management believes,
however, that the most meaningful method to evaluate the current
reserve life is by dividing the Proved Producing reserves by the
actual fourth quarter annualized production. This way production is
being compared to producing reserves as opposed to producing plus
non-producing reserves. 
The following table highlights the Company's historical Reserve Life
Index. 


 
 
                      2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
----------------------------------------------------------------------------
Proved Producing        10    9   11   12   13   14   14   11    9    9    7
Total Proved            13   12   14   14   16   17   21   17   16   15   12
Proved + Probable                                                           
 Additional             19   17   19   20   21   23   29   25   22   22   19
----------------------------------------------------------------------------

Future Undeveloped Opportunities 
With the continued expansion of Peyto's exploration and development
activity to $625 million in 2014, the Company has been able to
increase the pace that undeveloped opportunities are both recognized
and developed. As a result, the number of future drilling locations
in the reserve report has increased 24% to 628 gross (505 net)
locations from 507 gross (401 net) locations last year. Of these
future locations, 59% are categorized by the independent reserve
evaluators as Proven Undeveloped with the remaining 41% as Probable
Undeveloped. The net reserves associated with the undeveloped
locations total 1.53 TCFe (255.4 mmboes) while the total capital
required to develop them is estimated at $2.55 billion or $1.67/MCFe,
This is forecast to create Net Present Value of $2.7 billion (5%
discount rate, post capital recovery) or $17.81 per share. The
development schedule for the undeveloped reserves is shown in the
following table of forecasted capital. 


 
 
                                 Future Development Capital                 
                     Proved Reserves    Proved+ Probable Additional Reserves
Year            Undisc., ($Millions)                    Undisc., ($Millions)
----------------------------------------------------------------------------
2014                          $314.3                                  $599.2
2015                          $407.1                                  $602.1
2016                          $306.0                                  $497.6
2017                          $209.1                                  $487.4
2018                          $166.4                                  $336.7
----------------------------------------------------------------------------
Thereafter                      $3.4                                   $26.7
----------------------------------------------------------------------------
Total                       $1,406.3                                $2,549.7
----------------------------------------------------------------------------

The forecast for Net Operating Income for the Total Proved and P+P
reserves over the first 5 years totals $3.0 billion and $4.3 billion,
respectively, more than sufficient to fund the future development
capital shown above, ensuring those reserve additions are accretive
to shareholders.  
PERFORMANCE RATIOS 
The following table highlights annual performance ratios both before
and after the implementation of horizontal wells in late 2009. These
can be used for comparative purposes, but it is cautioned that on
their own they do not measure investment success. 


 
 
-----------------------------------------------------------------------
-----
                       2013    2012    2011    2010    2009    2008    2007 
----------------------------------------------------------------------------
Proved Producing                                                            
  FD&A ($/mcfe)       $2.35   $2.22   $2.12   $2.10   $2.26   $2.88   $2.11 
  RLI (yrs)               7       9       9      11      14      14      13 
  Recycle Ratio         1.6     1.6     1.9     2.0     1.8     2.3     2.8 
  Reserve               190%    284%    230%    239%     79%    110%    127%
   Replacement                                                              
----------------------------------------------------------------------------
Total Proved                                                                
  FD&A ($/mcfe)       $2.23   $2.04   $2.13   $2.35   $1.73   $3.17   $1.57 
  RLI (yrs)              12      15      16      17      21      17      16 
  Recycle Ratio         1.6     1.7     1.9     1.8     2.3     2.1     3.7 
  Reserve               230%    414%    452%    456%    422%    139%    175%
   Replacement                                                              
  Future Development $1,406  $1,318  $1,111    $741    $446    $222    $169 
   Capital ($                                                               
   millions)                                                                
----------------------------------------------------------------------------
Proved plus Probable                                                        
 Additional                                                                 
  FD&A ($/mcfe)       $1.86   $1.68   $1.90   $2.19   $1.47   $3.88   $1.56 
  RLI (yrs)              19      22      22      25      29      23      21 
  Recycle Ratio         2.0     2.1     2.1     1.9     2.8     1.7     3.7 
  Reserve               450%    527%    585%    790%    597%    122%    117%
   Replacement                                                              
  Future Development $2,550  $2,041  $1,794  $1,310    $672    $390    $321 
   Capital                                                                  
   ($millions)                                                              
----------------------------------------------------------------------------
 
--  FD&A (finding, development and acquisition) costs are used as a measure
    of capital efficiency and are calculated by dividing the capital costs
    for the period, including the change in undiscounted future development
    capital ("FDC"), by the change in the reserves, incorporating revisions
    and production, for the same period (eg. Total Proved
    ($578.0+$87.9)/(304.494-276.419+21.649) = $2.23/mcfe or $13.39/boe). 
 
--  The reserve life index (RLI) is calculated by dividing the reserves (in
    boes) in each category by the annualized average production rate in
    boe/year (eg. Proved Producing 176,882/(67.296x365) = 7.2). Peyto
    believes that the most accurate way to evaluate the current reserve life
    is by dividing the proved developed producing reserves by the actual
    fourth quarter average production. In Peyto's opinion, for comparative
    purposes, the proved developed producing reserve life provides the best
    measure of sustainability. 
 
--  The Recycle Ratio is calculated by dividing the field netback per MCFe,
    before hedging, by the FD&A costs for the period (eg. Proved Producing
    (($21.89)/$14.08=1.6). The recycle ratio is comparing the netback from
    existing reserves to the cost of finding new reserves and may not
    accurately indicate investment success unless the replacement reserves
    are of equivalent quality as the produced reserves. 
 
--  The reserve replacement ratio is determined by dividing the yearly
    change in reserves before production by the actual annual production for
    the year (eg. Total Proved ((176.882-157.491+21.649)/21.649) = 190%). 

RESERVES COMMITTEE 
Peyto has a reserves committee, comprised of independent board
members, that reviews the qualifications and appointment of the
independent reserve evaluators. The committee also reviews the
procedures for providing information to the evaluators. All booked
reserves are based upon annual evaluations by the independent
qualified reserve evaluators conducted in accordance with the COGE
(Canadian Oil and Gas Evaluation) Handbook and National Instrument
51-101. The evaluations are conducted using all available geological
and engineering data. The reserves committee has reviewed the
reserves information and approved the reserve report.  
2014 UPDATE  
The winter weather of 2013/2014 has surprised forecasters and
resulted in record consumption of natural gas. This in turn has
depleted storage reservoirs faster than predicted and caused short
term natural gas prices to become extremely volatile. Futures prices
for natural gas beyond next year remain at significantly lower levels
than current day prices due to the belief that low costs supplies are
still available in the many North American shale gas plays. While
this short term price volatility is unpredictable, Peyto remains a
long term price taker with its industry leading low cost structure
and a proven track record of profitable development of production and
reserves.  
The capital program for 2014 remains on track with 9 drilling rigs
actively developing reserves and production in Peyto's many core
areas in the Alberta Deep Basin. Four facility expansion projects,
totaling 105 mmcf/d of new processing capacity, are planned for 2014
in order to accommodate the anticipated production growth.  
In the Wildhay area, a 27 km, 8" gathering line was installed in
January 2014 that connected two new wells and 19.5 sections of land
to Peyto's gas plant. Success in this new expansion area will be
followed up with more drilling, a sales line loop and a plant
expansion in the fall of 2014 which will increase the Wildhay plant
capacity from 70 mmcf/d to 90 mmcf/d.  
At Oldman North, ongoing development of the Upper and Middle Falher
is expected to drive production growth that will require the recently
commissioned Oldman North Plant to be expanded from 30 mmcf/d to 80
mmcf/d. This is also expected to happen in the fall of 2014.   
Successful Wilrich development in the Ansell area is requiring
additional processing capacity at Peyto's Swanson gas plant. An
additional compressor, to be installed before breakup, will increase
processing capacity from 50 mmcf/d to 65 mmcf/d at this facility
which should be further supported by recent Bluesky drilling.  
Finally, continued exploration and development in Peyto's Brazeau
River area is yielding encouraging results. A planned plant expansion
from 20 mmcf/d to 40 mmcf/d before spring breakup is expected to
accommodate ongoing drilling results. 
By the end of 2014, Peyto expects to be operating over 630 mmcf/d of
total processing capacity in the Alberta Deep Basin capable of
handling up to 115,000 boe/d of total NGL and natural gas production. 
Peyto continues to believe in the future of natural gas as the most
abundant, affordable, and cleanest burning energy source available.
Peyto also believes that financial success for both the company and
its shareholders will continue to come from being the lowest cost,
most efficient and most profitable Explorer and Producer in the
industry. 
GENERAL  
For more in depth discussion of the 2013 reserve report, an interview
with the management will be available on Peyto's website by the end
of February 2014. A complete filing of the Statement of Reserves
(form 51-101F1), Report on Reserves (form 51-101F2), and Report of
Management and Directors on Oil and Gas Disclosure (form 51-101F3)
will be available in the Annual Information Form to be filed by the
end of March 2014. Shareholders are encouraged to actively visit
Peyto's website located at www.peyto.com. 
This news release contains certain forward-looking information and
statements within the meaning of applicable securities laws. The use
of any of the words "expect", "anticipate", "continue", "estimate",
"may", "will", "project", "should", "believe", "plans", "intends" and
similar expressions are intended to identify forward-looking
information or statements. In particular, but without limiting the
foregoing, this news release contains forward-looking information and
statements pertaining to the following: management's assessment of
Peyto's future plans and operations, capital expenditures, the
volumes and estimated value of Peyto's reserves, the life of Peyto's
reserves, production estimates, the ability to enhance value of
reserves for shareholders and ensure the reserves generate the
maximum possible return. Forward-looking statements or information
are based on a number of material factors, expectations or
assumptions of Peyto which have been used to develop such statements
and information but which may prove to be incorrect.  
Although Peyto believes that the expectations reflected in such
forward-looking statements or information are reasonable, undue
reliance should not be placed on forward-looking statements because
Peyto can give no assurance that such expectations will prove to be
correct. In addition to other factors and assumptions which may be
identified herein, assumptions have been made regarding, the impact
of increasing competition, the timely receipt of any required
regulatory approvals, the ability of Peyto to obtain qualified staff,
equipment and services in a timely and cost efficient manner,
drilling results, field production rates and decline rates, the
ability to replace and expand reserves through development and
exploration, future commodity prices, currency, exchange and interest
rates, regulatory framework regarding royalties, taxes and
environmental matters and the ability of Peyto to successfully market
its oil and natural gas products. By their nature, forward-looking
statements are subject to numerous risks and uncertainties, some of
which are beyond these parties' control, including the impact of
general economic conditions, industry conditions, volatility of
commodity prices, currency fluctuations, imprecision of reserve
estimates, environmental risks, competition from other industry
participants, the lack of availability of qualified personnel or
management, stock market volatility and ability to access sufficient
capital from internal and external sources. Peyto's actual results,
performance or achievement could differ materially from those
expressed in, or implied by, these forward-looking statements and,
accordingly, no assurance can be given that any of the events
anticipated by the forward-looking statements will transpire or
occur, or if any of them do so, what benefits that Peyto will derive
therefrom. The forward-looking information and statements contained
in this news release speak only as of the date of this news release,
and Peyto does not assume any obligation to publicly update or revise
any of the included forward-looking statements or information,
whether as a result of new information, future events or otherwise,
except as may be required by applicable securities laws.  
This news release contains information, including in respect of
Peyto's 2014 capital program, which may constitute future oriented
financial information or a financial outlook. Such information was
approved by management of Peyto on November 12, 2013, and such
information is included herein to provide readers with an
understanding of the Company's anticipated capital expenditures for
2014. Readers are cautioned that the information may not be
appropriate for other purposes. 
BOEs may be misleading, particularly if used in isolation. A BOE
conversion ratio of 6 Mcf:1 bbl is based on an energy equivalency
conversion method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead.  
Some values set forth in the tables above may not add due to
rounding. It should not be assumed that the estimates of future net
revenues presented in the tables above represent the fair market
value of the reserves. There is no assurance that the forecast prices
and costs assumptions will be attained and variances could be
material. The aggregate of the exploration and development costs
incurred in the most recent financial year and the change during that
year in estimated future development costs generally will not reflect
total finding and development costs related to reserves additions for
that year. 
The Toronto Stock Exchange has neither approved nor disapproved the
information contained herein. 
Contacts:
Peyto Exploration & Development Corp.
Darren Gee
President and Chief Executive Officer
(403) 237-8911 
Peyto Exploration & Development Corp.
Jim Grant
Investor Awareness
(403) 451-4102
www.peyto.com
 
 
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