CALGARY, Alberta, Dec. 21, 2018 (GLOBE NEWSWIRE) — Altura Energy Inc. (“Altura”, or the “Corporation”) (TSXV: ATU) is pleased to announce a corporate update including: fourth quarter 2018 production estimates; an increase to its credit facility; and the closing of a previously announced asset acquisition for cash consideration of $1.0 million.

PRODUCTION UPDATE

October 2018 production averaged 2,053 Boe per day, exceeding 2018 exit production guidance two months early.  November and December production volumes were voluntarily curtailed in response to weak oil prices caused by wide Canadian oil differentials.  December 2018 production volumes are forecasted to be approximately 600 Boe per day (78 percent oil and liquids) and production volumes for the fourth quarter of 2018 are forecasted at 1,400 Boe per day (80 percent oil and liquids), based on field estimates and Altura’s December forecast. 

The Canadian oil differentials have significantly narrowed for January 2019 deliveries and Altura expects to be producing at full capacity in the new year, subject to any pipeline apportionments.

The recent 325,000 barrels per day curtailment of oil production announced by the Government of Alberta does not apply to the Corporation’s oil production.

REVISED CREDIT FACILITY

In December, Altura’s credit facility was increased from $3.0 million to $6.0 million based on an interim review of the Corporation’s reserves following the completion of its summer drilling program.  The Corporation’s credit facility will undergo its annual review in May 2019 utilizing the December 31, 2018 reserve report. 

ASSET ACQUISITION

On August 9, 2018, Altura announced an acquisition of highly prospective Upper Mannville lands at Leduc-Woodbend (“LWB”) including a 20 percent working interest in the LWB Glauconitic D Unit No.1 (the “Acquisition”), adding net production of approximately 40 Boe per day (90 percent oil & liquids) of low decline, Glauconite oil (33° API) production.  The Acquisition closed on December 21, 2018 for cash consideration of $1.0 million.

The combination of the lands from the Acquisition and Altura’s existing lands will add four Upper Mannville extended reach horizontal drilling opportunities that offset existing producing wells. Additionally, the Acquisition increases Altura’s operated working interest from 40 percent to 60 percent in key infrastructure including a 3,000 barrels of oil per day multi-well battery, water injection facility and gathering pipelines.

2019 CAPITAL BUDGET

Planning for 2019 continues but has been challenged by the volatility in crude oil prices and Canadian oil differentials.  Altura anticipates releasing its 2019 capital budget in early 2019. 

ABOUT ALTURA ENERGY INC.

Altura is a junior oil and gas exploration, development and production company with operations in central Alberta.  Altura predominantly produces from the Rex member in the Upper Mannville group and is focused on delivering per share growth and attractive shareholder returns through a combination of organic growth and strategic acquisitions. 

READER ADVISORIES

Forward-looking Information and Statements

This press release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “budget”, “forecast”, “continue”, “estimate”, “objective”, “ongoing”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends”, “strategy” and similar expressions are intended to identify forward-looking information or statements.  In particular, but without limiting the foregoing, this press release contains forward-looking information and statements pertaining to:

• the December 2018 production forecast of 600 Boe per day;
• the fourth quarter of 2018 production forecast of 1,400 Boe per day;
• number of potential drilling opportunities associated with the Acquisition combined with Altura’s existing lands; and
• Altura’s plan to release its 2019 capital budget in early 2019.

The forward-looking information and statements contained in this press release reflect several material factors and expectations and assumptions of Altura including, without limitation:

• the continued performance of Altura’s oil and gas properties in a manner consistent with its past experiences;
• that Altura will continue to conduct its operations in a manner consistent with past operations;
• the general continuance of current industry conditions;
• the continuance of existing (and in certain circumstances, the implementation of proposed) tax, royalty and regulatory regimes;
• the accuracy of the estimates of Altura’s reserves and resource volumes;
• certain commodity price and other cost assumptions;
• the continued availability of oilfield services; and
• the continued availability of adequate debt and equity financing and cash flow from operations to fund its planned expenditures.

Altura believes the material factors, expectations and assumptions reflected in the forward-looking information and statements are reasonable but no assurance can be given that these factors, expectations and assumptions will prove to be correct. To the extent that any forward-looking information contained herein may be considered future oriented financial information or a financial outlook, such information has been included to provide readers with an understanding of management’s assumptions used for budgeted and developing future plans and readers are cautioned that the information may not be appropriate for other purposes.

The forward-looking information and statements included in this press release are not guarantees of future performance and should not be unduly relied upon.  Such information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements including, without limitation:

• changes in commodity prices;
• changes in the demand for or supply of Altura’s products;
• unanticipated operating results or production declines;
• changes in tax or environmental laws, royalty rates or other regulatory matters;
• changes in development plans of Altura or by third-party operators of Altura’s properties,
• increased debt levels or debt service requirements;
• inaccurate estimation of Altura’s oil and gas reserve and resource volumes;
• limited, unfavorable or a lack of access to capital markets;
• increased costs;
• a lack of adequate insurance coverage;
• the impact of competitors; and
• certain other risks detailed from time to time in Altura’s public documents.

The forward-looking information and statements contained in this press release speak only as of the date of this press release, and Altura does not assume any obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable laws.

Oil and Gas Advisories

Barrels of Oil Equivalent

The term barrels of oil equivalent (“Boe”) may be misleading, particularly if used in isolation.  Per Boe amounts have been calculated by using the conversion ratio of six thousand cubic feet (6 Mcf) of natural gas to one barrel (1 Bbl) of crude oil.  The Boe conversion ratio of 6 Mcf to 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.  Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalent of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

Potential Drilling Opportunities

Potential drilling opportunities are internal estimates based on the Corporation’s prospective acreage and an assumption as to the number of wells that can be drilled per section based on industry practice and internal review.  Potential drilling opportunities do not have attributed reserves or resources.

For further information please contact:

Altura Energy Inc.
2500, 605 – 5th Avenue SW
Calgary, Alberta T2P 3H5
Telephone     (403) 984-5197
www.alturaenergy.ca

David Burghardt 
President and Chief Executive Officer
Direct (403) 984-5195 

Tavis Carlson 
Vice President, Finance and Chief Financial Officer
Direct (403) 984-5196

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.