Pipestone Energy Corp. Reports First Quarter 2020 Results and Provides an Operations Update

CALGARY, Alberta, May 13, 2020 (GLOBE NEWSWIRE) — (PIPE – TSX-V) Pipestone Energy Corp. (“Pipestone Energy” or the “Company”) is pleased to report its Q1 2020 financial and operational results, and an update to our business plan in response to the dramatic drop in commodity prices related to the worldwide COVID-19 crisis which resulted in an unprecedented short term collapse in oil demand. This will also include an operations update with encouraging initial production results from the 6-24 pad; 2020 production management strategy; continued improved well cost performance realized on the 6-30 pad-site; G&A cost savings initiatives, and an update on its commodity risk management program. The Company has filed its unaudited financial statements and related management’s discussion and analysis (“MD&A”) for the quarter ended March 31, 2020 on SEDAR. A conference call has been scheduled for Wednesday, May 13 at 9:00 a.m. Mountain Daylight Time (11:00 a.m. Eastern Daylight Time) for interested investors, analysts, brokers and media representatives.

Paul Wanklyn, President and CEO said, “I am extremely proud of the performance of our team, particularly through these difficult times. We have reacted swiftly to cut costs to survive this crisis with the appropriate level of liquidity for the Company. We have demonstrated once again that we are executing capital programs within the top decile of Montney operators. I am confident that a recovery in oil prices will take place as the world emerges from the current demand-driven crisis and that Pipestone will be positioned to react quickly to positive changes as they come.”

FIRST QUARTER 2020 CORPORATE HIGHLIGHTS

Generated revenues, adjusted funds flow and net income of $32.0 million, $11.8 million and $15.5 million, respectively, during the three months ended March 31, 2020;

Despite unplanned third-party processing facility outages that lasted for approximately 22 days or 24% of the operating days during the quarter, production averaged 14,066 boe/d (comprised of 28% condensate and 38% total liquids) and;

Invested $29.2 million in Q1 2020 to further advance the development of its Pipestone project by bringing on production from 3 of 6 new wells at the 6-24 pad-site; drilling 6 wells at the 6-30 pad-site; and completion of additional in-field infrastructure to support future production. The Company’s forecasted 2020 spend is trending to the mid-point of its revised capital budget of $55 – $65 million, as it continued to realize efficiency gains and cost savings from drilling, completion, equipping and tie-in operations. The company estimates that approximately 95% of its forecast capital spending program has been completed by April 30, 2020.

Pipestone Energy Corp. – Financial and Operating Highlights