Pipestone Energy Corp. Reports Second Quarter 2020 Results

CALGARY, Alberta, Aug. 12, 2020 (GLOBE NEWSWIRE) — (PIPE – TSX-V) Pipestone Energy Corp. (“Pipestone Energy” or the “Company”) is pleased to report its Q2 2020 financial and operational results.

Paul Wanklyn, President and CEO said, “Pipestone Energy nimbly managed its production during the second quarter in response to historic commodity price volatility. Our ability to generate positive cash flow before hedging gains during the quarter, despite record low condensate pricing, is a testament to our asset quality. With the recently announced financing and the capital cost improvements demonstrated during this quarter, our Company is on track to continue delivering efficient production and cash flow growth with top decile returns on capital over the next two years”.

SECOND QUARTER 2020 CORPORATE HIGHLIGHTS

During the quarter the Company actively managed its production to meet third-party gathering and processing commitments by primarily flowing its leaner, higher rate gas wells located at the 15-14 and 3-01 pad-sites, limiting production from the higher condensate wells on the 6-24 pad and deferring the on-stream date of the 6-30 pad until later this fall;

Production averaged 16,772 boe/d (comprised of 29% condensate and 43% total liquids) for the three months ended June 30, 2020.

With a robust hedging program in place the Company realized commodity hedge gains of $10.4 million during the three months ended June 30, 2020, which protected cash flows in the period;

The Company generated revenues and adjusted funds flow of $26.4 million and $11.2 million, respectively, during the three months ended June 30, 2020, despite the low commodity prices received; and

During the quarter the Company concluded its successful H1 2020 completions program as planned with 6 wells frac’d at the 6-30 pad-site in April 2020 under its original budget by 20%.

Pipestone Energy Corp. – Financial and Operating Highlights