Off the Top • News
PETROBAKKEN ANNOUNCES THIRD QUARTER RESULTS PetroBakken Energy Ltd. (“PetroBakken”) (TSX:PBN) is pleased to announce our third quarter 2009 financial and operating results, highlighted by the successful completion of the strategic transaction between Petrobank Energy and Resources Ltd. (“Petrobank”) and TriStar Oil & Gas Ltd. (“TriStar”) that resulted in the creation of PetroBakken. The transaction involved the spin out of Petrobank’s Canadian Business Unit (“CBU”) and the subsequent combination with TriStar to create a premier Southeast Saskatchewan light oil producer that began trading on the Toronto Stock Exchange on October 6, 2009. As part of the strategic business combination and subsequent rationalization of assets, PetroBakken has initiated a divestiture process to sell the majority of our Alberta producing assets to further focus on high netback light oil and high impact resource plays. Upon successful completion of the asset disposition, PetroBakken will have operations focused primarily in Southeast Saskatchewan and Northeast British Columbia.
HIGHLIGHTS (Third quarter results, unless otherwise specified, are for the pro forma PetroBakken entity, including the acquisition of TriStar.)
• PetroBakken’s production averaged 41,526 boepd in the third quarter of 2009. • Non-Alberta production averaged 32,448 boepd in the third quarter, 94% weighted to light oil. • Current production is approximately 44,500 boepd, of which 35,500 boepd is non-Alberta production. • Strong non-Alberta operating netbacks (excluding hedging gains) of $46.55/boe with operating costs of $7.60/boe. • Total Company operating netbacks (excluding hedging gains) of $40.52/boe with operating costs of $8.81/boe. • PetroBakken drilled 89 (67.3 net) wells in the third quar ter; including 71 (51.4 net) in the Bakken. • PetroBakken’s forecast 2009 exit production, exclud ing the anticipated Alberta asset sales, is expected to be above 37,000 boepd (more than 95% light oil).
BEYOND THE BAKKEN Additional long-term growth is expected to come from PetroBakken’s large land position in Northeast British Columbia within the Montney and Horn River natural gas resource plays. We have 17 sections of land (100% working interest) with Montney potential in the Monias area of northeast British Columbia, with a further 97 (84 net) sections north of Fort Nelson in the Horn River Basin. PetroBakken is well positioned to develop these massive unconventional
18 • DECEMBER 2009 BUSINESS IN CALGARY
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resource plays given the experience of our technical team, having successfully drilled and operated over 450 horizontal wells with multi-stage fracture stimulations. At Monias, our first Montney horizontal well was drilled in the fourth quarter of 2008, adjacent to our 5.0 mmcfpd gas plant. Based on the success we had with that well, a second well was drilled during the third quarter of 2009 and is currently being completed. The new well is a dual-leg hori-