Financial Highlights

First Quarter Operational and Financial Highlights

Continued Strong Quarterly Performance

  • Corporate production averaged 34,900 boe per day during the first quarter, including 30,334 boe per day in our key development areas. Production was higher in our key development areas, versus the fourth quarter, due to Alberta Viking and Cardium wells brought on production in late December 2016, as well as the first quarter drilling campaign.


  • Funds flow from operations for the first quarter was $57 million ($0.11 per share) reflecting stronger sales prices across our product streams and lower corporate and financing costs due to reduced debt levels.
  • First quarter operating costs of $14.48 per boe, net of carried expenses, were higher quarter-over-quarter, with the vast majority of the variance attributed to the timing and costs on assets sold or held for sale. We expect our operating costs to trend down through the year, and are targeting annual 2017 operating costs of approximately $13.00 to $13.50 per boe, net of carried expenses.
  • Net income for the first quarter was $27 million ($0.05 per share) driven by improved commodity prices and gains on asset dispositions during the quarter.

First Quarter Operations Setting Up for Growth in the Fourth Quarter

  • In the Cardium, we drilled 15 vertical injectors in the Willesden Green and Pembina to re-pressurize the reservoir around high performing wells drilled in late 2015 and early 2016. We plan to begin injection in mid-May, with all 15 wells expected to be injecting by the end of June. Our second half drilling program will focus on integrated development, with 10 producing wells and 30 vertical injection wells planned for the remainder of the year. 
  • ‚ÄčIn Peace River, we operated two rigs and drilled a total of 11 wells, including 5 delineation wells to help assess longer-term inventory. We brought 7 wells on production in the first quarter, including 1 well drilled late last year. Due to better than expected conditions of our lease access roads, we have been able to continue development into breakup, drilling an additional 4 wells in the second quarter that will be brought on production by the end of June. We plan to drill the remaining 14 wells of our 2017 program in the second half of the year. 
  • ‚ÄčIn the Alberta Viking, we brought 2 wells on production in the first quarter that were drilled in December. Production results in the area remain strong with cumulative volumes produced above neighboring industry wells. Encouraged by these robust results, we now anticipate drilling 11 operated wells in 2017, up from 7 wells in our original budget. The majority of this activity will take place in the third quarter to minimize rig movement and associated capital costs. 
  • We remain on track with our third quarter Mannville program, and plan to drill 3 operated wells targeting the Upper Mannville in the Willesden Green. The gas volumes will be processed at our nearby operated Crimson gas plant to minimize our processing costs. To support the attractive economics of this program, we increased our natural gas hedge volumes in the third quarter of 2017 and into 2018.

Dispositions Are Complete – Moving Towards Selective Consolidation

  • In the first quarter, we closed previously announced dispositions for total proceeds of $70 million. The proceeds were used to further reduce the Company's long term debt to $384 million by the end of the quarter, down from $469 million on December 31, 2016. 


  • We signed definitive agreements for a $10 million asset disposition with approximately 700 boe per day of associated production. The closing date is expected to be at the end of May. 
  • In April, we purchased undeveloped acreage in the Peace River area offsetting our key lands for $11 million. We expect this acreage to increase our drilling inventory in Peace River by approximately 40 near-term locations.