CLEARVIEW REPORTS FIRST QUARTER RESULTS AND OPERATIONS UPDATE

Transcription

1 CLEARVIEW REPORTS FIRST QUARTER RESULTS AND OPERATIONS UPDATE Clearview drills and fracks its first perated, hrizntal well. Bashaw acquisitin increases area f fcus, imprves financial psitin and adds cre cmpetencies. Dispsitin reduces bank debt; lender cnfirms credit facility. CALGARY, ALBERTA August 23, 2018 Clearview Resurces Ltd. ( Clearview r the Cmpany ) is pleased t annunce its financial and peratinal results fr the three mnths ended June 30, June 30, 2018 HIGHLIGHTS On April 16, 2018, the Cmpany clsed the acquisitin f Bashaw Oil Crp. ( Bashaw ) thrugh a share fr share exchange based n cmmn shares f Bashaw fr ne vting cmmn share f the Cmpany. Clearview issued 1,560,046 vting cmmn shares t the sharehlders f Bashaw. The Bard f Directrs f Clearview effected a change in management with an emphasis n current peratinal excellence and expertise in hrizntal drilling and cmpletins using multi-stage fracturing technlgy. On April 10, 2018, the Cmpany clsed the dispsitin f a nn-cre, nn-perated light il prperty lcated in suthern Alberta fr $3.4 millin. The Cmpany sld the prperty fr apprximately $53.5 thusand per flwing be/d. As a result f the abve transactins, net debt was reduced t $12.1 millin at June 30, 2018 frm $14.2 millin at March 31, The prceeds frm the dispsitin and cash psitin frm the acquisitin f Bashaw were applied against the Cmpany s bank debt t further imprve its financial flexibility twards funding the upcming summer capital prgram. Outstanding bank debt was reduced frm $16.3 millin at March 31, 2018 t $12.0 millin at June 30, Realized sales price fr the three mnths ended June 30, 2018 was $28.99 per be cmpared t $27.04 per be fr the cmparative perid, an increase f 7%, due t higher crude il and natural gas liquids prices. The realized sales price fr the three mnths ended June 30, 2018 was 3% lwer than the prir quarter ended March 31, 2018, primarily due t lwer natural gas and ethane prices. Operating csts were $14.80 per be, including $1.97 per be fr wrkvers, fr the three mnths ended June 30, 2018, 3% lwer than the prir quarter ended March 31, 2018 at $15.32 per be, including $1.18 per be fr wrkvers. General and administrative csts were $2.76 per be fr the three mnths ended June 30, 2018 versus $2.95 per be fr the cmparative perid, a reductin f 6% ver the cmparative quarter. Cash finance csts were $1.17 per be fr the three mnths ended June 30, 2018, cmpared t $1.31 per be fr the cmparative perid, a reductin f 11%. Cash finance csts in the prir quarter ended March 31, 2018 were $1.27 per be.

2 Crprate netback increased by 42% t $3.17 per be fr the three mnths ended June 30, 2018 as cmpared t $2.23 per be in the three mnths ended March 31, Subsequent t the end f the quarter, the Cmpany s lender recnfirmed Clearview s credit facility at $21.0 millin. OPERATIONS UPDATE Clearview has drilled and fracked its first perated, hrizntal well. This well lcated n the Cmpany s Wilsn Creek cre prperty at W5M ( ) (85% wrking interest) targeted light il in the Cardium Frmatin. The well was drilled t a ttal measured depth f 4,883 meters including a 3,005 meter, extended reach, hrizntal leg. The hrizntal wellbre was cmpleted with 110 stages f fracture stimulatin at 15 tnnes f sand per stage (0.55 tnnes per meter) utilizing a ttal f 9,710 cubic meters f slickwater. The well was cmpleted as planned and n budget. The well is currently flwing back frac-water during the cleanup phase prir t being equipped fr prductin will be tied-in t existing Clearview infrastructure. The same surface pad lcatin fr culd be used t drill tw additinal wells f this type n this prperty. The initial prductivity f will be knwn ver the next few mnths. Clearview is nw preparing t drill a hrizntal develpment well (100% wrking interest) n the Windfall prperty targeting light il in the Bluesky Frmatin at W5M ( 1-3 ). The 1-3 well will als be drilled and cmpleted using the latest technlgies and techniques available in industry. The lateral length f this hrizntal well will be apprximately 1,900 meters. The surface pad lcatin is an existing well lease that is already tied-in t the Cmpany s 100% wned and perated il handling facility. Clearview als plans t begin the expansin f the successful waterfld pilt currently in place at Windfall. The Cmpany is targeting the enhanced recvery f the light il in place thrugh the additin f water injectin well(s) in the future. Clearview cntinues t pursue its grwth strategy within its fcus area f west central Alberta, including asset r crprate acquisitins, develpment drilling and prductin ptimizatin. This activity will be funded thrugh existing funds frm peratins, nn-cre dispsitins, debt and pssibly additinal equity financing t maintain financial flexibility. STRATEGY The Cmpany cntinues t transfrm frm a nn-perated prducer int a grwth-riented, light il fcused peratr f a majrity f its prductin. Building n the prperties acquired in the Greater Pembina area late in fiscal 2017 with the acquisitin f Bashaw Oil Crp. and the dispsitin f nncre assets, the Cmpany is mving frward with its perated, light il fcused summer drilling prgram. These transactins and the capital prgram are significant milestnes twards the Cmpany s bjectives which cntinue t be: acquire lng life, cash generating il and natural gas prperties with grwth ptential; maintain a lw cst and financially rbust structure; maintain an apprpriate debt versus equity capital structure; build the Cmpany s prductin base t fund the field capital prgram frm internally generated funds; maintain strng lending values t supprt the Cmpany s credit facility; maintain a licensee liability rating f 2.0 r greater, prviding the Cmpany with the ability t transact n further acquisitin pprtunities; and evaluate nn-cre assets, fr ptential dispsitin, t fund the capital prgram.

3 Financial and Operating Highlights Financial Three mnths ended June 30 ($ 000 s except per share amunts) % Change Oil and natural gas sales 5,391 4, Net earnings (lss) (1,749) (282) 520 Per share basic and diluted (0.18) (0.03) 500 Adjusted funds flw (1) 592 1,237 (52) Per share basic and diluted Net debt 12,066 14,154 (15) Capital expenditures net (2,992) Weighted average shares Basic and diluted (000 s) 9,724 8, (1) See nn-gaap measures Prductin Three mnths ended June % Change Oil bbl/d Natural gas liquids bbl/d Ttal liquids bbl/d Natural gas mcf/d 6,764 7,006 (3) Ttal be/d 2,044 1,992 3 Realized sales prices Three mnths ended June % Change Oil $/bbl NGLs $/bbl Natural gas $/mcf (54) Ttal $/be Netback analysis Three mnths ended June 30 Barrel f il equivalent ($/be) % Psitive (Negative) Realized sales price Ryalties (3.47) (2.85) (22) Prcessing incme (5) Transprtatin (1.43) (1.60) 11 Operating (14.80) (13.09) (13) Operating netback (2) Realized gain (lss) n (2.97) cmmdity cntracts General & administrative (2.76) (2.95) 6 Transactin csts (0.09) - (100) Cash finance csts (1.17) (1.31) 11 Crprate netback (54) (1) % Psitive (Negative) is expressed as being psitive (better perfrmance in the categry) r negative (reduced perfrmance in the categry) in relatin t perating netback, crprate netback and net earnings. (2) See nn-gaap measures.

4 Clearview's June 30, 2018 financial statements and management s discussin and analysis are available n the Cmpany s website at and SEDAR at FOR FURTHER INFORMATION PLEASE CONTACT: CLEARVIEW RESOURCES LTD th Avenue S.W. Calgary, Alberta T2P 3M3 Telephne: (403) Facsimile: (403) inf@clearviewres.cm Website: TONY ANGELIDIS President & CEO BRIAN KOHLHAMMER V.P. Finance & CFO Nte Regarding Frward-Lking Statements This press release cntains frward-lking statements and frward-lking infrmatin (cllectively "frward-lking infrmatin") within the meaning f applicable securities laws relating t the Cmpany s plans and ther aspects f ur anticipated future peratins, management fcus, strategies, financial, perating and prductin results, industry cnditins, cmmdity prices and business pprtunities. Specifically, this press release has frward lking infrmatin with respect t: future drilling plans; waterfld recvery and verall grwth strategy. Frward-lking infrmatin typically uses wrds such as "anticipate", "believe", "prject", "expect", "gal", "plan", "intend" r similar wrds suggesting future utcmes, statements that actins, events r cnditins "may", "wuld", "culd" r "will" be taken r ccur in the future. Statements relating t "reserves" are deemed t be frward-lking statements, as they invlve the implied assessment, based n certain estimates and assumptins, that the reserves described can be prfitably prduced in the future. The frward-lking infrmatin is based n certain key expectatins and assumptins made by ur management, including expectatins and assumptins cncerning prevailing cmmdity prices and differentials, exchange rates, interest rates as set ut in the appendices t this press release, als applicable ryalty rates and tax laws; future prductin rates and estimates f perating csts; perfrmance f existing and future wells; reserve vlumes; anticipated timing and results f capital expenditures; the success btained in drilling new wells; the sufficiency f budgeted capital expenditures in carrying ut planned activities; the timing, lcatin and extent f future drilling peratins; the state f the ecnmy and the explratin and prductin business; results f peratins; perfrmance; business prspects and pprtunities; the availability and cst f financing, labur and services; the impact f increasing cmpetitin and the ability t market il and natural gas successfully and ur ability t access capital. Althugh Clearview believes that the expectatins and assumptins n which such frwardlking infrmatin is based are reasnable, undue reliance shuld nt be placed n the frward-lking infrmatin because Clearview can give n assurance that they will prve t be crrect. Since frward-lking infrmatin addresses future events and cnditins, by its very nature they invlve inherent risks and uncertainties. Our actual results, perfrmance r achievement culd differ materially frm thse expressed in, r implied by, the frward-lking infrmatin and, accrdingly, n assurance can be given that any f the events anticipated by the frward-lking infrmatin will transpire r ccur, r if any f them d s, what benefits that we will derive therefrm. Management has included the abve summary f assumptins and risks related t frward-lking infrmatin prvided in this press release in rder t prvide securityhlders with a mre cmplete perspective n ur future peratins and such infrmatin may nt be apprpriate fr ther purpses. Readers are cautined that the freging lists f factrs are nt exhaustive. These frward-lking statements are made as f the date f this press release and we disclaim any intent r bligatin t update publicly any frward-lking infrmatin, whether as a result f new infrmatin, future events r results r therwise, ther than as required by applicable securities laws. Nn-GAAP Measures and Oil and Gas Metrics The Cmpany s management uses and reprts certain measures nt prescribed by Internatinal Financial Reprting Standards ( IFRS ) (referred t as nn-gaap measures ) in the evaluatin f perating and financial perfrmance. Operating netback is a nn-gaap measure used by the Cmpany t assess its perating results. The Canadian Oil and Gas Evaluatin Handbk ( COGEH ) describes netback as an peratins indicatr t assess perating pririties and evaluate smaller capital expenditures nrmally assciated with field maintenance and imprvement. The COGEH prvides guidance that the netback calculatin takes the price received fr a unit f prductin at a pint in time and deducts frm it all prductin csts, ryalties and prductin taxes t find the cash netback t the prducer frm each barrel f il r mcf f sales gas. The Cmpany cmputes the perating netback fr the Cmpany directly frm the applicable amunts n the Statements f Operatins in the financial statements being il and natural gas sales and prcessing incme less ryalties, prductin and transprtatin csts. This amunt divided by the assciated prductin vlume (usually in be s) prvides a per unit amunt. Crprate netback is the adjusted funds flw amunt divided by the ttal prductin fr the perid and represents the cash margin received n each barrel f il equivalent sld. Adjusted funds flw is a nn-gaap measure derived frm cash flw frm perating activities excluding decmmissining expenditures and changes in nn-cash wrking capital. The adjusted funds flw amunt represents funds available fr capital expenditures, repayment f net debt r distributin t sharehlders. Readers are directed t review the recnciliatin f adjusted funds flw t cash flw prvided by perating activities set ut in the Cmpany s MD&A fr the year ended March 31, 2018.

5 Net debt cnsists f current assets (excluding financial derivatives) less current liabilities (excluding financial derivatives). Net debt is used t assess financial strength, capacity t finance future develpment and manage liquidity risk. Operating netback, adjusted funds flw, crprate netback and net debt d nt have any standardized meanings prescribed by IFRS and therefre may nt be cmparable with the calculatin f a similar measure fr ther cmpanies. The Cmpany uses these terms as an indicatr f financial perfrmance because such terms are used internally in managing and gverning the Cmpany and are ften utilized by investrs and ther financial statement users t evaluate prducers in the il and natural gas industry. Be means barrel f il equivalent n the basis f 6 mcf f natural gas t 1 bbl f il. Be's may be misleading, particularly if used in islatin. A be cnversin rati f 6 mcf: 1 bbl is based n an energy equivalency cnversin methd primarily applicable at the burner tip and des nt represent a value equivalency at the wellhead. In additin, given that the value rati based n the current price f crude il as cmpared t natural gas is significantly different frm the energy equivalency f 6: 1, using a cnversin n a 6: 1 basis may be misleading as an indicatin f value.