CALGARY,
AB, April 25, 2024 /CNW/ - Clearview
Resources Ltd. ("Clearview" or the "Company") is pleased to
announce its reserves report and financial and operational
results for the year ended December 31, 2023.
2023 HIGHLIGHTS
- Disposed of two non-core non-operated assets in 2023 for gross
proceeds of $2.1 million at
$20,000 per flowing barrel of oil
equivalent per day ("boe/d") reducing corporate asset retirement
obligations by $2.4 million;
- Paid a $1.5 million return of
capital distribution (approx. $0.1279
per common share), to Clearview's
shareholders with a record date of September
23, 2023;
- Reconfirmed the Company's credit facility with its lender at
$10.0 million with the next scheduled
review set for June 30, 2024;
- Achieved a proved developed producing finding and development
cost of $11.82/boe in 2023 and
$5.39/boe over the last 3 years;
and
- Generated $0.3 million in carbon
credits, more than offsetting the Company's carbon tax
obligations.
FINANCIAL and OPERATIONAL RESULTS
Production for the year ended December
31, 2023 was down 16% to average 1,671 boe/d versus the
comparative year of 2022 at 1,981 boe/d. The decrease was
primarily due to the disposition of 108 boe/d in the first quarter
of 2023 and natural declines of approximately 12% being partially
offset by the successful drilling of one gross (0.67 net) light oil
Cardium well in Wilson Creek in
the third quarter of 2023. Natural gas liquids production decreased
15% compared to the prior year and consistent with an 18% decrease
in natural gas production.
Adjusted funds flow(1) for the year ended
December 31, 2023 was $3.7 million (approx. $0.32 per share(3)), a decrease of 61%
compared to 2022, primarily due to lower realized sales prices for
all of the Company's production and lower production volumes,
resulting in a decrease in revenue of $16.4
million. The decrease in revenue for 2023 was offset
by lower royalties due to the sliding scale nature of Crown
royalties, lower operating costs due to dispositions undertaken in
2022 and in the first quarter of 2023 as well as reduced spending
on workovers and spending efficiencies on repairs and
maintenance. Capital expenditures(2) for 2023 were
$5.3 million, which included the
drilling of a light oil well for $3.9
million. Clearview incurred decommissioning
expenditures of $0.8 million during
2023.
Upon approval from the Company's shareholders in September 2023, the Company funded a distribution
to Clearview's shareholders in the
form of a return of capital of $0.1279 per common share in December 2023.
Clearview had net
debt(1) outstanding of $3.7
million at December 31, 2023,
which included bank debt of $1.7
million, a working capital deficit of $0.8 million and the Company's convertible
debentures of $1.2 million.
Notes
|
|
(1)
|
"Adjusted funds flow"
and "net debt" are capital management measures that do not have any
standardized meaning as prescribed by International Financial
Reporting Standards and therefore may not be comparable with the
calculations of similar measures of other entities. See
"Non-IFRS Measures" contained within this press release.
|
(2)
|
Non-IFRS measure or
ratio that does not have any standardized meaning as prescribed by
International Financial Reporting Standards and therefore may not
be comparable with the calculations of similar measures or ratios
of other entities. See "Non-IFRS Measures" contained within
this press release.
|
(3)
|
Supplementary financial
measure that does not have any standardized meaning as prescribed
by International Financial Reporting Standards and therefore may
not be comparable with the calculations of similar measures of
other entities. See "Non-IFRS Measures" contained within this
press release.
|
FINANCIAL and OPERATING HIGHLIGHTS
Financial
|
Three months ended
|
Year
ended
|
($ thousands except
per
share
amounts)
|
Dec. 31
2023
|
Dec. 31
2022
|
% Change
|
Dec. 31
2023
|
Dec. 31
2022
|
% Change
|
Oil and natural gas
sales
|
6,931
|
8,572
|
(19)
|
24,824
|
41,176
|
(40)
|
Adjusted funds
flow (1)
|
220
|
2,044
|
(89)
|
3,736
|
9,681
|
(61)
|
Per share – basic
(2)
|
0.02
|
0.18
|
(89)
|
0.32
|
0.83
|
(61)
|
Per share – diluted
(2)
|
0.02
|
0.18
|
(89)
|
0.32
|
0.83
|
(61)
|
Cash provided by
operating activities
|
150
|
1,667
|
(91)
|
2,327
|
8,530
|
(73)
|
Per share –
basic
|
0.01
|
0.14
|
(93)
|
0.20
|
0.73
|
(73)
|
Per share -
diluted
|
0.01
|
0.14
|
(93)
|
0.20
|
0.73
|
(73)
|
Net earnings
(loss)
|
(1,486)
|
(6,406)
|
(77)
|
(4,011)
|
(2,549)
|
57
|
Per share –
basic
|
(0.13)
|
(0.55)
|
(74)
|
(0.34)
|
(0.22)
|
70
|
Per share -
diluted
|
(0.13)
|
(0.55)
|
(74)
|
(0.34)
|
(0.22)
|
70
|
Net debt
(1)
|
|
|
|
3,724
|
539
|
591
|
Average shares
outstanding
|
11,731
|
11,679
|
-
|
11,720
|
11,674
|
-
|
(1)
|
Capital management
measure that does not have any standardized meaning as prescribed
by International Financial Reporting Standards and therefore may
not be comparable with the calculations of similar measures of
other entities. See "Non-IFRS Measures" contained within this
press release.
|
(2)
|
Supplementary financial
measure that does not have any standardized meaning as prescribed
by International Financial Reporting Standards and therefore may
not be comparable with the calculations of similar measures of
other entities. See "Non-IFRS Measures" contained within this
press release.
|
Production
|
Three months ended
|
Year
ended
|
|
Dec. 31
2023
|
Dec. 31
2022
|
% Change
|
Dec. 31
2023
|
Dec. 31
2022
|
% Change
|
Oil – bbl/d
|
458
|
393
|
17
|
381
|
427
|
(11)
|
Natural gas liquids –
bbl/d
|
459
|
402
|
14
|
402
|
472
|
(15)
|
Total liquids –
bbl/d
|
917
|
795
|
15
|
783
|
899
|
(13)
|
Natural gas –
mcf/d
|
5,534
|
6,125
|
(10)
|
5,327
|
6,492
|
(18)
|
Total –
boe/d
|
1,839
|
1,816
|
1
|
1,671
|
1,981
|
(16)
|
Realized sales prices (1)
|
Three months ended
|
Year
ended
|
|
Dec. 31
2023
|
Dec. 31
2022
|
% Change
|
Dec. 31
2023
|
Dec. 31
2022
|
% Change
|
Oil – $/bbl
|
97.04
|
101.75
|
(5)
|
97.16
|
113.47
|
(14)
|
NGLs – $/bbl
|
38.60
|
53.22
|
(27)
|
41.65
|
59.81
|
(30)
|
Natural gas –
$/mcf
|
2.39
|
5.19
|
(54)
|
2.67
|
5.56
|
(52)
|
Total –
$/boe
|
40.97
|
51.30
|
(20)
|
40.70
|
56.95
|
(29)
|
(1)
|
Supplementary financial
measure that does not have any standardized meaning as prescribed
by International Financial Reporting Standards and therefore may
not be comparable with the calculations of similar measures of
other entities. See "Non-IFRS Measures" contained within this
press release.
|
Netback analysis (1)
|
Three months ended
|
Year ended
|
Barrel of oil
equivalent ($/boe)
|
Dec. 31
2023
|
Dec. 31
2022
|
% Positive
(Negative)
|
Dec. 31
2023
|
Dec. 31
2022
|
% Positive
(Negative)
|
Realized sales
price
|
40.97
|
51.30
|
(20)
|
40.70
|
56.95
|
(29)
|
Royalties
|
(6.08)
|
(7.70)
|
21
|
(5.24)
|
(9.80)
|
47
|
Processing
income
|
0.52
|
0.72
|
(28)
|
0.44
|
0.71
|
(38)
|
Transportation
|
(2.17)
|
(1.97)
|
(10)
|
(2.13)
|
(1.74)
|
(22)
|
Operating
|
(19.03)
|
(25.03)
|
24
|
(20.13)
|
(21.19)
|
5
|
Operating
netback (2)
|
14.21
|
17.32
|
(18)
|
13.64
|
24.93
|
(45)
|
Realized gain (loss) –
financial instruments
|
1.02
|
(0.22)
|
564
|
0.22
|
(6.96)
|
103
|
General and
administrative
|
(4.20)
|
(3.94)
|
(7)
|
(4.58)
|
(3.72)
|
(23)
|
Other (costs)
income
|
(9.35)
|
-
|
(100)
|
(2.59)
|
-
|
(100)
|
Transaction
costs
|
-
|
(0.49)
|
100
|
(0.04)
|
(0.11)
|
64
|
Cash finance
costs (2)
|
(0.38)
|
(0.43)
|
12
|
(0.53)
|
(0.77)
|
31
|
Corporate
netback (2)
|
1.30
|
12.24
|
(89)
|
6.12
|
13.37
|
(54)
|
(1)
|
% Positive (Negative)
is expressed as being positive (better performance in the category)
or negative (reduced performance in the category) in relation to
operating netback, corporate netback and net earnings.
|
(2)
|
Non-IFRS measure or
ratio that does not have any standardized meaning as prescribed by
International Financial Reporting Standards and therefore may not
be comparable with the calculations of similar measures or ratios
of other entities. See "Non-IFRS Measures" contained within
this press release.
|
YEAR END 2023 RESERVE INFORMATION
McDaniel & Associates Consultants Ltd. ("McDaniel"), the
Company's independent petroleum engineering firm, has evaluated
100% of Clearview's crude oil,
natural gas and natural gas liquids reserves (all located in
Canada) as at December 31, 2023 and prepared a reserves report
dated March 21, 2024 (the "McDaniel
Report") in accordance with National Instrument 51-101 -
Standards of Disclosure for Oil and Gas Activities ("NI
51-101") and the Canadian Oil and Gas Evaluation Handbook
("COGEH"). Consistent with the prior year's reserve report, the
Company used a three consultant (McDaniel, GLJ Petroleum
Consultants Ltd. and Sproule) average commodity price forecast
dated January 1, 2024 ("Price
Forecast") in the evaluation. Full reserves data disclosure
as required under NI 51-101 will be included in Clearview's Annual Information Form to be
filed on SEDAR+ by April 29,
2024.
RESERVES
The following table is a breakdown of the Company's reserves
information, estimated using the Price Forecast and forecast costs,
as detailed in the McDaniel Report at December 31, 2023.
Reserves
|
|
Light &
Medium
Crude Oil
|
Conventional
Natural Gas(3)
|
Natural
Gas
Liquids(4)
|
Total Oil
Equivalent(5)
|
Reserves
Category
|
Gross(1)
(Mbbl)
|
Net(2)
(Mbbl)
|
Gross(1)
(MMcf)
|
Net(2)
(MMcf)
|
Gross(1) (Mbbl)
|
Net(2)
(Mbbl)
|
Gross(1) (Mboe)
|
Net(2)
(Mboe)
|
Proved
|
|
|
|
|
|
|
|
|
Developed
Producing
|
1,005
|
875
|
13,434
|
12,120
|
984
|
805
|
4,229
|
3,700
|
Non-Producing
|
52
|
45
|
576
|
514
|
36
|
29
|
183
|
159
|
Undeveloped
|
2,164
|
1,836
|
13,357
|
11,994
|
729
|
604
|
5,120
|
4,439
|
Total
Proved
|
3,221
|
2,756
|
27,367
|
24,628
|
1,749
|
1,438
|
9,532
|
8,298
|
Probable
|
1,606
|
1,245
|
22,749
|
20,190
|
1,705
|
1,407
|
7,102
|
6,016
|
Total Proved +
Probable
|
4,827
|
4,000
|
50,116
|
44,818
|
3,454
|
2,845
|
16,633
|
14,314
|
(1)
|
Gross reserves are
defined as the working interest share of reserves prior to the
deduction of interests owned by others (burdens). Royalty
interest reserves are not included in Gross reserves.
|
(2)
|
Net reserves are
defined as the working, net carried, and royalty interest reserves
after deduction of all applicable burdens/royalties.
|
(3)
|
Includes solution
gas.
|
(4)
|
Includes ethane,
propane, butane, pentane, and condensate.
|
(5)
|
Oil equivalent ("boe")
amounts have been calculated using a conversion rate of six
thousand cubic feet of natural gas to one barrel of oil
(6:1).
|
NET PRESENT VALUE OF FUTURE NET REVENUE
The estimated future net revenues associated with Clearview's reserves at December 31, 2023, based on the Price Forecast,
are summarized in the following table.
Net Present Values
of Future Net Revenue
|
|
|
Before Income
Taxes
Discounted at %/year (MM$)
|
After Income
Taxes Discounted at %/year (MM$)
|
|
Before
Tax
10.0%(1)
($/boe)
|
Reserves
Category
|
0 %
|
5 %
|
10 %
|
15 %
|
20 %
|
0 %
|
5 %
|
10 %
|
15 %
|
20 %
|
|
Proved
|
|
|
|
|
|
|
|
|
|
|
|
|
Developed Producing
|
28.1
|
34.9
|
32.3
|
28.5
|
25.1
|
28.1
|
34.9
|
32.3
|
28.5
|
25.1
|
|
8.73
|
Non-Producing
|
2.6
|
2.1
|
1.7
|
1.4
|
1.2
|
2.6
|
2.1
|
1.7
|
1.4
|
1.2
|
|
10.66
|
Undeveloped
|
72.6
|
39.8
|
21.2
|
10.1
|
3.3
|
72.6
|
39.8
|
21.2
|
10.1
|
3.3
|
|
4.77
|
Total
Proved
|
103.3
|
76.8
|
55.2
|
40.0
|
29.5
|
103.3
|
76.8
|
55.2
|
40.0
|
29.5
|
|
6.65
|
Total
Probable
|
112.2
|
69.0
|
43.5
|
28.4
|
19.0
|
87.2
|
55.0
|
35.2
|
23.2
|
15.6
|
|
7.24
|
Total Proved +
Probable
|
215.6
|
145.8
|
98.7
|
68.4
|
48.6
|
190.5
|
131.8
|
90.3
|
63.2
|
45.2
|
|
6.89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Unit Values using Net
reserves, using a discount rate of 10% and calculated before
deducting future income tax expenses.
|
(2)
|
Future net revenues are
estimated using forecast prices, costs arising from the anticipated
development and production of reserves, associated royalties,
operating costs, development costs, and abandonment and reclamation
costs. The net present values of future net revenues
disclosed are not a measure of fair market value.
|
RESERVES RECONCILIATION
Changes between the Company gross reserve estimates made as at
December 31, 2023 and the prior-year
estimates, made as at December 31,
2022, using the three consultant average forecast prices and
costs at the respective dates are summarized in the table
below. Negative technical revisions in the reconciliation
were primarily attributable to undeveloped locations at
Clearview's Windfall
property. Eight, 100% working interest, proved undeveloped
locations and two additional, 100% working interest, probable
undeveloped locations were assigned reserves based on a well
drilled on the property in 2018 that utilized a higher completion
intensity technique compared to the legacy wells in the pool. This
enhanced completion technique resulted in higher initial production
rates compared to the legacy wells. A recent decline in oil
production resulted in a negative revision to this well's reserve
assignment and a corresponding negative revision to the reserve
assignments to the above-mentioned ten undeveloped locations in the
reserve report. All ten of these undeveloped locations remain in
the report as economic under the price forecast, with reduced
reserve assignments compared to the previous year. Excluding the
Windfall property, technical revisions for the Company's remaining
properties were a positive 217 Mboe in the total proved category
and a negative 17 Mboe in the total proved plus probable
category.
|
Proved
|
|
|
Total
|
|
Developed
|
Total
|
Total
|
Proved +
|
|
Producing
|
Proved
|
Probable
|
Probable
|
Light and Medium
Crude Oil (Mbbl)
|
|
|
|
|
December 31,
2022
|
1,088
|
3,780
|
1,853
|
5,632
|
Extensions and Improved
Recovery
|
-
|
17
|
4
|
21
|
Technical
Revisions
|
230
|
(258)
|
(196)
|
(453)
|
Dispositions
|
(193)
|
(193)
|
(49)
|
(242)
|
Economic
Factors
|
19
|
14
|
(6)
|
8
|
Production
|
(139)
|
(139)
|
-
|
(139)
|
December 31,
2023
|
1,005
|
3,221
|
1,606
|
4,827
|
|
|
|
|
|
Conventional Natural
Gas(1)
(MMcf)
|
|
|
|
|
December 31,
2022
|
14,377
|
33,099
|
27,472
|
60,571
|
Extensions and Improved
Recovery
|
-
|
107
|
25
|
133
|
Technical
Revisions
|
1,984
|
(2,878)
|
(4,698)
|
(7,575)
|
Dispositions
|
(307)
|
(307)
|
(76)
|
(383)
|
Economic
Factors
|
(675)
|
(709)
|
25
|
(685)
|
Production
|
(1,945)
|
(1,945)
|
-
|
(1,945)
|
December 31,
2023
|
13,434
|
27,367
|
22,748
|
50,116
|
|
|
|
|
|
Natural Gas Liquids
(Mbbl)
|
|
|
|
|
December 31,
2022
|
1,098
|
1,921
|
1,897
|
3,818
|
Extensions and Improved
Recovery
|
-
|
3
|
1
|
3
|
Technical
Revisions
|
91
|
31
|
(188)
|
(156)
|
Dispositions
|
(11)
|
(11)
|
(3)
|
(13)
|
Economic
Factors
|
(47)
|
(48)
|
(2)
|
(51)
|
Production
|
(147)
|
(147)
|
-
|
(147)
|
December 31,
2023
|
984
|
1,749
|
1,705
|
3,454
|
|
|
|
|
|
Total
(Mboe)(2)
|
|
|
|
|
December 31,
2022
|
4,581
|
11,217
|
8,329
|
19,546
|
Extensions and Improved
Recovery
|
-
|
38
|
9
|
46
|
Technical
Revisions
|
654
|
(705)
|
(1,168)
|
(1,874)
|
Dispositions
|
(255)
|
(255)
|
(64)
|
(319)
|
Economic
Factors
|
(141)
|
(153)
|
(4)
|
(156)
|
Production
|
(610)
|
(610)
|
-
|
(610)
|
December 31,
2023
|
4,229
|
9,532
|
7,102
|
16,633
|
(1)
|
Conventional natural
gas includes solution gas.
|
(2)
|
Barrels of oil
equivalent may be misleading, particularly if used in isolation.
BOE amounts have been calculated using a conversion rate of six
thousand cubic feet of natural gas to one barrel of oil
(6:1).
|
(3)
|
Tables may not add due
to rounding
|
TOTAL FUTURE NET REVENUE (UNDISCOUNTED) AS OF DECEMBER 31, 2023
The table below summarizes the elements of future net revenue
estimated using the Price Forecast and forecast costs without
discount.
|
|
|
|
|
|
|
Future Net
Revenue
|
|
|
|
|
|
|
|
Before
|
After
|
|
|
|
Operating
|
Development
|
ADR(3)
|
Income
|
Income
|
Income
|
Reserves
|
Revenue(1)
|
Royalties(2)
|
Costs
|
Costs
|
Costs
|
Taxes
|
Taxes
|
Taxes
|
Category
|
MM$
|
MM$
|
MM$
|
MM$
|
MM$
|
MM$
|
MM$
|
MM$
|
Total Proved
|
534.5
|
68.2
|
222.4
|
106.2
|
34.5
|
-
|
103.3
|
103.3
|
Total Proved +
Probable
|
897.7
|
127.3
|
353.0
|
162.4
|
39.5
|
25.1
|
215.6
|
190.5
|
(1)
|
Includes all product
revenues and other revenues as forecast.
|
(2)
|
Royalties include
Crown, freehold, and overriding royalties.
|
(3)
|
Abandonment,
decommissioning and reclamation costs.
|
PRICING ASSUMPTIONS
The following table summarizes the Price Forecast used in the
McDaniel Report. First year forecasted pricing used in this
year's report compared to last year's report decreased by 10% and
48% for Edmonton Light Crude Oil and Alberta AECO spot natural gas
prices respectively.
3 Consultant Average
(McDaniel, GLJ and Sproule)
|
Summary of Price
Forecasts
|
January 1,
2024
|
|
|
|
|
|
|
|
|
|
|
Oil(1)
|
Natural Gas
Liquids(1)
|
Natural
Gas(1)
|
|
|
|
|
|
|
|
Cond.
&
|
Alberta
|
|
US/CAN
|
|
Edmonton
|
|
|
|
Natural
|
AECO
|
|
Exchange
|
|
Light
|
Ethane
|
Propane
|
Butanes
|
Gasolines
|
Spot
|
Inflation(2)
|
Rate
|
Year
|
$/bbl
|
$/bbl
|
$/bbl
|
$/bbl
|
$/bbl
|
$/MMBtu
|
%
|
$US/$CAN
|
2024
|
92.91
|
6.88
|
29.65
|
47.69
|
96.79
|
2.20
|
0.0
|
0.752
|
2025
|
95.04
|
10.76
|
35.13
|
48.83
|
98.75
|
3.37
|
2.0
|
0.752
|
2026
|
96.07
|
13.17
|
35.43
|
49.36
|
100.71
|
4.05
|
2.0
|
0.755
|
2027
|
97.99
|
13.44
|
36.14
|
50.35
|
102.72
|
4.13
|
2.0
|
0.755
|
2028
|
99.95
|
13.71
|
36.86
|
51.35
|
104.78
|
4.21
|
2.0
|
0.755
|
2029
|
101.94
|
14.00
|
37.60
|
52.38
|
106.87
|
4.30
|
2.0
|
0.755
|
2030
|
103.98
|
14.28
|
38.35
|
53.43
|
109.01
|
4.38
|
2.0
|
0.755
|
2031
|
106.06
|
14.58
|
39.12
|
54.50
|
111.19
|
4.47
|
2.0
|
0.755
|
2032
|
108.18
|
14.87
|
39.90
|
55.58
|
113.41
|
4.56
|
2.0
|
0.755
|
2033
|
110.35
|
15.17
|
40.70
|
56.70
|
115.67
|
4.65
|
2.0
|
0.755
|
2034
|
112.56
|
15.48
|
41.51
|
57.83
|
117.98
|
4.74
|
2.0
|
0.755
|
2035
|
114.81
|
15.79
|
42.34
|
58.99
|
120.34
|
4.84
|
2.0
|
0.755
|
2036
|
117.10
|
16.10
|
43.19
|
60.17
|
122.75
|
4.94
|
2.0
|
0.755
|
2037
|
119.45
|
16.42
|
44.06
|
61.37
|
125.20
|
5.03
|
2.0
|
0.755
|
2038
|
121.83
|
16.75
|
44.94
|
62.60
|
127.71
|
5.14
|
2.0
|
0.755
|
Thereafter
|
+2%/yr
|
+2%/yr
|
+2%/yr
|
+2%/yr
|
+2%/yr
|
+2%/yr
|
2.0
|
0.755
|
(1)
|
This summary table
identifies benchmark reference pricing schedules (in Canadian
dollars) that apply to Clearview and the McDaniel
Report.
|
(2)
|
Inflation rate for
forecasting prices and costs.
|
(3)
|
Clearview's weighted
average prices for 2023 were $97.16/bbl for crude oil, $2.67/Mcf
for natural gas and $41.65/bbl for natural gas liquids.
|
FUTURE DEVELOPMENT COSTS
The following table summarizes the escalated future development
costs ("FDC") deducted in the estimation of future net
revenue. The change in FDC compared to the prior year was
principally attributable to a lower estimate for drill and
completion costs for the undeveloped wells at Clearview's Windfall property.
|
2024
|
2025
|
2026
|
2027
|
2028
|
Remaining
|
Total
|
Total
Proved
|
|
|
|
|
|
|
|
Undiscounted (M$)
|
8,099
|
18,873
|
11,384
|
27,141
|
40,684
|
12
|
106,193
|
Discounted @ 10.0%
(M$)
|
7,748
|
16,522
|
9,248
|
19,890
|
26,928
|
4
|
80,341
|
Total Proved +
Probable
|
|
|
|
|
|
|
|
Undiscounted (M$)
|
8,099
|
39,654
|
30,686
|
35,500
|
48,423
|
12
|
162,376
|
Discounted @ 10.0%
(M$)
|
7,748
|
33,920
|
24,017
|
25,782
|
32,072
|
4
|
123,543
|
FINDING, DEVELOPMENT AND ACQUISITION COSTS
Finding and Development ("F&D") costs(1) and
Finding, Development, Acquisition and Disposition ("F,D&A")
costs(1) calculations for the year ended 2023 and for
the most recent three years in aggregate are reported below.
For 2023, total proved and total proved plus probable calculations
are not meaningful as total reserve additions were negative due to
negative revisions and total capital invested was negative due to a
revision in future development costs in the McDaniel Report.
F&D and F,D&A costs are indicators of the Company's
efficiency in deploying capital to develop reserves.
|
|
2023
|
|
2021 - 2023
Totals/Average
|
|
PDP
|
TP
|
P+P
|
PDP
|
TP
|
P+P
|
Capital Invested
(M$)
|
5,316
|
5,316
|
5,316
|
10,917
|
10,917
|
10,917
|
Change in FDC related
to Additions(2) (M$)
|
746
|
(10,508)
|
(13,558)
|
767
|
23,153
|
16,712
|
Total related to
Additions(2) (M$)
|
6,063
|
(5,192)
|
(8,241)
|
11,684
|
34,070
|
27,629
|
|
|
|
|
|
|
|
Acquisitions
(M$)
|
-
|
-
|
-
|
-
|
-
|
-
|
Dispositions
(M$)
|
(2,083)
|
(2,083)
|
(2,083)
|
(5,063)
|
(5,063)
|
(5,063)
|
Change in FDC related
to Acquisitions (M$)
|
-
|
-
|
-
|
-
|
-
|
-
|
Change in FDC related
to Dispositions (M$)
|
-
|
-
|
-
|
-
|
-
|
-
|
Total Capital
Invested(3) (M$)
|
3,979
|
(7,275)
|
(10,325)
|
6,621
|
29,007
|
22,567
|
|
|
|
|
|
|
|
Discoveries, Extensions
& Imp. Recovery (Mboe)
|
-
|
38
|
46
|
102
|
463
|
131
|
Technical
Revisions(4), Economic Factors (Mboe)
|
513
|
(858)
|
(2,030)
|
2,068
|
1,533
|
218
|
Total Reserve
Additions(5) (Mboe)
|
513
|
(820)
|
(1,984)
|
2,170
|
1,996
|
349
|
|
|
|
|
|
|
|
Acquisitions
(mboe)
|
-
|
-
|
-
|
-
|
-
|
-
|
Dispositions
(mboe)
|
(255)
|
(255)
|
(319)
|
(849)
|
(849)
|
(1,037)
|
Total Reserve
Changes(6) (Mboe)
|
258
|
(1,075)
|
(2,302)
|
1,320
|
1,147
|
(687)
|
|
|
|
|
|
|
|
F&D
Costs(1)(7)
($/boe)
|
$11.82
|
$6.33
|
$4.15
|
$5.39
|
$17.07
|
$79.14
|
F,D&A
Costs(1)(8)
($/boe)
|
$15.43
|
$6.77
|
$4.48
|
$5.02
|
$25.30
|
($32.82)
|
(1)
|
"F&D Costs" and
"F,D&A Costs" do not have standardized meanings and therefore
may not be comparable with the calculation of similar measures for
other entities. See "Oil and Gas Advisories" in this press
release.
|
(2)
|
Change in FDC related
to reserves in the reconciliation categories extensions and
improved recovery, discoveries, technical revisions and economic
factors.
|
(3)
|
Total capital including
field development capital, acquisitions, dispositions, land and
total change in FDC.
|
(4)
|
Technical Revisions
include category changes for reserves that were previously assigned
non-producing reserves and moved to producing reserve
categories.
|
(5)
|
Includes all reserve
changes in the reserve reconciliation categories extensions and
improved recovery, discoveries, technical revisions and economic
factors.
|
(6)
|
Includes all changes to
reserves in the reserve reconciliation excluding
Production.
|
(7)
|
Includes changes in FDC
related to additions.
|
(8)
|
Includes total changes
in FDC, including Acquisitions and Dispositions.
|
RESERVE LIFE INDEX
Reserve Life Index is calculated as Company Gross reserves
divided by annual production for the year indicated. Proved
developed producing reserve life index increased 10% compared to
the prior year.
|
Proved
|
|
Total
|
|
Developed
|
Total
|
Proved
+
|
|
Producing
|
Proved
|
Probable
|
Company Gross Reserves
(Mboe)
|
4,229
|
9,532
|
16,633
|
2023
Production(1) (Mboe)
|
610
|
610
|
610
|
Reserve Life Index
(years)(2)
|
6.9
|
15.6
|
27.3
|
(1)
|
Average annual
production for 2023 was 1,671 boe/d.
|
(2)
|
"Reserve Life Index"
does not have a standardized meaning and therefore may not be
comparable with the calculation of similar measures for other
entities. See "Oil and Gas Advisories" in this press
release.
|
OPERATIONS
During the first quarter of 2023, Clearview disposed of its last two non-core,
non-operated properties. The disposition of the Company's interest
in the Lindale Cardium Unit closed on January 31, 2023 and the disposition of
Clearview's interest in the Bantry
property closed on March 31,
2023. Gross proceeds from the dispositions totalled
$2.1 million and corporate ARO was
reduced by $2.8 million
(undiscounted, uninflated).
Clearview drilled its first
well in five years in the third quarter of 2023. The Wilson Creek 15-25-043-05W5 Cardium horizontal
well (67% working interest) came on production late in the third
quarter and over the first 7 months, gross production averaged
approximately 139 barrels per day ("bbl/d") of oil and 147 thousand
cubic feet per day ("mcf/d") of natural gas for a total of 200
boe/d (including estimated natural gas liquid recoveries of 37
bbl/d). Following a recent workover to lower the down hole pump,
the well is currently producing approximately 86 bbl/d of oil and
103 mcf/d of natural gas for a total of 129 boe/d (including
estimated natural gas liquid recoveries of 26 bbl/d).
During the fourth quarter of 2023 and the first quarter of 2024,
Clearview completed an expansion
of the waterflood at its Windfall oil property. The initial
waterflood, started in 2012, showed positive results by arresting
oil declines and reducing gas/oil production ratios. The
Company is currently injecting approximately 1,600 bbl/d of water
into the expanded waterflood scheme.
Clearview currently has two
carbon credit generating programs. Through these programs, the
Company has reduced the amount of methane being vented in the
field. The measured reduction in methane venting generates
carbon credits which can be used to partially offset Clearview's carbon tax obligations and the
remainder can be sold. Total credits generated in 2023 were
$0.3 million, more than offsetting
the Company's carbon tax obligation.
The Company continued abandonment and reclamation activities
through to the end of 2023. During the year, Clearview incurred $0.5
million of net operated expenditures abandoning 8 gross (5.6
net) wells and 3 gross (3.0 net) pipelines and conducting numerous
environmental site assessments. Expenditures on
decommissioning projects in 2024 are expected to be
approximately $0.8 million.
CYBERSECURITY INCIDENT UPDATE
Further to its December 6, 2023
and January 12, 2024 press releases,
Clearview has not recovered any
funds that were lost as a result of the cybersecurity
incident. The Company continues its efforts to recover these
funds and law enforcement continues an active investigation. Due to
the nature of the cybersecurity incident, these efforts may not
result in the return of all or any of the stolen funds.
Clearview will update if attempts
to recover any funds are successful.
OUTLOOK
Clearview's strategy remains to
provide liquidity for its shareholders. The Company is actively
evaluating strategic acquisition opportunities, both marketed and
unsolicited, and views these as potential paths to liquidity.
Clearview submitted numerous bids
to acquire various assets and companies in 2023 totaling more than
$180 million. These efforts have
continued into 2024. Although the Company has not yet closed on an
opportunity, Clearview continues
to explore strategic growth opportunities, both internally and
externally. Additionally, management and the Board of Directors
continue to monitor the outlook for commodity prices and forecast
adjusted funds flow to determine the appropriate timing for
providing additional returns to shareholders. At the current
time, the forward strip price for AECO gas indicates $1.78/mcf for the balance of 2024, 33% lower than
realized gas prices in 2023. While the current natural gas price
remains depressed, negatively impacting Clearview's adjusted funds flow expectations,
the outlook for 2025 is positive with current strip indications at
$3.33/mcf, 25% higher than realized
prices in 2023.
Clearview would like to thank
its shareholders for their continued support as we evaluate our
internal development plans and external opportunities to grow
production volumes and adjusted funds flow towards providing
liquidity for shareholders.
Clearview's December 31, 2023 year-end audited financial
statements and management's discussion and analysis are available
on the Company's website at www.clearviewres.com and SEDAR+ at
www.sedarplus.ca.
FOR FURTHER
INFORMATION PLEASE CONTACT:
|
|
CLEARVIEW RESOURCES
LTD.
|
|
2400 - 635 – 8th
Avenue S.W. Calgary, Alberta T2P 3M3
|
|
Telephone: (403)
265-3503
Email: info@clearviewres.com
|
Facsimile: (403)
265-3506
Website: www.clearviewres.com
|
ROD
HUME
President & CEO
|
BRIAN
KOHLHAMMER
V.P. Finance & CFO
|
Note Regarding Forward-Looking Statements
This press release contains forward-looking statements and
forward-looking information (collectively "forward-looking
information") within the meaning of applicable securities laws
relating to the Company's plans and other aspects of our
anticipated future operations, management focus, strategies,
financial, operating and production results, industry conditions,
commodity prices and business opportunities. Specifically, this
press release has forward looking information with respect to:
expected cash provided by continuing operations, including future
net revenue; future asset retirement obligations and
decommissioning costs; liquidity events, including the cost, timing
and intention to implement same; future capital expenditures,
including the amount and nature thereof; oil and natural gas prices
and demand; expansion and other development trends of the oil and
gas industry; the ongoing investigation and attempt to recover the
stolen funds; and overall growth strategy. Forward-looking
information typically uses words such as "anticipate", "believe",
"project", "expect", "goal", "plan", "intend" or similar words
suggesting future outcomes, statements that actions, events or
conditions "may", "would", "could" or "will" be taken or occur in
the future. Statements relating to "reserves" are deemed to be
forward-looking statements, as they involve the implied assessment,
based on certain estimates and assumptions, that the reserves
described can be profitably produced in the future.
The forward-looking information is based on certain key
expectations and assumptions made by our management, including
expectations and assumptions concerning prevailing commodity prices
and differentials, exchange rates, applicable royalty rates and tax
laws; the impact government assistance programs will have on the
Company; the impact on energy demands going forward and the
inability of certain entities, including OPEC to agree on crude oil
production output constraints; the impact on commodity prices,
production and cash flow due to production shut-ins; the impact of
regional and/or global health related events on energy demand;
global energy policies going forward; our ability to execute our
plans as described herein; global energy policies going forward;
future exchange rates; future debt levels; the availability and
cost of financing, labour and services; the impact of increasing
competition and the ability to market oil and natural gas
successfully and our ability to access capital. Although
Clearview believes that the
expectations and assumptions on which such forward-looking
information is based are reasonable, undue reliance should not be
placed on the forward-looking information because Clearview can give no assurance that they will
prove to be correct. Since forward-looking information addresses
future events and conditions, by its very nature such information
involves inherent risks and uncertainties which could include the
possibility that Clearview will
not be able to execute some or all of its ongoing programs; general
economic and political conditions in Canada, the U.S. and globally, and in
particular, the effect that those conditions have on commodity
prices and our access to capital; further fluctuations in the price
of crude oil, natural gas liquids and natural gas; fluctuations in
foreign exchange or interest rates; adverse changes to
differentials for crude oil and natural gas produced in
Canada as compared to other
markets and worsened transportation restrictions. Our actual
results, performance or achievement could differ materially from
those expressed in, or implied by, the forward-looking information
and, accordingly, no assurance can be given that any of the events
anticipated by the forward-looking information will transpire or
occur, or if any of them do so, what benefits that we will derive
therefrom. Management has included the above summary of assumptions
and risks related to forward-looking information provided in this
press release in order to provide securityholders with a more
complete perspective on our future operations and such information
may not be appropriate for other purposes.
Readers are cautioned that the foregoing lists of factors are
not exhaustive. These forward-looking statements are made as of the
date of this press release and we disclaim any intent or obligation
to update publicly any forward-looking information, whether as a
result of new information, future events or results or otherwise,
other than as required by applicable securities laws.
This press release contained future-oriented financial
information ("FOFI") about Clearview's projected 2023 adjusted funds
flow, which is subject to the same assumptions, risk factors,
limitations and qualifications as set forth in the above
paragraphs. The actual results of Clearview and the resulting financial results
will likely vary from the amounts set forth herein and such
variation may be material. Clearview and its management believe that the
FOFI has been prepared on a reasonable basis, reflecting
management's best estimates and judgments. However, because this
information is subjective and subject to numerous risks, it should
not be relied on as necessarily indicative of future results.
Except as required by applicable securities laws, Clearview undertakes no obligation to update
such FOFI. FOFI contained in this press release was made as of the
date of this press release and was provided for purposes of
providing further information about Clearview's anticipated future business
operations. Readers are cautioned that the FOFI contained in this
press release should not be used for purposes other than for which
it is disclosed herein.
Non-IFRS Measures
Throughout this press release and other materials disclosed by
the Company, Clearview uses
certain measures to analyze financial performance, financial
position and cash flow. These non-IFRS and other financial measures
do not have any standardized meaning prescribed under IFRS and
therefore may not be comparable to similar measures presented by
other entities. The non-IFRS and other financial measures should
not be considered alternatives to, or more meaningful than,
financial measures that are determined in accordance with IFRS as
indicators of Clearview's
performance. Management believes that the presentation of these
non-IFRS and other financial measures provides useful information
to shareholders and investors in understanding and evaluating the
Company's ongoing operating performance, and the measures provide
increased transparency and the ability to better analyze
Clearview's business
performance.
Capital Management Measures
Adjusted Funds Flow
Adjusted funds flow represents cash provided by operating
activities before changes in operating non-cash working capital and
decommissioning expenditures. The Company considers this metric as
a key measure that demonstrate the ability of the Company's
continuing operations to generate the cash flow necessary to
maintain production at current levels and fund future growth
through capital investment, to repay debt and return capital to
shareholders. Management believes that this measure provides an
insightful assessment of the Company's operations on a continuing
basis by eliminating the actual settlements of decommissioning
obligations, the timing of which is discretionary. Adjusted funds
flow should not be considered as an alternative to or more
meaningful than cash provided by operating activities as determined
in accordance with IFRS as an indicator of the Company's
performance. Clearview's
determination of adjusted funds flow may not be comparable to that
reported by other companies. Clearview also presents adjusted funds flow
per share whereby per share amounts are calculated using weighted
average shares outstanding consistent with the calculation of
earnings per share. Please refer to Note 15(e) "Capital
Management" in Clearview's
December 31, 2023 audited financial
statements for additional disclosure on Adjusted Funds Flow.
Net Debt
Clearview closely monitors its
capital structure with a goal of maintaining a strong balance sheet
to fund the future growth of the Company. The Company monitors net
debt as part of its capital structure. The Company uses net debt
(current assets, excluding financial derivatives, less current
liabilities, excluding financial derivatives, less convertible
debentures) to assess financial strength, capacity to finance
future development and to assist in assessing the liquidity of the
Company. Please refer to Note 15(e) "Capital Management" in
Clearview's December 31, 2023 audited financial statements
for additional disclosure on Net Debt.
Non-IFRS Measures and Ratios
Capital Expenditures
Capital expenditures equals additions to property, plant &
equipment and additions to exploration & evaluation
assets. Clearview considers
capital expenditures to be a useful measure of adjusted funds flow
used for capital reinvestment. The most directly comparable
IFRS measure to capital expenditures is additions to property,
plant & equipment and additions to exploration & evaluation
assets.
Cash Finance Costs
Cash finance costs is calculated as finance costs less accretion
of decommission obligations and accretion of convertible debenture
discount. The most directly comparable IFRS measure to cash
finance costs is finance costs. A reconciliation of cash finance
costs to finance costs is set out below:
|
Three months
ended
|
Year ended
|
($
thousands)
|
Dec. 31 2023
|
Dec. 31 2022
|
|
Dec. 31 2023
|
Dec. 31 2022
|
|
Finance
costs
|
96
|
308
|
|
862
|
1,378
|
|
Accretion of
decommissioning obligations and convertible debentures
|
(31)
|
(235)
|
|
(539)
|
(824)
|
|
Cash finance
costs
|
65
|
73
|
|
323
|
554
|
|
|
|
|
|
|
|
|
|
Cash Finance Costs per boe
Cash finance costs per boe is calculated by dividing cash
finance costs by total production volumes sold in the period.
Management considers cash finance costs per boe an important
measure to evaluate the Company's cost of debt financing relative
to the Company's corporate netback per boe.
Operating Netback per boe
Operating netback per boe is calculated by dividing operating
netback by total production volumes sold in the period.
Operating netback equals oil and natural gas sales plus processing
income, less royalties, transportation expenses and operating
expenses. Management considers operating netback per boe an
important measure to evaluate its operational performance as it
demonstrates its field level profitability relative to current
commodity prices.
Corporate Netback per boe
Corporate netback per boe is calculated as operating netback
less general and administrative expenses and finance costs,
plus/(minus) realized gains (losses) on financial instruments,
minus(plus) other costs (income), plus accretion of decommissioning
obligations and convertible debentures divided by total production
volumes sold in the period. Management considers
corporate netback per boe an important measure to assist management
and investors in assessing Clearview's overall cash
profitability.
Supplementary Financial Measures
Adjusted funds flow per share is comprised of
adjusted funds flow divided by the basic weighted average common
shares.
Adjusted funds flow per diluted share is
comprised of adjusted funds flow divided by the diluted weighted
average common shares.
Realized sales price – oil is comprised of
light crude oil commodity sales from production, as determined in
accordance with IFRS, before deduction of transportation costs and
excluding gains and losses on financial instruments, divided by the
Company's oil production.
Realized sales price - ngl is comprised of
natural gas liquids commodity sales from production, as determined
in accordance with IFRS, before deduction of transportation costs
and excluding gains and losses on financial instruments, divided by
the Company's ngl production.
Realized sales price – natural gas is
comprised of natural gas commodity sales from production, as
determined in accordance with IFRS, before deduction of
transportation costs and excluding gains and losses on financial
instruments, divided by the Company's natural gas production.
Realized sales price – total is comprised of
oil and natural gas sales from production, as determined in
accordance with IFRS, before deduction of transportation costs and
excluding gains and losses on financial instruments, divided by the
Company's total production on a boe basis.
Oil and Gas Advisories
This press release contains certain oil and gas metrics which do
not have standardized meanings or standard methods of calculation
and therefore such measures may not be comparable to similar
measures used by other companies and should not be used to make
comparisons. Such metrics have been included in this document
to provide readers with additional measures to evaluate our
performance however, such measures are not reliable indicators of
our future performance and future performance may not compare to
our performance in previous periods and therefore such metrics
should not be unduly relied upon. Specifically, this press release
contains the following metrics:
- Boe means barrel of oil equivalent on the basis of 6 mcf
of natural gas to 1 bbl of oil. The term "boe" may be misleading,
particularly if used in isolation. A boe conversion ratio of 6 mcf:
1 bbl is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value
equivalency at the wellhead. In addition, given that the value
ratio based on the current price of crude oil as compared to
natural gas is significantly different from the energy equivalency
of 6: 1, using a conversion on a 6: 1 basis may be misleading as an
indication of value.
Abbreviations
Bbl
|
barrel
|
Boe
|
barrel of oil
equivalent
|
Mbbl
|
thousands of
barrels
|
Mboe
|
thousands of barrels of
oil equivalent
|
MMboe
|
million barrels of oil
equivalent
|
mcf
|
thousand cubic
feet
|
MMbtu
|
millions of British
thermal units
|
MMcf
|
million cubic
feet
|
SOURCE Clearview Resources Ltd.