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Striker Exploration Corp. Announces First Quarter Operating and Financial Results and Increased Guidance

Striker Exploration Corp. (“Striker” or the “Company”) (TSX VENTURE:SKX) is pleased to announce our operating and financial results for the three month period ended March 31, 2015. Our Consolidated Financial Statements and Notes, as well as Management’s Discussion and Analysis (“MD&A”) for the period ended March 31, 2015, are available on Striker’s website ( and have been filed on SEDAR.


The first quarter of 2015 is the initial reporting period demonstrating consolidated results of production and cash flow after the acquisitions which closed late in 2014.

  • Achieved average production of 3,066 boe/d (65% liquids), 10% above Q1 2015 guidance of 2,800 boe/d;
  • Realized funds flow from operations of $3.7 million, or $0.14 per basic and fully diluted share;
  • Maintained balance sheet strength with debt, net of working capital, of $6.9 million, representing 0.5x debt to annualized first quarter funds flow;
  • Reduced operating and transportation costs to $12.05 per boe;
  • Decreased general and administration costs to $3.91 per boe;
  • Expended $2.8 million on capital projects including:
    • $1.2 million on exploration and development primarily for the tie-in and equipping of 2 gross (1.8 net) Cardium light oil wells in Drayton Valley as detailed in the February 9, 2015 press release; and
    • $1.6 million on a Belly River focused strategic acquisition in the Pembina/Chigwell areas adding 45 boe/d (65% liquids) and 25 gross (23 net) undeveloped sections of land as detailed in the March 23, 2015 press release; and
  • Consolidated our shares on a 20:1 basis and changed the name of the Company to Striker Exploration Corp. from Elkwater Resources Ltd.


Upon review of Striker’s financial strength and quality of the inventory assembled by the team, the Board of Directors has approved a $7 million increase to the 2015 capital budget. The additional funds will be directed to the drilling, completion, and tie-in of three gross (three net) additional Belly River wells.

Total capital spending for the year is now forecast to be $22 million, including $8 million of acquisition related expenditures in addition to $14 million of exploration and development expenditures.

The Company’s annual average production guidance is now 2,650 boe/d (62% liquids) a 10% increase from the previously guided 2,400 boe/d (60% liquids).


for the 3 months Ended
March 31, 2015
(in thousands of dollars except where noted)
Oil and Gas Sales
Oil and NGLs $8,323
Natural gas $1,689
Total $10,011
Funds Flow $3,663
Per share – basic and fully diluted (in dollars) $0.14
Capital Expenditures
Property acquisitions $1,635
Property development $1,200
Other $8
Total $2,843
Net Debt and Working Capital Deficit $6,875
Weighted Average Shares (in thousands)
Basic 26,830
Fully diluted 38,369
Production (6:1 boe conversion)
Oil and NGLs (bbls/d) 2,004
Natural gas (mcf/d) 6,373
Total (boe/d) 3,066
Netbacks (in dollars/boe)
Production and royalty sales $36.28
Royalties ($6.43 )
Operating costs ($11.35 )
Transportation costs ($0.70 )
Operating netback $17.80
General and administrative costs ($3.91 )
Finance expense (cash component) ($0.64 )
Corporate netback $13.25
(1) See “Non-IFRS Measures”
(2) BOE conversion for natural gas of 1Boe:6Mcf has been used, which is based on an energy equivalency conversion method primarily applicable at the burner tip and does not necessarily represent a value equivalency at the wellhead. As the value ratio between natural gas and crude oil based on the current price of natural gas and crude oil is significantly different from the energy equivalency of 6:1 utilizing a conversion on a 6:1 basis may be misleading as an indication of value
(3) Excludes unrealized risk management contracts


Second quarter production continues to be affected by restrictions on the Nova gas transmission system and third-party facility maintenance resulting in estimated second quarter production restrictions of approximately 350 boe/d. The aforementioned increased guidance fully incorporates this expected downtime.

The recently expanded Belly River drilling program is expected to commence in early August with well results anticipated late in the third quarter.

The Board of Directors is pleased to announce the promotion of Frank Muller to Chief Operating Officer and VP of Exploration. In his expanded role, Frank will continue to be instrumental to the future success of the Company.

Commencing in early June, Striker’s management plans to be in Toronto, Montreal, Vancouver and Calgary presenting to investors. An updated presentation will also be available via Striker’s website, under the “Current Presentation” link.


Striker is a growth-oriented, light oil focused company operating predominantly in Alberta. Striker’s full-cycle business plan provides an excellent opportunity to position itself as a high-growth junior E&P company. With an experienced management team and a strong committed Board, growth is expected to occur through timely strategic acquisitions and drilling. Striker currently trades on the TSX Venture Exchange under ticker “SKX”.


Forward-Looking Statements. Certain information included in this press release constitutes forward-looking information under applicable securities legislation. Forward-looking information typically contains statements with words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “estimate”, “propose”, “project” or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information in this press release may include, but is not limited to, guidance, future production levels, future drilling plans, capital expenditures and the Company’s intention to identify, capture and execute on additional opportunities. Statements relating to “reserves” are also deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and that the reserves can be profitably produced in the future.

The forward-looking statements contained in this press release are based on certain key expectations and assumptions made by Striker, including expectations and assumptions concerning the success of future drilling, development and completion activities, the performance of existing wells, the performance of new wells, the availability and performance of facilities and pipelines, the geological characteristics of Striker’s properties, the successful application of drilling, completion and seismic technology, prevailing weather and break-up conditions, commodity prices, royalty regimes and exchange rates, the application of regulatory and licensing requirements, the availability of capital, labour and services, the creditworthiness of industry partners and our ability to acquire additional assets.

Although Striker believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Striker can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), constraint in the availability of services, commodity price and exchange rate fluctuations, adverse weather or break-up conditions and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. These and other risks are set out in more detail in Striker’s Annual Information Form for the year ended December 31, 2014.

The forward-looking information contained in this press release is made as of the date hereof and Striker undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward-looking information contained in this press release is expressly qualified by this cautionary statement.

Boe Disclosure. The term barrels of oil equivalent (“boe”) may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All BOE conversions in the report are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil.

Non-IFRS Measures. This press release contains the term “net debt”, which does not have a standardized meaning prescribed by International Financial Reporting Standards (“IFRS”) and therefore may not be comparable with the calculation of similar measures by other companies. Management believes “net debt” is a useful supplemental measure of the total amount of current and long-term debt of the Company. Additional information relating to non-IFRS measures can be found in the Company’s most recent management’s discussion and analysis MD&A, which may be accessed through the SEDAR website (

Production Rates. Any references in this press release to initial production rates are useful in confirming the presence of hydrocarbons, however, such rates are not determinative of the rates at which such wells will continue to produce and decline thereafter and are not necessarily indicative of long-term performance or ultimate recovery. Readers are cautioned not to place reliance on such rates in calculating the aggregate production for the Company. Such rates are based on field estimates and may be based on limited data available at this time.