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 December 14, 2015 - 7:00 AM EST
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Striker Exploration Corp. Announces Operational Update and Agreement to Sell Non-Core Assets for $5.2 Million

CALGARY, ALBERTA--(Marketwired - Dec. 14, 2015) - Striker Exploration Corp. ("Striker" or the "Company") (TSX VENTURE:SKX) is pleased to announce an operational update and the entering into of a definitive agreement for the disposition of certain non-core assets for cash consideration of $5.2 million ("the Disposition"). Upon completion of the Disposition, Striker estimates that it will exit 2015 with a net debt of $8.0 million, or approximately 0.6 times debt to trailing cash flow.


At Wilson Creek, Striker continues to deliver positive drilling results through its focused Belly River growth strategy while maintaining financial discipline. During the fourth quarter, the Company drilled and cased six gross (2.9 net) Belly River horizontal light oil wells. Included in this program are four gross (2.67 net) development wells of which three have been placed on production. The following table contains data from field reports for the three wells:

        Calendar Daily Average Production - Gross/Raw
  Working Interest   Days On Production Light Oil(1) Natural Gas(2)
Zone bbl/d mcf/d
Belly River Channel #1 76 % 12 182 901
Basal Belly River #2 24 % 29 157 159
Basal Belly River #1 67 % 39 87 87
  1. Field-measured crude oil quality of 40°API
  2. Natural gas volumes currently being flared or incinerated prior to tie-in

The Company is encouraged with initial production data which validates the Wilson Creek geological model as well as providing strong well results that, on average, provide a greater than 30% rate of return at US$45 WTI.

The fourth development well targeted an additional independent Belly River channel zone. Completion is expected to be performed in early 2016.

The two exploration wells, which Striker has farmed out, have been drilled, cased and are scheduled to be completed in mid-December 2015 and on production in the first quarter of 2016. See Striker's press release dated November 26, 2015 for further details on the farm-out.


The Disposition consists of non-strategic gross overriding royalties in its Killam area of east central Alberta which the Company has agreed to sell to an arm's length party for total cash consideration of $5.2 million. The Disposition will be effective October 1, 2015, and is expected to close on or before December 18, 2015. The assets being sold represent the entirety of Striker's gross overriding royalty holdings.

Highlights of the Disposition:

  • Total cash consideration of $5.2 million, before customary closing adjustments;
  • Net royalty interest production from the Disposition averaged 48 boepd, consisting of 44 bbl/d of medium gravity oil production and 25 mcf/d of natural gas for the month of September 2015; and
  • Cash flow generated by the assets in September 2015 was $45,800. 

The cash consideration to be realized from the Disposition is highly accretive to Striker's current valuation and equates to an annualized cash flow multiple of 9.5 times and $108,000/boepd based on September 2015 cash flow and production.

Upon completion of the Disposition, Striker will only be drawn to 20% of its available credit facility. With an exceptionally strong financial position, the Company is well funded into 2016 to continue to create shareholder value through the development of its Belly River assets.

Striker's annual average production guidance of 2,650 boepd for 2015 remains unchanged.


Striker is a growth-oriented, light oil focused company operating predominantly in Alberta. The Company's full-cycle business plan, strong balance sheet and high-quality asset base provides an excellent platform for continued growth. With a committed management and board, the Company will continue to pursue an active drilling program coupled with strategic and opportunistic acquisitions. 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, completion of wells, the closing date of the Disposition, the credit facility of the Company and the average production of the Company.

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.

Striker Exploration Corp.
Doug Bailey
President and Chief Executive Officer

Striker Exploration Corp.
Neil Burrows
Vice President, Finance and Chief Financial Officer

Striker Exploration Corp.
1250, 645 - 7th Avenue S.W.
Calgary, Alberta T2P 4G8
Telephone: (403) 262-0242

Source: Marketwired (December 14, 2015 - 7:00 AM EST)

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