• Achieved a quarterly production record with average production of 20,447 boe/d (92% oil) representing an increase of 38% over the comparable period in 2015. This represents a 22% production per share increase from the fourth quarter of 2015.
  • Achieved funds flow from operations of $64.6 million ($0.28/share basic), an increase of 59% from the fourth quarter of 2015.
  • Generated fourth quarter net earnings of $19 million or $10.10 per boe, an increase of 168% from the fourth quarter of 2015 on a boe basis.
  • The Company’s exploration and development expenditures for the quarter were $76.7 million. A total of 106.1 net Viking crude oil wells were drilled at a 100% success rate.
  • Closed a Dodsland Viking property acquisition for cash consideration of $58.3 million. The Company acquired approximately 620 boe/d (97% light oil) of production and 24 net sections of land prospective for Viking light oil.
  • Maintained balance sheet strength with year-end net debt of $209.5 million representing 0.8 times net debt to fourth quarter annualized funds flow from operations.
  • Increased our credit facilities to $400 million from $300 million in December 2016.


  • Production averaged 17,900 boe/d, a 31% increase (21% per share) from 2015 annual production of 13,715 boe/d.
  • Generated corporate funds flow from operations of $188.2 million ($0.83/share basic) an increase of 12% from 2015.
  • Attained top decile general and administrative costs of $1.14/boe, a 12% decrease from 2015.
  • Raging River continued to add to its drilling inventory through strategic corporate and property acquisitions. The Company invested a total of $403.2 million consisting of $191.6 million of acquisition capital that expanded the Viking play and $211.6 million of development capital.
  • Completed the $108.3 million corporate acquisition of Rock Energy Inc. (“Rock Acquisition”). The Rock Acquisition included 2,550 boe/d (95% oil) of production and approximately 25 net sections of highly prospective land targeting Viking light oil in the Kerrobert area of southwest Saskatchewan.
  • Completed two property acquisitions for total cash consideration of $83.4 million, to further consolidate the Company’s interests in the Viking light oil fairway.
  • Executed a $211.6 million exploration and development program to drill a total of 303 (273.5 net) Viking crude oil wells with a 99.6% success rate.
  • Proved plus probable reserves increased 23% to 94 mmboe (94% oil) and proved reserves increased 25% to 71.6 mmboe (94% oil).
  • Finding, development and acquisition costs including the change in future development capital were:
    • $26.86 per boe on a proved developed producing basis resulting in a recycle ratio of 1.1 times.
    • $23.54/boe on a total proved basis resulting in a recycle ratio of 1.3 times.
    • $19.42/boe on a total proved plus probable basis resulting in a recycle ratio of 1.5 times.
  • Finding and development costs including the change in future development capital were:
    • $22.04 per boe on a proved developed producing basis resulting in a recycle ratio of 1.4 times.
    • $22.16/boe on a total proved basis resulting in a recycle ratio of 1.3 times.
    • $16.83/boe on a total proved plus probable basis resulting in a recycle ratio of 1.8 times.
  • Total net undeveloped land holdings increased 53% to 428,100 acres principally in our core Viking prospect areas in southwest Saskatchewan and southeast Alberta.
  • During 2016, the Company completed a bought deal financing for gross proceeds of approximately $108.1 million, issuing 12.5 million common shares at a price of $8.65 per common share.


All capital activities for the first quarter of 2017 are anticipated to be completed within the next week. A total of 93.5 net Viking wells were drilled including 27.8 net extended reach horizontal (“ERH”) wells. A total of 106.1 net wells are expected to be brought on production in the first quarter with 26 drilled but uncompleted wells carried into the second quarter.

Our ERH wells continue to provide positive results. We currently have 55 ERH wells that have in excess of 3 months of production history. The ERH wells have produced at an average of 2.0 times the rate of the comparable offsetting 0.5 mile wells significantly exceeding initial expectations. The average costs achieved on our program during the first quarter were $670 thousand per 0.5 mile horizontal well and $900 thousand per ERH well. The costs are on-track with our budget, which anticipated an approximate 5-7% increase in capital costs from the cyclical lows of 2016.

Waterflood facilities construction has continued throughout the quarter with phase two waterflood expansions nearing completion at Beadle, Plato, Forgan and Gleneath. Upon commissioning of these facilities an additional 1,300 bbls/d of light crude oil (6% of our total light crude oil) will be under secondary recovery.

Based on field estimates, year to date production has exceeded our annual average production guidance of 22,500 boe/d.


There remains considerable uncertainty in the macro environment including OPEC, the Canadian and United States governments and the stability of crude oil prices. In spite of this, the Company is well positioned to continue creating shareholder value. At current 2017 strip, WTI oil prices of US$55/bbl, we anticipate 2017 funds flow from operations of approximately $310 million and exiting 2017 with approximately $210 million of net debt, or approximately 0.7 times net debt to trailing funds flow from operations. The Company expects to show year over year production per share growth of approximately 26% and anticipate continued strong earnings growth in 2017.

Waterflood and ERH initiatives are expected to continue to reduce corporate declines in the medium and longer term. With a flat commodity price of US$55/bbl WTI and moderating declines in 2018 we expect that sustaining funds flow from operations will represent less than 70% of corporate funds flow from operations, leaving the Company with significant flexibility to continue to pursue double digit growth and other opportunities.

Legal Notice