CALGARY, Alberta, Dec. 18, 2017 (GLOBE NEWSWIRE) — Razor Energy Corp. (“Razor” or the “Company”) (TSXV:RZE) (www.razor-energy.com) is pleased to announce that it has completed the acquisition of certain non-operated working interest positions to consolidate its existing Kaybob Triassic Units 1 and 2 from an arm’s length private company (the “Kaybob Assets”) for cash consideration of $4.6 million, subject to customary adjustments (the “Acquisition”). The Assets are characterized by low decline, light oil focused production with abundant infrastructure that directly complement Razor’s existing asset portfolio. The Acquisition has been funded with Razor’s existing cash reserves.
The Acquisition increases Razor’s operated working interest position in:
- Kaybob Triassic Unit #1 from 52.86% to 52.95% and;
- Kaybob Triassic Unit #2 from 43.31% to 73.25%.
On a pro forma basis including this acquisition, using field production estimates, the Company expects December 2017 production to exceed 4,700 boe/d, of which 85% is light oil and natural gas liquids.
The Acquisition consolidates and enhances Razor’s existing asset base with reactivation and re-entry opportunities, in addition to future drilling upside with proven deliverability of light oil from the Montney formation.
The Acquisition has an effective date of December 1, 2017.
|Total purchase price(1)||$4.6 million|
|Current production (October 2017)||250 boe/d|
|Annual decline rate||15%|
|Run rate cash flow(2)||$1.5 million|
|Current production (October 2017)||$18,400 per boe/d|
|Run rate cash flow(2)||3.09x|
|(1)||Subject to normal adjustments for a transaction of this nature and adjustments related to the exercise of ROFRs.|
|(2)||Run rate cash flow does not have any standard meaning prescribed by IFRS and therefore may not be comparable with the calculation of similar measures for other entities. Refer to “Non-IFRS measures”. Run rate cash flow is based on annualized current production of 250 boe/d multiplied by the operating netback for the Kaybob Assets of $16.65/boe.|
Razor continually strives to deliver on its commitment to shareholders to acquire, consolidate or otherwise add, organically or inorganically, complementary assets to further strengthen its value proposition.
The Company is pleased to announce the promotion of Kent Edney to the position of Vice President, Engineering effective immediately. Kent has a strong background in reservoir and exploitation engineering and, in his enhanced role, will lead all engineering functions at Razor including reserves, A&D and reservoir management while continuing to support the production, operations, drilling and corporate functions.
Razor is a publicly-traded junior oil and gas development and production company headquartered in Calgary, Alberta, concentrated on acquiring, and subsequently enhancing, producing oil and gas properties primarily in Alberta. The Company is led by experienced management and a strong, committed Board of Directors, with a long term vision of growth focused on efficiency and cost control in all areas of the business.
Razor started operations in the first quarter of 2017, through an acquisition of producing assets in the Swan Hills area. In the second quarter of 2017, Razor added to its asset base with the acquisition of complementary assets in the Kaybob area. These predominantly light oil assets provide a foundation for strong shareholder return through abundant low risk operations. Razor plans to concurrently grow Swan Hills and Kaybob, and execute on similar acquisitions, using its experience to extract upside value.
Razor is a pivotal leading-edge enterprise, balancing creativity and discipline, focused on growing an enduring energy company.
Razor currently trades on TSX Venture Exchange under the ticker “RZE”.
For additional information please contact:
President and Chief Executive Officer
Chief Financial Officer
|Razor Energy Corp.
800, 500 5th Avenue S.W.
Calgary, Alberta T2P 3L4G8Telephone: (403) 262-0242