Forecast average sales volumes for 2020 under the revised capital guidance are expected to range between 70,000 Boe/d to 75,000 Boe/d (41% liquids), a reduction of approximately 6% at mid-point from the originally forecast range of 75,000 Boe/d to 80,000 Boe/d.
Revised Forecast | Original Forecast | |
Annual | 70,000 Boe/d to 75,000 Boe/d | 75,000 Boe/d to 80,000 Boe/d |
First Half | 70,000 Boe/d to 72,000 Boe/d | 70,000 Boe/d to 74,000 Boe/d |
Fourth Quarter | 70,000 Boe/d to 82,000 Boe/d | 84,000 Boe/d to 90,000 Boe/d |
The revised capital plans remain focused on the Company's liquids-rich
ABOUT
ADVISORIES
Forward-looking Information
Certain statements in this press release constitute forward-looking information under applicable securities legislation. Forward-looking information typically contains statements with words such as "anticipate", "believe", "estimate", "will", "expect", "plan", "schedule", "intend", "propose", or similar words suggesting future outcomes or an outlook. Forward-looking information in this press release includes, but is not limited to:
- planned capital expenditures for 2020 and potential changes thereto; and
- forecast average sales volumes for 2020 and certain periods within 2020.
Such forward-looking information is based on a number of assumptions which may prove to be incorrect. Assumptions have been made with respect to the following matters, in addition to any other assumptions identified in this press release:
- future natural gas and liquids prices;
- royalty rates, taxes and capital, operating, general & administrative and other costs;
- foreign currency exchange rates and interest rates;
- general business, economic and market conditions;
- the ability of
Paramount to obtain the required capital to finance its exploration, development and other operations and meet its commitments and financial obligations; - the ability of
Paramount to obtain equipment, services, supplies and personnel in a timely manner and at an acceptable cost to carry out its activities; - the ability of
Paramount to secure adequate product processing, transportation, fractionation, and storage capacity on acceptable terms and the capacity and reliability of facilities; - the ability of
Paramount to market its natural gas and liquids successfully to current and new customers; - the ability of
Paramount and its industry partners to obtain drilling success (including in respect of anticipated production volumes, reserves additions, liquids yields and resource recoveries) and operational improvements, efficiencies and results consistent with expectations; - the timely receipt of required governmental and regulatory approvals;
- the application of regulatory requirements respecting abandonment and reclamation; and
- anticipated timelines and budgets being met in respect of drilling programs and other operations (including well completions and tie-ins, the construction, commissioning and start-up of new and expanded facilities, including third-party facilities, and facility turnarounds and maintenance).
Although
- fluctuations in natural gas and liquids prices, including those related to the impact of the COVID-19 (Coronavirus) outbreak and determinations by
OPEC andRussia as to production levels; - changes in capital spending plans and planned exploration and development activities;
- changes in foreign currency exchange rates and interest rates;
- the uncertainty of estimates and projections relating to future revenue, production, reserve additions, liquids yields (including condensate to natural gas ratios), resource recoveries, royalty rates, taxes and costs and expenses;
- the ability to secure adequate product processing, transportation, fractionation, and storage capacity on acceptable terms;
- operational risks in exploring for, developing, producing and transporting natural gas and liquids, including the risk of spills, leaks or blowouts;
- the ability to obtain equipment, services, supplies and personnel in a timely manner and at an acceptable cost;
- potential disruptions, delays or unexpected technical or other difficulties in designing, developing, expanding or operating new, expanded or existing facilities (including third-party facilities);
- processing, pipeline, and fractionation infrastructure outages, disruptions and constraints;
- risks and uncertainties involving the geology of oil and gas deposits;
- general business, economic and market conditions;
- the ability to generate sufficient cash flow from operations and obtain financing to fund planned exploration, development and operational activities and meet current and future commitments and obligations (including product processing, transportation, fractionation and similar commitments and obligations);
- changes in, or in the interpretation of, laws, regulations or policies (including environmental laws);
- the ability to obtain required governmental or regulatory approvals in a timely manner, and to obtain and maintain leases and licenses;
- the effects of weather and other factors including wildlife and environmental restrictions which affect field operations and access;
- the timing and cost of future abandonment and reclamation obligations and potential liabilities for environmental damage and contamination;
- uncertainties regarding aboriginal claims and in maintaining relationships with local populations and other stakeholders; and
- other risks and uncertainties described elsewhere in this document and in
Paramount's other filings with Canadian securities authorities.
The foregoing list of risks is not exhaustive. For more information relating to risks, see the section titled "Risk Factors" in
Oil and Gas Measures and Definitions
The term "liquids" includes oil, condensate and other natural gas liquids (ethane, propane and butane).
This press release contains disclosures expressed as "Boe" and "Boe/d". "Boe" means barrel of oil equivalent and "Boe/d" means barrels of oil equivalent per day. Natural gas equivalency volumes have been derived using the ratio of six thousand cubic feet of natural gas to one barrel of oil when converting natural gas to Boe. Equivalency measures may be misleading, particularly if used in isolation. A conversion ratio of six thousand cubic feet of natural gas to one barrel of oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the well head. For the year ended
Additional information respecting the Company's oil and gas properties and operations, including a breakdown of 2019 annual and quarterly production volumes by product type, is provided in the Company's annual information form for the year ended
SOURCE
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