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Information Releases

November 6, 2014

Laricina Energy Reports Third Quarter 2014 Results


The Germain Commercial Demonstration Project (CDP) achieved a September monthly production average of 726 barrels of bitumen per day. The four well-pairs with producers in the bitumen zone have all been converted to production and solvent injection was initiated in one of the well-pairs during the quarter.

Priority at the Saleski pilot was on the Grosmont D and understanding how best to drill and operate in the D zone to maximize production and ultimate recovery. Our most recently drilled well at the pilot in the D zone continues to demonstrate production and steam-to-oil ratios (SORs) that complement C zone production and SORs, demonstrating that the Grosmont can be competitive with average McMurray in situ projects.

Laricina’s goal to advance our development plans at Saleski and Germain to commercial operations requires significant financing. We have been actively monitoring the capital markets since 2012, however conditions have not been favourable for a conventional financing. Our future projects will be delayed unless we are able to raise additional funds. Accordingly, we have engaged financial advisors to assist us in examining and pursuing the full range of alternatives.

Third Quarter 2014 Highlights

At Germain:

  • Converted well-pair 7 from steam circulation to production;
  • Continued production ramp-up from four well-pairs, achieving an average of 726 barrels per day of bitumen production for the month of September; and
  • Started solvent injection in well-pair 10.

At Saleski:

  • The 3D well entered its third production cycle in the Grosmont D zone;
  • Began block steaming (simultaneous injection) in both C-zone wells;
  • Achieved 60 percent complete milestone for detailed engineering for Phase 1; and
  • Reconfirmed detailed cost estimate update for Phase 1 at $520 million (gross).

Innovation:

  • Granted Canadian patent for solvent-cyclic steam-assisted gravity drainage (SC-SAGD); and
  • Featured in the Journal of Petroleum Technology for work on bitumen recovery in the Grosmont carbonate formation, and presented at the Society of Petroleum Engineer’s (SPE) “Unlocking Alberta’s Carbonate Reservoirs” Conference held in Banff, Alberta, Canada.

Corporate:

  • Incurred capital expenditures of $9.1 million with quarter-end working capital of $192.7 million; and
  • Diane Koenig joined as Vice President Finance and Controller.

 

Click here to read complete report. (PDF)


About Laricina Energy Ltd.
Laricina is a non-public, Calgary based, responsible energy company that will contribute supply to the growing demand for crude oil through in situ oil sands development.

Laricina’s goal is to create value by developing Canada’s oil sands using innovative in situ technologies. The Company has a diverse portfolio of oil sands assets at varied stages of development, and experienced people with the requisite technical expertise. Our current focus is on the Company’s two core producing projects – Saleski and Germain. Laricina’s asset base, holds 0.5 billion barrels of probable reserves, 3.9 billion barrels of contingent resources (best estimate) and 0.3 billion barrels of prospective resources (best estimate) as determined by Laricina’s independent reservoir engineers as at December 31, 2013. These assets include oil sands resources in the familiar McMurray Formation, and the developing Grand Rapids, and Grosmont and Winterburn carbonate plays, all of which offer significant production potential.

This information release contains certain “forward-looking statements” within the meaning of such statements under applicable securities law including but not limited to final regulatory approval from the Alberta Energy Regulator and Alberta Environment. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “estimate”, “intend”, “believe”, “anticipate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on Laricina’s experience and current beliefs as well as assumptions made by, and information currently available to, Laricina, and are subject to a variety of risks and uncertainties including, but not limited to, those associated with resource definition, unanticipated costs and expenses, regulatory approvals, fluctuating oil and gas prices, and the ability to access sufficient capital to finance future acquisitions and development. Although the Company believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned that the assumptions and factors discussed in this information release are not exhaustive and readers are not to place undue reliance on forward-looking statements. Laricina disclaims any intention or obligation to update or revise any forward-looking statements as a result of new information, future events or otherwise, subsequent to the date of this message, except as required under applicable securities legislation. The forward-looking statements are expressly qualified by these cautionary statements.

For further information please visit www.laricinaenergy.com or contact:

Heidi Christensen Brown
Senior Analyst, Investor Relations
403.817.0555

Laricina Energy Ltd.
East Tower, 5th Ave Place
800, 425 1st Street SW
Calgary, AB. T2P 3L8

 

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