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File: MCF press release_(2019-04-23)_FINAL.DOCX

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Pinedale Energy Announces Year End 2018 Reserves, Financial and Operating Results

April 23, 2019 - Vancouver, British Columbia - Pinedale Energy Limited ("Pinedale" or the "Company") (TSXV: MCF) is pl
--->eased to announce its reserves, financial and operational results for the year ended December 31, 2018.  Pinedale's au
--->dited consolidated financial statements, management's discussion and analysis and statement of reserves data and other
---> oil and gas information, as mandated by National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activiti
--->es of the Canadian Securities Administrators, for the year ended December 31, 2018 are available under the Company's p
--->rofile on SEDAR at www.sedar.com 

Significant 2018 Highlights

Capital Investments: Pinedale invested $8.6 million in 2018 participating with its operating partner in the successful
---> development of 5 directionally drilled vertical infill wells (1.063 net) and 4 exploratory horizontal wells (0.279 ne
--->t).   Pinedale's inventory of producing wells at year-end 2018 totaled 26 wells (4.745 net) comprising 21 vertical wel
--->ls (4.387 net) and 5 horizontal wells (0.358 net);

2018 Production: 2.24 Bcf of natural gas and 21.1 thousand barrels of condensate for total of 2.37 Bcfe (6,497 Mcfe pe
--->r day);

Total Assets: $13.3 million at December 31, 2018;

Balance Sheet: Working capital deficit of $11.2 million at December 31, 2018, which included $252 thousand of cash. As
---> at December 31, 2018 Bank and mezzanine debt was $11.2 million and was classified as current;

Income Statement: For the year ended December 31, 2018 the Company incurred a net loss of $11.7 million, including a n
--->on-cash impairment of $14.8 million. The charge was not related to underlying asset performance and does not impact th
--->e Company's adjusted funds flow or the amount of credit available under its bank credit facilities.

Q4 Production: 0.47 Bcf of natural gas and 4.3 thousand barrels of condensate for a total of 0.49 Bcfe (5,394 Mcfe per
---> day);

Q4 Revenue: $2.69 million during the three months ended December 31, 2018; and

Q4 Field Netback: $2.60 / Mcfe during the three months ended December 31, 2018


 
Financial and Operational figures (1)

See below for a summary table of certain 2018 financial and operational figures:


 Three months
ended December 31
 %
 Twelve months ended December 31
 %
 
 Production
 2018
 2017
 Change
 2018
 2017
 Change
 
 Natural gas (Mcf/d)
 5,114
 5,646
 -9%
 6,150
 3,233
 90%
 
 Oil & natural gas liquids (bbl/d)
 47
 61
 -23%
 58
 31
 87%
 
 Barrels of oil equivalent (boe/d)
 899
 1,002
 -10%
 1,083
 570
 90%
 
 Thousand cubic feet equivalent (Mcfe/d)
 5,394
 6,015
 -10%
 6,497
 3,420
 90%
 
 
 
 
 
 
 
 
 
 Commodity prices (in CAD$)
 
 
 
 
 
 
 
 Natural gas - after hedging ($/Mcf)
 5.06
 4.26
 19%
 3.49
 4.03
 -13%
 
 Natural gas - after hedging ($/MMBtu)
 4.66
 3.92
 19%
 3.22
 3.71
 -13%
 
 Henry Hub ($/MMBtu)
 4.98
 3.70
 35%
 4.09
 3.88
 5%
 
 Oil & natural gas liquids ($/bbl)
 71.27
 71.52
 0%
 83.30
 67.86
 23%
 
 NYMEX crude oil ($/bbl)
 79.18
 70.39
 12%
 84.52
 66.08
 28%
 
 
 
 
 
 
 
 
 
 Revenue ($000)
 
 
 
 
 
 
 
 Natural gas
 2,449
 2,080
 18%
 8013
 4,426
 81%
 
 Oil & natural gas liquids
 306
 404
 -24%
 1,757
 769
 128%
 
 Hedging gain (loss)
 70
 131
 -47%
 176
 165
 7%
 
 Total revenue
 2,685
 2,615
 3%
 9,594
 5,360
 79%
 
 
 
 
 
 
 
 
 
 Netbacks
 
 
 
 
 
 
 
 ($/Mcfe)
 
 
 
 
 
 
 
 Average sale price
 5.41
 4.49
 20%
 4.05
 4.29
 -6%
 
 Less:
 
 
 
 
 
 
 
 Royalties
 1.17
 0.96
 22%
  0.87 
 0.85
 2%
 
 Production taxes
 0.56
 0.40
 40%
 0.40
 0.42
 -5%
 
 Operating expenses
 1.08
 0.75
 44%
 0.84
 0.78
 8%
 
 Field netback
 2.60
 2.38
 9%
 1.94
 2.25
 -14%
 
 General and administrative
 0.23
 0.37
 -38%
 0.25
 0.49
 -49%
 
 Interest on long-term debt
 0.42
 0.26
 61%
 0.31
 0.25
 22%
 
 Cash netback ($/Mcfe)
 1.94
 1.75
 11%
 1.38
 1.51
 -8%
 
 Cash netback ($/boe)
 11.66
 10.51
 11%
 8.31
 9.04
 -8%
 
 
Note:

 (1) See the Company's 2018 financial statements and the accompanying management's discussion and analysis (the "2018 
--->MD&A") filed on SEDAR for further discussion and disclaimers regarding the figures above.

 
Summary of Corporate Reserves Data (1) (2) (3) (4)

Pinedale's independent reserve evaluator, Netherland, Sewell & Associates, Inc. ("NSAI"), completed their independent 
--->reserve evaluations effective December 31, 2018.

The Company's total gross Proved ("1P") reserves were 15,603 MMcfe (94% natural gas, 6% field condensates) having an e
--->stimated before tax net present value, using a discount rate of 10%, of US$7.3 million. 

Total gross Proved plus Probable ("2P") reserves were 26,352 MMcfe (93% natural gas, 7% field condensates) having esti
--->mated before tax net present value, using a discount rate of 10%, of US$8.5 million. 

Proved Developed Producing reserves, totaling 12,717 MMcfe (94% natural gas, 6% field condensates) represented 82% of 
--->total 1P reserves and 45% of total 2P reserves and had an estimated before tax net present value, using a discount rat
--->e of 10%, of US$7.0 million.

A summary of Pinedale's reserves reported at December 31, 2018, is tabled as follows:


 Conventional
Natural Gas
 Natural Gas Liquids/Condensates
 Gas Equivalent
 
 
 Gross
 Net
 Gross
 Net
 Gross
 Net
 
 Proved 
 MMcf
 MMcf
 Mbbl
 Mbbl
 MMcfe
 MMcfe
 
 Developed Producing
 11,952
 9,389
 127
 100
 12,717
 9,990
 
 Developed Non-Producing
 -
 -
 -
 -
 -
 -
 
 Undeveloped
 2,723
 2,069
 27
 21
 2,886
 2,194
 
 Total Proved
 14,675
 11,458
 155
 121
 15,603
 12,183
 
 Probable
 11,677
 9,032
 189
 145
 12,809
 9,904
 
 Proved + Probable
 26,352
 20,491
 343
 266
 28,412
 22,088
 
 
Notes:
Gross reserves are working interest reserves before royalty deductions
Net reserves are working interest reserves after royalty deductions plus royalty interest reserves
See the Company's 2018 statement of reserves data and other oil and gas information, Form 51-101F1, for the year ended
---> December 31, 2018 filed on SEDAR for further discussion and disclaimers regarding the figures above.
Totals may not add due to rounding.

Outlook

Pinedale is not the operator of its properties and Pinedale is reliant on its operating partners to conduct operations
---> on its properties including development and exploration activities. An operator of Pinedale's properties has indicate
--->d that during 2019 it plans to develop vertical wells in the core of Pinedale field and area operators continue to ana
--->lyze horizontal exploration drilling opportunities.
In February 2019 Pinedale received an Authority for Expenditure ("AFE") request to drill vertical well Warbonnet 14A1-
--->25D, and in March 2019 Pinedale elected to not participate in the proposed operations. Pinedale is focused on repaying
---> existing capital loans in 2019 and will evaluate AFE well proposals on a case by case basis.  Pinedale's AFE election
---> decisions are influenced by considerations that include internally generated projections of internal rates of returns
--->, access to capital, well development scenarios and alternative well proposals.


About Pinedale Energy Limited

Pinedale Energy Limited is an independent oil and gas exploration and production company focused exclusively on its na
--->tural gas properties situated in the prolific Pinedale field area, within the Green River Basin of southwestern Wyomin
--->g. Pinedale, through its subsidiaries, owns non-operated interests in 17 oil and gas leases with an undivided working 
--->interest ranging from 11.56% to 21.25% in approximately 11,994 acres. 
The Class A common shares of Pinedale Energy Limited are listed for trading on the TSX Venture Exchange under the symb
--->ol "MCF." Additional information on Pinedale Energy Limited is available on the SEDAR website at www.sedar.com or on t
--->he Company's website at www.PinedaleEnergy.com
For further information, please contact:
Brad Windt
President and Chief Executive Officer
Email: Info@PinedaleEnergy.com
Phone: (604) 637-1337

Pinedale Energy Limited
701 West Georgia Street, Suite 1500
Vancouver, BC, Canada, V7Y 1C6

Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the 
--->TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Certain information contained herein constitutes "forward-looking information" under Canadian securities legislation. 
--->Generally, forward-looking information can be identified by the use of forward-looking terminology such as "intends", 
--->"outlook", "potential" or variations of such words and phrases or statements that certain actions, events or results "
--->will" occur. Forward-looking statements regarding an operators 2019 capital program to a focus on vertical wells and a
--->nalysis of potential horizontal well opportunities and  are based on the Company's and operator's estimates and are su
--->bject to known and unknown risks, uncertainties and other factors that may cause the actual number of wells and focus 
--->of its 2019 capital  program to be materially different from those expressed by such forward-looking information, incl
--->uding: the actions of the operator, capital expenditures and other costs and the receipt of all necessary regulatory a
--->pprovals. There is no guarantee that Pinedale will receive authorization for expenditure requests ("AFE's) for all per
--->mitted wells or that the Company will elect to participate in wells when it receives AFEs for these wells. There can b
--->e no assurance that such statements will prove to be accurate, as actual results and future events could differ materi
--->ally from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-lookin
--->g statements and forward-looking information. Pinedale will not update any forward-looking statements or forward-looki
--->ng information that are incorporated by reference herein, except as required by applicable securities laws.