Page 14 - NorthAmOil Week 03 2023

NorthAmOil NEWS IN BRIEF NorthAmOil

UPSTREAM The credit facility provides added financial Permian Resources.
flexibility to support the company’s growth. Permian Resources has entered into a
Lycos Energy announces approximately 1,250 boepd (98.5% oil) in definitive agreement to acquire 4,000 net
The company’s current production is
leasehold acres, 3,300 net royalty acres
operational update Saskatchewan. Additionally, Lycos owns a and 1,100 barrels of oil equivalent per day
21.85% equity interest in Chronos Duvernay
(boepd) (73% oil) of net production, located
Lycos Energy is pleased to provide an Limited Partnership, which is currently predominantly in Lea County, New Mexico
operational update. Lycos is extremely producing 1,225 boepd (gross, 100% oil) in from an undisclosed third-party for a total
optimistic about the results of its first multi- Alberta. purchase price of $98mn.
leg “fishbone” well drilled at 08-33-043-22W3. Lycos has demonstrated that its ability This purchase price reflects an acquisition
This 100% working interest well has been on to apply multi-lateral well design to make value of approximately $8,000 per net
production since late November 2022. The previously uneconomic drilling locations leasehold acre and approximately $7,000 per
well achieved an average 30-day production economic. The new well shows very net royalty acre. The properties’ operated
(“IP30”) rate of 149 boepd and is currently compelling returns and short payouts at position consists of largely undeveloped
producing 150 boepd (100% oil). At recent current WCS pricing, and Lycos intends to acreage and is contiguous to one of the
strip pricing of $50 per barrel WCS, the well use its strong cash position and balance sheet company’s existing core blocks in Lea
is expected to achieve payout in less than 10 to organically develop and opportunistically County. Permian Resources has identified
months. acquire substantial inventory of new multi- approximately 45 gross operated two-mile
A second 8 leg multi-lateral well was lateral development prospects to drive locations from the properties being acquired
drilled at 08-31-043-22W3 from the same increased shareholder returns. that immediately compete for capital within
drilling pad. This well achieved an IP30 of LYCOS ENERGY, January 16, 2023 the existing portfolio. The acquired properties
97 boepd and is currently producing 89 also include non-operated acreage largely
boepd (100% oil). At recent strip pricing of Permian Resources adjacent to and surrounding Permian
$50 per barrel WCS, the well is expected to Resources’ position, which the company plans
achieve payout in less than 15 months. The announces portfolio to utilise for future acreage trades and other
significantly better result on the fishbone is portfolio management transactions.
consistent with pre-drill estimates regarding optimisation transactions PERMIAN RESOURCES, January 17, 2023
production enhancement from the fishbone
geometry well. Permian Resources Corporation today
Based on the results of these two wells, announced that it has entered into a series SERVICES
Lycos has confirmed that the increased of portfolio management transactions,
reservoir contact provided by the “fishbone” comprising of a bolt-on acquisition, a Cathedral Energy
design appears to provide superior capital divestiture of non-operated production and
efficiency with an approximate 60% increase acreage and a divestiture of a portion of its Services announces 2023
in productivity with a 10-15% increase in water infrastructure assets in Reeves County,
capital expenditures, compared to single and Texas. corporation and operational
multi-leg wells drilled in the vicinity. “At Permian Resources, we believe our
As a follow up to these successful results, focus on portfolio management will continue update
Lycos is embarking on a drilling campaign in to drive value for our shareholders. The
Q1 2023 which will consist of fishbone drills combined transactions high-grade our Cathedral Energy Services is pleased to
and additional water disposal wells. portfolio, adding 45 top-quartile locations, announce a January 2023 corporate update,
Lycos entered into a credit agreement in 4,000 net acres with significant development including its capital spending plans for the
respect of a new revolving credit facility for up potential and 3,100 net royalty acres while year and a management update.
to CAD20.0mn. The credit facility is undrawn, generating approximately $100mn in net Following a record third quarter in
uncommitted and payable on demand. cash proceeds,” said James Walter, co-CEO of 2022, Cathedral continued to build on
the momentum created as a result of a
consolidation strategy with a more robust
fourth quarter of 2022 in both Canada and
the US. Against a backdrop of a US industry
land drilling rig count that increased 2%
sequentially from Q3-2022 levels and a
Canadian industry rig count that declined
6% sequentially (Source: Baker Hughes),
preliminary indications are that Cathedral’s
consolidated revenues for Q4-22 increased
over 10% from Q3-2022 (even after
normalizing for a full quarter of contribution
from Cathedral’s Altitude acquisition in
Q3-2022). The improvement in consecutive
quarterly financial results occurred despite the
annual slowdown in activity in Canada for the
holiday season.

P14 www. NEWSBASE .com Week 03 19•January•2023