CALGARY, Dec. 16 /CNW/ - Breaker Energy Ltd. ("Breaker" or "Company")
(TSX: WAV) is pleased to provide an operational update and its 2009 guidance.
The Company expects to continue its trend of delivering annual average
production and production per share growth in 2009.
Operational update
------------------
Breaker continues to demonstrate success with its three major horizontal
multi-frac resource plays at Irricana, Provost and Fireweed, highlighted by a
significant flow test at its first Provost horizontal.
The Company's first horizontal multi-frac well in its extensive Viking
gas resource play at Provost was recently drilled and completed. Initial flow
rate, with significant frac fluids left to recover, was approximately 2.5
mmcf/d. The well was drilled in 13 days and completed with 7 successful fracs.
Breaker has 80 potential horizontal drill locations in its extensive inventory
at Provost, with a large operated infrastructure including a Company-owned gas
plant and gathering system in this all-season accessible area.
At Irricana, Breaker has drilled and completed its first well outside of
the original oil pool boundary. The well recently tested in excess of 500
boe/d, successfully extending Breaker's 100 percent owned light oil
development play.
At Fireweed, the Company is currently drilling the horizontal section of
its first horizontal multi-frac well in its large original gas in place
Montney/Doig property in British Columbia.
2009 Guidance
-------------
Breaker expects continued average production and production per share
growth in 2009 with a total capital investment of $80 million. The Company's
diversified high quality, year round accessible asset base provides
flexibility to expand beyond this projected 2009 funds from operations budget
if economic conditions warrant during the year. Breaker's 2009 guidance is as
follows:
Average production 7,700 boe/d
Exit production 8,450 boe/d
Funds from operations (FFO) $75 million
FFO per basic share $1.82
Field netback $31.09/boe
Capital expenditures $80 million
2009 Year-end net debt $103 million
Debt/Q4 2009 annualized FFO 1.2 times
Unused bank line January 2009 $27 million
The above guidance assumes US$67.75/Bbl WTI, CDN$6.85/mcf AECO and
US$/CDN$0.82 for 2009.
Breaker Energy Ltd.
