CALGARY, Jan. 15, 2018 /CNW/ - Ikkuma Resources
Corp. (TSXV: IKM) ("Ikkuma or the Corporation") is
pleased to announce that John Van de
Pol has joined the Corporation's executive team as Senior
Vice President and Chief Financial Officer, commencing January 15, 2018. John is a well-known
professional amongst Calgary's
energy companies and brings a wealth of experience to the
team. During the transition period, Kim Benders acted as Interim CFO and Ikkuma
wishes to thank Ms. Benders for her extra effort on behalf of
Ikkuma during the fourth quarter. Ms. Benders remains on the
executive team as Corporate Controller following John's
appointment.
As a result of the recently completed transformational foothills
acquisition, Ikkuma's production has tripled from 5,707 BOE/d (97%
natural gas, 3% oil & liquids) in the third quarter of 2017 to
an estimate of 18,000-19,500 BOE/d (97% natural gas, 3% oil &
liquids) for the first quarter of 2018.
Ikkuma plans to build a portfolio of energy derivatives and has
commenced a forward sell of 33% of its sulphur in the form of
costless collars at $US60 -
$US100/tonne for 2018. Other
derivatives are contemplated. The Ikkuma team continues to focus on
operating cost reductions and field optimization. In addition,
several non-core asset divestitures are anticipated in
2018.
Current proforma reserves following the foothills acquisition,
based on 2016YE include 48,738 MBoe (PDP) and 69,202 MBoe (TPP)
(97% natural gas and 3% oil & liquids). Acquisition metrics, as
previously disclosed in Ikkuma's press release dated November 23, 2017, were $2,144/BOE/d and $0.85/PDP BOE, not considering the proceeds from
the $20 million infrastructure
disposition.
The extensive infrastructure included among the newly acquired
foothills assets will be used to access the numerous oil and
liquids rich gas bypass opportunities included therein. The Ikkuma
team is excited about the near-term recompletion, optimization, and
drilling opportunities and plans to manage capital spending to
preserve Ikkuma's strong balance sheet position.
About Ikkuma Resources Corp.
Ikkuma Resources Corp. is a diversified junior public oil and
gas company listed on the TSX Venture Exchange under the symbol
"IKM", with holdings in both conventional and unconventional
projects in Western Canada.
The technical team has worked together for over a decade in
the Foothills Region of Western
Canada. The unique skills and repeat success at exploiting a
complex, potentially prolific play type are fundamental ingredients
for a successful growth-oriented company in Western
Canada. Corporate information can be found at:
www.ikkumarescorp.com.
Reserves Data
The reserves data set forth in this press release are based
on an independent reserves evaluation of oil and gas assets of
Ikkuma effective December 31, 2016
(the "Sproule Report"), prepared by Sproule and Associates, on an
independent reserves evaluation of certain oil and gas assets in
the Foothills area of Alberta (the
"Central Alberta Foothills Assets"), effective December 31, 2016 (the "Deloitte Report")
prepared by Deloitte LLP ("Deloitte") and independent reserves
assessments on the Assets other than the Central Alberta Foothills
Assets (the "BC and Other Alberta Assets") effective December 31, 2016 (the "GLJ Reports") prepared by
GLJ Petroleum Consultants Ltd. ("GLJ") for the vendor of the assets
(the "Vendor"). The Deloitte Report is based on certain factual
data supplied by the Vendor. Deloitte reviewed the land data
provided by the Vendor as it related to any producing wells but
accepted the working interest presented in the well lists as
factual with no further review for the non-producing wells. The GLJ
Reports, as delivered by the Vendor, contain details regarding
crude oil, natural gas liquids and natural gas reserves and the net
present values before income tax of future net revenue using
forecast prices and costs as set out in the GLJ Reports. The
Sproule Report and the GLJ Reports have been prepared in accordance
with definitions, standards, and procedures contained in the
Canadian Oil and Gas Evaluation Handbook and National Instrument
51-101 – Standards of Disclosure for Oil and Gas Activities
("NI-51-101"). The GLJ Reports are based on the GLJ Price Forecast,
which is available on GLJ's website and the Sproule Report is based
on the Sproule Price Forecast, which is available on Sproule's
website. The Deloitte Report was also prepared in accordance with
NI 51-101; however, Deloitte was instructed to evaluate proved and
probable developed reserves only. No effort was made by Deloitte to
assess proved developed non-producing or undeveloped reserves. As
such, only proved and probable developed reserves are provided for
the Central Alberta Foothills Assets. The Deloitte Report is based
on the Deloitte Price Forecast, which is available on Deloitte's
website. The information regarding the assets set forth herein is
in respect of all of the assets. All of the reserves associated
with the assets are in Canada and,
specifically, in Alberta and
British Columbia.
Forward-Looking Statements and Information and Cautionary
Statements
This press release contains forward‑looking statements and
forward‑looking information within the meaning of applicable
securities laws. The use of any of the words "expect",
"anticipate", "continue", "estimate", "objective", "ongoing",
"may", "will", "project", "should", "believe", "plans", "intends"
and similar expressions are intended to identify forward‑looking
statements or information. In particular this press release
contains forward-looking statements and information relating to
Ikkuma's plans to build a portfolio of energy derivatives, to focus
on operating cost reductions and field optimization, anticipated
asset dispositions and it's plans to access numerous oil and
liquids rich gas bypass reservoir opportunities. Although
Ikkuma believes that the expectations and assumptions on which the
forward‑looking statements and information are based are
reasonable, undue reliance should not be placed on the
forward‑looking statements and information because Ikkuma cannot
give any assurance that they will prove to be correct. Since
forward‑looking statements and information address future events
and conditions, by their very nature they involve inherent risks
and uncertainties. The forward-looking statements and
information is based on certain key expectations and assumptions
made by management. Actual results could differ materially from
those currently anticipated due to a number of factors and
risk. These include but are not limited to the risks
associated with the oil and gas industry in general (e.g.,
operational risks in development, exploration and production;
delays or changes in plans with respect to exploration or
development projects or capital expenditures; the uncertainty of
reserve estimates; the uncertainty of estimates and projections
relating to production, costs and expenses; failure to obtain
necessary regulatory approvals for planned operations; health,
safety and environmental risks; uncertainties resulting from
potential delays or changes in plans with respect to exploration or
development projects or capital expenditures; volatility of
commodity prices, currency exchange rate fluctuations; imprecision
of reserve estimates; and competition from other explorers) as well
as general economic conditions, stock market volatility, and the
ability to access sufficient capital. Ikkuma cautions that
the foregoing list of risks and uncertainties is not
exhaustive.
In addition, the reader is cautioned that historical results
are not necessarily indicative of future performance. The
forward-looking statements and information contained in this press
release are made as of the date hereof and Ikkuma undertakes no
obligation to update publicly or revise any forward‑looking
statement or information, whether as a result of new information,
future events or otherwise, unless so required by applicable
securities laws.
Oil and Gas Advisory
In this press release, the abbreviation BOE means a barrel of
oil equivalent derived by converting gas to oil in the ratio of 6
Mcf of gas to 1 bbl of oil (6 Mcf:1 bbl). BOE may be misleading,
particularly if used in isolation. A BOE conversion ratio of 6
Mcf:1 bbl is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a
value equivalency at the wellhead. Given that the value ratio based
on the current price of crude oil as compared to natural gas is
significantly different from the energy equivalency of 6 Mcf:1bbl,
utilizing a conversion ratio on a 6 Mcf of gas to 1 bbl of oil
basis may be misleading as an indication of value.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX
VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.
SOURCE Ikkuma Resources Corp.