CALGARY, Oct. 7, 2015 /CNW/ - ArPetrol Ltd. ("ArPetrol" or
the "Company") (TSXV: RPT) provides an operating update on
activities.
In the third week of August 2015
an operational difficulty at a third party owned and operated
production facility reduced gas deliveries to ArPetrol's Faro plant
to approximately 35 million cubic feet per day (MMcf/d). The
problem was fixed by the end of September and volumes delivered for
processing were 77 MMcf/d at the end of September. This
reduction in volumes for processing lead to a corresponding
reduction in third-party processing revenues. Processing
volumes for the third quarter are estimated to be 60 MMcf/d, down
from the 78 MMcf/d processed during the second quarter of 2015.
In mid September 2015, compressor
failure at ArPetrol's Faro field shut-in production for 17 days
until the compressor was replaced at the beginning of
October. Production for the third quarter of 2015 is
estimated to be 160 barrels of oil equivalent per day (boe/d), down
from the 218 boe/d produced during the second quarter of 2015.
Further information on third quarter 2015 operations will be
provided when ArPetrol releases its third quarter results.
About ArPetrol Ltd.
ArPetrol is a Calgary-based publicly traded company engaged
in oil and natural gas exploration, development and production and
third-party natural gas processing in Argentina, where it owns and operates a gas
processing facility with capacity of 85 MMcf per day. The Company's
common shares are listed on the TSX Venture Exchange ("TSXV") under
the symbol "RPT".
Forward-Looking Information
This news release
contains certain forwardlooking information relating, but not
limited to, processing revenue and cash flow, estimated production
volumes and processing volumes. Forwardlooking information
typically contains statements with words such as "anticipate",
"believe", "forecast", expect", "plan", "intend", "estimate",
"propose", "project", or similar words suggesting future
outcomes. The Company cautions readers and prospective
investors in the Company's securities not to place undue reliance
on forwardlooking information as, by its nature, it is based on
current expectations regarding future events that involve a number
of assumptions, inherent risks and uncertainties, which could cause
actual results to differ materially from those anticipated by the
Company. Forward-looking information is based on management's
current expectations and assumptions regarding, among other things,
the ability to sustain consistent processing and production
volumes, future production and processing revenue, future economic
conditions, future currency and exchange rates, the ability to
repatriate funds from Argentina,
future pricing, continued political stability in the areas in which
the Company is operating, and the Company's continued ability to
obtain and retain qualified management and staff and equipment in a
timely and cost-efficient manner. A number of factors could cause
actual results to differ materially from those anticipated by the
Company, including but not limited to risks associated with the oil
and natural gas industry (e.g., operational risks; the ability to
retain staff and equipment; and health, safety and environmental
risks), weather delays and natural disasters, union activities,
change in government policies, currency fluctuations and controls,
a change in the manner and rates at which the Company is exchanging
its currency, the risk of disruptions at the gas plant, increased
maintenance costs or other expenditures at the gas plant,
interruptions to production and processing revenue, production
declines, changes in commodity prices and revenues, increased
costs, unavailability of funding, and other risks associated with
international activity and Argentina. ArPetrol operates outside of
Canada and as such, is subject to
a number of political risks over which it has no control. The
forwardlooking information included herein is expressly qualified
in its entirety by this cautionary statement. The forwardlooking
information included herein is made as of the date hereof and the
Company assumes no obligation to update or revise any
forwardlooking information to reflect new events or circumstances,
except as required by law.
BOE Presentation. Production information is
commonly reported in units of barrels of oil equivalent. For
purposes of computing such units, natural gas is converted to
equivalent barrels of oil using a conversion factor of six thousand
cubic feet to one barrel. The 6:1 conversion ratio represents
energy equivalency, which is primarily applicable at the burner
tip, and does not represent a value equivalency at the wellhead.
Such disclosure of boe may be misleading, particularly if used in
isolation.
Additional information relating to the Company is also available
on SEDAR at www.sedar.com.
Neither the TSXV nor its Regulation Services Provider (as
defined in the policies of the TSXV) accepts responsibility for the
adequacy or accuracy of this release.
SOURCE ArPetrol Ltd.