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Oil price assumption of a 2012 average of US$93.77/bbl WTI (~CDN$87.94 EdPar); an average realized condensate (~48° API) price of CAD$91.94/bbl;
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300 bbl/d of oil hedged with an extendable swap at CAD$106.50 WTI from March to December 2012; another 300 bbl/d of oil hedged with an extendable swap at CAD$97.65 WTI from September 2012 to December 2013; another 150 bbl/d of oil hedged with an extendable swap at CAD$98.00 WTI from September 2012 to December 2013;
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Natural gas price assumption is an annual average of $2.10/GJ at AECO;
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Average operating costs of $9.75/boe;
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Average operating netback of $29.30boe; 2012 exit operating netback of $43.30/boe
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Average corporate royalty rate of 13.5%;
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Cdn/US Dollar exchange rate of 99.00;
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Average 2012 production of 2,430 boe/d (39% oil and liquids); 2012 exit production rate of 3,730 to 3,830 boe/d (57 - 60% oil and liquids);
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Average G&A expense of $4.70/boe; Exit 2012 G&A expense of $3.00/boe
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2012 cash flow of about $21.0 - $21.5 million; 2012 exit cash flow rate of $4.6 - $4.7 million per month;
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Expected debt at 2012 year end of $9.5 to $10.0 million;
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Debt to exit cash flow rate of about 0.2 times;
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Cash flow sensitivities of $149,000 for every US$1.00 change in annual average WTI oil prices and $282,000 for every CAD$0.10/GJ change in annual average AECO natural gas prices.
2012 Guidance Assumptions - Post Financing