News

he third quarter of 2019 was a difficult quarter for natural gas producers with AECO 5A natural gas pricing averaged $0.90 per Mcf, the lowest quarterly average in decades. Even with Pine Cliff's low cost structure and access to diverse natural gas markets, the Company was unable to avoid negative adjusted funds flow.

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After a strong first quarter, the second quarter of 2019 was challenging with AECO 5A natural gas pricing averaging $1.03 per Mcf, the lowest in quarterly average in decades, resulting in adjusted funds used in operations.

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The Assets add growth opportunities in the Pekisko oil play, where Pine Cliff drilled its first oil well in late 2018. Based on Pine Cliff's internal estimates, the Assets will increase Pine Cliff's development inventory to an estimated 28 gross (27 net) Pekisko oil locations.

Pine Cliff Energy Ltd. (TSX: PNE) ("Pine Cliff" or the "Company") has completed its semi-annual borrowing base review and has entered into a Restated Credit Agreement with its banking syndicate of Canadian Financial Institutions (the "Syndicate").

In the first quarter of 2019, Pine Cliff generated its highest adjusted funds flow and revenue since the second quarter of 2017. Additionally, Pine Cliff brought its first oil well on production and subsequent to March 31, 2019, announced a strategic acquisition and financing that will significantly increase growth opportunities in the Pekisko oil pool where the Company's first well was drilled.

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The Acquisition will have an effective date of October 1, 2018 and is expected to close on or around May 31, 2019 (the Closing Date ).   The purchase and sale agreement related to the Acquisition, although binding between the parties, is subject to various standard conditions, including rights of first refusal and regulatory approvals.   No assurances can be given that the Acquisition will be completed as proposed or at all.  

Pine Cliff s natural gas market diversification strategy was successful in generating positive adjusted funds flow in 2018, despite enduring the lowest AECO gas prices in 19 years.

Pine Cliff s Board of Directors has approved a 2019 capital budget of $10.0 million that will be funded from adjusted funds flow.

Third Quarter 2018 Highlights

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