Raging River Exploration Inc. Announces 215% Increase in 2012 Year End Reserves and an Operational Update
Published : January 28, 2013
( 0 vote, 0/5 ) Print article
  Article Comments Comment this article Rating Follow Company  
Keywords :   Debt | Growth | Market | Natural Gas | Oil | Recovery | Report |

CALGARY, ALBERTA--(Marketwire - Jan. 28, 2013) - Raging River Exploration Inc. ("Raging River" or the "Company") (News - Market indicators) is pleased to announce its 2012 year-end oil and gas reserves evaluation. The material increase in reserves reflects exceptional organic reserves growth in addition to several accretive acquisitions completed throughout 2012.

Reserve Report Highlights:

  • Increased proven plus probable reserves by 215% to 17.2 mmboe (95% oil) and proven reserves by 201% to 11.5 mmboe (95% oil). Proven reserves represent 67% of proven plus probable reserves as at December 31, 2012.
  • Increased net asset value per share calculated on a present value before tax of 10% ("PVBT10") to an estimated $2.75 per share at December 31, 2012.
  • Maintained an enviable reserves life index of 12 years based on our December 2012 exit production rate of 4,000 boepd.
  • Finding, development and acquisition ("FD&A") costs including a $167 million change in future development capital are $26.05 per boe on a proven plus probable basis.
  • Finding, development and acquisition costs including a $130 million change in future development capital are $33.81 per boe on a total proven basis.
  • Generated an FD&A recycle ratio of 2.0 times based on our estimated 2012 operating netback of $53.00 per boe.
  • Reserve additions replaced 2012 production by greater than 12 times on a proven basis and 17 times on a proven plus probable basis.
  • Increased proven plus probable reserves per fully diluted share by 105% to 97 boe per 1,000 shares from 44 boe per 1,000 shares
  • Raging River's development drilling inventory has increased to in excess of 1,300 risked locations as at January 1, 2013 of which in excess of 1,000 are currently unbooked.

The following tables summarize certain information contained in the independent reserves report prepared by Sproule Associates Ltd. ("Sproule") as of December 31, 2012. The report was prepared in accordance with definition, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook") and National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). Additional reserve information as required under NI 51-101 will be included in the Company's Annual Information Form which will be filed on SEDAR by April 30, 2013. 

December 31, 2012        
Reserves Category
Gross Working Interest
Proven Developed Producing 4,241 1,395 4,474 152,711 - -
Proven Undeveloped 6,774 1,782 7,071 127,242 185,233 201
Total Proven 11,014 3,177 11,544 279,952 185,233 201
Proven Plus Probable Developed Producing 5,922 2,018 6,258 202,684 - -
Proven Plus Probable Undeveloped 10,405 3,006 10,906 220,253 226,454 246
Total Proven Plus Probable 16,327 5,024 17,164 422,936 226,454 246


  1. Gross Company reserves are the Company's total working interest share before the deduction of any royalties and without including any royalty interests owned by the Company.
  2. Based on Sproule's December 31, 2012 escalated price forecast.
  3. It should not be assumed that the present worth of estimated future cash flow presented in the tables above represents the fair market value of the reserves. There is no assurance that the forecast prices and costs assumptions will be attained and variances could be material. The recovery and reserve estimates of Raging River's crude oil, natural gas liquids and natural gas reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual crude oil, natural gas and natural gas liquids reserves may be greater than or less than the estimates provided herein.
  4. All future net revenues are stated prior to provision for interest, general and administrative expenses and after deduction of royalties, operating costs and estimated future capital expenditures. Future net revenues have been presented on a before tax basis. Estimated values of future net revenue disclosed herein do not represent fair market value.
  5. FD&A costs have been presented because acquisitions and dispositions can have a significant impact on the Company's ongoing reserve replacement costs. The presented FD&A are calculated using all capital expenditures and reserve additions as defined in NI 51-101. The calculation includes all development and acquisition capital and all future development capital associated with the acquisitions and with future development of the existing assets.
  6. Figures are subject to audit.
  7. The capital expenditures include the announced purchase price of corporate acquisitions rather than the amounts allocated to property, plant and equipment for accounting purposes. The capital expenditures also exclude capitalized administration costs and transaction costs.
  8. The numbers presented below in regards to additions/revisions represent a comparison to the opening reserves balance which were the reserves acquired from Wild Stream Exploration Inc. by RRX on March 16, 2012. RRX AIF filings in April will show all reserves in 2012 as being acquired by RRX as RRX commenced business on March 16, 2012 with an acquisition of reserves from Wild Stream Exploration.
2012 FD&A Costs  
2012 Capital Expenditures ($000s) Total Proven   Proven Plus Probable
Development 55,000   55,000
Net Acquisitions 101,000   101,000
Change in FDC 129,698   166,435
Total Capital 285,698   322,435
2012 Reserve Additions Mboe      
Acquisitions 2,496   3,980
Additions/Revisions 5,955   8,400
Total 8,451   12,380
2012 FD&A ($/boe) 33.81   26.05

Operations Update

The Company has not released its audited 2012 results and accordingly the numbers included below are currently estimates and are unaudited.

  • Based on field estimates, fourth quarter 2012 average production increased 46% from the third quarter average to 3,100 boepd (96% oil) which is 10% ahead of previous guidance of 2,800 boepd.
  • Based on field estimates, exit production for the period of December 15 to 31 was greater than 4,000 boepd which exceeded our previous exit guidance of 3,700 boepd by 8%.

Raging River is in the midst of a very active first quarter in which we anticipate drilling 30-32 net wells. We currently have three drilling rigs operating and have drilled 20 gross (17.5 net) wells at 100% success in January. Thirteen of these wells have been completed and placed on production. Despite winter operations which typically marginally increase costs, the average on-stream costs in January have been approximately $910 thousand, equivalent to summer 2012 costs.

The Kindersley area is prone to early break-up and operations typically shut down on or before March 15th. We plan to have all first quarter operations completed by March 6th and we are on schedule to complete this. The winter has seen significant snowfall to date increasing the probability of a pro-longed break-up. We have accounted for this in 2013 planning and have factored in no drilling activity between March 7th and June 1, 2013.

2013 production to date is exceeding expectations and we are confident we will meet or exceed our average first quarter estimates of 4,300 boepd (95% oil).

Raging River's experienced management team remains committed to operational and executional excellence to continue delivering per share value growth to our shareholders while maintaining balance sheet strength.

Additional corporate information can be found in our February corporate presentation on our website at www.rrexploration.com.

FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements. More particularly, this press release contains statements concerning the anticipated terms relating to: average daily production for Q4 of 2012, estimated December 31, 2012 exit production, anticipated first quarter 2013 average production, 2013 drilling plans, the Company's drilling inventory, average on-stream costs of wells placed on production in the first quarter of 2013, the expected timing of completion of capital operations, the anticipated date of break up on certain of the Company's properties, Raging River's growth strategy and anticipated growth plans for 2013 and beyond. In addition, the use of any of the words "guidance", "initial, "scheduled", "can", "will", "prior to", "estimate", "anticipate", "believe", "potential", "should", "unaudited", "forecast", "future", "continue", "may", "expect", "project", and similar expressions are intended to identify forward-looking statements. The forward-looking statements contained herein are based on certain key expectations and assumptions made by the Company, including but not limited to the success of optimization and efficiency improvement projects, the availability of capital, current legislation, receipt of required regulatory approval, the success of future drilling and development activities, the performance of existing wells, the performance of new wells, the ability of the Company to effectively manage price differentials, Raging River's growth strategy, general economic conditions, availability of required equipment and services and prevailing commodity prices. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, 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; and health, safety and environmental risks), commodity price and exchange rate fluctuations, changes in legislation affecting the oil and gas industry and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Refer to the Listing Application on SEDAR at www.sedar.com and risks contained therein.

The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Net Asset Value per Share: Net asset value per share as presented herein is based on the PVBT10 of proven plus probable reserves as at December 31, 2012 of $423 million, an internal estimate of Raging River's undeveloped land value of $40 million, estimated 2012 year end net debt of $17 million, dilutive securities proceeds of $41 million for total net asset value of $487 million and with 177.4 million shares outstanding on a fully diluted basis a net asset value per share of $2.75/share

Meaning of "boe": When used in this press release, boe means a barrel of oil equivalent on the basis of 1 boe to 6 thousand cubic feet of natural gas. Boe per day means a barrel of oil equivalent per day. Boe's may be misleading, particularly if used in isolation. A boe conversion ratio of 1 boe for 6 thousand cubic feet of natural gas is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. As the value ratio between natural gas and crude oil based on the current prices of natural gas and crude oil is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.


Raging River Exploration Inc.
Mr. Neil Roszell
President and CEO
(403)387-2951 (FAX)
Raging River Exploration Inc.
Mr. Jerry Sapieha, CA
Vice President, Finance and CFO
(403)387-2951 (FAX)

Ruby Red Resources Inc.

Follow and Invest
Add to watch list Add to your portfolio Add or edit a note
Add Alert Add to Watchlists Add to Portfolio Add Note
Projects & res.
Asset profile
Contact Cpy

Ruby Red is a gold exploration company based in Canada.

Ruby Red holds various exploration projects in Canada.

Its main exploration properties are THE PURCELLS, THE ROCKIES and THE VINE in Canada.

Ruby Red is listed in Canada. Its market capitalisation is CA$ 97.9 millions as of today (US$ 97.0 millions, € 74.0 millions).

Its stock quote reached its lowest recent point on December 19, 2008 at CA$ 0.02, and its highest recent level on March 22, 2013 at CA$ 4.08.

Ruby Red has 26 111 000 shares outstanding.

Your feedback is appreciated, please leave a comment or rate this article.
Rate : Average note :0 (0 vote) View Top rated
Annual reports of Ruby Red Resources Inc.
2007 Annual Report
Corporate news of Ruby Red Resources Inc.
4/30/2013Raging River Exploration Inc. Announces Approval of Listing ...
4/17/2013Raging River Exploration Inc. Announces Stock Option Grant
3/20/2013Raging River Exploration Inc. Announces Fourth Quarter & Yea...
1/28/2013Raging River Exploration Inc. Announces 215% Increase in 201...
10/4/2012Raging River Exploration Inc. Announces Operations Update an...
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
CA$ 3.75
05/03 09:33 -
Prev close Open
3.75 3.73
Low High
3.73 3.87
Year l/h YTD var.
 -  -
52 week l/h 52 week var.
- -  3.75 -%
Volume 1 month var.
1,797,653 -%
24hGold TrendPower© : 31
Explores for Gold
Interactive chart Add to compare
Print Compare Export
Last updated on : 1/23/2010
You must be logged in to use the porfolio and watchlists (free)
Top Newsreleases
Annual variation
5 years chart
3 months chart
3 months volume chart
Mining Company News
Plymouth Minerals LTDPLH.AX
Plymouth Minerals Intersects Further High Grade Potash in Drilling at Banio Potash Project - Plannin
AU$ 0.12-8.00%Trend Power :
announces expected non-cash impairment
AU$ 7.58+2.71%Trend Power :
Oceana Gold(Au)OGC.AX
AU$ 2.83-4.07%Trend Power :
Western Areas NL(Au-Ni-Pl)WSA.AX
Advance Notice - Full Year Results Conference Call
AU$ 3.86+0.00%Trend Power :
Canadian Zinc(Ag-Au-Cu)CZN.TO
Reports Financial Results for Q2 and Provides Project Updates
CA$ 0.12+4.55%Trend Power :
Stornoway Diamond(Gems-Au-Ur)SWY.TO
Second Quarter Results
CA$ 0.02+100.00%Trend Power :
McEwen Mining(Cu-Le-Zn)MUX
US$ 0.47-7.33%Trend Power :
Rentech Announces Results for Second Quarter 2017
US$ 0.20-12.28%Trend Power :
Reduced Funding Requirement
GBX 0.53-10.32%Trend Power :
Lupaka Gold Corp.LPK.V
Lupaka Gold Receives First Tranche Under Amended Invicta Financing Agreement
CA$ 0.02+0.00%Trend Power :
Closes Bridge Loan Financing
CA$ 3.00+0.00%Trend Power :
Guyana Goldfields(Cu-Zn-Pa)GUY.TO
Reports Second Quarter 2017 Results and Maintains Production Guidance
CA$ 1.84+0.00%Trend Power :
Lundin Mining(Ag-Au-Cu)LUN.TO
d Share Capital and Voting Rights for Lundin Mining
CA$ 8.71-1.02%Trend Power :
Canarc Res.(Au)CCM.TO
Canarc Reports High Grade Gold in Surface Rock Samples at Fondaway Canyon, Nevada
CA$ 0.30+7.14%Trend Power :
Q A April 2017 Quarterly Report
AU$ 0.25+4.17%Trend Power :
Uranium Res.(Ur)URRE
Commences Lithium Exploration Drilling at the Columbus Basin Project
US$ 6.80-2.86%Trend Power :
Platinum Group Metals(Au-Cu-Gems)PTM.TO
Platinum Group Metals Ltd. Operational and Strategic Process ...
CA$ 1.79-6.28%Trend Power :
Devon Energy(Ngas-Oil)DVN
Announces $340 Million of Non-Core Asset Sales
US$ 59.37+2.73%Trend Power :
Precision Drilling(Oil)PD-UN.TO
Announces 2017Second Quarter Financial Results
CA$ 8.66-0.35%Trend Power :
2nd Quarter Report
AU$ 0.03+0.00%Trend Power :