Frontera Provides Update on Estimated 2022
Full-Year Daily Average Production
CALGARY,
AB, Feb. 1, 2023 /PRNewswire/ - Frontera
Energy Corporation (TSX: FEC) ("Frontera"' or the
"Company") announces its full year 2023 capital and
production guidance and provides an update on its normal course
issuer bid ("NCIB"), its 2023 hedging program and its
estimated fourth quarter and 2022 full year average daily
production. All values in this news release and the Company's
financial disclosures are in United
States dollars, unless otherwise noted.
Summary of Frontera's 2023 Capital and Production
Guidance
Guidance
Metrics
|
Unit
|
2023 Full Year
Guidance Frontera Consolidated
|
Average Daily
Production(1)
|
boe/d
|
40,000 -
43,000
|
Production Costs
(2)
|
$/boe
|
$12.50 -
$13.50
|
Transportation Costs
(3)
|
$/boe
|
$10.50 -
$11.50
|
2023 Cash Income Taxes
at $80/bbl
|
$MM
|
$40 - $60
|
Operating
EBITDA(4) at $75/bbl (5)
|
$MM
|
$375 - $425
|
Operating
EBITDA(4) at $80/bbl (5)
|
$MM
|
$425 -
$475
|
Operating
EBITDA(4) at $85/bbl (5)
|
$MM
|
$475 - $525
|
Development
Drilling
|
$MM
|
$110 - $130
|
Development
Facilities
|
$MM
|
$75 - $85
|
Colombia and Ecuador
Exploration
|
$MM
|
$50 - $60
|
Colombia Infrastructure
(6)
|
$MM
|
$5-10
|
Other(7)
|
$MM
|
$25-30
|
Total Colombia &
Ecuador Capex
|
$MM
|
$265 -
$315
|
Guyana
Exploration
|
$MM
|
$120 - $140
|
Total Capital
Expenditures (8)
|
$MM
|
$385 -
$455
|
Notes:
|
1 The
Company's 2023 average production guidance range does not include
in-kind royalties, operational consumption, quality volumetric
compensation or potential production from successful exploration
activities planned in 2023.
|
2
Supplementary financial measure (as defined in National Instrument
52-112 - Non-GAAP and Other Financial Measures ("NI
52-112")). See "Advisories – Non-IFRS Financial and Other
Measures." Per-barrel metric on a share before royalties basis;
excludes costs related to ProAgrollanos, Peru and SAARA expansion
in 2023.
|
3
Supplementary financial measure (as defined in NI 52-112). See
"Advisories – Non-IFRS Financial and Other Measures." Calculated
using net production after royalties.
|
4 Non-IFRS
financial measure (equivalent to a "non-GAAP financial measure", as
defined in NI 52-112). On August 11, 2022, the Company issued
updated guidance for full year 2022, including operating EBITDA
guidance of $675-$700 million at $100/bbl. The equivalent
historical non-GAAP financial measure to 2023 operating EBITDA
guidance is operating EBITDA for the year ended December 31, 2021,
which was $373.2 million. Operating EBITDA for the nine months
ended September 30, 2022, the most recent period for which
financial results are available, was $496.9 million. Net income
(loss) is the most directly comparable financial measure to
operating EBITDA. A reconciliation of net income (loss) to
operating EBITDA for the year ended December 31, 2021 and the nine
months ended September 30, 2022 is set forth under "Advisories –
Non-IFRS Financial and Other Measures".
|
5 Current
Guidance Operating EBITDA calculated at Brent $80/bbl and COP/USD
exchange rate of 4600:1.
|
6 Colombian
Infrastructure refers to Puerto Bahia capital
expenditures.
|
7 Other
includes the CPE-6 solar plant project, investment in equipment
covered by insurance proceeds, investment in new technologies and
HSEQ.
|
8 Non-IFRS
financial measure (equivalent to a "non-GAAP financial measure", as
defined in NI 52-112). See "Advisories – Non-IFRS Financial and
Other Measures." Capital expenditures excludes decommissioning
expenses (approximately $14 million).
|
Orlando Cabrales, Chief Executive
Officer, Frontera, commented:
"Frontera's 2023 capital program aims to deliver stable cash
flow and $425-$475 million operating EBITDA at $80/bbl average Brent prices from the Company's
proven and diverse asset base while also investing for future
growth through facilities expansion and both near-field and
high-impact exploration. Frontera anticipates investing
approximately $185-$205 million to deliver approximately 40-43,000
boe/d, a 13% decrease in development spending as compared to 2022.
The 2023 program is fully funded from existing cash and 2023 cash
flows, features balanced capital allocation across our most
productive and prospective blocks, basins, and countries, supports
our ongoing efforts to diversify our production mix and lays the
foundation for the Company's path to grow production to 50,000
boe/d.
In 2023, we will advance the Company's exciting development
and lower-risk exploration portfolio in Colombia and Ecuador, invest in infrastructure and
facilities at Quifa and CPE-6 to increase production, leverage our
advantaged transportation and logistics structure to maximize
realized prices, mature our self-sustaining and growing midstream
business including Puerto Bahia and
ODL, execute our hedging program to protect our revenue generation
and manage our exposure to price volatility, and seek to build on
our Kawa-1 light oil and condensate discovery with the Wei-1 well,
our second exploration well offshore Guyana."
About Frontera's 2023 Capital and Production Guidance
The Company developed its 2023 capital and production guidance
using an average 2023 Brent price of $80/bbl and an exchange rate of approximately
4,600 Colombian Pesos per US dollar. The Company's 2023 Plan for
Colombia and Ecuador is self-funded. The Company expects to
fund its Guyana exploration
program from existing resources.
$80/bbl
Case
|
($millions)
|
Operating
EBITDA
|
$425 - $475
|
Cash Income
Taxes
|
($40) -
($60)
|
Debt Service
(1)
|
($45) -
($50)
|
Total Colombia &
Ecuador Capex
|
($265) -
($315)
|
Colombia &
Ecuador Free Cash Flow
|
$50
-$75
|
1. Excludes
non-recourse debt to Frontera
|
Capital Spending
The Company anticipates total capital spending of approximately
$385 to $455
million in 2023, which is approximately 10% lower at the
midpoint compared to Frontera's 2022 Guidance. Frontera's
anticipated total Colombia and
Ecuador capital expenditures of
$265-$315
million represents approximately 70% at the midpoint of the
Company's 2023 capital budget. Capital expenditures will be divided
between development and exploration activities as shown below.
Development Activities
The Company anticipates directing approximately $215-$255 million
towards the Company's base Colombia and Ecuador upstream activities. Frontera
anticipates spending approximately $110-$130 million
to drill 55 gross production wells, mainly in Quifa SW, CPE-6,
Cajua and Copa fields, complete 24 gross well interventions and
drill two injector wells, and approximately $75-$85 million on
development facilities primarily to increase oil and water handling
capacity at CPE-6 and Quifa.
- Quifa: Frontera plans to drill 27 production wells,
complete 18 well workovers and install additional flow lines in
2023. Frontera will also continue developing its SAARA water
treatment project, which if successful is expected to increase
water disposal capacity. Frontera's SAARA water treatment facility
will diversify produced water disposal options from the Quifa field
for irrigation use at the ProAgrollanos palm oil plantation.
- CPE-6: The Company plans to drill 18 production wells
and two injector wells and install additional flow lines in 2023.
As part of its multi-year development plan, Frontera also plans to
increase water-handling capacity by 100% from approximately 120,000
bbls/day to 240,000 bbls/day by year-end, supporting additional
future growth for this field.
- Other fields: Frontera plans to drill five production
wells at Cajua, two producer wells in the Copa field at Cubiro, two
production wells and one production well at the Perico block in
Ecuador.
- Colombian Infrastructure: Puerto
Bahia plans to invest approximately $5-10 million in expanding its container business
capabilities as well as in maintenance activities related to its
hydrocarbon terminal.
- Other Capex: Frontera plans to invest $25-30 million primarily on a 9MW solar plant at
CPE-6, investment in equipment covered under existing insurance
policies and new well technologies. These Other capital
expenditures will be offset by $10-15
million in insurance proceeds.
Exploration Activities
Frontera intends to invest $170-$200 million
on its Colombia, Ecuador, and Guyana exploration programs.
- Colombia and Ecuador: In 2023, the Company anticipates
spending $50-$60 million on various exploration activities in
Colombia and Ecuador including drilling the Chimi-1,
Winner-1 and Tubara South-1 exploration wells in VIM-22 block in
Colombia and the Yin Sur-1 well in
Ecuador; complete civil works on
the VIM-1 block at the Hydra well location; carry out initial
seismic activities at VIM-46 block; complete an 80-kilometre
seismic acquisition program and begin civil works at the Sol Nor-1
and Sol Nor-2 locations at the LLA-119 block; and complete an
164-kilometre seismic acquisition program and Environmental Impact
Assessment at LLA-99.
- Guyana: On the
Corentyne block, offshore Guyana,
Frontera anticipates spending approximately $120-$140 million
on the Wei-1 well, which will be funded from existing resources.
The total cost of the Wei-1 well (including 2022 pre-drill costs
and costs related to drilling delays) are forecast to be
approximately $160-$170 million. The Wei-1 well is located
approximately 14 kilometres northwest of the Joint Venture's
previous Kawa-1 light oil and condensate discovery and will target
Maastrichtian, Campanian and Santonian aged stacked sands within
channel and fan complexes in the northern section of the Corentyne
block. The Wei-1 well will appraise both the Kawa-1 discovery as
well as explore additional opportunities within the Corentyne
block.
Operating EBITDA Sensitivities
Every one-dollar average annual
change to the Company's $80/bbl Brent
price assumption for 2023 impacts operating EBITDA by approximately
$10 million including hedging. See
the table below for illustrative Brent pricing sensitivities.
Operating
EBITDA(1)
|
Unit
|
2023 Full Year
Guidance Frontera Consolidated
|
At $75/bbl
(2)
|
$MM
|
$375 - $425
|
At $80/bbl
(2)
|
$MM
|
$425 - $475
|
At $85/bbl
(2)
|
$MM
|
$475 - $525
|
1 Non-IFRS
financial measure (equivalent to a "non-GAAP financial measure", as
defined in NI 52-112). See Advisories - "Non-IFRS Financial and
Other Measures."
|
2 Current
Guidance Operating EBITDA calculated at Brent $80/bbl and COP/USD
exchange rate of 4600:1.
|
Relative to 2022 Guidance, forecast Operating EBITDA for 2023 is
expected to be impacted largely by a decrease in average commodity
prices, higher inflation and partially offset by a weaker Colombian
Peso exchange rate. Frontera's 2022 updated financial and operating
guidance was developed using an average Brent price of $100/bbl while Frontera's 2023 financial and
operating guidance was developed using an $80/bbl average Brent price. The Company's 2023
forecast sales volumes are expected to be similar to 2022 Guidance,
however lower revenues are anticipated in 2023 due to lower
expected average Brent prices for the year. In addition, the
Company is working to partially offset the Operating EBITDA impact
of higher inflation in Colombia
(13.1% in 2022) to its operating costs through a number of cost
savings initiatives and an expected weaker Colombian Peso exchange
rate relative to the US dollar.
Enhancing Shareholder Returns
Since 2018, Frontera has returned approximately $300 million to shareholders while maintaining a
strong credit profile. Under its current NCIB that expires on
March 16, 2023, Frontera is
authorized to repurchase for cancellation up to 4,787,976 common
shares. To date under its current NCIB, the Company has repurchased
approximately 4.1 million common shares, or over 85% of its
approved NCIB amount, with approximately 700,000 additional common
shares available for repurchase under its current NCIB.
Frontera remains committed to returning capital to shareholders.
As part of its 2023 plan, the Company shall continue to consider
future shareholder value enhancement initiatives.
2023 Hedging Program
As part of its risk management strategy, Frontera uses
derivative commodity instruments to manage exposure to price
volatility by hedging a portion of its oil production. Consistent
with this strategy, the Company entered into new put hedges
totaling 2,160,000 bbls to protect a portion of the Company's
production through May 2023. The
following table summarizes Frontera's 2023 hedging position as of
February 1, 2023.
Term
|
Type
of
Instrument
|
Open
Positions
(bbl/d)
|
Strike
Prices
Put/
Call
|
January
|
Put
|
14,839
|
80
|
February
|
Put
|
14,286
|
70
|
March
|
Put
|
14,194
|
70
|
1Q-2023
|
Total
Average
|
14,444
|
|
April
|
Put
|
14,333
|
70
|
May
|
Put
|
13,871
|
70
|
2Q-2023
|
Total
Average
|
9,451
|
|
Colombian Tax Reform
In November 2022, the Colombian
government approved tax reforms that will increase costs from 2023
onwards for Colombian oil and gas producers. The tax reform has two
main impacts on the oil and gas industry. First, a 5 to 15% tax
surcharge when current average oil prices exceed by 30% or more the
average oil price over the last 10 years. Second, the tax reform
makes royalties non-deductible. Treatment of high price
participation (PAP) payments is not affected. Under the tax reform,
oil and gas companies will not be permitted to deduct operating
costs and capital expenditures associated with royalties paid
whether in-kind or in-cash.
2023 Cash Income
Taxes(1)
|
Unit
|
2023 Full Year
Guidance Frontera Consolidated
|
At
$75/bbl(2)
|
$MM
|
$35 - $50
|
At
$80/bbl(2)
|
$MM
|
$40 - $60
|
At
$85/bbl(2)
|
$MM
|
$45 - $75
|
12023 cash
income taxes under the new tax reform including withholding
taxes.
|
2Average
Brent prices for the year.
|
Estimated 2022 Production
Frontera's estimated 2022 average daily production of
approximately 41,400 boe/d was in-line with the Company's 2022
increased and tightened production guidance of 41,000 to 43,000
boe/d and represents an approximately 9.5% increase compared to the
Company's 2021 average production. Frontera's estimated average
daily production for the fourth quarter was approximately 41,800
boe/d and Frontera's estimated average daily production in December
was approximately 42,200 boe/d. See the table below for production
by product type.
|
Unit
|
2021
|
2022
|
Q4'22
|
Dec
2022
|
Production
|
|
|
|
|
|
Heavy crude oil
production (1)
|
(bbl/d)
|
19,326
|
21,400
|
22,100
|
22,900
|
Light and medium crude
oil production (1)
|
(bbl/d)
|
17,218
|
17,300
|
17,100
|
17,000
|
Total crude oil
production
|
(bbl/d)
|
36,544
|
38,700
|
39,200
|
39,700
|
Conventional natural
gas production (1)
|
(mcf/d)
|
5,022
|
9,800
|
9,100
|
9,000
|
Natural gas liquids
(1)
|
(boe/d)
|
254
|
900
|
1,000
|
900
|
Total production
(2)
|
(boe/d)
(3)
|
37,818
|
41,400
|
41,800
|
42,200
|
1. References to heavy
crude oil, light and medium crude oil combined, natural gas liquids
and conventional natural gas production in the above table and
elsewhere in this press release refer to the heavy crude oil, light
and medium crude oil combined, natural gas liquid, and conventional
natural gas, respectively, product types as defined in National
Instrument ("NI") 51-101 - Standards of Disclosure for
Oil and Gas Activities.
|
2. Represents W.I.
production before royalties. Refer to the "Further Disclosures"
section on page 30 of the Company's management's discussion and
analysis for the three and nine months ended September 30, 2022
(the "MD&A").
|
3. Boe has been
expressed using the 5.7 to 1 Mcf/bbl conversion standard required
by the Colombian Ministry of Mines & Energy. Refer to the
"Further Disclosures - Boe Conversion" section on page 30 of the
MD&A.
|
About Frontera
Frontera Energy Corporation is a Canadian public company
involved in the exploration, development, production,
transportation, storage and sale of oil and natural gas in
South America, including related
investments in both upstream and midstream facilities. The Company
has a diversified portfolio of assets with interests in 32
exploration and production blocks in Colombia, Ecuador and Guyana, and pipeline and port facilities in
Colombia. Frontera is committed to
conducting business safely and in a socially, environmentally, and
ethically responsible manner.
If you would like to receive News Releases via email as soon as
they are published, please subscribe here:
http://fronteraenergy.mediaroom.com/subscribe.
Corporate Presentation
See Frontera's corporate
presentations at:
https://www.fronteraenergy.ca/reports-presentations/
Social Media
Follow Frontera Energy social media channels at the following
links:
Twitter: https://twitter.com/fronteraenergy?lang=en
Facebook: https://es-la.facebook.com/FronteraEnergy/
LinkedIn: https://co.linkedin.com/company/frontera-energy-corp.
Advisories
Cautionary Note Concerning Forward-Looking
Statements
This news release contains forward-looking
information within the meaning of Canadian securities laws.
Forward-looking information relates to activities, events, or
developments that the Company believes, expects, or anticipates
will or may occur in the future. Forward-looking information in
this news release includes, without limitation, statements relating
to the Company's expectations regarding the Company's operational
and financial progress throughout the year; estimates and/or
assumptions in respect of corporate strategy; the Company's
guidance for 2023 (including production levels, production costs,
transportation costs, operating EBITDA and capital expenditures);
expectations regarding the Company's current NCIB; expectations
with respect to the Company's hedging strategy; expectations with
respect to certain income taxes payable by the Company;
expectations regarding possible shareholder enhancement
initiatives; and the Company's exploration and development plans
and objectives, including its drilling plans and the timing
thereof. All information other than historical fact is
forward-looking information.
Forward-looking information reflects the current
expectations, assumptions and beliefs of the Company based on
information currently available to it and considers the Company's
experience and its perception of historical trends, including
expectations and assumptions relating to commodity prices and
interest and foreign exchange rates; the current and potential
impacts of the COVID-19 pandemic, actions of the Organization of
Petroleum Exporting Countries, the impact of the Russia-Ukraine conflict, and the expected impact of
measures that the Company has taken and continues to take in
response to these events; the performance of assets and equipment;
reforms that may be undertaken by the Government of Colombia; the availability and cost of labour,
services and infrastructure; the development and execution of
exploration and development projects; the receipt of any required
regulatory approvals and outcome of discussions with governmental
authorities; and the success of the Company's hedging
strategy.
Although the Company believes that the assumptions inherent
in the forward-looking information are reasonable, forward-looking
information is not a guarantee of future performance and
accordingly undue reliance should not be placed on such
information. Forward-looking information is subject to a number of
risks and uncertainties, some that are similar to other oil and gas
companies and some that are unique to the Company. The actual
results may differ materially from those expressed or implied by
the forward-looking information, and even if such actual results
are realized or substantially realized, there can be no assurance
that they will have the expected consequences to, or effects on,
the Company. The Company's annual information form dated
March 2, 2022, its annual
management's discussion and analysis for the year ended
December 31, 2021, and other
documents it files from time to time with securities regulatory
authorities describe the risks, uncertainties, material assumptions
and other factors that could influence actual results and such
factors are incorporated herein by reference. Copies of these
documents are available without charge by referring to the
Company's profile on SEDAR at www.sedar.com. All forward-looking
information speaks only as of the date on which it is made and,
except as may be required by applicable securities laws, the
Company disclaims any intent or obligation to update any
forward-looking information, whether as a result of new
information, future events or results or otherwise.
Certain information included in this news release may
constitute future oriented financial information and financial
outlook information (collectively, "FOFI") within the
meaning of applicable Canadian securities laws. The FOFI has been
prepared by management to provide an outlook of the Company's
activities and results and may not be appropriate for other
purposes. Management believes that the FOFI has been prepared on a
reasonable basis, reflecting management's reasonable estimates and
judgments; however, actual results of the Company's operations and
the resulting financial outcome may vary from the amounts set forth
herein. Any FOFI speaks only as of the date on which it was made,
and the Company disclaims any intent or obligation to update any
FOFI, whether as a result of new information, future events or
otherwise, unless required by applicable laws.
Non-IFRS Financial and Other Measures
This
news release contains various "non-IFRS financial measures"
(equivalent to "non-GAAP financial measures," as such term is
defined in NI 52-112) and "supplementary financial measures" (as
such term is defined in NI 52-112), which are described in further
detail below. Such measures do not have standardized IFRS
definitions. The Company's determination of these non-IFRS
financial measures may differ from other reporting issuers and they
are therefore unlikely to be comparable to similar measures
presented by other companies. Furthermore, these financial measures
should not be considered in isolation or as a substitute for
measures of performance or cash flows as prepared in accordance
with IFRS. These financial measures do not replace or supersede any
standardized measure under IFRS. Other companies in our industry
may calculate these measures differently than we do, limiting their
usefulness as comparative measures. The Company discloses these
financial measures, together with measures prepared in accordance
with IFRS, because management believes they provide useful
information to investors and shareholders, as management uses them
to evaluate the operating performance of the Company. These
financial measures highlight trends in the Company's core business
that may not otherwise be apparent when relying solely on IFRS
financial measures. Further, management also uses non-IFRS measures
to exclude the impact of certain expenses and income that
management does not believe reflect the Company's underlying
operating performance. The Company's management also uses non-IFRS
measures in order to facilitate operating performance comparisons
from period to period and to prepare annual operating budgets and
as a measure of the Company's ability to finance its ongoing
operations and obligations.
Set forth below is a description of the non-IFRS financial
measures and supplementary financial measures used in this news
release.
Operating EBITDA
EBITDA is a commonly used
non-IFRS financial measure that adjusts net income (loss) as
reported under IFRS to exclude the effects of income taxes, finance
income and expenses, and depletion, depreciation, and amortization
expense.
Operating EBITDA is a non-IFRS financial measure that
represents the operating results of the Company's primary business,
excluding the following items: restructuring, severance and other
costs, post-termination obligations and payments of minimum work
commitments and certain non-cash items (such as impairments,
foreign exchange, unrealized risk management contracts and
share-based compensation) and gains or losses arising from the
disposal of capital assets. In addition, other unusual or
non-recurring items are excluded from operating EBITDA, as they are
not indicative of the underlying core operating performance of the
Company. In addition, the Company excludes certain unusual or
non-recurring items as post-termination obligations and payments of
minimum work commitments, which could distort future projections as
they are not considered part of the Company's normal course of
operations.
The equivalent historical non-GAAP financial measure to 2023
operating EBITDA guidance is operating EBITDA for the year ended
December 31, 2021. The most recent
period for which financial results are available is the nine months
ended September 30, 2022. Net income
(loss) is the most directly comparable financial measure to
operating EBITDA. The following table provides a reconciliation of
net income (loss) to operating EBITDA for the year ended
December 31, 2021 and the nine months
ended September 30, 2022.
|
Nine months
ended
September
30
|
Year
Ended
December
31
|
($M)
|
2022
|
2021
|
2021
|
2020
|
Net income
(loss)
|
88,355
|
(1,243)
|
628,133
|
(497,405)
|
|
|
|
|
|
Finance
income
|
(3,182)
|
(5,332)
|
(5,362)
|
(19,529)
|
Finance
expenses
|
38,752
|
40,054
|
51,822
|
58,421
|
Income tax expense
(recovery)
|
180,676
|
37,157
|
1,039
|
33,284
|
Depletion,
depreciation, and amortization
|
146,221
|
106,571
|
126,692
|
258,867
|
Impairment (reversal)
expense and others
|
1,158
|
(3,003)
|
(565,523)
|
137,513
|
Post-termination
obligation
|
7,070
|
4,658
|
|
|
Cost under terminated
pipeline contracts
|
|
|
(5,386)
|
118,679
|
Share-based
compensation non cash portion
|
5,927
|
3,722
|
6,695
|
3,960
|
Restructuring,
severance, and other costs
|
1,839
|
2,870
|
4,616
|
21,097
|
Share of income from
associates
|
(29,908)
|
(28,282)
|
(38,033)
|
(43,545)
|
Foreign exchange loss
(gain)
|
48,183
|
24,382
|
35,510
|
7,742
|
Other (income) loss,
net
|
5,419
|
13,353
|
(1,435)
|
47,328
|
Unrealized gain (loss)
on risk management contracts
|
2,290
|
(2,683)
|
(7,213)
|
6,481
|
Non-controlling
interests
|
5,446
|
8,198
|
7,933
|
15,494
|
Loss on extinguishment
of debt
|
—
|
29,112
|
29,112
|
—
|
Reclassification of
currency translation adjustments
|
|
|
103,599
|
23,956
|
Operating
EBITDA
|
498,246
|
229,534
|
372,199
|
172,343
|
Capital Expenditures
Capital expenditures is a
non-IFRS financial measure that reflects the cash and non-cash
items used by a company to invest in capital assets. This financial
measure considers oil and gas properties, plant and equipment,
infrastructure, exploration, and evaluation assets.
Production Cost Per Boe, Transportation Cost Per
Boe
Production costs mainly include lifting costs,
activities developed in the blocks, and processes to put the crude
oil and gas in sales condition. Production cost per boe is a
supplementary financial measure that is calculated using production
cost divided by production (before royalties). Transportation costs
include all commercial and logistics costs associated with the sale
of produced crude oil and gas such as trucking, pipeline and
refining processing fees. Transportation cost per boe is a
supplementary financial measure that is calculated using
transportation cost divided by net production after
royalties.
Oil and Gas Information Advisories
The term "boe" is used in this news release. Boe may be
misleading, particularly if used in isolation. A boe conversion
ratio of cubic feet to barrels is based on an energy equivalency
conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead. In this news
release, boe has been expressed using the Colombian conversion
standard of 5.7 Mcf: 1 bbl required by the Colombian Ministry of
Mines and Energy.
Definitions:
bbl(s): Barrel(s) of
oil
bbls/d: Barrel of oil per day
Boe: Refer to
"Boe Conversion" disclosure above
boe/d: Barrel of oil
equivalent per day
Mcf: Thousand cubic feet
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content:https://www.prnewswire.com/news-releases/frontera-announces-2023-capital-and-production-guidance-301736886.html
SOURCE Frontera Energy Corporation