Viking Energy Group Provides Details on Increased Revenue, Assets and Reserves from Recently Closed Acquisition
April 8, 2019 - 9:00 AM EDT
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Viking Energy Group Provides Details on Increased Revenue, Assets and Reserves from Recently Closed Acquisition
HOUSTON, April 08, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE – Viking Energy Group,Inc. (OTCQB: VKIN) (“Viking” or the “Company”), an independent exploration and production company focused on the acquisition and development of conventional oil and natural gas properties, is pleased to provide details on its recently completed acquisition, which closed on December 28, 2018.
In connection with the acquisition, which included an interest in producing wells in Texas and Louisiana, Viking increased its overall proven oil and gas reserves by approximately 10,500,000 BOE. Viking intends to further assess and exploit the PDNP and PUD prospects associated with the assets, and to perform a more in-depth geological and geophysical analysis of the entire asset portfolio to identify other development and enhancement initiatives.
Features of the acquisition, as at December 28, 2018, included:
Majority working interest in multiple oil and gas fields
Production of ~ 2,469 (net) BOEPD (~56% oil)
Approx. 58 conventional, producing oil and gas wells in Texas (primarily in Orange and Jefferson Counties) and Louisiana (primarily in Calcasieu Parish)
31 Salt Water Disposal Wells
The assets produce hydrocarbons from known reservoirs/sands in the on-shore Gulf Coast region, including the Hackberry, Yegua, Wilcox, Amphistegina and Robira
Average well total measured depth of 10,639 ft.
Historically strong demand for oil and gas in this region resulting in a realized price consistently above the WTI benchmark
James Doris, Vikings’s President and Chief Executive Officer, commented, “The acquisition is large, from both a monetary and production standpoint, relative to the size of our company immediately prior to closing, as it quadruples our current revenue-rate. While significant, it is merely a small step within a more comprehensive long-term acquisition and growth strategy.” Doris continued, “We are committed to operating these assets, along with our other assets, as efficiently as possible, and to identifying and evaluating additional growth opportunities across all company divisions.”
COMBINED STATEMENTS OF REVENUES AND DIRECT OPERATING EXPENSES OF PROPERTIES ACQUIRED BY ICHOR ENERGY, LLC, A SUBSIDIARY OF VIKING ENERGY GROUP, INC., FROM BODEL HOLDINGS, L.L.C., CLEVELAND HOLDINGS, L.L.C., DELBO HOLDINGS, L.L.C., DEQUINCY HOLDINGS, L.L.C., GULF COAST WORKING PARTNERS, L.L.C., OAKLEY HOLDINGS, L.L.C., SAMJAM ENERGY, L.L.C. AND PERRY POINT HOLDINGS L.L.C. UNDER AGREEMENT DATED DECEMBER 28, 2018
Years Ended December 31,
2018
2017
Revenues - oil and natural gas
$
41,696,140
$
22,798,107
Direct operating expenses
10,419,546
7,727,522
Revenues in excess of direct operating expenses
$
31,276,594
$
15,070,585
Reserve Quantity Information:
Below are the estimated quantities of domestic proved developed and undeveloped reserves of the acquired properties:
Years Ended December 31,
2018
2017
Oil (Mbbls)
Gas (Mmcf)
Oil (Mbbls)
Gas (Mmcf)
Proved developed and undeveloped reserves:
Beginning of period
6,619.92
27,819.61
6,063.50
26,100.76
Purchases
173.70
115.70
904.30
3,362.70
Production
(486.82
)
(2,233.91
)
(347.88
)
(1,643.85
)
End of period
6,306.80
25,701.40
6,619.92
27,819.61
Est. Discounted Future Net Cash Flows from Acquired Assets - Twelve Months Ended December 31, 2018 - Proved Reserves
Future cash inflows
$
406,610,700
Future production costs
(129,803,400
)
Future development costs
(7,451,000
)
Future net cash flows
269,356,300
10% annual discount for estimated timing of cash flows
(119,179,100
)
Standardized measure of discounted future net cash flows
$
150,177,200
Changes in Standardized Measure of Discounted Future Net Cash Flows
Standardized measure at beginning of period
$
170,246,820
Changes resulting from:
Acquisition of reserves
2,996,740
Sale of oil and natural gas
(18,346,300
)
Net changes in prices and production costs
(4,720,060
)
Note: The above-noted figures related to revenues, estimated reserves and estimated value of future net cash-flows with respect to the acquired assets were disclosed in Viking’s Current Report on Form 8K-A filed on February 28, 2019 with the Securities and Exchange Commission and available under "Investors -- SEC Filings" at www.vikingenergygroup.com.
The Company's business plan is to leverage the expertise and relationships of its technical and management team to engage in the acquisition, exploration, development and production of oil and natural gas properties.
Viking's growth strategy includes the following key initiatives:
Acquisition of under-valued producing oil and gas assets
Employ enhanced recovery techniques to maximize production
Implement responsible, lower-risk drilling programs on existing assets
Implement hedging arrangements to mitigate commodity risk
About Viking Energy Group,Inc.
Viking is an independent exploration and production company focused on the acquisition and development of oil and natural gas properties. The company owns oil and gas leases in Texas, Louisiana, Mississippi and Kansas. Viking targets under-valued assets with realistic appreciation potential.
This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and any statements that are not historical facts contained in this press release are "forward-looking statements" as that term is defined under the Private Securities Litigation Reform Act of 1995 (“PSLRA”), which statements may be identified by words such as "expects," "plans," "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates," and other words of similar meaning. Such forward-looking statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, transactions that may be cancelled, and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties related to the fluctuation of global economic conditions or economic conditions with respect to the oil and gas industry, the performance of management, actions of government regulators, vendors, and suppliers, our cash flows and ability to obtain financing, competition, general economic conditions and other factors that are detailed in our filings with the Securities and Exchange Commission (“SEC”), including our Annual Report on Form 10-K for the year ending December 31, 2018. We intend that all forward-looking statements be subject to the safe-harbor provisions of the PSLRA.
Contact Information Corporate James A. Doris, President and C.E.O. Viking Energy Group, Inc. 15915 Katy Freeway, Suite 450 Houston, TX 77094 jdoris@vikingenergygroup.com
