Latest News and HighlightsPEA’s ‘David and Goliath’ Story Continues to Take Shape

2019/12/12

2020 Guidance Projects Big Increases in Net Operating Income, Production

A little while back we were described as ‘A PEA-Sized Company with a Huge Natural Gas Vision’. Note that our ticker on the TSXV is PEA….

Fast forward to today and as we look at just-released guidance for 2020, we continue to put more rocks in our sling.

Net operating income is projected to grow to $80-$100 million, a 10 times increase over where Pieridae was just a few months ago.

2020 Production is pegged at 40,000-50,000 boe/d, a 230% to 290% increase over Q3 exit production. As well, we project operating costs per barrel of $10.50-$11.50/boe. And our hedging program will be 55-65% on a boe/d basis.

Finally, our Board previously approved a $32 million pre-final investment decision (FID) capital budget, $16 million Goldboro LNG development expense budget.

“We are guiding to an increase of up to 10 times our NOI from pre-acquisition levels which further accentuates the transformational nature and accretiveness of the Foothills assets acquisition,” said Pieridae CEO Alfred Sorensen. “A doubling or close to tripling of daily production speaks to the value of the acquisition and provides us with the majority of the gas resource necessary to supply train 1 at Goldboro.

“It’s Pieridae’s advantage of being an integrated LNG company and not just a gas producer and processor that sets us apart from our peers,” added Sorensen. “Delivering on our stated goals of completing a fixed price contract with KBR and finalizing project financing puts us in a position to make a final investment decision for Goldboro LNG next year. We continue to make progress toward that goal.”