About Arsenal Energy Inc.
Arsenal Energy Inc. is an energy exploration and production company with producing properties in Canada and the United States. Corporate headquarters are located in Calgary, Alberta, Canada.
Management and Officers:
Tony van Winkoop - President and CEO Tony van Winkoop has a B.Sc in geological engineering from the University of Saskatchewan with 25 years of multidisciplinary oil and gas experience. After 8 years with a major international company, Tony co-founded Venator Petroleum in 1988. As VP of exploration he helped build the company from no production to 1600 boe/d. He joined Prime West, when the company purchased Venator, in 2000. As General Manager of Development he built and oversaw Prime West's development project inventory. Tony joined Arsenal in July, 2006.
J. Paul Lawrence, CA - Vice President, Finance and CFO Mr. J. Paul Lawrence was appointed Vice President Finance and CFO of Arsenal in May 2008. Mr. Lawrence has gained a wealth of experience with over 30 years in the oil and gas industry in both private and public companies in the areas of mergers and acquisitions, corporate finance, investor relations, tax and financial reporting.
Prior to joining Arsenal, Paul served as Vice President Finance and CFO for Clearwater Energy Inc., Silverwing Energy Inc., Lexxor Energy Inc. and Quadron Resources Ltd.
Paul attended the University of Calgary Executive Development Program in 1998. He is a member of the Canadian, Alberta and Ontario Institutes of Chartered Accountants and the Financial Executives Institute. He served as a director of Lexxor from 1995 until February 2001, a director of Country Hills Golf Club from 1998 to 2004 and a director of the Financial Executives Institute-Calgary Chapter from 2005 to 2007.
Gjoa Taylor - Vice President Land Gjoa Taylor joined Arsenal in March of 2008. Ms Taylor has 20 years experience as a Professional Landman including positions with Imperial Oil, Crestar Energy, and most recently at PrimeWest Energy as Manager, Negotiations. In addition, Ms. Taylor has served as a Director on the Canadian Association of Petroleum Landmen (CAPL) and remains actively involved in CAPL committees. Ms. Taylor received a BA in Law with a minor in Petroleum Land Management from the University of Calgary in 1995.
Ron Forth, P.Eng - VP Engineering Ron graduated from the University of Alberta in 1981 with a B.Sc in Mechanical Engineering. He has over 26 years of industry experience at Petro-Canada, AEC/EnCana, and Primewest Energy/Taqa North specializing in Reservoir Engineering. In his career, Ron has worked as a technical specialist and in management roles on a variety of development and A&D projects across Canada and in the US, ranging from shallow gas/CBM to deep tight gas resource plays, conventional and heavy oil. He is the author of two technical papers, serves on the SAIT Petroleum Technology Advisory Committee, and is a member of APEGGA.
Brenlee Taylor - Controller Brenlee Taylor has 20 years of experience in the oil and gas industry. Prior to joining Arsenal, she worked in this capacity at Westward Energy Inc, and in a similar capacity at Seventh Energy Inc and Kensington Energy Inc. Ms. Taylor is certified by the Canadian Association of Petroleum Production Accountants and is a member of CAPPA and Petroleum Accountants Society of Canada.
Contact info; Arsenal Energy Inc.
Suite 1900, 639-5th Avenue SW
Calgary, AB, Canada T2P 0M9
Toronto Stock Exchange: AEI
Frankfurt Stock Exchange: A1E
Arsenal Energy Inc. Releases Operational Update and 2011 Capital Budget
CALGARY, ALBERTA, Nov 22, 2010 (Marketwire via COMTEX) -- Arsenal Energy Inc. (TSX:AEI) (FRANKFURT:A1E)
Testing of the Three Forks formation in the Jerol well (12.5% WI) at Lindahl, North Dakota, has been completed. The well flowed at 1330 bbls/d of oil over a 24 hour test period and has been placed on production. At Stanley North Dakota, Arsenal as operator has spud the Brenlee (42% WI) one mile horizontal Bakken well. After the Brenlee well the drilling rig will move directly to the Amy Elizabeth (62% WI) two mile horizontal Bakken location. Also at Stanley, EOG has spud the Burke 31-20 (31% WI) well targeting the Bakken.
At Rennie Lake, in Burke County North Dakota, an area operator has released a test rate of 690 bbls/d of oil from a Bakken horizontal about 4 miles south of Arsenal's 2,500 net acres. A second well, one mile north of Arsenal's acreage has been on production for 4 months averaging 120 bbls/d. Arsenal intends to develop its Rennie Lake property after Stanley and Lindahl have been drilled out on 640 acres which will likely be sometime in 2012.
At Evi, in Northern Alberta, Arsenal has a 10 well drilling program underway. The first well, 02/4-7 (50% WI), has swab tested at 350 bbls/d from the Granite Wash. The second well, 02/9-6 (50% WI), has swab tested at 400 bbls/d from the Gilwood. The third well, 5-1 is drilling.
Arsenal's Board of Directors has approved the capital budget for 2011. Arsenal expects to spend $50 million of capital. Drilling plans include 10 gross (4.1 net) Bakken wells in North Dakota, 9 gross (7 net) wells in Evi, and 6 gross (6 net) wells in Arsenals medium gravity eastern Alberta properties. Arsenal forecasts a production exit rate of 3300 Boe/d at the end of 2011 while maintaining the company's targeted debt to cash flow ratio of 1:1.
Arsenal Energy Inc. Releases Operational Update
CALGARY, ALBERTA, Dec 9, 2010 (Marketwire via COMTEX) -- Arsenal Energy Inc. (TSX:AEI) (PINK SHEETS:AEYIF) At Stanley North Dakota, the EOG operated Burke 31-20 (31% WI) well targeting the Bakken has reached total depth. The well encountered good shows while drilling. It is anticipated that the well will be completed and placed on production over the next two months. Also at Stanley North Dakota, Arsenal as operator has spud the Brenlee one mile horizontal Bakken well. Arsenal has acquired an additional 27% in the well increasing its working interest to 73%. After the Brenlee well the drilling rig will move directly to the Amy Elizabeth (62% WI) two mile horizontal Bakken location.
At Evi, in Northern Alberta, Arsenal has a 10 well drilling program underway. Results of the first two wells were previously released. The third well, 5-1 (50% WI) has swab tested at 350 bbl/d from the Granite Wash. The fourth well, 4-29 (100% WI) has been cased and the fifth well, 16-19 (100% WI) is drilling.
- Arsenal Energy Inc. (TSX: AEI) (PNK: AEYIF.PK)
Calgary, Alberta, February 15, 2011 - Arsenal Energy Inc. (TSX:AEI) ("Arsenal") is pleased to announce that it has closed its previously announced bought deal equity financing with Wellington West Capital Markets Inc., PI Financial Corp., Canaccord Genuity Corp., Casimir Capital Ltd. and Emerging Equities Inc. (collectively the "Underwriters") pursuant to which the Underwriters placed on a "bought deal" basis 22,158,500 common shares ("Common Shares") (including 2,368,500 Common Shares upon exercise of an over allotment option) at a subscription price of $0.95 per share for aggregate gross proceeds of (Cdn) $21,050,575.
The net proceeds from the sale of the Common Shares will be used to initially reduce debt, fund Arsenal's ongoing capital program and for general corporate purposes.
Operations in North America
| || || |
Click on map for more info on Canada or US Operations
Arsenal Energy is 69% Oil weighted based on P+P reserves as of December 31, 2008.
Bakken/Three Forks Play
Arsenal is a junior oil and gas company engaged in the exploration for, and development and production of natural gas and oil reserves primarily in Alberta and Saskatchewan and North Dakota, U.S.A. Arsenal's common shares trade on the Toronto Stock Exchange under the symbol "AEI". Arsenal now has 162,970,972 Common Shares outstanding.
COMPANY WEBSITE http://www.arsenalenergy.com/
Link to quote on TSX: http://tmx.quotemedia.com/quote.php?qm_symbol=aei
Arsenal Energy Inc. Releases Operational Update
, March 14, 2011- Arsenal Energy Inc. (TSX: AEI) (PNK: AEYIF.PK)
At Stanley, North Dakota, the EOG operated Burke 31-20 (31% WI) Bakken well has been completed and placed on production. The well flowed tested at 792 bbls/d of oil. The Arsenal operated Brenlee 100-19H (73% WI) and the Fidelity operated Krables 22-15H (3% WI) Bakken wells have reached total depth. Both wells encountered good shows while drilling. Arsenal, as operator, has spud the Amy Elizabeth (62% WI) two mile horizontal Bakken location. Subject to frac crew availability, all three wells will be completed and placed on production in June. Arsenal anticipates participating in 8 gross (4.1 net) wells at Stanley in 2011.
At Evi, in Northern Alberta, Arsenal has drilled 5 gross (3.5 net) oil wells. The program added 185 bbls/d of net production with another net 100 bbls/d that should be on production by the end of March.
At Princess, in Southeast Alberta, Arsenal drilled three successful Detrital wells. Two of the wells are on production totaling 80 boe/d. The third well is awaiting tie in. Arsenal now has three wells on production with high fluid levels and three additional wells behind pipe. Arsenal plans to construct battery upgrades in June and to then install high volume lift and tie in the additional wells. The Glauconitic zone was cored in one of the drills. The core confirmed the presence of a 12 meter oil saturated channel sandstone with average porosity of 16% and permeability of 0.7 millidarcies. Arsenal intends to drill a horizontal multi stage frac test well in the summer of 2011. From 3D seismic Arsenal has identified 6 miles of channeling on its acreage. Through the winter Arsenal purchased 9 sections of additional land to bring the total land position at Princess to 8600 net acres.
At Edgerton, in Southeast Alberta, Arsenal has completed the acquisition of 16 square miles of 3D seismic. After interpretation, it is anticipated that Arsenal will select and drill a horizontal well into the Leduc formation. Offsetting operators have initial production rates of 100 bbls/d of oil with reserves >100,000 bbls/well. Arsenal has accumulated 3800 net acres of land in the Edgerton area.
Read Full Annual report for 2010 Here http://www.arsenalenergy.com/pressrelease/press2011/Arsenal-Energy-Yearend-Results.pdf
Highlights of annual report
Arsenal Energy Inc. Releases Yearend Results
Arsenal Energy Inc. Releases Yearend Results
, March 22, 2011- Arsenal Energy Inc. (TSX: AEI)
Arsenal is pleased to release its Q4 and full year 2010 financial results and yearend 2010 reserve report. Q4 results are highlighted by a 47% increase in cash flow vs. Q409 due to increases in production and reductions in unit costs. Proven plus probable reserves grew 20% from 8.6 million boe to 10.4 million boe for an all in FD&A cost of $10.13/boe. Most of the added reserves are high quality, low cost Bakken oil reserves in North Dakota.
Cash flow from operations in the fourth quarter was $5.1 million ($0.04/share). This is an increase of 47% vs. the comparable period in 2009. The increase is due to a 14% increase in production volumes, a 20% decrease in unit operating, transportation, and royalty costs, and a 48% decrease in unit overhead and financing charges. These improvements were partially offset by lower unit revenue due to lower price realizations for natural gas. Annual cash flow of $18.3 million was flat year over year but 2009 included $9.2 million in hedge realizations vs. $1.8 million in 2010. Net income for the quarter was nil but continues the quarterly trend toward profitability.
Capital expenditures for Q4 2010 totaled $13.0 million increasing 272% over the $3.5 million expended in Q4 2009. Total debt at yearend was $18.8 million. A subsequent $20 million net equity raise in the first quarter has left the company essentially debt free.
Average production of 2132 boe/d for Q4 was an increase of 14% from Q4 2009. This increase is attributable to growing production volumes from the Bakken in North Dakota partially offset by noncore property sales.
Arsenal's Q4 production mix was 76% oil and liquids and 24% natural gas. Lower natural gas prices resulted in 8% lower overall boe prices vs. 2009 but operating netbacks of $29.28/boe were slightly higher due to lower operating costs and royalties. Operating costs decreased to $16.98/boe in Q4 2010 from $19.94/boe in 2009. This decrease is due to the averaging in of lower cost Bakken production and the sale of noncore high cost production. Operating margins should continue to improve as additional Bakken production is brought on.
Arsenal participated in the drilling of 10.2 net wells in the fourth quarter. Results of those wells have been previously released. Due to a severe shortage of equipment and trained people in North Dakota, Arsenal's production growth has been slower than anticipated. Although frustrating, these problems are common in booms like North Dakota and Arsenal anticipates that they will work themselves out over the medium term.
OUTLOOK FOR 2011
Arsenal has five priorities for 2011. The first priority is to bring more of its Stanley, North Dakota Bakken reserves into production. At January 1st Arsenal had an inventory of 10 budgeted gross (4.7 net) proven non producing locations on 640 acre spacing. Three have now been drilled with one on production. A fourth is currently drilling. Arsenal has a drilling rig for the program and is working to secure a frac crew. The first year average production rate to date at Stanley has been 260 bbls/d/well with initial rates much higher.
The second priority for 2011 is to advance Arsenal's Bakken/Three Forks depletion plan. Arsenal's independent engineers (AJM) have booked the Bakken/Three Forks complex on one well per spacing unit with an 8% recovery factor for proven and two wells per spacing unit with a 12% recovery factor for proven plus probable. Arsenal has simulated the reservoirs and designed an optimal depletion plan. The plan calls for four wells per 1280 acre spacing unit and three wells per 640 acre spacing unit with a total recovery factor of 16%. AJM has evaluated this plan and has booked as possible reserves an additional 4 million barrels with an incremental NPV of $75 million. Beyond that, further increases in recovery may be attainable through water or gas injection. This plan is consistent with other area operators.
The third priority is to advance Bakken development at Rennie Lake in Burke County where Arsenal has 2500 net acres of undeveloped Bakken rights. Successful wells have been drilled surrounding Arsenal's lands. Arsenal currently has no production or booked reserves on its Rennie Lake property.
The fourth priority is the establishment of a new core oil property. Arsenal has three play concepts that will be tested in the second quarter. At Edgerton, Alberta, Arsenal has recently shot a 3D seismic program and identified a large Leduc subcrop structure. At Princess, Alberta, Arsenal is installing high volume lift to test the productive capability of its 5 Detrital formation wells. Also at Princess, Arsenal plans to drill a horizontal well into the Glauconitic formation to test the capability of multi fracturing to increase production. Each of these has the potential to prove up material oil development opportunities for Arsenal going forward. In addition, Arsenal is essentially debt free and evaluating potential acquisitions using an undrawn $40 million borrowing base.
The fifth priority is continued land acquisition in the Alberta deep basin Falher formation play. Arsenal is acquiring acreage at relatively low prices and is looking forward to a time when higher gas prices will make the development of this play attractive. Arsenal has acquired 15,000 net acres in this play to date.
Based on the current forward strip, Arsenal anticipates that it will achieve operating margins in excess of $37/boe in 2011. Arsenal anticipates an exit production rate of 3000boe/d. Capital expenditures are currently estimated at $54 million for 2011. This is expected to yield funds from operations before interest and overhead of approximately $37 million and cash flow of $30 million.
Arsenal Energy Inc. Provides North Dakota Operational Update
CALGARY, July 4, 2011 - In Q1 Arsenal Energy Inc. ("Arsenal") (TSX: AEI) drilled and cased the Brenlee (80% WI) and the Amy Elizabeth (62% WI) Bakken wells in North Dakota. The two wells have been waiting on fracture stimulation equipment. Over the past weekend, frack equipment has been mobilized to the Brenlee well and operations should commence within the next few days. The Amy Elizabeth well has a tentative frack window scheduled for the middle of July. Results will be released when available.
Arsenal has started permitting three additional North Dakota Bakken operated drills, the Gjoa Lynn (50% WI), the Anthony Robert (73 % WI), and the Wade Morris (73% WI). It is anticipated that Arsenal will start drilling this 3 well program in October. In addition, Arsenal anticipates that 3 non operated North Dakota Bakken wells with average working interests of 18% will be drilled by yearend.
Arsenal is a junior oil and gas company engaged in the exploration for, and development and production of, natural gas and oil reserves primarily in Alberta and North Dakota, U.S.A. Arsenal's common shares trade on the Toronto Stock Exchange under the symbol "AEI".