PetroBakken Energy- Operational Update

PetroBakken Energy
PetroBakken Energy (Photo credit: Wikipedia)

PetroBakken Energy (PBN : TSX : $15.90)

April 12

PetroBakken released an operational update in which the company announced Q1/12 average production of 46,500 BOE/d


Following the sale of assets that closed in mid-March, PBN noted that March production averaged 44,200 BOE/d.

The company drilled 68 (47 net) wells in Q1, 32 (23 net) of which were drilled in the Bakken, 24 (17 net) in the Cardium and 12 (7 net) in theSE Saskatchewan conventional business unit. At the end of March the there was an inventory of 22 net wells drilled and waiting to be brought on production. With the onset of spring break-up the company isn’t currently drilling but completion crews are able to gain access in some areas and management expects to bring the inventory of wells waiting to be brought on production down to 16 net wells by the end of April.

Total dispositions in Q1 were $622.5 million for 3,480 BOE/d of production and 10,212 MBOE of proved reserves, implying very attractive metrics of $178,880 per BOE/d and $60.96 per proved reserves.

The company still quoted an unchanged 190+ net sections for its emerging Alberta plays, implying the Duvernay rights were only a partial interval of existing acreage. DRIP participation for the company’s latest dividend was 63%, reducing the cash outlay of the company’s dividend. PBN has $1.1 billion in available credit capacity and the company quotes an annualized cash obligation of $60 million for the dividend, or 11% of last years cash flow from operations – showingthe dividend is safe.

The company deploys capital through the drill bit and still provides an attractive 6.0% yield


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