CALGARY, ALBERTA--(Marketwired - July 8, 2013) - Lightstream Resources Ltd. ("Lightstream" or the "Company") (TSX:LTS) is pleased to provide an update on our second quarter operations.
Production in June averaged approximately 45,000 barrels of oil equivalent per day ("boepd") (82% light oil and liquids weighted), which contributed to our second quarter average production of approximately 46,000 boepd. This represents a 19% increase over our second quarter 2012 average production of 38,700 boepd, due to the continuous execution of our program, our maturing production base and mitigated impacts of spring break-up. As anticipated, drilling and completions activity slowed down during the quarter; however our production was largely uninterrupted. This can be attributed to milder weather and infrastructure investments resulting in more wells being tied in to facilities. Approximately 1,000 boepd of production currently remains restricted in the Brazeau region of our Cardium business unit due to third party processing capacity limitations, which we anticipate will be resolved in the third quarter of 2013.
In the Cardium business unit, the use of pad drilling allowed us to continue completion activities through spring break-up, and we drilled 2 wells and placed 17 wells on production in the quarter, with the majority of the activity occurring in the West Pembina area of the business unit. Year-to-date we have drilled 25 wells and brought 34 wells on production in the Cardium, and we had 5 wells waiting to be brought on production at the end of the second quarter.
In southeast Saskatchewan, we experienced minimal downtime during the quarter and continued to execute our program. We drilled 3 wells in the second quarter and placed 2 wells on production, bringing our year-to-date totals to 25 wells drilled and 24 wells brought on production. We also continued to be active in our new resource play area, particularly in the Swan Hills region where we drilled 2 wells and brought 1 well on production in the quarter. So far this year, we have drilled 9 wells on our new plays and had 4 wells waiting to be brought on production at the end of the quarter.
Lightstream will release our full financial and operational results for the second quarter after markets close on August 7, 2013.
Lightstream Resources Ltd. is an oil and gas exploration and production company combining light oil Bakken and Cardium resource plays with conventional light oil assets, delivering industry leading operating netbacks, strong cash flows and production growth. Lightstream is applying leading edge technology to a multi-year inventory of Bakken and Cardium light oil development locations, along with a significant inventory of opportunities in the Horn River and Montney gas resource plays in northeast BC. Our strategy is to deliver accretive production and reserves growth, along with an attractive dividend yield.
BOEs. Natural gas volumes have been converted to barrels of oil equivalent ("boe"). Six thousand cubic feet ("Mcf") of natural gas is equal to one barrel of oil equivalent based on an energy equivalency conversion method primarily attributable at the burner tip and does not represent a value equivalency at the wellhead. Boes may be misleading, especially if used in isolation.
Well Counts. All references to well counts are on a net basis.