Glori Energy Provides Operations Update
-- Progress on AERO deployment in Coke Field continues
-- Announces collaborative R&D agreement with Alberta Innovates Technology Futures and several Canadian oil companies
HOUSTON, Jan. 16, 2015 /PRNewswire/ -- Glori Energy Inc. (NASDAQ: GLRI), an energy technology and oil production company that utilizes its patented AEROTM System to unlock residual oil from mature conventional fields at a low cost, today provided an update on its operations.
"We are continuing to make solid progress in preparing for deployment of the AERO System in our East Texas Coke field," said Glori President and Chief Executive Officer Stuart Page. "We have filed for the necessary permits with the Texas Railroad Commission to drill injector wells that we will use to introduce the AERO nutrient solution into the field, and our current expectation is that we should be ready to begin deploying AERO in the latter half of the first quarter.
"Concurrent with the initial AERO implementation, we are making good progress with unitization of the Coke field, which will be required to fully deploy AERO technology across the field. We currently expect to complete the unitization process in early second quarter," Page said.
"We continue to look for field acquisition opportunities that are good candidates for implementation of our AERO technology and currently have several under evaluation. We are exercising patience as this rapidly changing market continues to evolve and believe we will see improving opportunities to capitalize on lower valuations for our next field acquisition.
"This lower oil price environment also presents opportunities for our Services Segment as oil producers look for low-cost and low-risk strategies to increase production, reduce decline curves and extend the life of their field. Although the energy industry is currently undergoing tremendous turmoil, which can cause short term paralysis, we believe lower oil prices will ultimately drive greater adoption of our patented technology," Page added.
Fourth Quarter 2014 Update
The Coke field performed slightly above our expectations in the fourth quarter. Our total production for the quarter was 525 net barrels of oil equivalent per day ("BOE/D"), up from 502 net BOE/D in the third quarter of 2014. This increase is the result of investments we made in well maintenance projects that were completed during the third quarter. We had oil swaps in place covering approximately 52% of our fourth quarter production at a price of $94.11.
Service revenues from third party customers were lower than our expectations however, mainly due to postponement of a substantial project in China that we had expected to generate revenue from in the fourth quarter. Laboratory analysis of chemistry and biology of fluid samples taken from the target field found that a chemical program deployed by the customer was incompatible with the deployment of the AERO system and consequently we are now looking to sample alternative locations. We also experienced some postponement of other projects as certain customers deferred the start-up of new projects. We expect to report service revenues totaling approximately $600,000 to $650,000 for the fourth quarter. We expect lower-than-projected revenues to be partially offset by lower expense levels compared to the previous quarter.
Glori also announced a collaborative research and development agreement with Alberta Innovates Technology Futures and several Canadian oil companies. Under the agreement the partnership will embark on new initiatives to characterize, optimize and expand Glori's AERO System to increase oil recovery in Alberta reservoirs.
"We are excited by this opportunity to collaborate with Alberta Innovates Technology Futures and some of Canada's leading oil companies as well as to further broaden our technology platform," said Michael R. Pavia, PhD, Chief Technology Officer of Glori.
ABOUT GLORI ENERGY INC.
Glori Energy (NASDAQ: GLRI) is a Houston-based energy technology and oil production company that utilizes its patented AERO System to increase oil recovery from mature conventional fields through a microbiological process at a substantially lower cost than traditional enhanced oil recovery methods. A customized nutrient solution is injected into the reservoir to stimulate native microorganisms that feed on the oil and release additional energy and pressure to more efficiently drive oil to producing wellbores. The AERO system can reverse production declines and significantly increase ultimate reserve recovery at a low incremental cost per barrel. Glori owns and operates oil fields onshore in the U.S. where it deploys its technology and markets the AERO system to E&P companies globally. For more information, visit www.GloriEnergy.com.
FORWARD LOOKING STATEMENTS
Any statements contained herein which are not statements of historical fact may be deemed to be forward-looking statements, including, without limitation, statements identified by or containing words like "believes," "expects," "anticipates," "intends," "estimates," "projects," "potential," "target," "goal," "plans," "objective," "should", or similar expressions. All statements by us regarding our possible or assumed future results of our business, financial condition, liquidity, results of operations, plans and objectives and similar matters are forward-looking statements. Glori gives no assurances that the assumptions upon which such forward-looking statements are based will prove correct. Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions (many of which are beyond our control), and are based on information currently available to us. Actual results may differ materially from those expressed herein due to many factors, including, without limitation: the risk that any projections, including earnings, revenues, expenses, margins, or any other financial expectations are not realized; oil production rates; oil prices; the efficacy of changes in oil fields acquired; competition and competitive factors in the markets in which Glori operates; the expected cost of recovering oil using the AERO System, demand for Glori's AERO System and expectations regarding future projects; adaptability of the AERO System and development of additional capabilities that will expand the types of oil fields to which Glori can apply its technology; plans to acquire and develop additional oil fields and the availability of debt and equity financing to fund any such acquisitions; the percentage of the world's reservoirs that are suitable for the AERO System; the advantages of the AERO System compared to other enhanced oil recovery methods; and Glori's ability to develop and maintain positive relationships with its customers and prospective customers. Although Glori believes that the expectations reflected in such forward looking statements are reasonable, it can give no assurances that such expectations will prove to be correct. These risks are more fully discussed in Glori's filings with the Securities and Exchange Commission. Glori undertakes no obligation to update any forward-looking statements contained herein to reflect events or circumstances, which arise after the date of this document except as required by law.
Glori Energy Contact
Victor M. Perez
Chief Financial Officer
713-237-8880
[email protected]
Investor Relations Counsel
Lisa Elliott/ Anne Pearson
Dennard-Lascar Associates
713-529-6600
[email protected]
[email protected]
SOURCE Glori Energy Inc.
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