Lonestar Updates Operations After Hurricane Harvey
FORT WORTH, Texas, Aug. 28, 2017 /PRNewswire/ -- Lonestar Resources US Inc. (NASDAQ: LONE) (together with its subsidiaries, "Lonestar") has provided an operations update following Hurricane Harvey.
As the storm approached, Lonestar received notice from its crude oil purchasers regarding suspended operations on August 24, 2017, and evacuated their field personnel from the Eagle Ford Shale producing region, and terminals which receive the bulk of Lonestar's crude oil via truck were shut-in. Additionally, refineries in Houston, Texas and Corpus Christi were shut down, and the Ports of Houston and Corpus Christi have been closed.
Lonestar elected to continue producing the vast majority of its Eagle Ford Shale wells, and has been largely successful in maintaining production wherever adequate crude oil tankage is available. Lonestar has experienced reduced gas sales at Horned Frog due to an outage at its amine plant, shut-in certain of its wells in Gonzales County due to lack of availability of trucking capacity, and certain of its producing wells at Marquis have been shut-in due to power outages. Generally, we expect these outages to be short in duration. However, the bulk of the Company's operated wells continue to produce, and in Dimmit and LaSalle Counties, trucking operations have already resumed and crude oil sales have recommenced this morning. Additionally, Lonestar ceased drilling operations at Burns Ranch, and delayed frac operations at Cyclone as a result of evacuations by its service providers. Lonestar currently anticipates resumption of drilling and completion operations later in the week.
Lonestar's Chief Executive Officer, Frank D. Bracken, III, commented, "Most importantly, our employees and their families are safe. Additionally, our operations team here in Fort Worth coordinated with our field personnel to come up with resourceful solutions to keep most of our wells producing through the storm and its aftermath. We are grateful to the tireless work of our operations group to maintain high levels of uptime while preserving safety in the work environment. Lastly, our hearts go out to our friends in the Houston area, who are bearing a heavy burden in the wake of this storm, and we wish them the best in their efforts to recover and rebuild."
Cautionary & Forward Looking Statements
Lonestar Resources US Inc. cautions that this press release contains forward-looking statements, including, but not limited to, statements about the new chairman's expertise, ability and anticipated contributions to Lonestar; Lonestar's execution of its growth strategies; growth in Lonestar's leasehold, reserves and asset value; and Lonestar's ability to create shareholder value. These statements involve substantial known and unknown risks, uncertainties and other important factors that may cause our actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, the following: volatility of oil, natural gas and NGL prices, and potential write-down of the carrying values of crude oil and natural gas properties; inability to successfully replace proved producing reserves; substantial capital expenditures required for exploration, development and exploitation projects; potential liabilities resulting from operating hazards, natural disasters or other interruptions; risks related using the latest available horizontal drilling and completion techniques; uncertainties tied to lengthy period of development of identified drilling locations; unexpected delays and cost overrun related to the development of estimated proved undeveloped reserves; concentration risk related to properties, which are located primarily in the Eagle Ford Shale of South Texas; loss of lease on undeveloped leasehold acreage that may result from lack of development or commercialization; inaccuracies in assumptions made in estimating proved reserves; our limited control over activities in properties Lonestar does not operate; potential inconsistency between the present value of future net revenues from our proved reserves and the current market value of our estimated oil and natural gas reserves; risks related to derivative activities; losses resulting from title deficiencies; risks related to health, safety and environmental laws and regulations; additional regulation of hydraulic fracturing; reduced demand for crude oil, natural gas and NGLs resulting from conservation measures and technological advances; inability to acquire adequate supplies of water for our drilling operations or to dispose of or recycle the used water economically and in an environmentally safe manner; climate change laws and regulations restricting emissions of "greenhouse gases" that may increase operating costs and reduce demand for the crude oil and natural gas; fluctuations in the differential between benchmark prices of crude oil and natural gas and the reference or regional index price used to price actual crude oil and natural gas sales; and the other important factors discussed under the caption "Risk Factors" in our Registration Statement on Form 10, as amended and filed with the Securities and Exchange Commission, or the SEC, on June 9, 2016, our Quarterly Reports on Form 10-Q filed with the SEC, as well as other documents that we may file from time to time with the SEC. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make. The forward-looking statements in this presentation represent our views as of the date of this presentation. We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this presentation.
The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that meet the SEC's definitions for such terms. Estimates of reserves in this press release are based on economic assumptions with regard to commodity prices that differ from the prices required by the SEC (historical 12 month average) to be used in calculating reserves estimates prepared in accordance with SEC definitions and guidelines. In addition, reserve engineering is a complex and subjective process of estimating underground accumulations of oil and natural gas that cannot be measured in an exact way and the accuracy of any reserve estimate is a function of the quality of available data and of engineering and geological interpretation and judgment. The estimates of reserves in this press release were prepared by the Company's internal reserve engineers and are based on various assumptions, including assumptions related to oil and natural gas prices as discussed above, drilling and operating expenses, capital expenditures, taxes and availability of funds and are subject to confirmation and revision from the Company's independent reserve engineering firm. The Company's internal estimates of reserves may not be indicative of or may differ materially from the year-end estimates of the Company's reserves prepared by a third party as a result of the SEC pricing and other assumptions employed by an independent reserve engineering firm. Investors are urged to consider closely the disclosure in the Company's filings with the SEC, which you can obtain from the SEC's website at www.sec.gov.
SOURCE Lonestar Resources US Inc.
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