Canadian Bakken Player Lightstream Resources' Production Rises 9% Over 2012

Lightstream Resources Ltd. (Toronto: LTS.TO) has announced its fourth quarter and year-end 2013 financial and operating results.

Highlights include:

• Average daily production for 2013 increased to 46,438 barrels of oil equivalent per day (boepd), representing a 9% increase over 2012 average production of 42,784 boepd.
• Average fourth quarter 2013 production was 45,521 boepd, essentially unchanged from third quarter of 2013, and was 4% lower than the fourth quarter of 2012.
• Operating netback for 2013 was $50.00/boe, 4% higher than the operating netback in 2012, and for the fourth quarter it was $45.43/boe, down 5% from the fourth quarter of 2012.
• For 2013 the company is reporting a net loss from operations of $1,384 million ($7.07 per basic share) primarily due to a one-time non-cash goodwill impairment charge of $1,342 million.

Total average production in 2013 grew 9% to 46,438 boepd (81% light-oil and liquids weighted). The capital spending program for the year was $716 million, a 25% decrease from 2012 levels.

Fourth quarter average production of 45,521 boepd (80% light oil and liquids weighted) was essentially unchanged from the third quarter of 2013 and decreased 4% from the fourth quarter of 2012. This reflects the execution of a level loaded capital program between the first and second halves of the year.

Production expenses for the fourth quarter were $12.75/boe, up 12% from the same quarter last year. The increase was due to higher fixed costs on producing wells for electricity and equipment rentals. Average production expenses for 2013 were $13.19/boe as a result of the increased fixed costs referred to above as well as higher third party processing fees and well servicing costs. The company expects production expenses to trend up to approximately $15.25/boe in 2014 due to a higher proportion of workover expenses versus capitalized optimization costs in prior years, although in aggregate the total amount to be spent on these activities is expected to be the same year over year.

Average Daily Production

The company's business unit was its most active area, followed by the Bakken in southeast Saskatchewan. The company's primary activity in emerging play areas has been focused on the Swan Hills region, which is expected to continue in 2014.

Q4 2013 Drilling Activity

2013 Drilling Activity