As a result of continued operational success at its Red Earth
core area, the Company has exceeded its
2011 exit rate guidance (3,000 - 3,200 bbls/d - 99% light
oil) by approximately 13%. Corporate production averaged over
3,500 bbls/d, 99% light oil, since mid-December 2011.
Additionally, the Company has drilled and completed 1 (1 net)
well in 2011 that is currently being equipped for production
and 2 (2 net) wells that are awaiting completion operations.
The Board of Directors of Pinecrest has approved a 2012
capital budget of $166MM, focused on the drilling, completion
and tie-in of wells targeting the Slave Point light oil
resource play in the Company's greater Red Earth core
area.
The capital and operating assumptions used in the budget are
as follows: