CALGARY, April 9, 2019 /CNW/ - Jupiter Resources Ltd. and its affiliates (collectively, "Jupiter" or the "Company") announced today a revised 2019 guidance, reducing planned capital expenditures from $190-210 million to $150-160 million.
Jupiter has scaled back its 2019 capital program in response to the continued weak outlook for AECO natural gas prices. "We are concerned that the issues that have plagued Western Canada for the last two summers and which led to distressed Alberta gas prices will persist, so we have chosen to defer growth initiatives until these issues are addressed," said Simon Bregazzi, Jupiter's CEO.
Late in 2018, the Government of Alberta's Natural Gas Advisory Panel released their report titled Roadmap to Recovery: Reviving Alberta's Natural Gas Industry (the "Report"; https://open.alberta.ca/publications/9781460141915). "The issues facing Alberta's natural gas sector and the associated options to resolve them are complex. We applaud the effort and 48 recommendations included in the Report, but now we need to act and address the issues that have severely impacted the health of our industry", stated Simon.
The Report takes a holistic look at Alberta's natural gas industry, the regulatory framework, associated transportation network and future expansion opportunities. It includes a comprehensive list of near-term and longer-term recommendations which provide actionable steps that the regulator (National Energy Board), TransCanada, industry and the governments at both the Federal and Provincial level can immediately undertake to address the situation that has suppressed the natural gas industry for the past 3 years.
As the Report states, "we must act strategically and with conviction to capture our share of both continental and global natural gas markets". The Report also highlights that "Canada has an opportunity to be a leader in the global shift to natural gas helping the world meet its climate objectives". Further, "Canada, Western Canada, and Alberta would benefit from a united, cohesive, and actionable vision for natural gas." However, "for Alberta to compete successfully in proposed LNG projects, the systemic challenges surfaced in this report must be resolved."
"We at Jupiter are committed to doing our part and look forward to working with the Government of Alberta, our peers and other stakeholders to enact the Report's recommendations", stated Simon.
Updated 2019 guidance has been posted on the Company website.
Jupiter is an independent Calgary-based energy company with an operations office in Grande Cache, Alberta. The Company is focused on the acquisition, development and production of unconventional liquids-rich natural gas properties in the Western Canadian Sedimentary Basin. For more information visit: www.jupiterresources.com.
Forward Looking Statements
Certain information set forth in this release contains forward-looking statements, which are provided to allow investors to better understand our business. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Jupiter's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve and resource estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management and services, stock market volatility, changes in environmental regulations, tax laws and royalties and the ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Jupiter's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements, or if any of them do so, what benefits that Jupiter will derive therefrom. Jupiter disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE Jupiter Resources Ltd
For further information: Investor Contact: Ryder McRitchie, Vice President, Capital Markets & Public Relations, [email protected], (587) 747-2649