PRY

TSX Venture Exchange:  PRY

CALGARY, Nov. 28, 2014 /CNW/ - Pinecrest Energy Inc. ("Pinecrest" or the "Company") announces that it has filed on SEDAR its unaudited financial statements and related Management's Discussion and Analysis ("MD&A") for the three and nine month period ended September 30, 2014.  The statements will be available for review at www.sedar.com or www.pinecrestenergy.com.

(1)       Non-GAAP measure
(2)       Excludes $0.1  million liability (2013 - $2.3 million) related to the fair value of derivative financial instruments
(3)       Before the effects of derivative financial instruments

Operations Update and Outlook

During the third quarter the Company continued to focus its efforts and capital on implementing and optimizing its water flood projects and primary production in the greater Red Earth area.

Production during the third quarter averaged 1,809 boe/d (97% light oil and NGL's). Third quarter production was negatively impacted by a third party pipeline outage resulting in lost production of 81 boe/d for the quarter. Current production based on field estimates is 1,850 boe/d.

The Company is moving forward certain short and long term capital projects to optimize the production and costs associated with its water flood project areas and primary production in the greater Red Earth area. The Company anticipates consolidating and improving certain field facilities in the first and second quarter of 2015 designed to reduce the point forward cost structure and enable increased production rates from its water flood project areas

Pinecrest continues to optimize and expand its water flood project areas in the greater Red Earth area. The primary focus of the Company's available capital will be on these projects for the remainder of 2014 and early 2015 due to their superior long term economics versus primary drilling.

Advisory 

The information in this press release contains certain forward-looking statements. These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "would" and similar expressions. In particular, forward looking statements in this press release includes, but is not limited to: waterflood and production optimization, oil recovery rates, drilling plans for 2014, expected production, expected oil to water ratios, the effects of waterfloods on recovery factors, decline rates, expectations for wells, success in drilling and waterflood activities,  production rates, the quantity of reserves, and projections of market prices, and costs. These statements involve substantial known and unknown risks and uncertainties, certain of which are beyond Pinecrest's control, including: the impact of general economic conditions; industry conditions; changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; fluctuations in commodity prices and foreign exchange and interest rates; stock market volatility and market valuations; access to capital; volatility in market prices for oil and natural gas; liabilities inherent in oil and natural gas operations; uncertainties associated with estimating oil and natural gas reserves; competition for, among other things, capital, acquisitions, of reserves, undeveloped lands and skilled personnel; incorrect assessments of the value of acquisitions; changes in income tax laws or changes in tax laws and incentive programs relating to the oil and gas industry; geological, technical, drilling and processing problems and other difficulties in producing petroleum reserves. Pinecrest's actual results, performance or achievement could differ materially from those expressed in, or implied by, such forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do, what benefits that Pinecrest will derive from them. Forward-looking statements are made as of the date herein except as required by law, Pinecrest undertakes no obligation to publicly update or revise any forward-looking statements.  Many of these risks and uncertainties and additional risk factors are described in the Company's Annual Information Form which is available at www.sedar.com.  Readers should review such risk factors and others referred to in documents Pinecrest files at www.sedar.com.

Statements relating to "reserves" or "resources" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the resources or reserves described can be profitably produced in the future.

The Corporation uses the following terms for measurement within this press release that do not have a standardized prescribed meaning under GAAP and these measurements may differ from other companies and accordingly may not be comparable to measures used by other companies. The terms "funds from operations" and "operating netback" are not recognized measures under the applicable GAAP. Management of the Corporation believes that these terms are useful, in addition to profit and loss and cash flow from operating activities as defined by GAAP, for evaluating the Corporation's operating performance and leverage. Funds from operations is expressed as cash flow from operating activities before changes in non-cash working capital and asset retirement expenditures. Operating netback is a measure of operating margin used in capital allocation decisions. Pinecrest defines operating netback as average realized price per boe, less royalties per boe, less operating and transportation expenses per boe, plus any realized gain or loss per boe on financial instruments.

Barrels of Oil Equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of 6MCF:1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

SOURCE Pinecrest Energy Inc.