Crew Energy Announces 2018 Capital Budget and Strong 2017 Reserves Growth

CALGARY, Alberta, Feb. 08, 2018 (GLOBE NEWSWIRE) -- Crew Energy Inc. (TSX:CR) of Calgary, Alberta (“Crew” or the “Company”) is pleased to provide highlights from our independent corporate reserves evaluation prepared by Sproule Associates Ltd. (“Sproule”) with an effective date of December 31, 2017 (the “Sproule Report”) along with the Company’s 2018 capital expenditure budget, approved by Crew’s Board of Directors.  


  • Fully Funded $80 to $85 Million Capital Budget:  Focused on advancing Crew’s long-term plan to diversify market access and increase condensate volumes while positioning the Company to maintain production volumes in 2019 based on forward curve pricing. 
  • Prioritizing Value Over Volumes:  2018 production is expected to be 23,500 to 24,500 boe per day comprised of 24% liquids and 76% natural gas, assuming approximately 1,500 boe per day of current uneconomic natural gas production will remain shut-in throughout the year. The guidance midpoint represents a 4% increase over the Company’s 2017 average production of 23,061 boe per day.
  • Targeting Increased Liquids & Condensate Revenue:  Liquids production is expected to represent 50 to 60% of Crew’s total revenue in 2018, highlighted by an over 30% increase in forecast condensate production in the first quarter of 2018 compared to the first quarter of 2017.  Drilling and completions activity will continue to focus on liquids-rich opportunities with plans to drill four (4.0 net) and complete 15 (13.2 net) condensate and ultra condensate-rich (“UCR”) wells at West Septimus.
  • Managing the Balance Sheet:  In the current depressed natural gas pricing environment, the Company’s 2018 program will focus on maintaining financial flexibility by balancing capital expenditures to approximate funds from operations (“FFO”).  Crew expects to maintain ample liquidity with planned draws on our $235 million credit facility anticipated not to exceed 25%.


Highlights of the Proved Developed Producing (“PDP”), Total Proved (“1P”) and Total Proved Plus Probable (“2P”) reserves from the Sproule Report are provided below.  Finding, development and acquisition (“FD&A”) costs and finding and development (“F&D”) costs include changes in future development capital (“FDC”). 

  • Active Drilling Program Drives Strong Reserves Growth:  Relative to year end 2016, PDP reserves increased 31%, 1P reserves grew 11% and 2P reserves increased 14%, with Crew’s reserves replacement ratios on PDP, 1P and 2P totaling 267%, 292% and 650%, respectively. 
  • Continued Outperformance at West Septimus:  PDP reserves at West Septimus increased 68% over 2016, with area 1P and 2P reserves up 16% and 26%, respectively due to the volume ramp up following our successful plant expansion coming on-stream in November.
  • Growth in Reserves per Share:  Reserves per share (fully diluted) increased across each reserves category, growing approximately 28% on PDP, 9% on 1P and 12% on 2P. 
  • Robust Recycle Ratios: PDP FD&A has improved over prior years and reflects the success of the Company’s UCR drilling program which features higher-intensity fracture stimulation, longer lateral well lengths and higher condensate gas ratios (“CGRs”).
  F&D per boe F&D recycle FD&A per boe FD&A recycle
PDP $10.60 1.7x $8.47 2.1x
1P $9.58 1.9x $7.81 2.3x
2P $7.09 2.5x $6.43 2.8x
  • Increased Reserves Value Presents Opportunity:  Crew’s net present value of future net revenue discounted at 10% (before tax) (“NPV10 BT”) increased to $615 million on PDP reserves, over $1.2 billion on 1P reserves and $2.5 billion on 2P reserves, representing increases of 34%, 22% and 24%, respectively over 2016. 
  • Increased Locations Support Development:  2P Montney drilling locations assigned in the Sproule Report increased 6% to 379, which reflects the conversion of 33 wells to PDP and the disposition of 19 wells, resulting in a net 75 new locations added in 2017. 

Photos accompanying this announcement are available at


Throughout 2017, Crew continued to focus on the efficient execution of our $238 million capital program, focused largely at West Septimus within our UCR and transition areas.

  • West Septimus facility expansion concluded on-time and 8% under budget, increasing Greater Septimus processing capacity to 180 mmcf per day.
  • Following the facility coming on-stream in November, production averaged approximately 27,850 boe per day through the end of the year, increasing from approximately 20,200 boe per day in October.  Volumes during the fourth quarter averaged approximately 25,270 boe per day with 2,500 to 3,000 boe per day shut-in throughout the quarter to accommodate offsetting fracturing operations, commissioning of the plant expansion or electing not to produce natural gas into a low pricing environment.
  • Crew drilled 35 (33.2 net) and completed 33 (33.0 net) Montney wells in 2017 predominantly targeting the liquids-rich fairway at West Septimus.
  • With increased activity directed to Crew’s UCR and transition areas, forecast first quarter 2018 condensate volumes are expected to increase to over 2,500 bbls per day compared to 1,915 bbls per day produced in the first quarter of 2017.
  • Crew continued to drill and complete UCR wells at West Septimus through the fourth quarter and into the first quarter of 2018, with the latest six well pad now on production.  Following 12 days of flow test and clean-up, over a 24 hour period the aggregate sales rate of the six wells totaled approximately 6,620 boe per day with 2,480 barrels per day of condensate. 


Crew is targeting a balanced 2018 budget which will be primarily funded by forecast FFO, enabling the Company to manage our balance sheet while maintaining flexibility to quickly adjust spending in response to changes in forward commodity prices or the broader operating environment.  Under this budget, production is anticipated to remain stable through 2018 with Crew planning to complete 15 (13.2 net) wells including the completion of two of the four wells expected to be drilled in 2018.  Within our UCR and transition areas, Crew plans to test restricting well productivity in order to increase operating pressure, which is expected to improve reservoir drainage and enhance condensate recoveries.  In addition, the Company plans to drill horizontal wells with lateral lengths that are over 30% longer, adopt tighter frac spacing and increase frac stages per well relative to the average well drilled in 2017, which were approximately 2,000 meters in length and had 41 frac stages.

2018 Budget Assumptions(1)  
Oil price WTI US$60.00 per bbl
Natural gas price (AECO 5A) C$1.45 per GJ
Natural gas price (NYMEX) US$3.00 per mmbtu
Natural gas price (Crew est. wellhead) $2.60 per mcf
WTI to WCS differential (C$) 40%  
Foreign exchange ($US/$CDN) $0.80  
Royalties 6%  
Operating costs $6.50-6.75 per boe
Transportation $2.50-2.75 per boe
G&A $1.25-1.50 per boe
Interest $2.40-$2.60 per boe
Interest rate – bank debt 4.5%  
Interest rate – high yield 6.5%  

  (1)  Reflecting forward curve pricing as at January 26, 2018.

2018 Budget Sensitivities
Input Change Cash Flow Impact ($M) Cash Flow per Fully Diluted Share Impact ($/share)
100 bbls per day condensate $2,600 $0.02
CDN $1.00 per bbl WTI $700 $0.00
$0.10 per mmbtu NYMEX $4,100 $0.03
1 mmcf per day natural gas $550 $0.00
$0.10 per GJ AECO 5A $2,050 $0.01
0.1 % interest rate $30 $0.00
$0.01 FX CDN/US $1,500 $0.01

The amount and allocation of planned capital expenditures for exploration and development activities by area and the number of wells to be drilled and completed is dependent upon results achieved and is subject to review and modifications by management on an ongoing basis throughout the year. Crew's business model is dynamic and capital investment is continuously assessed to include current and forecasted market conditions.  Crew will continue to screen projects for profitability in a disciplined manner and will review the 2018 capital program on a regular basis in the context of prevailing economic conditions, commodity prices and changing industry regulations and conditions, and will adjust the program, as necessary, subject to ongoing review by management and the Board of Directors.

Marketing & Risk Management

Crew continues to opportunistically layer in additional hedge contracts for 2018 and 2019 to manage risk and protect FFO.  Crew’s assets are uniquely positioned for physical connectivity to all three major pipeline systems, affording flexibility and access to different markets.

  • Natural Gas:  Approximately 22% of budgeted 2018 volumes hedged at $2.48 per GJ or approximately $2.62 per mcf which increases to approximately $3.08 per mcf after adjusting for Crew’s heat conversion.
  • Liquids:  2,250 bbls per day of WTI hedged at an average price of C$71.77 per barrel and 400 bbls per day of OPIS Conway propane hedged at US$0.7863 per gallon or approximately $33.03 US per bbl.
  • Enhanced Market Diversity:  Firm service onto the TCPL Nova system effective April 1, 2018, provides additional sales points and offers exposure to alternative price points. Many of these sales and market positions were completed over the past five years and include price exposure to the Chicago, Sumas, Malin, Dawn and Nymex Henry Hub indices at favorable terms.
  • Existing Sales Portfolio: Exposure to Chicago, ATP, AECO and Station 2 markets with the addition in 2018 of Malin, Sumas and Dawn positions the Company to execute on our long-standing strategy of operational and marketing diversification and realize favorable net back pricing vis a vis the AECO benchmark. 

The current natural gas price challenges facing Western Canadian Sedimentary Basin producers are largely the result of high rates of production growth, pipeline system maintenance and bottlenecks along with an overall lack of egress to competing North American markets.  Crew’s long time strategy of marketing and operational diversification, combined with the current financial hedging position, will enable the Company to manage through the volatility in commodity prices and support 2018 operations.

See “Hedge Summary” in Crew's recent corporate presentation for full details of Crew's risk management contract positions as of February 1, 2018, available on Crew's website. 


The detailed reserves data set forth below is based upon an independent reserves assessment and evaluation prepared by Sproule with an effective date of December 31, 2017.  The following presentation summarizes the Company’s crude oil, natural gas liquids and natural gas reserves and the net present values before income tax of future net revenue for the Company’s reserves using forecast prices and costs based on the Sproule Report.  The Sproule Report has been prepared in accordance with definitions, standards, and procedures contained in the Canadian Oil and Gas Evaluation Handbook (“COGE Handbook”) and National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (“NI-51-101”). The reserves evaluation was based on Sproule forecast escalated pricing and foreign exchange rates at December 31, 2017 as outlined in the table herein entitled "Price Forecast". 

All evaluations and summaries of future net revenue are stated prior to provision for interest, debt service charges or general administrative expenses and after deduction of royalties, operating costs, estimated well abandonment and reclamation costs and estimated future capital expenditures.  It should not be assumed that the estimates of future net revenues presented in the tables below represent the fair market value of the reserves.  There is no assurance that the forecast prices and cost assumptions will be attained and variances could be material.  The recovery and reserve estimates of our crude oil, natural gas liquids and natural gas reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered.  Actual crude oil, natural gas and natural gas liquids reserves may be greater than or less than the estimates provided herein.  Reserves included herein are stated on a company gross basis (working interest before deduction of royalties without including any royalty interests) unless noted otherwise.  In addition to the detailed information disclosed in this news release, more detailed information will be included in the Company's Annual Information Form (the “AIF”) which will be filed on the Company's profile at on or before March 31, 2018.

See "Information Regarding Disclosure on Oil and Gas Reserves and Operational Information" for additional cautionary language, explanations and discussions and "Forward Looking Information and Statements" for a statement of principal assumptions and risks that may apply.

The preparation and audit of Crew’s 2017 annual consolidated financial statements is not yet complete, and accordingly all financial amounts referred to in this news release are unaudited and represent management's estimates.  Readers are advised that these financial estimates may be subject to change.


Corporate Reserves(1,2,5):

  Light Crude Oil and Medium Crude Oil Heavy Crude Oil Natural Gas
Conventional Natural Gas(3) Barrels of
oil equivalent(4)
  (mbbl) (mbbl)  (mbbl)  (mmcf)  (mboe)
  Developed Producing 387 1,459 9,761 290,587 60,037
  Developed Non-producing 19 1,541 377 12,791 4,068
  Undeveloped 1,404 1,383 21,265 487,307 105,270
Total proved 1,809 4,382 31,403 790,685 169,376
Total Probable 10,718 3,957 37,476 892,089 200,832
Total proved plus probable 12,527 8,339 68,879 1,682,774 370,208

(1)  Reserves have been presented on a “gross” basis which is defined as Crew’s working interest (operating and non-operating) share before deduction of royalties and without including any royalty interest of the Company.
(2)  Based on Sproule’s December 31, 2017 escalated price forecast.
(3)  Reflects 100% Conventional Natural Gas by product type.
(4)  Oil equivalent amounts have been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil.
(5)  Columns may not add due to rounding.

Reserves Values(1)(2)  

The estimated before tax net present value (“NPV”) of future net revenues associated with Crew’s reserves effective December 31, 2017 and based on the Sproule Report and the published Sproule (December 31, 2017) future price forecast are summarized in the following table:

(M$) 0 % 5 % 10 % 15 % 20 %
  Developed Producing 1,073,088   779,906   614,473   511,139   440,987  
  Developed Non-producing 74,537   60,428   50,860   43,962   38,736  
  Undeveloped 1,797,035   959,791   569,520   361,626   239,164  
Total proved 2,944,659   1,800,125   1,234,854   916,727   718,886  
Total Probable 4,467,953   2,168,642   1,258,618   809,363   554,894  
Total proved plus probable 7,412,612   3,968,766   2,493,472   1,726,091   1,273,781  

(1)  The estimated future net revenues are stated prior to provision for interest, debt service charges, general administrative expenses, the impact of hedging activities, and after deduction of royalties, operating costs, certain estimated well abandonment and reclamation costs and estimated future capital expenditures.
(2)  The after-tax present values of future net revenue attributed to Crew’s reserves will be included in the Company’s 2017 AIF to be filed on or before
March 31, 2018.

Price Forecast

The Sproule December 31, 2017 price forecast is summarized as follows: 

 Year Exchange
Light Sweet
Western Canada Select Natural gas AECO-C spot Westcoast Station 2
  ($US/$Cdn) (US$/bbl) (C$/bbl) (C$/bbl) (C$/mmbtu) (C$/mmbtu)
2018 0.790 55.00 65.44 51.05 2.85 2.45
2019 0.820 65.00 74.51 59.61 3.11 2.71
2020 0.850 70.00 78.24 64.94 3.65 3.25
2021 0.850 73.00 82.45 68.43 3.80 3.40
2022 0.850 74.46 84.10 69.80 3.95 3.55
2023 0.850 75.95 85.78 71.20 4.05 3.65
2024 0.850 77.47 87.49 72.62 4.15 3.75
2025 0.850 79.02 89.24 74.07 4.25 3.85
2026 0.850 80.60 91.03 75.55 4.36 3.96
2027 0.850 82.21 92.85 77.06 4.46 4.06
2028 0.850 83.85 94.71 78.61 4.57 4.17
2029 +   2.0%/yr 2.0%/yr 2.0%/yr 2.0%/yr 2.0%/yr

(1)  Inflation is accounted for at 2.0% per year.

Reserves Reconciliation

The following summary reconciliation of Crew’s gross reserves compares changes in the Company’s reserves as at December 31, 2017 to the reserves as at December 31, 2016 based on the Sproule (December 31, 2017) future price forecast.

TOTAL PROVED Light & Medium Crude Oil (mbbl) Heavy
Crude Oil
Natural Gas Liquids
Conventional Natural Gas (mmcf) Oil Equivalent (mboe)
Opening Balance 1,376   5,068   29,678   702,517   153,207  
Extensions & Improved Recovery(1) -   8   1,305   40,517   8,066  
Infill Drilling -   48   -   -   48  
Technical Revisions 612   34   1,746   93,137   17,915  
Discoveries -   -   -   -   -  
Acquisitions -   -   -   -   -  
Dispositions -   -   (4 ) (7,683 ) (1,284 )
Economic Factors 3   (105 ) (1 ) (337 ) (159 )
Production (181 ) (670 ) (1,322 ) (37,466 ) (8,417 )
Closing Balance 1,809   4,382   31,403   790,685   169,376  


PROVED PLUS PROBABLE Light & Medium Crude Oil (mbbl) Heavy
Crude Oil
Natural Gas Liquids
Conventional Natural Gas (mmcf) Oil Equivalent (mboe)
Opening Balance 12,540   9,944   58,690   1,456,612   323,943  
Extensions & Improved Recovery(1) -   11   12,539   251,903   54,534  
Infill Drilling -   58   -   -   58  
Technical Revisions 138   (963 ) (1,016 ) 40,136   4,848  
Discoveries -   -   -   -   -  
Acquisitions -   -   -   -   -  
Dispositions -   -   (14 ) (28,046 ) (4,688 )
Economic Factors 30   (41 ) 2   (365 ) (70 )
Production (181 ) (670 ) (1,322 ) (37,466 ) (8,417 )
Closing Balance 12,527   8,339   68,879   1,682,775   370,208  

(1)  Increases to Extensions and Improved Recovery are the result of step-out locations drilled by Crew.  Reserves additions for improved recovery and extensions are combined and reported as "Extensions and Improved Recovery".
(2)  Columns may not add due to rounding.

Capital Program Efficiency

    2017   2016   3 Year Average
  1P 2P 1P 2P 1P 2P
Exploration and Development expenditures(1)
($ thousands)
  238,302     238,302   108,202   108,202   556,050   556,050  
($ thousands)
  (47,906)     (47,906)   3,974   3,974   (92,500)   (92,500)  
Change in future development capital(1)
($ thousands)
  - Exploration and Development   9,514     182,870   137,187   286,983   7,529   494,053  
  - Acquisitions/Dispositions   (7,875)     (21,800)   -   -   (9,309)   (25,559)  
Reserves additions with revisions and economic factors (mboe)            
  - Exploration and Development   25,870     59,370   38,952   69,990   86,711   177,328  
  - Acquisitions/Dispositions   (1,284)     (4,688)   1,345   1,685   (335)   (4,010)  
    24,585     54,681   40,297   71,675   86,377   173,318  
Finding & Development Costs(2)(6)
($ per boe)
  - with revisions and economic factors $9.58   $7.09   6.30   5.65   6.50   5.92  
Finding, Development & Acquisition Costs(2)(6) ($ per boe)            
  - with revisions and economic factors $7.81   $6.43   6.19   5.57   5.35   5.38  
Recycle Ratio(3)(6)(F&D)   1.9     2.5   2.7   3.0      
Reserves Replacement(4)(6)   292%     650%   482%   857%      
Reserve Life Index based on annualized 2017 fourth quarter production (years) (5)(6)   18.4     40.1   18.8   39.7      

(1)  The aggregate of the exploration and development costs incurred in the most recent financial year and the change during that year in estimated future development capital generally will not reflect total finding and development costs related to reserve additions for that year.
(2)  The calculation of F&D and FD&A costs incorporates the change in FDC required to bring proved undeveloped and developed reserves into production.  In all cases, the F&D or FD&A number is calculated by dividing the identified capital expenditures by the applicable reserves additions after changes in FDC costs.
(3)  Recycle ratio is defined as operating netback per boe divided by F&D costs on a per boe basis.  Operating netback is calculated as revenue (including realized hedging gains and losses) minus royalties, operating expenses, and transportation expenses.  Crew’s operating netback in fourth quarter 2017, used in the above calculations, averaged $18.04 per boe (unaudited). 
(4)  Reserves replacement ratio is calculated as total reserve additions (including acquisitions net of dispositions) divided by annual production. Crew’s 2017 annual production averaged 23,061 boe per day.
(5)  Reserve life index (“RLI”) is calculated as Company gross reserves divided by average fourth quarter production of 25,270 boe per day annualized.
(6)  “Reserves Replacement”, “FD&A Cost”, “F&D Cost”, “Recycle Ratio” and “Reserve Life Index” do not have standardized meanings.  See “Information Regarding Disclosure on Oil and Gas Reserves and Operational Information” in this news release.

Future Development Capital

The following table provides a summary of the estimated FDC required to bring Crew’s reserves to production.

  Total Total Proved
Future Development Capital ($millions)(1) Proved plus Probable
2018 90 143
2019 140 224
2020 74 241
2021 135 374
2022 93 231
Remainder 198 551
Total FDC undiscounted 730 1,764
Total FDC discounted at 10% 531 1,232

(1)  Reflects development costs deducted by Sproule in the Sproule Report in the estimation of future net revenue attributed to the noted reserve categories using forecast prices and costs. 

Cautionary Statements

Unaudited Financial Information and Non-IFRS Measures

Certain financial and operating information included in this press release for the quarter and year ended December 31, 2017, including finding and development costs and netbacks are based on estimated unaudited financial results for the quarter and year then ended, and are subject to the same limitations as discussed under Forward Looking Information set out below. These estimated amounts may change upon the completion of audited financial statements for the year ended December 31, 2017 and changes could be material.

Within this news release, the Company uses the term "funds from operations" which is a measure not defined in IFRS but is commonly used in the oil and gas industry.  It represents cash provided by operating activities before de-commissioning obligations settled, changes in operating non-cash working capital and accretion of deferred financing costs.  Funds from operations should not be considered as an alternative to, or more meaningful than, cash provided by operating activities as determined in accordance with IFRS as an indicator of the Company's performance.  For a detailed description of the Company's method of calculation of funds from operations and the Company's reconciliation of cash provided by operating activities to funds from operations, see "Non-IFRS Measures" within the Company's Management Discussion & Analysis ("MD&A") filed on SEDAR. 

Information Regarding Disclosure on Oil and Gas Reserves and Operational Information

Our oil and gas reserves statement for the year ended December 31, 2017, which will include complete disclosure of our oil and gas reserves and other oil and gas information in accordance with NI 51-101, will be contained within our Annual Information Form which will be available on our SEDAR profile at The recovery and reserve estimates contained herein are estimates only and there is no guarantee that the estimated reserves will be recovered.  In relation to the disclosure of estimates for individual properties, such estimates may not reflect the same confidence level as estimates of reserves and future net revenue for all properties, due to the effects of aggregation. The Company's belief that it will establish additional reserves over time with conversion of probable undeveloped reserves into proved reserves is a forward-looking statement and is based on certain assumptions and is subject to certain risks, as discussed below under the heading "Forward-Looking Information and Statements".

This press release contains metrics commonly used in the oil and natural gas industry, such as "recycle ratio", "finding and development costs", "finding and development recycle ratio", "finding, development and acquisition costs", "operating netbacks", “reserves replacement”, and "reserve life index".  Each of these metrics are determined by Crew as specifically set forth in this news release.  These terms do not have standardized meanings or standardized methods of calculation and therefore may not be comparable to similar measures presented by other companies, and therefore should not be used to make such comparisons.  Such metrics have been included herein to provide readers with additional information to evaluate the Company’s performance over time, however such metrics should not be unduly relied upon.

Both F&D and FD&A costs take into account reserves revisions during the year on a per boe basis.  The aggregate of the costs incurred in the financial year and changes during that year in estimated FDC may not reflect total F&D costs related to reserves additions for that year.  Finding and development costs both including and excluding acquisitions and dispositions have been presented in this press release because acquisitions and dispositions can have a significant impact on our ongoing reserves replacement costs and excluding these amounts could result in an inaccurate portrayal of our cost structure. Management uses oil and gas metrics for its own performance measurements and to provide shareholders with measures to compare Crew's operations over time.  Readers are cautioned that the information provided by these metrics, or that can be derived from the metrics presented in this press release, should not be relied upon for investment or other purposes.

Forward-Looking Information and Statements

The Company anticipates remaining disciplined but flexible with its budgeted 2018 capital expenditures as it monitors business conditions and commodity prices throughout the fiscal year.  Where deemed prudent, the Company may make adjustments to its 2018 capital budget.  Actual spending may vary due to a variety of factors including, without limitation, commodity prices, drilling results, economic conditions, prevailing debt and/or equity markets, field services and equipment availability and the impact of any future strategic acquisitions or dispositions.  The Company has flexibility to adjust the level of its capital investments as circumstances warrant.  The corporate guidance for 2018 was determined based on the commodity price and other financial assumptions disclosed in this press release and certain guidance estimates may fluctuate with changes in commodity prices and adjustments made to the 2018 program.  The Company's 2018 guidance provides shareholders with relevant information as to management's current expectations for results of operations, excluding any material acquisitions or dispositions, based upon the assumptions noted herein for 2018.  Readers are cautioned that the 2018 guidance may not be appropriate for other purposes.  The internal projections, expectations or beliefs are based on the 2018 capital budget which is subject to change in light of ongoing results, prevailing economic circumstances, commodity prices and industry conditions and regulations.  Accordingly, readers are cautioned that events or circumstances could cause results to defer materially from those predicted.

This news release contains certain forward–looking information and statements within the meaning of applicable securities laws.  The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements.  In particular, but without limiting the foregoing, this news release contains forward-looking information and statements pertaining to the following:  the Company’s planned 2018 capital expenditures program, operating and financial assumptions and guidance, the estimated volumes and product mix of Crew's oil and gas production; all production estimates including, without limitation, 2018 average production and shut in volumes; estimated funds from operations and forecasted credit facility drawings in 2018; the recognition of significant additional reserves under the heading "2017 Reserves Details", the estimated volumes and estimated value of Crew's oil and gas reserves; future oil and natural gas prices and Crew's commodity risk management programs; marketing and transportation plans including the timing of anticipated firm service onto the TCPL Nova System and the potential impact thereof; future liquidity and financial capacity required to carry out our planned program; future results from operations and operating metrics; anticipated operating costs and potential to improve ultimate recoveries; all financial assumptions included under the heading "2018 Budget Assumptions" and “2018 Budget Sensitivities”; future development, exploration, acquisition and development activities and related capital expenditures and the timing thereof; the number of wells to be drilled, completed and tied in and the timing thereof and the methodologies of drilling and completion; the amount and timing of capital projects including infrastructure and facility expansions; the total future capital associated with development of reserves; the Company's long term strategy and methods of funding our capital program, including possible non-core asset divestitures and asset swaps.

The recovery and reserve estimates of Crew's reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered.  In addition, forward-looking statements or information are based on a number of material factors, expectations or assumptions of Crew which have been used to develop such statements and information but which may prove to be incorrect.  Although Crew believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because Crew can give no assurance that such expectations will prove to be correct.  In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding, among other things: that Crew will continue to conduct its operations in a manner consistent with past operations; results from drilling and development activities consistent with past operations; the quality of the reservoirs in which Crew operates and continued performance from existing wells; the continued and timely development of infrastructure in areas of new production; the accuracy of the estimates of Crew’s reserve volumes; certain commodity price and other cost assumptions; continued availability of debt and equity financing and cash flow to fund Crew’s current and future plans and expenditures; the impact of increasing competition; the general stability of the economic and political environment in which Crew operates; the general continuance of current industry conditions; the timely receipt of any required regulatory approvals; the ability of Crew to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects in which Crew has an interest in to operate the field in a safe, efficient and effective manner; the ability of Crew to obtain financing on acceptable terms; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development and exploration; the timing and cost of pipeline, storage and facility construction and expansion and the ability of Crew to secure adequate product transportation; future commodity prices; currency, exchange and interest rates; regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Crew operates; and the ability of Crew to successfully market its oil and natural gas products.

The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon.  Such information and statement, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors that may cause actual results or events to defer materially from those anticipated in such forward-looking information or statements including, without limitation: changes in commodity prices; changes in the demand for or supply of Crew's products, the early stage of development of some of the evaluated areas and zones; the potential for variation in the quality of the Montney formation; unanticipated operating results or production declines; changes in tax or environmental laws, royalty rates or other regulatory matters; changes in development plans of Crew or by third party operators of Crew's properties, increased debt levels or debt service requirements; inaccurate estimation of Crew's oil and gas reserve volumes; limited, unfavourable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; and certain other risks detailed from time-to-time in Crew's public disclosure documents, (including, without limitation, those risks identified in this news release and Crew's Annual Information Form).

The forward-looking information and statements contained in this news release speak only as of the date of this news release, and Crew does not assume any obligation to publicly update or revise any of the included forward-looking statements or information, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

BOE equivalent

Barrel of oil equivalents or BOEs may be misleading, particularly if used in isolation.  A BOE conversion ratio of 6 mcf: 1 bbl 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 ration based on the current price of crude oil as compared to natural gas is significantly different than the energy equivalency of the 6:1 conversion ratio, utilizing the 6:1 ratio may be misleading as an indication of value.

Test Results and Initial Production and Sales Rates

A pressure transient analysis or well-test interpretation has not been carried out and thus certain of the test results provided herein should be considered to be preliminary until such analysis or interpretation has been completed.  Test results and initial or short term production or sales rates disclosed herein may not necessarily be indicative of long term performance or of ultimate recovery.

Crew Energy Inc. is a dynamic, growth-oriented exploration and production company, focused on increasing long-term production, reserves and cash flow per share through the development of our world-class Montney resource.  Crew is based in Calgary, Alberta and our shares are traded on The Toronto Stock Exchange under the trading symbol "CR".


Dale Shwed
President & CEO
John Leach
Senior Vice President & CFO

Telephone: (403) 266-2088