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Shoreline Energy Corp research and analysis

Contributed by eResearch

Shoreline Energy Corp. is a Canadian oil and natural gas company, operating in the Peace River Arch (PRA) area of northwestern Alberta and northeastern British Columbia, in the Western Canadian Sedimentary Basin. The Company, which is based in Calgary, Alberta, has working and royalty interests in 128,000 acres of land in the PRA.

Shoreline is focused on long-term growth through exploration, development, production, and acquisition of natural gas and light crude oil assets. The Company is developing light oil production and reserves in the PRA area by drilling relatively low-cost conventional horizontal wells and vertical delineation wells in newly discovered pools.

The Company’s asset base includes the revenue-producing crude oil and natural gas Bonanza-Worsley assets (current production an estimated 1,6501,850 boe/d), centred in the PRA. The Bonanza property, at Grande Prairie, includes numerous producing fields, with oil, natural gas, and natural gas liquids being produced from about a dozen formations at depths ranging from 900 to 3,200 metres. Production in the area averaged 1,057 boe/d (73% natural gas; and 27% oil and natural gas liquids) in December 2011.

Shoreline’s Worsley property sits 115 kilometres north of Grande Prairie. Like Bonanza, the property includes many producing fields, with oil, natural gas, and natural gas liquids being produced (depths from 300-1,200 metres). Production in the area averaged 425 boe/d in December 2011 (97% natural gas; and 3% oil and natural gas liquids).

For Q2/2012 (ended June 30, 2012), Shoreline reported petroleum and natural gas sales of $4.25 million. Average production volumes for Q2/2012 were 1,690 boe/d compared with 1,631 boe/d in Q1/2012. The exit production rate at the end of the quarter was about 1,725 boe/d. Shoreline expects to achieve a year-end exit rate of approximately 2,180 boe/d, of which about 63% would be natural gas and 37% would be oil/NGLs.

Shoreline pays an annual dividend of $0.48, providing a yield of 14.4%.