Highwood Asset Management Ltd., (“Highwood” or the “Company“) is pleased to announce an operational update and appointment of Ray Kwan to the Board of Directors.
Operational Update
Highwood drilled its first well within the Basal Belly River horizon at Brazeau, which is analogous to the company’s activities at Wilson Creek. Highwood is encouraged with the early results from the well, which has been onstream for approximately 60 days and is currently producing in excess of 350 bbls/d of light oil. Furthermore, the success of this drill is expected to validate an additional twenty five drilling locations (unbooked) in the predictable Belly River shoreface horizon. These locations are not booked in Highwood’s independent third party engineering report.
Highwood’s production for the third quarter of 2024 averaged approximately 5,600 boe/d and current production exceeds 6,300 boe/d.
Highwood reiterates its 2024 guidance with capital expenditures of $60–65 million, 2024 average & exit production guidance of 5,500 – 5,700 boe/d (8% increase at midpoint) and 6,400–6,500 boe/d (19% increase at midpoint), respectively. Depending on timing of capital in late December, the company expects to end the year with a 2024 Net Debt / 2024 Exit EBITDA ratio of between 0.8 – 0.9x. Over the 12-month period ended December 2024, Highwood expects to have grown production per share by over 50%.(1)(2)
The Company plans to announce its third quarter results on November 14, 2024.
Independent Director Appointment
The Board of Directors is pleased to have appointed Mr. Ray Kwan to the Company’s Board of Directors as an Independent Director and Chairman of the Audit Committee. Mr. Kwan brings over 20 years of experience in the energy sector and capital markets and currently the founder and managing partner of AXO Capital Corp, an energy focused family holding company. Mr. Kwan holds a BSc in Chemical Engineering from the University of Alberta and also is a CFA charterholder.