PetroShare Releases 2017 Year-End Proved Reserves and Provides 2018 Production Forecast

PetroShare Corp.

Oil, Gas & Energy

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PetroShare Releases 2017 Year-End Proved Reserves and Provides 2018 Production Forecast

ENGLEWOOD, CO / ACCESSWIRE / March 26, 2018 / PetroShare Corp. (OTCQB: PRHR) ("PetroShare" or the "Company") today announced its proved reserves as of December 31, 2017, as prepared by Cawley, Gillespie & Associates, the Company's third party reserve engineer, were approximately 7.9 million barrels of oil equivalent, representing a 25% increase over 2016 year end proved reserves. The estimated pre-tax value of future cash flows from the Company's proved reserves, discounted at 10% (PV-10), was approximately $59 million, utilizing commodity prices of $51.34 per barrel of oil (Bbl) and $2.97 per MMBtu of natural gas. The volume of the proved reserves is split 67% for oil/condensate and natural gas liquids (NGL) and 33% for natural gas.

PetroShare Corp. Summary of Proved Reserves as of December 31, 2017

Proved Developed Producing

Proved Developed Not Producing

Proved Undeveloped

Total Proved






Natural Gas - Mmcf





NGL - Mbbl





PV-10 Value - M$





Frederick J. Witsell, President of PetroShare, commented, "Our growth in proved reserves is primarily the result of our increased participation in non-operated horizontal wells in the Wattenberg Field in 2017. In the first quarter of 2018 we estimate that our net production will be between 600-700 BOE/d. Thus far in 2018, we have participated in another 14 horizontal wells (1.43 net) as a non-operated working interest partner, which are in early flow back, or in final completion stages, that should contribute to a growing production profile for PetroShare in the second quarter of 2018. Additionally, pressure pumping equipment and crews for initiating our 14 horizontal well Shook pad frac program are scheduled to be on location on April 1, and we anticipate those wells will be turned into the sales pipeline late in the second quarter generating a material increase in production during the second half of 2018. We believe that our second half production rate will eclipse 3,000 BOE/d leading to significant revenue growth and associated positive Adjusted EBITDA* for this fiscal year. We remain focused on maintaining low G&A expenses and currently have 12 full time employees."

*Adjusted EBITDA is a Non-GAAP term. Please see disclosure regarding the use of Non-GAAP financial measures.

About PetroShare Corp.

PetroShare Corp. is an independent oil and natural gas exploration and development company that targets capital deployment opportunities in established unconventional resource plays. Its current focus is in the Niobrara/Codell formations and adjacent oil and gas producing zones in the Rocky Mountain region with specific targets in the Wattenberg field within the DJ Basin of northeast Colorado. For more information, visit

Use of Non-GAAP Financial Measures

We use non-GAAP financial performance and liquidity measures to supplement the financial information presented on a GAAP basis. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, the related GAAP measures, nor should they be considered superior to the related GAAP measures, and should be read together with financial information presented on a GAAP basis. Also, our non-GAAP measures may not be comparable to similarly titled measures of other companies.

This release discusses Adjusted EBITDA, a non-GAAP financial performance measure that we believe is widely used in our industry as a measure of operating performance. We define Adjusted EBITDA as net income (loss) before (1) depreciation, depletion and accretion, (2) share-based compensation, and (3) interest expense, net. We exclude those items because they can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures, and the method by which the assets were acquired. The most directly comparable GAAP financial measure to Adjusted EBITDA is net income (loss).

Management and our Board of Directors use Adjusted EBITDA for purposes of evaluating company performance. We believe the Adjusted EBITDA provides useful information to investors and other stakeholders by allowing them to view our business through the eyes of management and our Board of Directors, facilitating comparisons of results across historical periods and focus on the underlying ongoing operating performance of our business.

Users should consider the limitations of using Adjusted EBITDA, including the fact that this measure does not provide a complete measure of our operating performance. Adjusted EBITDA is not intended to be an alternative to net income (loss) as a measure of operating performance or to cash flows from operating activities as a measure of liquidity. In particular, Adjusted EBITDA is not intended to be a measure of free cash flow available for management's discretionary expenditures, as this measure does not consider certain cash requirements, such as working capital needs, capital expenditures, contractual commitments, and interest payments.

Caution Concerning Forward-Looking Statements

This press release contains certain forward-looking statements and information, including "forward-looking statements," within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements and information expressed, as of the date of this release, PetroShare's estimates, forecasts, projections, expectations or beliefs as to certain future events and results. These forward-looking statements include, among others, statements regarding future drilling and completion operating results, and the benefits that PetroShare expects from transactions and other plans and objectives of management for future operations. Forward-looking statements and information are necessarily based on a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant financial, technical, economic and competitive uncertainties, risks and contingencies, and there can be no assurance that such statements and information will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements and information.

Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements and information include, but are not limited to, actions of third parties over which we have no control, the level of success in exploration, development and production activities, possible defects in title to properties, fluctuations in the market price of crude oil and natural gas, industry risks, possible federal and/or state initiatives related to regulation of hydraulic fracturing, risks related to permitting and the projected timeframes to receive the necessary permits, environmental risks and hazards, and other risks described in the Company's annual report on Form 10-K for the year ended December 31, 2016 and other filings with the Securities and Exchange Commission. Readers should not place undue reliance on forward-looking statements or information included herein, which speak only as of the date hereof. PetroShare undertakes no obligation to reissue or update forward-looking statements or information as a result of new information or events after the date hereof except as may be required by law. All forward-looking statements and information made in this news release are qualified by this cautionary statement.


Investor Relations Contacts

PetroShare Corp.
Jon B. Kruljac
Email: [email protected]

SOURCE: PetroShare Corp.