Traverse Energy Announces 2012 First Quarter Results
10 Maio 2012 - 5:35PM
Marketwired Canada
Traverse Energy Ltd. ("Traverse" or "the Company") (TSX VENTURE:TVL) presents
financial and operating results for the three months ended March 31, 2012.
Unless otherwise stated, the volume conversion of natural gas to barrel of oil
equivalent (BOE) is presented on the basis of 6 thousand cubic feet of natural
gas being equal to 1 barrel of oil. This conversion ratio is based upon an
energy equivalent conversion method primarily applicable at the burner tip and
does not represent value equivalence at the wellhead. BOE figures may be
misleading, particularly if used in isolation.
HIGHLIGHTS Three months ended
(Unaudited) March 31, Dec. 31, March 31,
2012 2011 2011
----------------------------------------------------------------------------
Financial ($ thousands, except per share
amounts)
------------------------------------------
Revenue 1,828 1,569 984
Funds flow from operations 1,217 936 404
Per share - basic and diluted 0.03 0.02 0.01
Cash flow from operations 1,054 814 768
(including changes in working capital)
Per share - basic and diluted 0.02 0.02 0.02
Net income (loss) 357 (584) (7)
Per share - basic and diluted 0.01 (0.01) 0.00
Capital expenditures, net of dispositions 2,483 3,279 878
Total assets 18,820 19,781 10,960
Working capital 1,266 2,532 1,924
Common shares
Outstanding (millions) 42.2 42.2 32.0
Weighted average (millions) 42.2 40.3 31.9
----------------------------------------------------------------------------
Operations (units as noted)
------------------------------------------
Average production
Natural gas (mcf/day) 697 424 403
Oil and NGL (bbls/day) 213 172 120
Working interest production (BOE/day) 207 167 161
Royalty income (BOE/day) 122 76 26
----------------------------------------------------------------------------
Total (BOE/day) 329 243 187
----------------------------------------------------------------------------
Average sales price
Natural gas ($/mcf) 2.33 3.28 3.96
Oil and NGL ($/bbl) 86.88 91.07 78.02
Operating netback ($/BOE)
Petroleum and natural gas revenue 52.10 67.62 62.53
Royalties 3.72 8.08 3.78
Operating and transportation costs 15.03 20.92 15.98
----------------------------------------------------------------------------
Working interest operating netback 33.35 38.62 42.77
($/BOE)
----------------------------------------------------------------------------
Royalty income netback ($/BOE) 76.33 76.03 33.61
----------------------------------------------------------------------------
Total Company operating netback ($/BOE) 49.34 50.39 41.49
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Non-GAAP measures
Management uses funds flow from operations and operating netback to analyze
operating performance. These measures are commonly utilized in the oil and gas
industry and are considered informative for management and stakeholders. The
reconciliation between cash flow from operations and funds flow from operations
can be found in the statement of cash flows in the financial statements with
funds flow from operations calculated before non-cash working capital and asset
retirement expenditures. Management believes that in addition to net income
(loss), funds flow from operations is a useful supplemental measure as it
provides an indication of Traverse's operating performance. Operating netback
reflects petroleum and natural gas revenues less royalties, operating and
transportation costs and is calculated on a per unit basis. Investors should be
cautioned, however, that these measures may not be comparable to measures
reported by other companies nor should they be construed as an alternative to
cash flow from operations or other measures of financial performance calculated
in accordance with GAAP.
Operations Review
Most of the first quarter activities focused on the Company's oil property at
Turin which totals in excess of 9,000 acres. Further expansion of the Turin
battery was completed. This included the addition of a water disposal and
injection facility and a treater capable of handling up to 2,500 barrels of
fluid per day. Future drilling can now be accommodated at the facility without
further expansion. Traverse shot a 3D seismic survey over a part of the eastern
portion of the Turin property. In addition, five 2D seismic lines were shot
adjacent to the 3D survey and one 2D line was shot over the western part of the
property. This data has now been processed and interpreted resulting in the
identification of a number of drilling targets. Traverse is in the process of
licensing 5 wells to test coincidental seismic and geological targets. Two of
the wells are exploratory; the remaining 3 are development locations. The
Company estimates that drilling will commence late in the second quarter of
2012.
In the Carbon area Traverse tied in a horizontal well drilled during the fourth
quarter of 2011. The well was projected to drill a 1,000 meter horizontal
section in the Pekisko formation but was completed in a 450 meter open hole
section. The well was placed on production in January 2012 and is currently
producing 45 BOE per day (30% oil). Traverse's land holdings in the greater
Carbon area total 40,000 acres at a 100% working interest.
In the Brazeau area of West Central Alberta, an industry partner commenced
production in September, 2011 from three horizontal Cardium wells in which the
Company has a gross overriding royalty interest. A fourth well commenced
production in November, 2011. Traverse's royalty is 5 to 10 percent on oil
dependent on production rates and 10 percent of natural gas and associated
liquids in 10 sections (6,400 acres). The operator has now drilled nine wells on
the Traverse lands. Five additional wells were placed on production during the
first quarter of 2012. The production from this property is light oil with
associated natural gas and natural gas liquids. The March 2012 production was
125 barrels of oil per day net to Traverse.
At March 31, 2012 undeveloped land holdings totalled 160,500 gross (157,000 net)
acres. In 2012, the Company will focus on its existing light oil properties in
Central and Southern Alberta. Drilling is planned in the Turin and greater
Carbon areas, targeting light to medium gravity oil with associated natural gas.
Further drilling in other areas will depend on the availability of working
capital. The Company has set an initial budget of up to $15 million for 2012 to
be funded from working capital, cash flow and new equity issues and debt where
appropriate.
Engagement of Investor Relations Firm
The Company is pleased to announce that it has retained Noble Investment Corp.
("Noble") to provide strategic investor relations and communication services.
Noble has been retained for a period of 12 months, effective May 1, 2012 and
ending April 30, 2013. Noble will be responsible for the dissemination of
corporate data packages, arranging corporate presentations and analyst
communications and assisting with shareholder enquiries regarding the Company.
Noble will receive $6,000 per month in remuneration and be reimbursed for all
approved expenses. In addition, the Company has granted Noble stock options to
acquire 300,000 common shares in the capital of the Company ("Common Shares") at
an exercise price of $0.80 per Common Share. The stock options will vest as to
one-third on the date of grant; one-third on the date six months from the date
of grant; and one-third 12 months from the date of grant.
Other than as described above, neither Noble nor any of its principals have an
ownership interest, directly or indirectly, in the Company or its securities,
nor has the Company granted Noble or its principals any rights to acquire any
such interests.
Noble is a full service investor relations firm headed by Dan Patience. Noble
has been conducting investor relations campaigns since 1994 and provides
strategic communication services to a diverse range of public companies. Noble
also provides comprehensive investor relations representation to a wide and
diverse Canadian audience.
Forward-looking information
This press release contains forward-looking information. Forward-looking
information is based upon the opinions, expectations and estimates of management
as at the date the information is provided and, in some cases, information
received from or disseminated by third parties. In particular, the Company's
statements with respect to drilling commencing late in the second quarter of
2012; the Company's focus in 2012 on its existing light oil properties in
Central and Southern Alberta and planned drilling for the remainder of 2012
contain forward-looking information. This forward-looking information is subject
to a variety of substantial known and unknown risks and uncertainties and other
factors that could cause actual events or outcomes to differ materially from
those anticipated or implied by such forward-looking information. The Company's
Annual Information Form filed with securities regulatory authorities (accessible
through the SEDAR website www.sedar.com) describes the risks, material
assumptions and other factors that could influence actual results and which are
incorporated herein by reference.
The forward-looking information contained in this press release is made as of
the date hereof and the Company undertakes no obligation to update publicly or
revise any forward-looking information, whether as a result of new information,
future events or otherwise, unless so required by applicable securities laws.
Further details on the Company including the March 31, 2012 unaudited interim
financial statements, the related management's discussion and analysis and
Annual Information Form are available on the Company's website and SEDAR.
Traverse Energy (TSXV:TVL)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
Traverse Energy (TSXV:TVL)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024
