CALGARY,
Aug. 19, 2014 /CNW/ - Petroamerica
Oil Corp. (TSX-V: PTA) ("Petroamerica" or the
"Company"), a Canadian oil and gas company operating in
Colombia, is pleased to announce
the financial and operating results for the three and six months
ended June 30, 2014, provide an
update on the Suroco Energy Inc. ("Suroco") acquisition,
operations and new business developments.
Copies of the Company's Management Discussion
and Analysis and Financial Statements have been filed with the
Canadian Securities Regulatory Authorities and can be viewed or
downloaded at the Company's website at www.petroamericaoilcorp.com
or at www.sedar.com. The financial results for all periods
presented are in United States
dollars unless otherwise indicated.
Quarterly highlights include:
- Generated revenue of over $47.8
million, after royalties, leading to positive funds flow
from operation of $18.2 million
($0.03 per share) with an operating
netback of approximately $59 per
barrel;
- Achieved average daily production of 6,513 barrels of oil
equivalent per day ("boepd");
- Closed the quarter with over $101
million in cash and short term investments, an increase of
52% from the close of 2013.
Other highlights:
- Closed the strategic corporate acquisition of Suroco in mid
July 2014, thereby adding significant
new acreage, reserves and production in the Putumayo basin of
Colombia.
- Received 5.9 million barrels of proved plus probable reserves
from a mid-year update by external reserves auditors GLJ,
representing an 87% increase from the 2013 year-end allocation.
These reserves have a net present value (before tax, discounted at
10%) of approximately $186.8
million.
- Signed a farmout agreement with Parex Resources Inc.
("Parex") for the exploration block LLA-10 where Parex will
pay up to $2.5 million for civil
works and 89% of the exploration well to earn a 44.5% working
interest.
- Successfully bid for the Putumayo exploration block, PUT-31, in
the 2014 Colombia Bid Round in a consortium with Gran Tierra Energy
Inc ("Gran Tierra"). Petroamerica will hold a 35%
working interest in this block.
- The Company continues to maintain a strong balance sheet with
current cash balance of approximately $63
million after accounting for the Suroco acquisition
costs.
- Petroamerica will participate in the drilling of up to six
exploration wells in the second half of 2014; two targeting high
impact low-side fault closures in the Llanos, two conventional
Llanos foreland fault traps, and two N-Sand prospects in the
Putumayo Basin.
- The Company will partner in approximately 8 development wells
in the Quinde and Cohembi fields in the latter part of 2014 and the
early part of 2015.
Financial and Operating Results
The following table presents the highlights of
Petroamerica's financial and operating results.
(in $000 US except share, per share or
unless otherwise noted) |
|
Q2 2014 |
|
Q1 2014 |
|
6 mos 2014 |
|
Q2 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil revenue - net of royalties |
|
$ |
47,825 |
|
$ |
51,702 |
|
$ |
99,527 |
|
$ |
46,104 |
Funds flow from operations |
|
$ |
18,222 |
|
$ |
26,627 |
|
$ |
44,849 |
|
$ |
24,166 |
Funds flow per share- basic |
|
$ |
0.03 |
|
$ |
0.04 |
|
$ |
0.08 |
|
$ |
0.04 |
Funds flow per share- diluted |
|
$ |
0.03 |
|
$ |
0.04 |
|
$ |
0.07 |
|
$ |
$ 0.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income for period |
|
$ |
6,431 |
|
$ |
17,612 |
|
$ |
24,043 |
|
$ |
11,172 |
Total comprehensive income (loss) |
|
$ |
8,562 |
|
$ |
13,430 |
|
$ |
21,992 |
|
$ |
11,389 |
Income per share - basic |
|
$ |
0.01 |
|
$ |
0.03 |
|
$ |
0.04 |
|
$ |
0.02 |
Income per share - diluted |
|
$ |
0.01 |
|
$ |
0.03 |
|
$ |
0.04 |
|
$ |
0.02 |
Total assets |
|
$ |
232,336 |
|
$ |
229,012 |
|
$ |
232,336 |
|
$ |
185,259 |
Total cash and short-term investments |
|
$ |
101,325 |
|
$ |
103,484 |
|
$ |
101,325 |
|
$ |
47,352 |
Notes payable |
|
$ |
31,981 |
|
$ |
30,638 |
|
$ |
31,981 |
|
$ |
31,482 |
Shareholders' equity |
|
$ |
160,248 |
|
$ |
150,547 |
|
$ |
160,248 |
|
$ |
110,937 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration costs |
|
$ |
263 |
|
$ |
91 |
|
$ |
354 |
|
$ |
- |
Capital expenditures |
|
$ |
6,257 |
|
$ |
11,316 |
|
$ |
17,573 |
|
$ |
25,130 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding |
|
|
601,061,593 |
|
|
595,148,260 |
|
|
601,061,593 |
|
|
580,798,260 |
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
596,278,700 |
|
|
593,538,038 |
|
|
594,915,940 |
|
|
580,782,473 |
Diluted |
|
|
615,692,294 |
|
|
614,623,454 |
|
|
614,329,534 |
|
|
600,776,919 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in $000 US except share, per share or
unless otherwise noted) |
|
|
Q2 2014 |
|
|
Q1 2014 |
|
|
6 mos 2014 |
|
|
Q2 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average production - bopd |
|
|
6,513 |
|
|
6,478 |
|
|
6,497 |
|
|
5,046 |
Selling price $/bbl |
|
$ |
105.10 |
|
$ |
105.76 |
|
$ |
105.43 |
|
$ |
99.25 |
Royalty $/bbl |
|
$ |
(23.96) |
|
$ |
(19.71) |
|
$ |
(21.81) |
|
$ |
(7.86) |
Average transportation costs $/bbl |
|
$ |
(17.26) |
|
$ |
(18.88) |
|
$ |
(18.07) |
|
$ |
(15.97) |
Average production cost $/bbl |
|
$ |
(5.00) |
|
$ |
(3.40) |
|
$ |
(4.19) |
|
$ |
(4.83) |
Operating netback $/bbl |
|
$ |
58.88 |
|
$ |
63.77 |
|
$ |
61.36 |
|
$ |
70.59 |
Funds flow netback$/bbl |
|
$ |
30.75 |
|
$ |
45.67 |
|
$ |
38.14 |
|
|
52.62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share trading |
|
|
|
|
|
|
|
|
|
|
|
|
High |
|
$ |
0.38 |
|
$ |
0.38 |
|
$ |
0.38 |
|
$ |
0.36 |
Low |
|
$ |
0.28 |
|
$ |
0.28 |
|
$ |
0.28 |
|
$ |
0.21 |
Close |
|
$ |
0.37 |
|
$ |
0.30 |
|
$ |
0.37 |
|
$ |
0.26 |
Trading volume |
|
|
86,907,900 |
|
|
61,197,100 |
|
|
148,105,000 |
|
|
46,649,300 |
Second Quarter Financial Summary
For the three months ended June 30,
2014, the Company reported $47.8
million in revenue, net of royalties, from the sale of 589
thousand barrels of oil equivalent ("boe"). The
realized sales price was $105.10 per
boe generating an operating netback of approximately $59 per barrel.
For the second quarter of 2014, the Company's
net income was $6.4 million
($0.01 per share diluted), a result
of strong production levels through the quarter and continued
strong oil prices, offset by foreign exchange losses incurred due
to the strengthening of the Canadian dollar and additional income
tax charges due to reduced overall exploration costs expensed
compared to the prior period. The Company's capital
expenditures for the second quarter were $6.3 million, all invested in Colombia. These capital expenditures were
funded from available cash-on-hand. As at June 30, 2014, the Company held 17 Mbbls of oil
in inventory.
Suroco Acquisition
On July 15, 2014
the Company announced that it had closed the previously announced
plan of arrangement under the provisions of the Business
Corporations Act (Alberta)
between the Company, Suroco and the shareholders of Suroco (the
"Arrangement").
Under the Arrangement, holders of common shares
of Suroco ("Suroco Shares") were able to elect to receive
one of the following for each Suroco Share held:
(i) |
|
2.2161 common shares ("Petroamerica Shares") of the
Company; |
(ii) |
|
1.6401 Petroamerica Shares and a cash payment of C$0.2079;
or |
(iii) |
|
C$0.80 in cash. |
Immediately on completion of the Arrangement,
trading in Suroco Shares ceased and Petroamerica paid approximately
$16 million dollars and issued
253,795,411 Petroamerica Shares to former holders of Suroco Shares.
The Company currently has approximately 858 million basic shares
outstanding, and, when all warrants and options are considered,
over 1.1 billion shares on a fully diluted basis.
This strategic acquisition provides added scale
and diversity to the Petroamerica portfolio, material exposure to
an exciting new play in the Putumayo basin, and a production and
reserves base that complements Petroamerica's with the ability to
add significant future growth.
The Company is currently working towards merging
the two sets of operations and anticipates issuing to the market
place revised production guidance and capital spending profiles by
mid September, 2014.
2014 Suroco Mid-Year Reserve Update
Petroamerica is further pleased to announce the
results of the independent reserves report effective June 30, 2014 and dated August 8, 2014 for Suroco (which became a
wholly-owned subsidiary of Petroamerica upon closing of the
Arrangement). Suroco's reserves were evaluated by GLJ
Petroleum Consultants of Calgary,
Alberta ("GLJ") in compliance with National
Instrument 51-101 - Standards of Disclosure for Oil and Gas
Activities and in accordance with the COGE (Canadian Oil and
Gas Evaluation) Handbook (the "GLJ Report").
2014 Mid-Year Reserve Update
Highlights
- Total proved reserves of approximately 3.1 million barrels of
oil (Suroco company share before royalty), with a net present value
(before tax and discounted at 10%) of approximately $93.1 million.
- Total proved plus probable reserves of approximately 5.9
million barrels of oil (Suroco company share before royalty), with
a net present value (before tax and discounted at 10%) of
approximately $186.8 million.
- Total proved, probable and possible reserves of approximately
10.0 million barrels of oil (company share before royalty), with a
net present value (before tax and discounted at 10%) of
$277.0 million.
- Booked reserves increased as follows:
-
- Suroco company gross proved reserves grew by 48% from year-end
2013 after accounting for first-half 2014 production;
- Suroco company gross proved plus probable reserves grew by 87%
from year-end 2013 after accounting for first-half 2014
production;
- Suroco company gross proved plus probable plus possible
reserves grew by 134% from year-end 2013 after accounting for
first-half 2014 production.
- The majority of the booking increases are attributed to
successful exploration and development drilling and production
activity in the Quinde field of Suroriente and recognition of
undeveloped reserve potential in that area.
- Suroco's proved plus probable reserve life index increases from
4.0 years to 5.4 years.
The following table summarizes Suroco's oil and
gas reserves as at December 31, 2013
and June 30, 2014.
Reserves Summary (in Mboe) |
|
|
|
Reserves Category |
Dec. 31, 2013 |
June 30, 2014 |
Percentage
Change |
Total Proved |
2,067 |
3,057 |
48% |
Total Proved plus Probable |
3,136 |
5,852 |
87% |
Total Proved plus Probable plus Possible |
4,258 |
9,966 |
134% |
Note: Company working interest reserves, before
royalty. |
The following table presents a summary of the
Company's net present values of future cash flows as of
December 31, 2013 and June 30, 2014.
Reserves Net Present Value Summary (in
millions) |
|
|
|
|
|
|
December 31, 2013 |
June 30, 2014 |
Reserves Category |
Pre Tax |
After Tax |
Pre Tax |
After Tax |
Total Proved |
$64.9 |
$50.2 |
$93.1 |
$69.5 |
Total Proved plus Probable |
$89.1 |
$66.4 |
$186.8 |
$133.5 |
Total Proved plus Probable plus Possible |
$115.5 |
$83.8 |
$277.0 |
$194.2 |
Note: Net present values discounted at 10%. |
The price forecast used in the variable dollar
economics is available on the GLJ website at
www.gljpc.com.
Reserve Advisory
Possible reserves are those additional reserves that are less
certain to be discovered than probable reserves. There is a
10% probability that the quantities actually recovered will equal
or exceed the sum of proved plus probable plus possible
reserves.
Business Development Activity
Increased LLA-10 Working Interest and
Farmout: Petroamerica increased its private equity share in the
Llanos-10 block from 50% to 89% at no additional cost by assuming
Canacol Energy Ltd.'s 39% working interest. The Company
subsequently farmed out half of its working interest (44.5%) to
Parex. Pursuant to the terms of the farmout agreement, Parex will
pay up to $2.5 million for civil
Works and 89% of the dry-hole cost of one exploration well to earn
44.5% working interest and operatorship, subject to the regulatory
approval of the Colombian National Hydrocarbons Agency
("ANH").
Colombia
2014 Bid Round Award: Petroamerica, as part of a bid consortium
(including Gran Tierra 65% working interest and Operator, and
Petroamerica 35% working interest), was the successful bidder in
the 2014 Colombia Bid Round for the PUT-31 Block in the Putumayo
basin. This block is interpreted to lie in the sweet spot of the
N-Sand play fairway in the Putumayo, and its award is subject to
final confirmation by the ANH.
Operations Update
Company Production: Daily production for
the second quarter averaged 6,513 boepd exiting the quarter with
daily production of 6,013 boepd. June production averaged 6,465
boepd (Company working interest) compared to average production of
6,579 boepd for the previous month.
Las Maracas Field (Non-operated, Los Ocarros
Block, 50% Working Interest): The Las Maracas-15 infill well
was drilled targeting the Mirador, Gacheta and Une reservoirs. The
well encountered unswept oil pay in all three reservoirs and was
completed as a Mirador producer with an average oil rate of around
1,650 bopd. The Las Maracas-16 water disposal well was also drilled
and completed and is currently being used to inject produced water.
The water treatment and injection plant capacity is being expanded
to 75,000 barrels of water per day and is scheduled for completion
by the end of October, 2014.
La Casona Field (Non-operated, El Eden Block,
40% Working Interest): The gas compression plant is currently
being expanded to handle 4.5 million cubic feet per day of gas and
is expected to be completed before the end of August. Once
commissioned this will enable the La Casona-2 well to be placed on
production from the Mirador.
Curiara-1 Long-term Test (Non-operated, El
Porton Block, 25% Working Interest): The Curiara-1 well has
been on extended well test since early April, 2014, and has
produced more than 43,000 barrels of light 42 degree API oil and
245 million cubic feet of gas from the Mirador. The well has
performed better than expected and is currently producing at rates
of more than 500 bopd.
Suroriente Block (Non-operated, 15.8% Working
Interest): The recently drilled Quinde-7 well was placed on
production with an electro-submersible pump and after seeing
initial rates of 4,400 bopd the well is now producing at a rate of
more than 3,500 bopd. However, what was considered to be a
temporary stoppage in production at the Cohembi and Pinuna fields
has turned into a longer than expected shut-in. More specifically,
the production in these fields has been off line since July 13, 2014 due to a local community blockade.
The operator and other operators in the surrounding area are
working closely with both the local and national governments and
local communities to resolve this situation.
2014 Drilling Program Update
Following the acquisition of Suroco, and
including wells already scheduled by Petroamerica, a number of high
impact exploration prospects will be drilled in the near-term. A
summary of exploration, appraisal and development drilling expected
for the remainder of 2014 is outlined in the following table:
Prospect/Well |
Activity
Type |
Block |
Working
Interest |
Timing/Status |
Garza Roja-1 |
Exploration |
LLA-10 |
44.5% |
Q4 2014 |
Zampoña-1 |
Exploration |
Los Ocarros |
50% |
Q4 2014 |
Crypto-1 |
Exploration |
El Porton |
50% |
Q4 2014 |
Langur-1 |
Exploration |
LLA-19 |
50% |
Q3/Q4 2014 |
Trampa Mixta-1 |
Exploration |
Alea 1848A |
50% |
Q4 2014/Q1 2015 |
Cohembi North-1 |
Exploration |
Suroriente |
15.8% |
Q4 2014/Q1 2015 |
Quinde - 4 wells
|
Development |
Suroriente |
15.8% |
Q3/Q4 2014 |
Cohembi - 4 wells |
Development |
Suroriente |
15.8% |
Q4 2014/Q1 2015 |
Petroamerica will participate in the drilling of
up to six exploration wells in the second half of 2014; two
targeting high impact low-side fault closures in the Llanos
(Langur-1 and Garza Roja-1), two
conventional Llanos foreland fault traps (Crypto-1 and Zampona-1),
and two N-Sand prospects in the Putumayo Basin (Cohembi North-1 and
Trampa Mixta-1). Additionally, the Company will partner in
approximately 8 development wells in the Quinde and Cohembi fields
in the latter part of 2014 and the early part of 2015.
Outlook
The new Petroamerica, since the acquisition of
Suroco, holds interests in twelve exploration and production
contracts in the Llanos and Putumayo Basins of Colombia, covering more than one million gross
(over 500 thousand net) acres focused on high netback light and
medium oil. This portfolio includes a substantial inventory of
exploration prospects and leads that will be pursued to support
future production and reserves growth for the Company.
Furthermore, the new Company will also have significant exposure to
the prolific N-Sand play in the Putumayo Basin in addition to the
current production operations, discoveries and exploration
opportunities in the Llanos basin, enhancing the overall portfolio
and diversifying the company's asset base.
The Company is currently merging the two sets of
operations and anticipates releasing a revised production guidance
and a combined capital spending program by mid-September, 2014.
However, based on preliminary numbers, the Company expects to be
able to fully fund internally its operations for the year through
the combination of free cash flow and cash-on-hand.
The Company continues to pursue select new
business opportunities that will enhance the existing portfolio and
provide additional future growth in its two core areas.
|
|
|
|
PETROAMERICA OIL CORP. |
|
Condensed Consolidated Interim
Statements of Financial Position |
(Unaudited) |
|
|
|
|
|
|
|
|
As at |
|
|
As at |
|
|
|
June 30, |
|
|
December 31, |
|
(thousands of United States
dollars) |
|
2014 |
|
|
2013 |
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
68,441 |
|
$ |
63,737 |
|
|
Short-term investments |
|
32,884 |
|
|
2,894 |
|
|
Trade and other receivables |
|
26,198 |
|
|
42,754 |
|
|
Prepayments and deposits |
|
1,646 |
|
|
508 |
|
|
Crude oil inventory |
|
1,292 |
|
|
348 |
|
|
|
130,461 |
|
|
110,241 |
|
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
|
Restricted cash |
|
5,659 |
|
|
5,170 |
|
|
Property, plant and equipment |
|
69,270 |
|
|
72,889 |
|
|
Exploration and evaluation assets |
|
26,946 |
|
|
24,871 |
|
|
|
101,875 |
|
|
102,930 |
|
Total assets |
$ |
232,336 |
|
$ |
213,171 |
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
Current equity tax |
$ |
202 |
|
$ |
377 |
|
|
Current income tax |
|
9,436 |
|
|
19,546 |
|
|
Accounts payable and accrued liabilities |
|
15,273 |
|
|
15,400 |
|
|
Notes payable |
|
31,981 |
|
|
- |
|
|
|
56,892 |
|
|
35,323 |
|
|
|
|
|
|
|
|
|
Non-Current
liabilities |
|
|
|
|
|
|
|
Stock appreciation rights liability |
|
3,984 |
|
|
2,085 |
|
|
Notes payable |
|
- |
|
|
31,587 |
|
|
Deferred tax liability |
|
4,705 |
|
|
2,818 |
|
|
Decommissioning liabilities |
|
6,507 |
|
|
5,260 |
|
Total liabilities |
|
72,088 |
|
|
77,073 |
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
|
|
|
|
|
Share capital |
|
141,326 |
|
|
138,936 |
|
|
Contributed surplus |
|
23,847 |
|
|
24,079 |
|
|
Translation reserve |
|
(3,223) |
|
|
(1,172) |
|
|
Deficit |
|
(1,702) |
|
|
(25,745) |
|
|
|
160,248 |
|
|
136,098 |
|
Total liabilities and shareholders'
equity |
$ |
232,336 |
|
$ |
213,171 |
|
|
|
|
|
|
|
|
PETROAMERICA OIL CORP.
Condensed Consolidated Interim Statements of Net Income and
Comprehensive Income
(Unaudited)
|
|
|
|
|
|
|
Three months ended June 30 |
|
Six months ended June 30 |
(thousands of United States dollars,
except per share amounts) |
|
2014 |
|
2013 |
|
2014 |
|
2013 |
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil revenue - net of royalties |
$ |
47,825 |
$ |
46,104 |
$ |
99,527 |
$ |
91,772 |
|
|
47,825 |
|
46,104 |
|
99,527 |
|
91,772 |
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production |
|
(2,948) |
|
(2,444) |
|
(4,992) |
|
(3,755) |
|
Transportation |
|
(10,172) |
|
(8,090) |
|
(21,513) |
|
(16,179) |
|
Purchased oil |
|
- |
|
(2,624) |
|
(1,625) |
|
(2,624) |
|
Exploration and evaluation |
|
(263) |
|
- |
|
(354) |
|
(325) |
|
Depletion and depreciation |
|
(9,417) |
|
(7,186) |
|
(18,950) |
|
(14,357) |
|
General and administration |
|
(3,738) |
|
(2,168) |
|
(6,473) |
|
(4,571) |
|
Transaction costs |
|
(1,229) |
|
- |
|
(1,229) |
|
- |
|
Share-based payments |
|
(1,793) |
|
(233) |
|
(1,992) |
|
(485) |
|
|
|
|
|
|
|
|
|
|
|
(29,560) |
|
(22,745) |
|
(57,128) |
|
(42,296) |
|
Finance and other |
|
(1,209) |
|
(1,226) |
|
(2,501) |
|
(2,498) |
|
Foreign exchange gain (loss) |
|
(3,849) |
|
485 |
|
1,843 |
|
(74) |
|
|
(5,058) |
|
(741) |
|
(658) |
|
(2,572) |
Income before income taxes |
|
13,207 |
|
22,618 |
|
41,741 |
|
46,904 |
Current income tax expense |
|
(9,296) |
|
(5,365) |
|
(15,810) |
|
(13,890) |
Deferred tax recovery (expense) |
|
2,520 |
|
(6,081) |
|
(1,888) |
|
(7,730) |
Net income for the year |
|
6,431 |
|
11,172 |
|
24,043 |
|
25,284 |
|
|
|
|
|
|
|
|
|
Other comprehensive (loss)
income |
|
|
|
|
|
|
|
|
Items that will be reclassified
subsequently to income or (loss): |
|
|
|
|
|
|
|
|
Reserve on translation of foreign
operations |
|
2,131 |
|
217 |
|
(2,051) |
|
990 |
Total comprehensive
income |
$ |
8,562 |
$ |
11,389 |
$ |
21,992 |
$ |
26,274 |
Basic income per share |
$ |
0.01 |
$ |
0.02 |
$ |
0.04 |
$ |
0.04 |
Diluted income per share |
$ |
0.01 |
$ |
0.02 |
$ |
0.04 |
$ |
0.04 |
|
|
|
|
|
|
|
|
|
Weighted average number of
basic |
|
|
|
|
|
|
|
|
common shares
outstanding |
|
596,278,700 |
|
580,782,473 |
|
594,915,940 |
|
580,357,760 |
Weighted average number of
diluted |
|
|
|
|
|
|
|
|
common shares
outstanding |
|
615,692,294 |
|
600,776,919 |
|
614,329,534 |
|
606,397,533 |
PETROAMERICA OIL CORP.
Condensed Consolidated Interim Statements of Changes in
Equity
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
(thousands of United States
dollars) |
|
Share
Capital |
|
Contributed
surplus |
|
Translation
reserve |
|
Retained
earnings (Deficit) |
|
Total
equity |
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2014 |
$ |
138,936 |
$ |
24,079 |
$ |
(1,172) |
$ |
(25,745) |
$ |
136,098 |
|
|
|
|
|
|
|
|
|
|
|
Net income for the year |
|
- |
|
- |
|
- |
|
24,043 |
|
24,043 |
Other comprehensive loss |
|
- |
|
- |
|
(2,051) |
|
- |
|
(2,051) |
Total comprehensive income (loss) |
|
- |
|
- |
|
(2,051) |
|
24,043 |
|
21,992 |
Warrants exercised |
|
2,333 |
|
(346) |
|
- |
|
- |
|
1,987 |
Stock options exercised |
|
57 |
|
(22) |
|
- |
|
- |
|
35 |
Share-based payments |
|
- |
|
136 |
|
- |
|
- |
|
136 |
Balance at June 30, 2014 |
$ |
141,326 |
$ |
23,847 |
$ |
(3,223) |
$ |
(1,702) |
$ |
160,248 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(thousands of United States
dollars) |
|
Share
Capital |
|
Contributed
surplus |
|
Translation
reserve |
|
Retained
earnings (Deficit) |
|
Total
equity |
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2013 |
$ |
136,417 |
$ |
23,630 |
$ |
3,348 |
$ |
(79,622) |
$ |
83,773 |
|
|
|
|
|
|
|
|
|
|
|
Net income for the year |
|
- |
|
- |
|
- |
|
25,284 |
|
25,284 |
Other comprehensive loss |
|
- |
|
- |
|
990 |
|
- |
|
990 |
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income |
|
- |
|
- |
|
990 |
|
25,284 |
|
26,274 |
|
|
|
|
|
|
|
|
|
|
|
Warrants exercised |
|
423 |
|
(64) |
|
- |
|
- |
|
359 |
Stock options exercised |
|
72 |
|
(27) |
|
- |
|
- |
|
45 |
Share-based payments |
|
- |
|
485 |
|
- |
|
- |
|
485 |
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2013 |
$ |
136,912 |
$ |
24,024 |
$ |
4,338 |
$ |
(54,338) |
$ |
110,936 |
PETROAMERICA OIL CORP.
Condensed Consolidated Interim Statements of Cash Flows
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30 |
|
Six months ended June 30 |
(thousands of United States
dollars) |
|
2014 |
|
2013 |
|
2014 |
|
2013 |
|
|
|
|
|
|
|
|
|
Operating activities |
|
|
|
|
|
|
|
|
Net income for the year |
$ |
6,431 |
$ |
11,172 |
$ |
24,043 |
$ |
25,284 |
Items not involving cash: |
|
|
|
|
|
|
|
|
|
Share-based payments |
|
1,793 |
|
233 |
|
1,992 |
|
485 |
|
Depletion and depreciation |
|
9,417 |
|
7,186 |
|
18,950 |
|
14,357 |
|
Unrealized foreign exchange gain |
|
2,807 |
|
(800) |
|
(2,601) |
|
(1,023) |
|
Deferred tax (recovery) expense |
|
(2,520) |
|
6,118 |
|
1,888 |
|
7,766 |
|
Accretion and amortization |
|
294 |
|
257 |
|
577 |
|
545 |
|
|
18,222 |
|
24,166 |
|
44,849 |
|
47,414 |
|
Net changes in non-cash working capital |
|
(16,341) |
|
(2,862) |
|
4,229 |
|
10,045 |
Cash provided by operating
activities |
|
1,881 |
|
21,304 |
|
49,078 |
|
57,459 |
|
|
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
|
|
Short-term investments |
|
(30,099) |
|
- |
|
(29,990) |
|
- |
Exploration and evaluation
expenditures |
|
(717) |
|
(14,555) |
|
(2,075) |
|
(15,783) |
Property, plant and equipment
expenditures |
|
(4,394) |
|
(12,999) |
|
(14,331) |
|
(21,502) |
Cash used in investing
activities |
|
(35,210) |
|
(27,554) |
|
(46,396) |
|
(37,285) |
|
|
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
|
|
Stock options exercised |
|
35 |
|
7 |
|
35 |
|
45 |
Warrants exercised |
|
1,036 |
|
1 |
|
1,987 |
|
359 |
Cash provided by financing
activities |
|
1,071 |
|
8 |
|
2,022 |
|
404 |
|
|
|
|
|
|
|
|
|
(Decrease) Increase in cash and
cash equivalents during the period |
|
(32,258) |
|
(6,242) |
|
4,704 |
|
20,578 |
Cash and cash equivalents,
beginning of year |
100,699 |
|
53,594 |
|
63,737 |
|
26,774 |
Cash and cash equivalents, end of
year |
$ |
68,441 |
$ |
47,352 |
$ |
68,441 |
$ |
47,352 |
Definitions of Reserve Categories:
"Proved" reserves are those reserves that can be estimated with
a high degree of certainty to be recoverable. It is likely that the
actual quantities recovered will exceed the estimated proved
reserves.
"Probable" reserves are those additional reserves that are less
certain to be recovered than proved reserves. It is equally likely
that the actual remaining quantities recovered will be greater than
or less than the sum of the estimated proved plus probable
reserves.
"Possible' reserves are those additional reserves that are less
certain to be recovered than probable reserves. It is unlikely that
the actual remaining quantities recovered will exceed the sum of
the estimated proved plus probable plus possible reserves.
Forward Looking Statements:
This news release includes information that
constitutes "forward-looking information" or "forward-looking
statements". Statements relating to "reserves" or "resources" are
deemed to be forward looking statements, as they involve the
implied assessment, based on certain estimates and assumptions,
that the resources and reserves described can be profitably
produced in the future. More particularly, this news release
contains statements concerning expectations regarding regulatory
and partner approvals on the Company's development plan, drilling
and operational opportunities and the timing associated therewith,
test results and the timing thereof, anticipated reserve life of
the combined Company's assets, potential future acquisitions and
other statements, expectactions beliefs, goals, objectives,
assumptions and information about possible future conditions,
results of operations or performance, the use of available cash on
hand in addition to the potential exploration and development
opportunities and expectations regarding regulatory approval and
the overall strategic direction of the Company. The
forward-looking statements contained in this document, including
expectations and assumptions concerning the obtaining of the
necessary regulatory approvals, including ANH approval, and the
assumptions, opinions and views of the Company or cited from third
party sources, are solely opinions and forecasts which are
uncertain and subject to risks.
A multitude of factors can cause actual
events to differ significantly from any anticipated developments
and although the Company believes that the expectations represented
by such forward-looking statements are reasonable, undue reliance
should not be placed on the forward-looking statements because
there can be no assurance that such expectations will be realized.
Material risk factors include, but are not limited to: the
inability to obtain regulatory approval, including ANH approval,
for the transfer of participating interests and/or operatorship for
the Company's properties, the risks of the oil and gas industry in
general, such as operational risks in exploring for, developing and
producing crude oil and natural gas, market demand and
unpredictable shortages of equipment and/or labour, changes or
fluctuations in production levels, the size of oil and natural gas
reserves or resources; incorrect assessments of the value of
acquisitions and exploration and development programs; geological,
technical, drilling, production and processing problems; potential
delays or changes in plans with respect to exploration or
development projects or capital expenditures; fluctuations in oil
and gas prices, foreign currency exchange rates and interest rates,
and reliance on industry partners.
Data obtained from the initial testing
results at the referenced wells, which may include barrels of oil
produced and levels of water-cut, should be considered to be
preliminary until a further and detailed analysis or interpretation
has been done on such data. The test results disclosed in this
press release are not necessarily indicative of long-term
performance or of ultimate recovery. The reader is cautioned not to
unduly rely on such results as such results may not be indicative
of future performance of the well or of expected production results
for the Company in the future.
Readers should also note that even if the
drilling program as proposed by the Company is successful, there
are many factors that could result in production levels being less
than anticipated or targeted, including without limitation, greater
than anticipated declines in existing production due to poor
reservoir performance, mechanical failures or inability to access
production facilities, among other factors.
Neither the Company nor any of its
subsidiaries nor any of its officers, directors or employees
guarantees that the assumptions underlying such forward-looking
statements are free from errors nor does any of the foregoing
accept any responsibility for the future accuracy of the opinions
expressed in this document or the actual occurrence of the
forecasted developments.
The forward-looking statements contained in
this document are made as of the date hereof and the Company
undertakes no obligation to update publicly or revise any
forward-looking statements or information, whether as a result of
new information, future events or otherwise, unless so required by
applicable securities laws.
Use of "boe"
'boe' may be misleading if used in
isolation. Throughout this press release the calculation of
barrels of oil equivalent ("boe") is at a conversion rate of 6,000
cubic feet ("cf") of natural gas for one barrel of oil and is based
on an energy conversion method at the burner tip and does not
represent a value equivalence at the wellhead.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE Petroamerica Oil Corp.