/THIS NEWS RELEASE IS NOT FOR DISSEMINATION
IN THE UNITED STATES OR TO ANY
UNITED STATES NEWS
SERVICES./
CALGARY, Nov. 28, 2014 /CNW/ - 3MV Energy Corp.
("3MV" or the "Company") (TSXV: TMV) is pleased to
report its financial and operating results for the three and nine
month periods ended September 30,
2014. 3MV's unaudited financial statements and related
management's discussion and analysis for the three and nine month
periods ended September 30, 2014 have
been filed and are available on the SEDAR website at www.sedar.com
and on the Company's website at www.3mvenergy.com.
3MV announces the following financial and operating
highlights:
|
Three months
ended
|
Three months
ended
|
Nine months
ended
|
Nine months
ended
|
|
September 30,
2014
|
September 30,
2013
|
September 30,
2014
|
September 30,
2013
|
Average Daily
Production
|
|
|
|
|
|
Crude oil & NGL
(bbl/d)
|
76.2
|
103.6
|
69.6
|
89.5
|
|
Natural gas
(Mcf/d)
|
47.9
|
140.2
|
57.6
|
119.6
|
|
Total
(boe/d)
|
84.2
|
127.0
|
79.2
|
109.5
|
Average sales
prices
|
|
|
|
|
|
Crude oil & NGL
($/bbl)
|
92.88
|
98.37
|
95.74
|
89.55
|
|
Natural gas
($/Mcf)
|
3.94
|
2.38
|
4.72
|
2.84
|
Operating Netbacks
($/boe)
|
|
|
|
|
Average realized
sales price
|
86.31
|
82.90
|
87.56
|
76.35
|
Royalty
expense
|
3.23
|
4.75
|
4.36
|
4.95
|
Operating &
transportation expense
|
36.80
|
24.66
|
40.50
|
29.33
|
Operating netback
(1)
|
46.27
|
53.49
|
42.69
|
42.06
|
|
|
|
|
|
($000s, except per
share numbers)
|
|
|
|
|
Petroleum &
natural gas revenues,
before royalties
|
669
|
968
|
1,893
|
2,282
|
Funds generated by
operations (2)
|
18
|
283
|
(59)
|
64
|
|
Per share – basic and
diluted
|
0.00
|
0.00
|
(0.00)
|
0.00
|
Net earnings
(loss)
|
(351)
|
(324)
|
(4,791)
|
(1,898)
|
|
Per share – basic and
diluted (3)
|
(0.01)
|
(0.01)
|
(0.09)
|
(0.04)
|
Net debt (working
capital) (4)
|
(3,737)
|
(4,116)
|
(3,737)
|
(4,116)
|
Total
assets
|
14,237
|
19,722
|
14,237
|
19,722
|
Shares
outstanding
|
|
|
|
|
|
Basic and
diluted
|
51,482
|
51,217
|
51,482
|
51,217
|
1)
|
Operating netbacks
(calculated on a per unit basis as oil, gas and natural gas liquids
revenues, less royalties, transportation and operating costs) is
not a recognized measure under IFRS.
|
2)
|
Funds generated by
operations is not a prescribed IFRS or GAAP measure and is
calculated as oil, gas and natural gas liquids revenues, less
royalties, operating costs, general and administrative expenses,
interest expense and current income taxes on a per unit basis
multiplied by the total number of barrels produced in the period.
This is not a recognized measure under IFRS.
|
3)
|
Net earnings (loss)
per share is calculated using weighted average shares
outstanding.
|
4)
|
Net debt (working
capital) is an industry term, and is calculated as current assets
less current liabilities, and is not a recognized measure under
IFRS.
|
|
|
Outlook
During the period, the Corporation completed an asset
disposition in the Kerrobert,
Dodsland and Forgan areas in the
amount of $4.35 million before
customary closing adjustments. Following the divesture the
Corporation announced that it entered into a joint venture ("JV")
with an arm's length party to develop 3MV Energy's Fiske properties. According to the terms of
the joint venture agreement, the JV partner agreed to invest
$5 million on the property in order
to earn a 50% working interest in the Fiske lands and related assets held by 3MV
Energy. Subsequent to the end of Q3 2014, the JV partner
completed its earning requirements and continued capital spending
at Fiske. 3MV Energy used a portion of the funds from the
previously mentioned divesture to reduce its outstanding trade
payables and to participate in joint venture drilling at
Fiske. The Corporation also successfully closed a secured
$10 million debt facility in
November 2014 and drew upon the first
tranche ($6 million) of the
facility. The funds from the first draw have been allocated
to participate in the second phase of the joint venture
drilling. By the end of fiscal 2014 the Corporation targets
to have 16 gross (8 net) wells drilled at Fiske under the joint venture partnership.
Neither 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.
The securities offered have not been and will not be
registered under the U.S. Securities Act of 1933, as amended, and
may not be offered or sold in the United
States absent registration or applicable exemption from the
registration requirements. This news release does not constitute an
offer to sell or the solicitation of any offer to buy nor will
there be any sale of these securities in any province, state or
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such province, state or
jurisdiction.
Forward-Looking Statements
Certain statements in this news release constitute
forward-looking statements. The forward-looking statements
contained in this document are based on certain key expectations
and assumptions made by 3MV. Although 3MV believes that the
expectations and assumptions on which the forward-looking
statements are based are reasonable, undue reliance should not be
placed on the forward-looking statements because 3MV can give no
assurance that they will prove to be correct.
Since forward-looking statements address future events and
conditions, by their very nature they involve inherent risks and
uncertainties. Actual results could differ materially from those
currently anticipated due to a number of factors and risks. These
include, but are not limited to, the failure to obtain necessary
regulatory approvals, risks associated with the oil and gas
industry in general (e.g., operational risks in development,
exploration and production; delays or changes in plans with respect
to exploration or development projects or capital expenditures; the
uncertainty of reserve estimates; the uncertainty of estimates and
projections relating to production, costs and expenses, and health,
safety and environmental risks), commodity price and exchange rate
fluctuations and uncertainties resulting from potential delays or
changes in plans with respect to exploration or development
projects or capital expenditures. Readers are cautioned that the
foregoing list of factors is not exhaustive. Additional
information on these and other factors that could affect 3MV's
operations and financial results are included in reports on file
with Canadian securities regulatory authorities and may be accessed
through the SEDAR website (www.sedar.com).
The forward-looking statements contained in this document are
made as of the date hereof and 3MV 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.
Oil and Gas Disclosure
For the purpose of calculating unit costs, natural gas
volumes have been converted to a barrel of oil equivalent ("BOE")
using six thousand cubic feet equal to one barrel unless otherwise
stated. A BOE conversion ratio of 6:1 is based upon an energy
equivalency conversion method primarily applicable at the burner
tip and does not represent a value equivalency at the wellhead.
BOEs may be misleading, particularly if used in isolation.
Net present value of future net revenue does not represent
fair market value of the reserves. There is no assurance that
the forecast prices and cost assumptions will be attained and
variances could be material.
Non-GAAP Measures
This press release contains the terms "operating netbacks",
"funds generated by operations", and "net debt", which do not have
a standardized meaning prescribed by GAAP and therefore may not be
comparable with the calculation of similar measures by other
issuers. 3MV uses operating netbacks and funds generated by
operations to analyze operating and financial performance. 3MV
believes these benchmarks are key measures of profitability and
overall sustainability for the Company. Both of these terms are
commonly used in the oil and gas industry. Operating netbacks and
funds generated by operations are not intended to represent
operating profits nor should they be viewed as an alternative to
cash flow provided by operating activities, net earnings (loss) or
other measures of financial performance calculated in accordance
with GAAP. Operating netbacks are determined by deducting
royalties, operating costs and transportation from oil and gas
revenue. Funds generated by operations are calculated as cash flows
from operating activities excluding transaction costs less changes
in non-cash working capital and share base payments.3MV uses net
debt to assess the financial position and health of the Company.
3MV believes this benchmark is a key measure of financial leverage
and displays a Company's ability to repay its debts when due. Net
debt is calculated as current assets less current
liabilities.
SOURCE 3MV Energy Inc.