Rooster Energy Ltd. Announces Shareholder Approval of Pending Acquisitions & First Quarter 2014 Financial & Operating Results
31 May 2014 - 8:00AM
Marketwired
Rooster Energy Ltd. Announces Shareholder Approval of Pending
Acquisitions and First Quarter 2014 Financial and Operating Results
CALGARY, ALBERTA--(Marketwired - May 30, 2014) - ROOSTER ENERGY
LTD. (the "Company") (www.roosterenergyltd.com) (TSX-VENTURE:COQ)
is pleased to announce that on May 16, 2014 the requisite majority
of the minority of Rooster shareholders approved the Company's
acquisition of Cochon Properties LLC, and Morrison Well Services,
LLC. Upon close, the Company will issue 218,631,179 common shares
for all of the membership interest in each company: 57,034,221
shares will be issued to the members of Cochon Properties, LLC, and
161,596,958 shares will be issued to the member of Morrison Well
Services, LLC. The acquisitions are expected to close late second
quarter or early third quarter 2014. The Company also has filed on
SEDAR its unaudited interim financial statements, and related
management discussion and analysis ("MD&A") for the three
months ended March 31, 2014 ("Q1 2014"). Selected financial and
operational information for Q1 2014 and subsequent thereto is
contained in the below summary and should be read in conjunction
with the financial statements and related MD&A.
Robert P. Murphy,
President & Chief Executive Officer, comments that "we are very
pleased with the overwhelming support received from our minority
shareholders in approving the transformative acquisitions of Cochon
Properties and Morrison Well Services. Our results in Q1 2014
continued to be hindered by poor winter weather conditions and by a
lack of new wells coming on, with production dropping 27%
sequentially to 1,182 barrels of oil equivalent per day. We have
since installed compression on our wells at Grand Isle 70 and
resumed production at High Island 141 that has been shut-in for
almost 2 years. Moreover, upon completion of the acquisition of
Cochon, we estimate that Rooster's daily production should increase
by up to 75% and our proved reserves by 95%. Additionally with Well
Services' contracted and external backlog of well plugging and
abandonment work, we expect the Company to achieve higher growth
rates in both revenue and EBITDA. With all three companies
integrated, we will have a more diverse revenue stream, stronger
balance sheet and more opportunities to grow the Company. We are
currently in discussions with potential lenders for a new credit
facility that will enable the Company to close the acquisitions and
refinance outstanding debt to improve our working capital deficit.
With a new credit facility, Rooster plans to move forward with its
development inventory in our existing portfolio, while also
evaluating bolt-on acquisition opportunities in our core Gulf of
Mexico shelf area."
SUMMARY FINANCIAL
RESULTS
|
For the three months ended March 31, |
|
|
2014 |
|
2013 |
|
Sales |
|
|
|
|
|
|
|
Oil
(Bbl) |
|
58,312 |
|
|
74,565 |
|
|
NGL
(Bbl) |
|
5,301 |
|
|
9,876 |
|
|
Natural gas (Mcf) |
|
270,545 |
|
|
946,163 |
|
|
Total
(BOE/day) (a) |
|
1,182 |
|
|
2,632 |
|
|
|
|
|
|
|
|
Revenue |
$ |
7,694,141 |
|
$ |
11,558,554 |
|
Total costs and expenses |
|
5,030,910 |
|
|
11,905,307 |
|
Operating income (loss) |
|
2,663,231 |
|
|
(346,753 |
) |
|
Unrealized gain (loss) on financing warrants |
|
751,000 |
|
|
51,000 |
|
|
Finance expenses (b) |
|
(1,712,549 |
) |
|
(1,269,721 |
) |
Income (loss) before tax expense |
|
1,701,682 |
|
|
(1,565,474 |
) |
|
Deferred tax expense (recovery) |
|
616,000 |
|
|
(844,000 |
) |
Income (loss) |
|
1,085,682 |
|
|
(721,474 |
) |
|
|
|
|
|
|
|
Income (loss) per share |
|
|
|
|
|
|
|
Basic |
|
0.01 |
|
|
(0.01 |
) |
|
Diluted |
|
0.01 |
|
|
(0.01 |
) |
|
|
|
|
|
|
|
Capital expenditures |
$ |
1,988,493 |
|
$ |
242,314 |
|
|
|
|
|
|
|
|
EBITDAX (c) |
$ |
3,763,933 |
|
$ |
6,984,221 |
|
|
|
(a) |
Gas
volumes are converted to BOE on the basis of 6 Mcfe per 1
barrel. |
(b) |
Finance expense includes accretion for asset retirement
obligations. |
(c) |
EBITDAX is a non-IFRS measure commonly used in the oil and gas
industry. Such measures do not conform to IFRS and may not be
comparable to those reported by other companies nor should they be
viewed as an alternative to other measures of financial performance
calculated in accordance with IFRS. The company defines EBITDAX as
net income before finance expense, taxes, depreciation,
amortization, accretion, exploration and evaluation, bad debt,
impairments, stock-based compensation, and the non-cash portion of
plug and abandonment expense. |
ABOUT ROOSTER ENERGY
LTD.
Rooster Energy Ltd.
is a Houston, Texas, based independent oil and natural gas
exploration & production company focused on the development of
resources in the shallow waters of the Gulf of Mexico. At March 31,
2014, our primary assets consist of interests in 20 producing oil
and/or natural gas wells and 14 federal leases or blocks. The
Company is the operator of the majority of its properties and daily
oil and gas production.
Investors are
welcome to visit our website at www.roosterenergyltd.com.
Forward-Looking
Information and Statements
Certain
statements and information in this press release may constitute
"forward-looking information" or statements as such terms are used
in applicable Canadian securities laws. Any statement that
expresses, involves or includes expectations of future operations
(including drill rig commitments and use of proceeds),
commerciality of any hydrocarbon discovered, production rates,
operating costs, commodity prices, administrative costs, commodity
price risk and other components of cash flow and earnings,
management activity, acquisitions and dispositions, capital
spending, access to credit facilities taxes, regulatory changes,
projections, objective, assumptions or future events that are not
statements of historical fact should be viewed as "forward-looking
statements". Events or circumstances may cause actual
results to differ materially from those predicted, a result of
numerous known and unknown risks, uncertainties, and other factors,
many of which are beyond the control of the Company. These risks
include, but are not limited to, the risks associated with the oil
and gas industry, commodity prices, and exchange rate changes.
Industry related risks could include, but are not limited to,
operational risks in exploration, development and production,
delays or changes in plans, risks associated with the uncertainty
of reserve estimates, or reservoir performance, health and safety
risks and the uncertainty of estimates and projections of
production, costs and expenses. The reader is cautioned not to
place undue reliance on any forward-looking statement in this press
release. The Company disclaims any intention or obligation to
update or revise any forward-looking statement, whether as a result
of new information, future events or otherwise, except as required
by applicable law.
Financial
outlook information contained in this press release about the
Company's prospective cash flows and financial position is based on
assumptions about future events, including economic conditions and
proposed courses of action, based on management's assessment of the
relevant information currently available. Readers are cautioned
that any such financial outlook information contained herein should
not be used for purposes other than for which it is disclosed
herein.
Note Regarding
BOEs
The term barrel
of oil equivalent ("boe") may be misleading, particularly if used
in isolation. A conversion ratio for gas of 6 mcf:1 boe is based on
an energy equivalency conversion method primarily applicable at the
burner tip and does not represent a value equivalency at the
wellhead. Given that the value ratio based on the current price of
crude oil as compared to natural gas is significantly equivalency
conversion ratio of 6:1, utilizing a conversion on a 6:1 basis is
misleading as an indication of value.
NEITHER THE
TSX-VENTURE EXCHANGE NOR ITS REGULATION SERVICE PROVIDER (AS THAT
TERM IS DEFINED IN THE POLICIES OF THE TSX-VENTURE EXCHANGE)
ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE
RELEASE.
Corporate updates and investor inquiries:Rooster Petroleum,
LLCGary Nuschler, Jr.Vice President-Finance(832) 463-0625
Rooster Energy Ltd. (TSXV:COQ)
Historical Stock Chart
From Apr 2024 to May 2024
Rooster Energy Ltd. (TSXV:COQ)
Historical Stock Chart
From May 2023 to May 2024