CALGARY, Aug. 25, 2015 /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, 2015, and to provide
an operational update on the Company's activities in Colombia.
Copies of the Company's Management Discussion and Analysis
('MD&A') and Interim 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.
Ralph Gillcrist, President and
CEO of Petroamerica commented, "The second quarter results
reflect the Company's response to the low oil price environment
that has prevailed since late last year, where the emphasis was on
cash preservation and balance sheet strength. Inevitably, this
deferred investment strategy has resulted in lower than expected
production levels. In this low price environment, the Company is
focused on low cost operations that will enhance production. This
work has already commenced at the Las Maracas field, with a work
over campaign targeting low watercut production where results have
exceeded expectations. At the Cohembi field, the Company has
identified a number of low risk workovers and development drilling
locations that, subject to partner approval and oil pricing, it
will consider implementing. On the exploration and appraisal
front, the Company has a number of exciting high impact drilling
activities in the pipeline, including a low-side fault prospect
expected to spud in the fourth quarter on the LLA-10 Block, N Sand
appraisal drilling on the PUT-7 Block where the environmental
impact study has been submitted and drilling is anticipated late in
the first quarter of 2016, and the high impact Tinigua prospect
expected to spud in the first half of 2016. Petroamerica is largely
carried on the LLA-10 and Tinigua wells. Additionally, the
integration of PetroNova is progressing smoothly with this
acquisition expected to add significant near to mid-term upside to
the Company's portfolio."
Financial and Operating Highlights:
- Announced agreement to acquire the shares of PetroNova Inc.
('PetroNova') This acquisition was completed on July 29, 2015, adding four blocks (two operated)
to the Company's portfolio, and production of approximately 350
barrels of oil equivalent per day ('boepd') before
royalty;
- Tightened up the share structure with a ten for one share
consolidation shortly after the acquisition of PetroNova;
- Generated over $18 million in
revenue (before royalty) in a challenging oil price environment,
realizing a sales price of over $54
per barrel (Brent reference price: $63.50) and an operating net back of almost
$21 per barrel of oil equivalent
('boe');
- Recognized funds flow from operations in the quarter of
$3.0 million ($0.03 per share);
- Obtained extensions into 2016 on the drilling commitments on
the El Porton, LLA-19 and PUT-7 blocks.
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 2015
|
|
|
Q1 2015
|
|
|
6 mos 2015
|
|
|
Q2 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil revenue – net of
royalties
|
|
$
|
15,873
|
|
$
|
17,055
|
|
$
|
32,928
|
|
$
|
47,825
|
Funds flow from
operations
|
|
$
|
3,022
|
|
$
|
2,294
|
|
$
|
5,315
|
|
$
|
18,222
|
Funds flow per share-
basic
|
|
$
|
0.03
|
|
$
|
0.03
|
|
$
|
0.06
|
|
$
|
0.31
|
Funds flow per share-
diluted
|
|
$
|
0.03
|
|
$
|
0.03
|
|
$
|
0.06
|
|
$
|
0.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income for
period
|
|
$
|
(2,024)
|
|
$
|
(6,952)
|
|
$
|
(8,976)
|
|
$
|
6,431
|
Total comprehensive
(loss) income
|
|
$
|
(2,628)
|
|
$
|
(9,344)
|
|
$
|
(11,972)
|
|
$
|
8,562
|
(Loss) income per
share - basic
|
|
$
|
(0.02)
|
|
$
|
(0.08)
|
|
$
|
(0.10)
|
|
$
|
0.11
|
(Loss) income per
share - diluted
|
|
$
|
(0.02)
|
|
$
|
(0.08)
|
|
$
|
(0.10)
|
|
$
|
0.10
|
Total
assets
|
|
$
|
230,849
|
|
$
|
265,016
|
|
$
|
230,849
|
|
$
|
232,336
|
Total
cash
|
|
$
|
23,504
|
|
$
|
55,222
|
|
$
|
23,504
|
|
$
|
101,325
|
Notes
payable
|
|
$
|
-
|
|
$
|
27,623
|
|
$
|
-
|
|
$
|
31,981
|
Shareholders'
equity
|
|
$
|
169,525
|
|
$
|
171,885
|
|
$
|
169,525
|
|
$
|
160,248
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration
costs
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
263
|
Capital expenditures
- excluding acquisition
|
|
$
|
950
|
|
$
|
2,538
|
|
$
|
3,488
|
|
$
|
6,257
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding (000's)
|
|
|
87,252
|
|
|
87,252
|
|
|
87,252
|
|
|
60,106
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
(000's)
|
|
|
87,252
|
|
|
87,252
|
|
|
87,252
|
|
|
59,628
|
Diluted
(000's)
|
|
|
87,252
|
|
|
87,252
|
|
|
87,252
|
|
|
61,569
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average production -
boepd
|
|
|
3,634
|
|
|
4,587
|
|
|
4,108
|
|
|
6,513
|
Selling price
$/boe
|
|
$
|
54.47
|
|
$
|
46.88
|
|
$
|
50.29
|
|
$
|
105.10
|
Royalty
$/boe
|
|
$
|
(6.80)
|
|
$
|
(5.18)
|
|
$
|
(5.91)
|
|
$
|
(23.98)
|
Average
transportation costs $/boe
|
|
$
|
(12.25)
|
|
$
|
(14.00)
|
|
$
|
(13.22)
|
|
$
|
(17.26)
|
Average production
cost $/boe
|
|
$
|
(14.54)
|
|
$
|
(10.78)
|
|
$
|
(12.47)
|
|
$
|
(5.00)
|
Operating netback
$/boe
|
|
$
|
20.88
|
|
$
|
16.92
|
|
$
|
18.69
|
|
$
|
58.86
|
Cash netback
$/boe
|
|
$
|
8.92
|
|
$
|
9.35
|
|
$
|
9.14
|
|
$
|
50.80
|
|
|
|
|
|
|
|
|
$
|
|
|
|
|
Reference price -
Brent ($/bbl)
|
|
$
|
63.50
|
|
$
|
55.13
|
|
$
|
59.35
|
|
$
|
109.69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
trading
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
$
|
1.45
|
|
$
|
1.60
|
|
$
|
1.60
|
|
$
|
3.80
|
Low
|
|
$
|
1.00
|
|
$
|
1.10
|
|
$
|
1.00
|
|
$
|
2.80
|
Close
|
|
$
|
1.05
|
|
$
|
1.40
|
|
$
|
1.05
|
|
$
|
3.70
|
Trading volume
(000's)
|
|
|
7,085
|
|
|
9,355
|
|
|
16,440
|
|
|
8,691
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter Financial Summary
For the three months ended June 30,
2015, the Company reported $18.1
million in revenue (before royalties) from the sale of 333
thousand boe. The realized sales price was $54.47/boe generating an operating netback of
$20.88/boe.
For the second quarter of 2015, the Company's net loss was
$2.0 million ($0.02 per share diluted). This loss is due to the
low realized oil price in the second quarter of 2015 as well as the
recognition of over $7 million in
non-cash depletion and depreciation expense in the current
quarter. The Company's capital expenditures for the second
quarter were $1.0 million, all
invested in Colombia. As at
June 30, 2015, the Company held 45
thousand barrels of oil ('Mbbls') in inventory.
The Company continues to focus on reducing field operating
expenditures. On a per barrel basis, production costs were
$14.54 for the second quarter of
2015, a reduction from $15.46/boe and
$17.38/boe in the third and fourth
quarters of 2014 respectively, but an increase from $10.78/boe in the first quarter of 2015.
The increase in the production costs in the second quarter over the
first quarter of 2015 is due primarily to higher water handling
costs on Langur, combined with lower production volumes.
These costs were expensed in the second quarter, affecting the
overall per barrel operating costs in the quarter in which they
have been recognized. Transportation costs have been reduced
from $14.87/boe and $14.36/boe in the third and fourth quarters of
2014 respectively to $12.25/boe in
the current quarter. These savings have been achieved through
a combination of negotiations with service providers, positive
foreign exchange movements and utilizing the lowest cost
transportation routes, such as routing most of the Company's
production from the Suroriente block through the Ecuador OCP
pipeline where direct transportation costs are between $10 and $11/boe.
Current Financial Status
The Company, as of the date of this press release, holds
approximately $25 million in cash,
$11 million in estimated working
capital, and over $13 million in
restricted cash. On April 19,
2015, the Company repaid the Canadian dollar denominated
$35 million debenture that had been
in place since April 2012 using
cash-on-hand and is currently debt free. The Company is
currently projecting that as a direct result of cost savings
initiatives, improvements in the realized oil price, and changes to
the capital spending plans for the current year, it will maintain
sufficient cash to meet all of its planned commitments throughout
the rest of 2015 and into early 2016.
2015 Second Half Guidance
The Company is targeting gross company share production (net
before royalty) for full-year 2015 of 3,600 boepd.
Petroamerica's expected capital spending projection for the
same period is approximately $8.5
million. Given the continued volatility of the oil
markets, the Company will continue to review its production and
capital guidance for the rest of the year.
Operations Update
Company working interest ('WI') production (before
royalties) for the second quarter of 2015 averaged 3,634 boepd,
with 2,106 boepd coming from the Llanos Basin and 1,528 boepd from
the Putumayo Basin. Production for the first half of 2015
averaged 4,108 boepd, approximately 2% below the April guidance
estimate of 4,200 boepd due to the cumulative impact of a number of
minor factors. In Suroriente, the shortfall was primarily due
to the deferral of several pump repairs (Cohembi-14, Cohembi-2, and
Quinde-6) and an 8-day period in June when normal transportation
was reduced to 25% of production capacity as a result of local
community road blockages. In the Las Maracas field, two key oil
wells were temporarily shut in until repairs were completed in
July, and downtime was incurred for the Las Maracas-15 well while
conducting a recompletion to access and test oil zones with
additional production potential. For the month of July, total
Company WI production was 3,210 boepd. The Las Maracas
recompletion and well repair activity carried into July, and the
field is now returning to normal operations. The
recompletions at Las Maracas-5 and Las Maracas-15 were conducted to
enhance field production by opening new low watercut zones in favor
of previous high watercut zones. The Las Maracas-15 well has
stabilized at approximately 1,286 boepd (643 boepd net to the
Company before royalty) at below 70% watercut. The Las
Maracas-5 well has tested at 1% watercut, but has not established a
stable rate and the evaluation is ongoing. Company working
interest production to August 23 was
approximately 3,770 boepd, and with the recent Las Maracas
recompletion contribution, has been approximately 4,104 boepd for
the most recent 6 days up to August
23.
In the Suroriente block, Petroamerica and the operator have been
continuously evaluating options to conduct the well repairs and
also reactivate the development drilling program in a
cost-effective manner and taking into account current oil
prices.
2015/2016 Program Update
Following the acquisition of PetroNova, and including wells
already scheduled by Petroamerica, a number of high impact
exploration prospects are expected to be drilled in the near-term.
A summary of exploration, appraisal and development operations
expected for the remainder of 2015 and early 2016 is outlined in
the following table:
Prospect/Well
|
|
Activity
Type
|
|
Block
|
|
Working
Interest
|
|
Expected
Timing/Status
|
Tautaco
|
|
Exploration
|
|
LLA-10
|
|
50%
(carried)1
|
|
Q4 2015
|
Crypto
|
|
Exploration
|
|
El Porton
|
|
100%
|
|
Q1 2016
|
Cumplidor N
Sand
|
|
Appraisal
|
|
PUT-7
|
|
50%
|
|
Q1 2016
|
Tinigua-1
|
|
Exploration
|
|
Tinigua
|
|
40%
(carried)2
|
|
1H 2016
|
Cohembi-16
NSand3
|
|
Development
|
|
Suroriente
|
|
15.8%
|
|
Q1 2016
|
Cohembi-17
NSand3
|
|
Development
|
|
Suroriente
|
|
15.8%
|
|
Q1 2016
|
|
|
|
|
|
|
|
|
|
|
|
- PTA's share of capital for drilling the Tautaco well is 5.5% of
the well costs, with the remainder being fully carried under a
farm-in arrangement with Parex Resources Inc.
- Under the farm-in agreement with Metapetroleum, PTA will pay
10% of capital for drilling the Tinigua-1 well, and retain a 40%
working interest. Drilling costs for an optional
second well will be fully carried by Metapetroleum up to
$7 million.
- Contingent on oil price
We have recently received contract phase extensions from the ANH
for the PUT-7, LLA-19 and the El Porton blocks. The Company
is continuing to move forward with activities to drill the required
wells within this time frame, and has recently submitted an
environmental license application to the regulatory authority for
drilling of the Cumplidor N Sand prospect on PUT-7.
|
|
|
|
PETROAMERICA OIL
CORP.
|
Condensed
Consolidated Interim Statements of Financial
Position
|
|
|
As
at
|
|
As
at
|
|
June 30,
|
|
December
31,
|
(thousands of United
States dollars)
|
2015
|
|
2014
|
|
|
|
|
Assets
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
23,504
|
|
$
|
73,296
|
|
Trade and other
receivables
|
10,202
|
|
13,825
|
|
Prepayments and
deposits
|
4,021
|
|
463
|
|
Crude oil
inventory
|
2,096
|
|
2,096
|
|
|
|
|
|
39,823
|
|
89,680
|
|
|
|
|
Non-current
assets
|
|
|
|
|
Restricted
cash
|
13,516
|
|
11,065
|
|
Property, plant and
equipment
|
121,016
|
|
134,711
|
|
Exploration and
evaluation assets
|
56,494
|
|
54,974
|
|
|
|
|
|
191,026
|
|
200,750
|
|
|
|
|
Total
assets
|
$
|
230,849
|
|
$
|
290,430
|
|
|
|
|
Liabilities
|
|
|
|
Current
liabilities
|
|
|
|
|
Current equity
tax
|
$
|
206
|
|
$
|
-
|
|
Current income
tax
|
19
|
|
2,459
|
|
Accounts payable and
accrued liabilities
|
22,006
|
|
38,803
|
|
Notes
payable
|
-
|
|
29,933
|
|
|
|
|
|
22,231
|
|
71,195
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
Decommissioning
liabilities
|
10,424
|
|
9,939
|
|
Deferred tax
liability
|
27,613
|
|
26,750
|
|
Stock appreciation
rights liability
|
1,056
|
|
1,554
|
|
|
|
|
Total
liabilities
|
61,324
|
|
109,438
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
Share
capital
|
226,492
|
|
226,492
|
|
Contributed
surplus
|
25,143
|
|
24,638
|
|
Translation
reserve
|
(9,362)
|
|
(6,366)
|
|
Deficit
|
(72,748)
|
|
(63,772)
|
|
|
|
|
|
169,525
|
|
180,992
|
|
|
|
|
Total liabilities
and shareholders' equity
|
$
|
230,849
|
|
$
|
290,430
|
|
|
|
|
PETROAMERICA OIL
CORP.
|
Condensed
Consolidated Interim Statements of Income (Loss) and Comprehensive
Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30
|
|
Six months ended June
30
|
(thousands of United
States dollars, except per share amounts)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil revenue - net of
royalties
|
|
$
|
15,873
|
|
$
|
47,825
|
|
$
|
32,928
|
|
$
|
99,527
|
|
|
15,873
|
|
47,825
|
|
32,928
|
|
99,527
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
|
|
(4,841)
|
|
(2,948)
|
|
(9,250)
|
|
(4,992)
|
|
Transportation
|
|
(4,078)
|
|
(10,172)
|
|
(9,806)
|
|
(21,513)
|
|
Purchased
oil
|
|
-
|
|
-
|
|
-
|
|
(1,625)
|
|
Exploration and
evaluation
|
|
-
|
|
(263)
|
|
-
|
|
(354)
|
|
Depletion and
depreciation
|
|
(7,034)
|
|
(9,417)
|
|
(16,084)
|
|
(18,950)
|
|
Colombian equity
tax
|
|
-
|
|
-
|
|
(501)
|
|
-
|
|
General and
administration
|
|
(3,612)
|
|
(3,738)
|
|
(5,428)
|
|
(6,473)
|
|
Transaction
costs
|
|
(10)
|
|
(1,229)
|
|
(10)
|
|
(1,229)
|
|
Share-based
payments
|
|
85
|
|
(1,793)
|
|
(112)
|
|
(1,992)
|
|
|
(19,490)
|
|
(29,560)
|
|
(41,191)
|
|
(57,128)
|
|
Finance and
other
|
|
(430)
|
|
(1,209)
|
|
(1,940)
|
|
(2,501)
|
|
Foreign exchange gain
(loss)
|
|
884
|
|
(3,849)
|
|
2,827
|
|
1,843
|
|
|
454
|
|
(5,058)
|
|
887
|
|
(658)
|
Income (loss)
before income taxes
|
|
(3,163)
|
|
13,207
|
|
(7,376)
|
|
41,741
|
Current income tax
expense
|
|
(116)
|
|
(9,296)
|
|
(779)
|
|
(15,810)
|
Deferred tax recovery
(expense)
|
|
1,255
|
|
2,520
|
|
(821)
|
|
(1,888)
|
Net income (loss)
for the period
|
|
(2,024)
|
|
6,431
|
|
(8,976)
|
|
24,043
|
Other
comprehensive income (loss)
|
|
|
|
|
|
|
|
|
Items that may be
reclassified subsequently to income or (loss):
|
|
|
|
|
|
|
|
|
|
|
|
Reserve on
translation of foreign operations
|
|
(604)
|
|
2,131
|
|
(2,996)
|
|
(2,051)
|
Total
comprehensive income (loss)
|
|
$
|
(2,628)
|
|
$
|
8,562
|
|
$
|
(11,972)
|
|
$
|
21,992
|
Basic income
(loss) per share
|
|
$
|
(0.02)
|
|
$
|
0.11
|
|
$
|
(0.10)
|
|
$
|
0.40
|
Diluted income
(loss) per share
|
|
$
|
(0.02)
|
|
$
|
0.10
|
|
$
|
(0.10)
|
|
$
|
0.39
|
Weighted average
number of basic
common shares
outstanding
|
|
87,252,085
|
|
59,627,870
|
|
87,252,085
|
|
59,491,594
|
Weighted average
number of diluted
common shares
outstanding
|
|
87,252,085
|
|
61,569,229
|
|
87,252,085
|
|
61,432,953
|
|
|
|
|
|
|
|
|
|
PETROAMERICA OIL
CORP.
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Interim Statements of Changes in Equity
|
|
(thousands of United
States dollars)
|
|
Share
Capital
|
|
Contributed
surplus
|
|
Translation
reserve
|
|
Deficit
|
|
Total
equity
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January
1, 2015
|
|
$
|
226,492
|
|
$
|
24,638
|
|
$
|
(6,366)
|
|
$
|
(63,772)
|
|
$
|
180,992
|
|
|
|
|
|
|
|
|
|
|
|
Net loss for the
period
|
|
-
|
|
-
|
|
-
|
|
(8,976)
|
|
(8,976)
|
Other comprehensive
loss
|
|
-
|
|
-
|
|
(2,996)
|
|
-
|
|
(2,996)
|
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive loss
|
|
-
|
|
-
|
|
(2,996)
|
|
(8,976)
|
|
(11,972)
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
payments
|
|
-
|
|
505
|
|
-
|
|
-
|
|
505
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June
30, 2015
|
|
$
|
226,492
|
|
$
|
25,143
|
|
$
|
(9,362)
|
|
$
|
(72,748)
|
|
$
|
169,525
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(thousands of United
States dollars)
|
|
Share
Capital
|
|
Contributed
surplus
|
|
Translation
reserve
|
|
Deficit
|
|
Total
equity
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January
1, 2014
|
|
$
|
138,936
|
|
$
|
24,079
|
|
$
|
(1,172)
|
|
$
|
(25,745)
|
|
$
|
136,098
|
|
|
|
|
|
|
|
|
|
|
|
Net income for the
period
|
|
-
|
|
-
|
|
-
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
PETROAMERICA OIL
CORP.
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Interim Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30
|
|
Six months ended June
30
|
(thousands of United
States dollars)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
Operating
activities
|
|
|
|
|
|
|
|
|
Net income (loss) for
the year
|
|
$
|
(2,024)
|
|
$
|
6,431
|
|
$
|
(8,976)
|
|
$
|
24,043
|
Items not involving
cash:
|
|
|
|
|
|
|
|
|
|
Share-based
payments
|
|
(85)
|
|
1,793
|
|
112
|
|
1,992
|
|
Depletion and
depreciation
|
|
7,034
|
|
9,417
|
|
16,084
|
|
18,950
|
|
Unrealized foreign
exchange (gain) loss
|
|
(706)
|
|
2,807
|
|
(3,059)
|
|
(2,601)
|
|
Deferred tax expense
(recovery)
|
|
(1,255)
|
|
(2,520)
|
|
821
|
|
1,888
|
|
Accretion and
amortization
|
|
58
|
|
294
|
|
333
|
|
577
|
|
|
3,022
|
|
18,222
|
|
5,315
|
|
44,849
|
|
Net changes in
non-cash working capital
|
|
(2,896)
|
|
(16,341)
|
|
(20,922)
|
|
4,229
|
Cash provided by
(used in) operating activities
|
|
126
|
|
1,881
|
|
(15,607)
|
|
49,078
|
|
|
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
Short term investing
activities
|
|
-
|
|
(30,099)
|
|
-
|
|
(29,990)
|
Exploration and
evaluation expenditures
|
|
(130)
|
|
(717)
|
|
(1,520)
|
|
(2,075)
|
Property, plant and
equipment expenditures
|
|
(589)
|
|
(4,394)
|
|
(1,540)
|
|
(14,331)
|
Restricted cash
investments
|
|
(2,451)
|
|
-
|
|
-
|
|
-
|
Cash used in
investing activities
|
|
(3,170)
|
|
(35,210)
|
|
(5,511)
|
|
(46,396)
|
|
|
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
Repayment of
long-term debt
|
|
(28,674)
|
|
-
|
|
(28,674)
|
|
-
|
Stock options
exercised
|
|
-
|
|
35
|
|
-
|
|
35
|
Warrants
exercised
|
|
-
|
|
1,036
|
|
-
|
|
1,987
|
Cash provided by
financing activities
|
|
(28,674)
|
|
1,071
|
|
(28,674)
|
|
2,022
|
|
|
|
|
|
|
|
|
|
Increase
(decrease) in cash and cash equivalents during the
period
|
|
(31,718)
|
|
(32,258)
|
|
(49,792)
|
|
4,704
|
Cash and cash
equivalents, beginning of period
|
|
55,222
|
|
100,699
|
|
73,296
|
|
63,737
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, end of period
|
|
$
|
23,504
|
|
$
|
68,441
|
|
$
|
23,504
|
|
$
|
68,441
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, potential future acquisitions and other statements,
expectations, 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.
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.