Border Announces Financial Results
23 November 2011 - 10:08AM
Marketwired Canada
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED
STATES.
Border Petroleum Corp. (TSX VENTURE:BOR) ("Border" or the "Corporation") is
pleased to report its financial results for the quarter ended September 30,
2011. The unaudited financial statements and Management's Discussion & Analysis
("MD&A") have been filed on SEDAR (www.sedar.com).
During its second quarter, the Corporation continued execution of its business
plan to build its reserves and production base through the oil focused
development of its interests in the Red Earth and Leduc areas of Alberta.
HIGHLIGHTS
-- During its second quarter, the Corporation announced the closing of a
business combination with Canflame Energy Ltd. ("Canflame") pursuant to
which Border acquired all of the issued and outstanding shares and
debentures of Canflame in consideration for the issuance of 36,537,826
common shares of Border ("Common Shares") (the "Transaction"). Pursuant
to the Transaction, Border acquired approximately 20,794 net acres (32.5
sections) of land primarily in central Alberta and the greater Red Earth
area of north central Alberta.
-- Average daily production for the three and six month periods ended
September 30, 2011 were 236 boe and 133 boe, respectively compared to 40
boe and 37 boe respectively for the same periods last year representing
increases of 490% and 260% respectively.
SUBSEQUENT EVENTS
-- On October 25, 2011, the Corporation announced that, with respect to its
new joint venture with the Loon River Cree Nation (the "Nation")
previously announced on May 5, 2011, the Nation had authorized Indian
Oil and Gas Canada ("IOGC"), pursuant to a fully executed band council
resolution, to issue Border an IOGC permit covering an expanded 27
sections (6,912 hectares) of Slave Point rights in the Red Earth area of
northern Alberta (the "Loon River Cree Nation Permit") providing the
following:
-- a 5-year permit term during which Border has the right to earn the
entire 27 section block by drilling 6 horizontal test wells into the
Slave Point formation (the "Test Wells") on a rolling option basis,
with a minimum of two Test Wells in the first year and one Test Well
in each year thereafter, and payment of a permit bonus of
approximately $3.9 million;
-- for each Test Well drilled, Border earns the right to a 4.5 section
(1,152 hectare) lease (the "Lease") for a term of 5 years to the
base of the deepest formation penetrated and a royalty rate
equivalent to Alberta crown incorporating the Horizontal Oil New
Well Royalty Rate with a 10% minimum and no gross overriding royalty
payable; and
-- Border will pay 100% of all costs related to each Test Well and
Lease for a 100% before and 100% after payout working interest in
both the Test Well and the lands under the 4.5 section Lease with no
carried working interest provision.
-- On November 8, 2011 the Corporation announced a bought deal offering
(the "Offering") by way of short form prospectus with a syndicate of
underwriters led by Canaccord Genuity Corp. and which includes Macquarie
Capital Markets Canada Ltd., National Bank Financial Inc., Dundee
Securities Ltd., Haywood Securities Inc. and Fraser Mackenzie Limited
(collectively, the "Underwriters"). The Offering will consist of the
issuance of 71,500,000 Common Shares at a price of $0.21 per Common
Share and 20,000,000 common shares of the Corporation issued on a flow-
through basis pursuant to the Income Tax Act (Canada) (the "Flow-Through
Shares") at a price of $0.25 per Flow-Through Share for aggregate gross
proceeds of $20,015,000.
-- Subsequently on November 8, 2011 the Corporation announced that the
Underwriters agreed to increase the size of the Offering to an aggregate
of 81,000,000 Common Shares at a price of $0.21 per Common Share and
24,000,000 Flow-Through Shares at a price of $0.25 per Flow-Through
Share for aggregate gross proceeds of $23,010,000. The Corporation also
announced that the closing of the Offering is expected to occur on or
about November 30, 2011 and is subject to certain conditions including,
but not limited to, issuance of the Loon River Cree Nation Permit and
all necessary regulatory approvals, including the approval of TSX
Venture Exchange Inc.
-- Border's average production rate for September 2011 was 344 boe/d with
current production estimated at 320 boe/d, based on field reports.
FINANCIAL SUMMARY
Certain selected financial and operational information for the quarter ended
September 30, 2011 is set out below and should be read in conjunction with the
Corporation's unaudited September 30, 2011 and audited March 31, 2011 financial
statements and related MD&A. The following table provides a summary of key
financial results.
Financial THREE MONTHS ENDED SIX MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
2011 2010 2011 2010
-------------- ---------------------------- --------------
Petroleum and
natural gas
revenues $ 873,376 $ 220,209 $ 1,115,592 $ 401,312
Funds flow from
operations (409,646) (63,676) (798,626) (274,074)
per share - basic
and diluted (0.00) (0.00) (0.01) (0.01)
Net (loss) (772,233) (220,749) (1,218,481) (458,873)
per share - basic
and diluted (0.01) (0.01) (0.01) (0.02)
Capital
expenditures 15,906,347 410,839 20,949,212 1,490,369
Weighted average
shares outstanding
basic and diluted 102,305,944 18,616,068 86,446,119 18,616,068
Operating
Production
Oil and liquids
(bbls/d) 85 34 55 30
Natural gas
(mcf/d) 905 37 468 38
Oil equiavlent
(boe/d) 236 40 133 37
Sales price per unit
Oil and liquids
($/bbl) 71.65 66.34 78.44 66.83
Natural gas
($/mcf) 3.75 4.15 3.77 4.19
Oil equiavlent
($/boe) 40.23 60.00 45.74 59.69
OUTLOOK
Following closing of the Offering, Border intends to significantly accelerate
development at Red Earth by drilling horizontal wells rather than through the
re-entry of suspended vertical wells which earned Border its initial Red Earth
land position. This Slave Point horizontal drilling program at Red Earth is
expected to commence in January 2012. Other than one vertical Ellerslie zone
re-entry and the stimulation of an existing Nisku zone horizontal oil well,
Border's continued development plans at Leduc will be delayed until summer.
Forward-Looking Statements
The forward-looking statements contained in this document are based on certain
key expectations and assumptions made by Border, including with respect to,
expectations and assumptions concerning timing of receipt of required regulatory
approvals. Although Border 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 Border 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.
The forward-looking statements contained in this document are made as of the
date hereof and Border 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.
BOE
BOEs may be misleading, particularly if used in isolation. A BOE conversion
ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.
Border Petroleum (TSXV:BOR)
Historical Stock Chart
From Jun 2024 to Jul 2024
Border Petroleum (TSXV:BOR)
Historical Stock Chart
From Jul 2023 to Jul 2024
