CUT BANK, MT,
April 23, 2014 /PRNewswire/ -
Mountainview Energy Ltd. ("Mountainview" or the "Company") (TSXV:
MVW) is pleased to announce its operating and financial results for
the year ended December 31, 2013. The
Company also announces that its audited financial statements and
management's discussion and analysis for the year ended
December 31, 2013, is available on
SEDAR at www.sedar.com, and on Mountainview's website at
www.mountainviewenergy.com.
During 2013, Mountainview continued to build its
production and reserve base through the drill bit, which resulted
in an increase in revenue and funds flow from operations.
Highlights of Mountainview's successful 2013 are
as follows:
- Completed an organic capital program of $46.9 million, including the drilling of 8 gross
(4.8 net) wells at a 100% success rate.
- Increased average Q4 production by 510% to 1,183 boe/d, while
increasing the oil & liquids weighting to 88% from 74% in the
prior period quarter.
- Funds flow from operations increased by a multiple of 30.3
times year over year, with $6.5
million for the year ended December
31, 2013, as compared to ($0.2) for the year ended December 31, 2012.
- Generated operating netbacks of $38.84 per boe in 2013, an increase of 23% when
compared to $29.14 per boe in
2012.
Certain selected financial and operational
information for the three and twelve months ended December 31, 2013 and 2012 is outlined below and
should be read in conjunction with Mountainview's audited financial
statements for the years ended December 31,
2013 and 2012 and the accompanying management discussion and
analysis filed with the Canadian securities regulatory authorities
which may be accessed through the SEDAR website (www.sedar.com) and
also on the Company's website: www.mountainviewenergy.com.
| |
Three months ended December
31 |
Twelve months ended December
31 |
| |
2013 |
2012 |
% Change |
2013 |
2012 |
% Change |
| Financial (US $ 000's, except per share
amounts) |
|
|
|
|
|
|
| Petroleum and natural gas sales |
7,418 |
690 |
975% |
20,527 |
3,560 |
477% |
| Funds flow from operations
(1) |
2,085 |
150 |
1290% |
6,453 |
(220) |
-3033% |
| Per share basic |
0.02 |
nil |
N/A |
0.07 |
nil |
N/A |
| Per share diluted |
0.02 |
nil |
N/A |
0.06 |
nil |
N/A |
| Net income (loss) |
(3,141) |
(7,345) |
-57% |
(5,974) |
(8,397) |
-29% |
| Per share basic |
(0.04) |
(0.08) |
-58% |
(0.07) |
(0.10) |
-29% |
| Per share diluted (2) |
(0.04) |
(0.08) |
-49% |
(0.07) |
(0.10) |
-30% |
| Capital expenditures (3) |
16,584 |
6,296 |
163% |
48,707 |
10,365 |
370% |
| Net debt (4) |
59,244 |
19,804 |
199% |
59,244 |
19,804 |
199% |
| Operating |
|
|
|
|
|
|
| Average daily production |
|
|
|
|
|
|
| Light crude oil (bbl per day) |
1,039 |
143 |
627% |
644 |
147 |
338% |
| Natural gas (Mcf per day) |
864 |
306 |
182% |
632 |
285 |
122% |
| Barrels of oil equivalent (boe per day,
6:1) |
1,183 |
194 |
510% |
749 |
195 |
285% |
| % Oil and NGLs |
88% |
74% |
123% |
86% |
76% |
119% |
| Average sales price |
|
|
|
|
|
|
| Light crude oil ($ per bbl) |
77.02 |
52.26 |
47% |
86.20 |
63.06 |
37% |
| Natural gas ($ per Mcf) |
2.94 |
3.45 |
-15% |
2.98 |
1.59 |
87% |
| Barrels of oil equivalent ($ per boe, 6:1) |
68.16 |
44.55 |
53% |
75.08 |
49.63 |
51% |
| Operating netback ($ per boe)
(5) |
|
|
|
|
|
|
| Petroleum and natural gas sales |
68.16 |
44.55 |
53% |
75.08 |
49.63 |
51% |
| Royalties |
(13.49) |
(5.88) |
-129% |
(12.18) |
(4.21) |
-189% |
| Operating expenses |
(20.08) |
(39.33) |
49% |
(24.06) |
(25.09) |
4% |
| Operating netback |
34.59 |
(0.66) |
-5341% |
38.84 |
20.33 |
91% |
| Wells drilled |
|
|
|
|
|
|
| Gross |
2.0 |
- |
- |
8.0 |
9.0 |
-11% |
| Net |
1.4 |
- |
- |
4.8 |
0.4 |
1100% |
| Success (%) |
100 |
- |
- |
100 |
100 |
0% |
| Common Shares |
|
|
|
|
|
|
| Shares outstanding, end of period |
87,820,443 |
87,245,443 |
1% |
87,820,443 |
87,245,443 |
1% |
| |
|
|
|
|
|
|
|
(1) |
Funds flow from operations should not
be considered an alternative to, or more meaningful than, cash flow
from operating activities as determined in accordance with
International Financial Reporting Standards as an indicator of
Mountainview's performance. Funds flow from operations represents
cash flow from operating activities prior to changes in non-cash
working capital, transaction costs and decommissioning provision
expenditures incurred. Mountainview also presents funds flow from
operations per share whereby per share amounts are calculated using
weighted average shares outstanding consistent with the calculation
of earnings per share. |
|
(2) |
Due to the anti-dilutive effect of
Mountainview's net loss for the three months and year ended
December 31, 2013 and 2012, the diluted number of shares is equal
to the basic number of shares. Therefore, diluted per share amounts
of the net loss are equivalent to basic per share amounts.
(2) Capital expenditures is a non-GAAP measure
calculated as the purchase or sale price of an asset, plus
development capital expenditures added to PP&E. Corporate
acquisitions are excluded from this measure. |
|
(3) |
Capital expenditures are a non-GAAP
measure, calculated as the purchase or sale price of an asset, plus
development capital expenditures added to PP&E. Corporate
acquisitions are excluded from this measure. |
|
(4) |
Net debt is a non-GAAP measure
representing the total of bank indebtedness, accounts payables and
accrued liabilities, less accounts receivables, deposits and
prepaid expenses. |
|
(5) |
Operating netback is a non-GAAP
measure calculated as the average per boe of the Company's oil and
gas sales plus realized gains on derivatives, less royalties,
operating and transportation expenses. |
Corporate
As highlighted by the Company's year-end
financial and operational results, Mountainview added significant
production, resulting in substantial growth in oil and natural gas
sales, while also showing an increase in funds flow from operations
and per boe netbacks. This is the result of strong financial
discipline and a focused and successful capital plan. The
results of the 2013 capital plan further de-risked the 12 Gage
asset, adding a sizeable infill drilling inventory with capital
efficiencies associated with pad drilling.
Mountainview's strategic shift to drilling
higher working interest wells in 2013, versus lower working
interest wells drilled in 2012, delivered positive results
evidenced by the growth in revenue and operating netbacks.
Financial
At year-end 2013, Company net debt, was
approximately $59.2 million and the
Company had $39.3 drawn on its
available credit facility of $51.2
million. Funds flow from operations for 2013 increased
significantly from 2012, reaching $6.5
million.
In response to exposure to volatility of
differentials from WTI and industry concerns with respect to
transportation restrictions in the Williston Basin, which translated into
realized prices ranging from $71.27
per barrel of oil in Q1, to $90.61
per barrel of oil in Q3, 2013, the Company has entered into a
financial hedging program commencing in January, 2014.
Mountainview has 30% of its production hedged for Q1, 2014, with a
floor of $85.00 and a ceiling of
$97.70. The Company plans to
actively manage its hedging program as its production base
grows.
Operations
The Company's 2013 capital plan, including all
drilling operations, was focused on its core 12 Gage asset in
Divide County, N.D. The
$46.9 million capital program in 2013
included the drilling of 8 wells (4.8 net), with a 100% success
rate. At year end, there were 2 wells (1.8 net) that had been
drilled and were awaiting completion. The Company has
selectively increased its working interest in its assets whenever
appropriate as it has become more experienced operationally.
This experience has resulted in decreased capital costs on a per
well basis from $8.3 million per well
to $6.3 million per well.
Outlook
Mountainview has continued to deliver on its
strategy of production and reserve growth. With anticipated
2014 funds flow from operations in excess of $8 million, and available credit on its existing
credit facility, Mountainview will continue to focus on the
development of its core 12 Gage asset in Divide County, N.D.
The Company will continue to pursue an
aggressive growth strategy using a combination of cash flow and
available credit. Recent positive movement in both oil
pricing and the WTI oil differentials, combined with the Company's
new hedge position, allows Mountainview to remain confident in the
long term sustainability of the 2014 capital plan.
With the de-risking of the 12 Gage drilling
inventory, Mountainview has identified 72 infill Three Forks locations. Adding Bakken
potential, there are an additional 80 drilling locations, all on
the 12 Gage acreage. With 152 potential drilling
locations on the 12 Gage acreage, Mountainview is strongly
positioned to review acquisition opportunities to further diversify
and enhance the Company's commodity and play type risk.
About Mountainview
Mountainview Energy Ltd. is a public oil and gas
company listed on the TSX Venture Exchange, with a primary focus on
the exploration, production and development of the Bakken and Three
Forks Shale in the Williston Basin
and the South Alberta Bakken.
Forward-Looking Statements
Certain information contained in this press
release constitutes forward-looking statements. Statements
relating to "reserves" are deemed to be forward-looking statements
as they involve the implied assessment, based on certain estimates
and assumptions, that the reserves described exist in the
quantities predicted or estimated and can be profitably produced in
the future. By their nature, forward-looking statements are subject
to numerous risks and uncertainties, some of which are beyond the
Company's control including the impact of general economic
conditions, industry conditions, volatility of commodity prices,
currency fluctuations, environmental risks, competition from other
industry participants, the lack of availability of qualified
service providers, personnel or management, stock market volatility
and ability to access sufficient capital from internal and external
sources, inability to meet or continue to meet listing
requirements, the inability to obtain required consents, permits or
approvals and the risk that actual results will vary from the
results forecasted and such variations may be material.
Readers are cautioned that the assumptions used in the preparation
of such information, although considered reasonable at the time of
preparation may prove to be imprecise and, as such, undue reliance
should not be placed on forward-looking statements. The Company's
actual results, performance or achievement could differ materially
from those expressed in or implied by, these forward-looking
statements and, accordingly, no assurance can be given that any of
the events anticipated by the forward-looking statements will
transpire or occur, or if any of them do so, what benefits the
Company will derive therefrom.
The forward-looking statements contained in
this press release are made as of the date of this press
release. Mountainview disclaims any intention and assumes no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by applicable securities laws. Additionally,
Mountainview undertakes no obligation to comment on the
expectations of, or statements made by, third parties in respect of
the matters discussed above.
Barrels of Oil Equivalent
The term barrels of oil equivalent ("boe")
may be misleading, particularly if used in isolation. A boe
conversion ratio of six thousand cubic feet of natural gas to one
barrel of oil equivalent (6 mcf/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.
Given that the value ratio based on the current price of crude oil
as compared to natural gas is significantly different from the
energy equivalency of 6:1, utilizing a conversion on a 6:1 basis
may be misleading as an indication of value. All boe conversions in
this report are derived from converting gas to oil in the ratio of
six thousand cubic feet of gas to one barrel of oil.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
SOURCE Mountainview Energy Ltd.