Pan Orient Energy Corp. ("Pan Orient") (TSX VENTURE:POE) is pleased to provide
highlights of its 2011 third quarter consolidated financial and operating
results. Please note that all amounts are in Canadian dollars unless otherwise
stated and BOPD refers to barrels of oil per day net to Pan Orient.
The Corporation will file today its unaudited condensed consolidated financial
statements as at and for the three and nine months ended September 30, 2011 and
related management's discussion and analysis with Canadian securities regulatory
authorities. Copies of these documents may be obtained online at www.sedar.com
or the Corporation's website, www.panorient.ca.
2011 THIRD QUARTER HIGHLIGHTS
-- Pan Orient had total corporate funds flow from operations of $13.2
million for the third quarter of 2011 compared with $13.3 million for
the second quarter of 2011 and $15.4 million for the third quarter of
2010. Funds flow from operations per share (basic) was $0.23 for the
third quarter of 2011. For the nine months ended September 30, 2011, Pan
Orient had total corporate funds flow from operations of $38.8 million,
or $0.71 per share (basic).
-- Net income attributable to common shareholders of $3.9 million, or $0.07
per share (basic), for the third quarter of 2011 compared with net
income attributable to common shareholders of $4.6 million ($0.08 per
share - basic) for the second quarter of 2011 and $5.4 million ($0.11
per share - basic) for the third quarter of 2010. For the nine months
ended September 30, 2011, Pan Orient had net income attributable to
common shareholders of $12.4 million, or $0.23 per share (basic).
-- Total capital expenditures for the third quarter of 2011 were $15.4
million, with $10.3 million in Thailand and $5.0 million in Indonesia.
For the first nine months of 2011, total capital expenditures have been
$57.8 million, with $38.1 million in Thailand primarily for the drilling
of 20 gross wells, $19.5 million in Indonesia for exploration activities
relating to the four Production Sharing Contracts ("PSC's") and the
drilling of two wells at the Batu Gajah PSC, and $0.2 million in Canada.
For the first nine months of 2011, capital expenditures in Thailand have
been funded by Thailand funds flow from operations, and the capital
expenditures in Indonesia and Canada have been funded from the $1.4
million of free cash flow from Thailand and $18.4 million from working
capital.
-- At September 30, 2011 Pan Orient had $58.0 million of working capital
and non-current deposits, and no long-term debt. In addition, Pan Orient
had $12.0 million of equipment inventory to be utilized for future
Thailand and Indonesia operations which is included in exploration and
evaluation costs on the balance sheet. As at September 30, 2011
estimated commitments in Indonesia were $31.9 million for the Batu
Gajah, Citarum and South CPP PSC's, plus an estimated $7.3 million in
commitments associated with the East Jabung PSC which was formally
granted on November 21, 2011. Estimated commitments in Thailand at
September 30, 2011 were $0.9 million, principally for the drilling of
two additional wells in Concession L53.
-- Indonesia
-- At the Batu Gajah PSC on-shore Sumatra (Pan Orient operator and 97%
ownership), Pan Orient commenced the exploration drilling program in
late March 2011.
-- The Tuba Obi Utara-1 (NTO-1) exploration well drilled at the end
of the first quarter and into the second quarter encountered
10.5 feet of gas pay within good-quality sand near the top of
the Lower Talang Akar formation ("LTAF"). The follow-up NTO-1ST
side track well encountered the same LTAF gas sand formation
identified at the NTO-1 well, but of lower reservoir quality.
Initial drilling results at North Tuba Obi are encouraging with
proven gas in the LTAF and oil shows in the Upper Talang Akar
sand. The first Appraisal of the North Tuba Obi gas discovery,
NTO-2 is planned to be drilled in the first quarter of 2012 at a
location approximately 5.5 kilometers east and 200 meters
structurally higher than the NTO-1 discovery well. NTO-2 will be
targeting natural gas in the LTAF and oil in the overlying Upper
Talang Akar and Air Benakat sandstone zones.
-- The SE Tiung-1 exploration well drilled in June and into July
encountered oil shows and good quality sands within the primary
Lower Talang Akar target horizon but wire line logging indicated
the zone to be water bearing. The secondary objective of the
Gumai and Upper Talang Akar formation sands were also present,
but interpreted as being water bearing. The results at SE Tiung-
1 have no bearing whatsoever on the prospectivity of the
upcoming two well program planned for the first quarter of 2011
and we remain confident in the overall hydrocarbon potential of
the Batu Gajah PSC.
-- Two wells are planned for the Batu Gajah PSC in the first
quarter of 2012 with the North Tuba Obi Utara-2 (NTO-2)
exploration / appraisal well and Shinta-1 exploration well. The
Company is currently focused on finalizing a comprehensive
surface access agreement which includes the use of roads and
land area for well pads with the Indonesian company which holds
the forestry surface rights. This agreement is estimated to be
in place by year end.
-- At the Citarum PSC on-shore Java (Pan Orient operator and 77%
ownership), one location (Jatayu-1) has been completed and a second
location (Cataka-1) is approximately 90% complete after having
experienced some delay as a result of annual monsoon rains. Surface
casing has been set on both wells utilizing a service rig and
drilling rig mobilization on to the Cataka-1 location is planned to
commence on November 26th with drilling to commence in early to mid-
December. Construction on the third location of Geulis-1 will
commence shortly after the completion of construction on Cataka-1.
All three wells are planned to be drilled back to back starting with
Cataka-1 in the first half of December 2011.
-- East Jabung PSC was formally granted on a 100% basis to Pan Orient
on November 21, 2011. The 6,228 square kilometer East Jabung PSC is
located on and offshore south Sumatra Indonesia, and directly east
and adjacent to the company's 97% working interest and operated Batu
Gajah PSC. The firm three year exploration commitment (including two
wells and seismic) for the East Jabung PSC totals $7.3 million.
-- Thailand
-- Average 2011 oil sales in Thailand in the third quarter of 2011 of
2,000 BOPD with 1,181 BOPD from Concession L44, 502 BOPD from
Concession L53, 200 BOPD from Concession SW1 and 117 BOPD from
Concession L33. This compares with 2,052 BOPD in the second quarter
of 2011 and 4,211 BOPD in the third quarter of 2010.
-- Funds flow from Thailand operations was $13.1 million for the third
quarter of 2011 ($71.33 per barrel) compared with $13.5 million for
the second quarter of 2011 ($72.27 per barrel). Funds flow from
Thailand operations decreased 3% in the third quarter of 2011 due to
a 3% decrease in oil sales volumes and a 1% decrease in the realized
price for crude oil, partially offset a decrease in current income
taxes.
For the third quarter of 2011, transportation expenses were $2.16
per barrel, operating expenses and other royalty $12.80 per barrel,
general and administrative expenses $5.49 per barrel and amounts to
the Thailand government of $6.54 per barrel resulted in after tax
funds flow from operations per barrel of $71.33. The Company's
realized price for crude oil per barrel of CDN$98.29 represents 87%
of the Brent reference price for crude oil of CDN$112.47 per barrel,
and 110% of the WTI reference price for crude oil of CDN$89.50 per
barrel. For the third quarter of 2011, Thailand crude oil revenue of
$98.29 per barrel was allocated 21% to expenses for transportation,
operating, and general & administrative, 7% to the government of
Thailand in the form of royalties, Special Remuneratory Benefit
("SRB") and Income Tax, and 72% to Pan Orient.
-- During the third quarter of 2011 Pan Orient drilled five wells (3.0
net wells) in Thailand with capital expenditures of $10.3 million.
Four wells were drilled at Concession L44 with the NSW-A exploration
well, the L44-G2 appraisal well in the Na Sanun East field, a
development well at the NSE-F1 field and the POR-6B appraisal well
at the Wichian Buri field, and the NS-2A appraisal well was drilled
in Concession SW1. In addition, the WBEXT-1D well drilled in late
2010 was sidetracked.
-- In the first nine months of 2011 Pan Orient has drilled 20 wells
(14.0 net wells) with total capital expenditures in Thailand of
$38.1 million.
-- Pan Orient has drilled five wells in Concession L53 (Pan Orient
operator and 100% ownership) including three development wells,
the L53-B appraisal well, and the appraisal to the L53-D well
which was drilled in 2009. Capital costs of $13.8 million to
September 30, 2011 include this five well drilling program plus
capital costs associated with the L53-C exploration well which
spudded on December 30, 2010. This five well drilling program
has resulted in three producing sandstone oil wells and oil
produced from the appraisal wells under their 90 day test
periods. These wells added 395 BOPD of oil sales in the third
quarter of 2011 and 322 BOPD in October.
-- Pan Orient has drilled four wells at the WBEXT field in
Concession L44 (Pan Orient operator and 60% ownership) including
one development well, one appraisal well, and two exploration
wells. Capital costs to September 30, 2011 of $7.0 million
include this four well program, the sidetrack to the WBEXT-1D
well drilled in December 2010, plus capital costs of $1.4
million associated wells spudded in December 2010 that continued
drilling into 2011. This has resulted in the WBEXT-1E and WBEXT-
1F wells producing from sandstone zones, the WBEXT-2B well
producing from the WBV2 volcanic zone, and the WBEXT-1D
sidetrack producing from the WBV1 Volcanic zone. Appraisal of
the "E" sand reservoir in the main WBEXT fault compartment will
be a near term focus of drilling activity in 2012 after
Environmental Impact Approval is received for drilling
locations. The WBEXT-1F exploration well resulted in the
discovery of new "D" and "E" sandstone reservoir pools in the
WBEXT-1F fault compartment for which there will be follow-up
appraisal drilling in 2012. The WBEXT-2B appraisal well is
producing from the WBEXT WBV2 volcanic zone. The three new wells
plus the WBEXT-1D side track added 267 BOPD of oil sales in the
third quarter of 2011 and 144 BOPD in October.
-- Another five exploration wells and two appraisal wells and two
development wells were drilled in Concession L44 (Pan Orient
operator and 60% ownership) at a cost of $9.5 million. The two
development wells at POR-6B and NSE-F6 resulted in two producing
oil wells (one from the "G" sandstone zone and one from the
volcanic zone), and the two appraisal wells resulted in one new
oil well producing from the "G" sandstone zone. The Company had
limited success in the five exploration wells drilled at Si
Thep, Na Sanun East (the NSE-E4 well) and three new exploration
areas (L44-E, L44-F, and NSW-A) which did not add oil
production. The three new wells (POR-6A, POR-6B and NSE-F6 added
228 BOPD in October.
-- The NS-2A appraisal well was drilled in Concession SW1 at a
capital cost of $0.5 million. This well is on production from
the volcanic zone and added 66 BOPD of oil sales in the third
quarter of 2011 and 61 BOPD in October.
-- Pan Orient drilled the L33-4 exploration well in Concession L33
(Pan Orient operator and 60% ownership) and completed side track
operations at the L33-2 well to evaluate the WBV1 volcanic
reservoir at the L33-2 well with a capital cost of $3.0 million.
These wells are shut-in.
Thailand Operations Update
Recent flooding in Thailand related to the historically high annual monsoon
rains has had, and is expected to have, no impact on Thailand production and
drilling operations.
Thailand production was 2,000 BOPD in the third quarter of 2011 and is currently
approximately 1,960 BOPD with six new wells and one sidetrack well planned to be
completed prior to year-end 2011 on Concession L44 and Concession L53 in
addition to one new ICD technology recompletion on an existing well in L44
within the Bo Rang "B" volcanic reservoir. The vast majority of the production
declines since the last update are attributed to a single well (NSE-F6) which
declined from 600 BOPD net to 35 BOPD net in the intervening period.
Each of the remaining four development wells and 1 sidetrack well are estimated
to be capable of initial production rates in excess of 300 BOPD per well net to
Pan Orient. Year end production will be heavily influenced by: 1) the initial
production rates observed in these yet to be drilled wells, 2) the decline rates
these wells exhibit prior to year end, and 3) the results of the two well
exploration program on concession L53.
The initial results of an ICD controlled in flow technology pilot on the
BR-1RDST1 have been very encouraging with production at approximately 215
barrels of oil per day gross (129 BOPD net to Pan Orient) which is up 165
barrels of oil per day gross from the 50 barrels of oil per day gross production
rate prior to the ICD recompletion. Current plans are to run one additional ICD
recompletion prior to year end on an existing horizontal well within the Bo Rang
"B" field and evaluate the results prior to making a decision on the
redevelopment using ICD controlled in flow technology of the NSE Central, NSE
South, NSE-E1, Bo Rang "A" and Bo Rang "B" fields.
Environmental approval is anticipated for up to 15 wells in the WBEXT "E" and
"D" sandstone reservoir area at the end of December 2011, with an aggressive
sandstone development program to follow in January 2012 (assuming environmental
approval is granted at the upcoming December 30, 2011 meeting with the
Government of Thailand environmental regulator). At least three sandstone
exploration targets in close proximity to the WBEXT reservoir area are also
planned to be drilled in 2012 and these locations are covered by the
environmental approval referred to above.
The L53-D2 (L53-D East) and L53-G exploration wells at Concession L53 are
planned to commence drilling multiple stacked sandstone reservoir targets in
mid-December 2011. A 200 square kilometer 3D survey in Concession L53 is being
considered for the second quarter of 2012 targeting an area which has minimal
data coverage between Pan Orient's oil producing wells and a recent oil
discovery made by a competitor to the North, adjacent to the concession
boundary.
Thailand Drilling Update
Concessions L44, L33 & SW1 (Pan Orient 60% working interest and Operator)
L33-2A Exploration Well
The L33-2A exploration well targeted the unproven WBV2 volcanic zone below the
proven oil producing WBV1 volcanic reservoir. Excellent fracturing was indicated
by the drilling mud losses observed while drilling; however, only water was
recovered on test.
BR-2ST3 Development Well
The BR-2ST3 deviated development well tested at an initial rate of approximately
306 BOPD net to Pan Orient and no water from the Bo Rang "A1" volcanic
reservoir. The current production rate is approximately 70 BOPD net to Pan
Orient with a stable water cut of approximately 30%.
BR-4ST1 Development Well
The BR-4ST1 development was targeting the Bo Rang "A1" reservoir at a location
approximately 850 meters east of BR-2ST3 development well. Just prior to
drilling the main target section the directional assembly ("MWD") was removed as
is common practice in order to reduce the risk of sticking the MWD in the hole
when massive drilling fluid losses are experienced in the target reservoir. A
subsequent deviation survey indicated that the well deviated coming out of the
casing shoe, just missing the top of the intended target. The well has been
suspended with plans to re-enter the hole and drill into the intended target
prior to year end.
NSE-F7 Horizontal Development Well
The NSE-F7 well encountered extensive fracturing within the target volcanic
formation with over 2,000 barrels of fluid losses observed while drilling. The
well is currently on production at a stabilized rate of 442 barrels of oil per
day gross (264 BOPD net to Pan Orient) with a stabilized water cut of 40%. This
well is a likely candidate for future ICD recompletion.
NSE-F5 Horizontal Development Well
The NSE-F5 horizontal well is currently setting casing just above target
approximately 1.4 kilometers east of the NSE-F7 well.
Andora Energy Corporation Update
Andora Energy Corporation, a private oil company in which Pan Orient has 53%
ownership, has an oil sands project in the Sawn Lake area of Northern Alberta
and initiated a process earlier this year to identity and consider strategic
alternatives. No binding proposals to purchase the Company or farm-in to the
asset have been received to date and the process continues.
In the first quarter of 2011 Andora acquired an additional 10% working interest
in the Sawn Lake Central and North Blocks with the issuance of 4,433,031
non-voting special warrants of Andora (with each special warrant entitling the
holder thereof to receive one common share of Andora upon the happening of a
liquidity event involving Andora). If a liquidity event is not completed by
November 25, 2011 the acquired interests will be re-conveyed back to the vendor
and the warrants will be cancelled.
Pan Orient is a Calgary, Alberta based oil and gas exploration and production
company with operations currently located onshore Thailand, Indonesia and in
Western Canada.
This news release contains forward-looking information. Forward-looking
information is generally identifiable by the terminology used, such as "expect",
"believe", "estimate", "should", "anticipate" and "potential" or other similar
wording. Forward-looking information in this news release includes, but is not
limited to, references to: well drilling programs and drilling plans, estimates
of reserves and potentially recoverable resources, and information on future
production and project start-ups. By their very nature, the forward-looking
statements contained in this news release require Pan Orient and its management
to make assumptions that may not materialize or that may not be accurate. The
forward-looking information contained in this news release is subject to known
and unknown risks and uncertainties and other factors, which could cause actual
results, expectations, achievements or performance to differ materially,
including without limitation: imprecision of reserve estimates and estimates of
recoverable quantities of oil, changes in project schedules, operating and
reservoir performance, the effects of weather and climate change, the results of
exploration and development drilling and related activities, demand for oil and
gas, commercial negotiations, other technical and economic factors or revisions
and other factors, many of which are beyond the control of Pan Orient. Although
Pan Orient believes that the expectations reflected in its forward-looking
statements are reasonable, it can give no assurances that the expectations of
any forward-looking statements will prove to be correct.
-------------------------------------------------
Financial and Operating Three Months Ended Nine Months Ended
Summary September 30, September 30, Change
(thousands of Canadian
dollars except where
indicated) 2011 2010 2011 2010
----------------------------------------------------------------------------
FINANCIAL
----------------------------------------------------------------------------
Oil revenue, before
royalties and
transportation expense 18,083 27,050 55,053 74,524 -26%
Funds flow from operations
(Note 1) 13,165 15,412 38,809 41,209 -6%
Per share - basic $ 0.23 $ 0.32 $ 0.71 $ 0.85 -17%
Per share - diluted $ 0.23 $ 0.31 $ 0.71 $ 0.82 -14%
Funds flow from operations
by region (Note 1)
Canada 20 (33) (384) 814 -147%
Thailand 13,123 15,370 39,477 40,490 -3%
Indonesia 22 75 (284) (95) 199%
-------------------------------------------------
Total 13,165 15,412 38,809 41,209 -6%
-------------------------------------------------
Net income attributable to
common shareholders 3,882 5,405 12,418 13,691 -9%
Per share - basic $ 0.07 $ 0.11 $ 0.23 $ 0.28 -19%
Per share - diluted $ 0.07 $ 0.11 $ 0.23 $ 0.27 -6%
Working capital 52,756 23,897 52,756 23,897 121%
Working capital & non-
current deposits 58,016 27,746 58,016 27,746 109%
Long-term debt - - - - -
Capital expenditures (Note
2) 15,364 11,012 57,831 47,690 21%
Acquisitions - Indonesia
(Note 3) - - 1,761 -
Acquisitions - Sawn Lake,
Canada (Note 3) - - 3,192 -
Shares outstanding
(thousands) 56,685 48,619 56,685 48,619 17%
----------------------------------------------------------------------------
Funds Flow from Operations
per Barrel (Note 1)
----------------------------------------------------------------------------
Canada operations $ 0.11 $ (0.08)$ (0.67)$ 0.78 -186%
Thailand operations 71.33 39.67 68.91 38.76 78%
Indonesia operations 0.12 0.19 (0.50) (0.09) 451%
-------------------------------------------------
$ 71.56 $ 39.78 $ 67.74 $ 39.45 72%
----------------------------------------------------------------------------
Capital Expenditures (Note
2)
----------------------------------------------------------------------------
Canada 22 185 236 595 -60%
Thailand 10,310 8,694 38,069 31,695 20%
Indonesia 5,032 2,133 19,526 15,400 27%
-------------------------------------------------
Total 15,364 11,012 57,831 47,690 21%
----------------------------------------------------------------------------
Working Capital and Non-
current Deposits
----------------------------------------------------------------------------
Working capital & non-
current deposits -
beginning of period 60,469 24,029 31,396 32,738 -4%
Funds flow from
operations (Note 1) 13,165 15,412 38,809 41,209 -6%
Capital expenditures
(Note 2) (15,364) (11,012) (57,831) (47,690) 21%
Acquisitions - Indonesia
(Note 4) - - (1,417) -
Non-cash settlement of
Andora receivable - - - (600)
Foreign exchange impact
on working capital (254) (772) (557) (1,247) -55%
Net proceeds on share
transactions - 89 47,616 3,336 1327%
-------------------------------------------------
Working capital & non-
current deposits - end of
period 58,016 27,746 58,016 27,746 109%
----------------------------------------------------------------------------
Canada Operations
----------------------------------------------------------------------------
Interest income 109 15 269 29 828%
General and administrative
(expense) recovery (Note
5) (157) (67) (462) 670 -169%
Realized foreign exchange
gain (loss) 68 19 (191) 172 -211%
Foreign new ventures
expenditures - - - (57)
-------------------------------------------------
Funds flow from operations
(Note 1) 20 (33) (384) 814 -147%
-------------------------------------------------
-------------------------------------------------
Funds flow from operations
per barrel
Interest income $ 0.59 $ 0.04 $ 0.47 $ 0.03 1466%
General and
administrative expense
(Note 5) (0.85) (0.17) (0.81) 0.64 -226%
Realized foreign exchange
gain (loss) 0.37 0.05 (0.33) 0.16 -308%
Foreign new ventures
expenditures - - - (0.05)
-------------------------------------------------
$ 0.11 $ (0.08)$ (0.67)$ 0.78 -186%
----------------------------------------------------------------------------
Indonesia Operations
----------------------------------------------------------------------------
General and administrative
recovery (expense) (Note 5) 22 75 (284) (95) 199%
-------------------------------------------
Wells drilled
Gross - - 2 -
Net - - 2.0 -
----------------------------------------------------------------------------
--------------------------------------------------
Three Months Ended Nine Months Ended
September 30, September 30,
(thousands of Canadian
dollars except where
indicated) 2011 2010 2011 2010 Change
----------------------------------------------------------------------------
THAILAND OPERATIONS
----------------------------------------------------------------------------
Oil sales (bbls) 183,973 387,444 572,867 1,044,601 -45%
Average daily oil sales
(bbls/d) by Concession
L44 1,181 3,842 1,322 3,577 -63%
SW1 200 146 142 174 -18%
L33 117 - 160 -
L53 502 223 474 75 528%
--------------------------------------------------
Total 2,000 4,211 2,098 3,826 -45%
--------------------------------------------------
Average oil sales price,
before transportation
(CDN$/bbl) $ 98.29 $ 69.82 $ 96.10 $ 71.34 35%
Reference Price (volume
weighted) and
differential
Exchange Rate $US/$Cdn 0.99 1.04 0.99 1.04 -5%
Crude oil (WTI $US/bbl) $ 90.31 $ 76.82 $ 95.65 $ 77.78 23%
Sales price / WTI
reference price 110% 88% 102% 88% 14%
Crude oil (Brent
$US/bbl) $ 113.49 $ 77.07 $ 111.95 $ 77.35 45%
Sale price / Brent
reference price 87% 87% 87% 88% -1%
Funds flow from operations
(Note 1)
Crude oil sales 18,083 27,050 55,053 74,524 -26%
Government royalty (894) (1,725) (2,777) (4,698) -41%
Other royalty (51) (26) (136) (47) 190%
Transportation expense (398) (970) (1,274) (2,636) -52%
Operating expense (2,314) (2,502) (6,848) (6,649) 3%
--------------------------------------------------
14,426 21,827 44,018 60,494 -27%
General and
administrative expense
(Note 5) (1,011) (937) (2,636) (3,370) -22%
Interest income 6 5 64 57 12%
Special Remuneratory
Benefit tax (SRB) - (1,957) - (4,863) -100%
Current income tax (298) (3,568) (1,969) (11,828) -83%
--------------------------------------------------
Funds flow from
operations 13,123 15,370 39,477 40,490 -3%
--------------------------------------------------
--------------------------------------------------
Funds flow from operations
/ barrel (CDN$/bbl) (Note
1)
Crude oil sales $ 98.29 $ 69.82 $ 96.10 $ 71.34 35%
Government royalty (4.92) (4.45) (4.94) (4.50) 10%
Other royalty (0.22) (0.07) (0.15) (0.04) 271%
Transportation expense (2.16) (2.50) (2.22) (2.52) -12%
Operating expense (12.58) (6.46) (11.95) (6.36) 88%
--------------------------------------------------
78.41 56.34 76.84 57.92 33%
General and
administrative expense
(Note 5) (5.49) (2.42) (4.60) (3.23) 42%
Interest Income 0.03 0.01 0.11 0.05 123%
Special Remuneratory
Benefit (SRB) - (5.05) - (4.66) -100%
Current income tax (1.62) (9.21) (3.44) (11.32) -70%
--------------------------------------------------
Thailand - Funds flow
from operations $ 71.33 $ 39.67 $ 68.91 $ 38.76 78%
--------------------------------------------------
--------------------------------------------------
Government royalty as
percentage of crude oil
sales 5.0% 6.4% 5.0% 6.3% -1.3%
SRB as percentage of crude
oil sales 0.0% 7.2% 0.0% 6.5% -6.5%
Income tax as percentage
of crude oil sales 1.6% 13.2% 3.6% 15.9% -12.3%
As percentage of crude oil
sales
Expenses -
transportation,
operating, G&A and
other 20.9% 16.4% 19.8% 17.0% 2.8%
Government royalty, SRB
and income tax 6.6% 26.8% 8.6% 28.7% -20.1%
Funds flow from
operations, before
interest income and
realized foreign
exchange gain 72.5% 56.8% 71.6% 54.3% 17.3%
Wells drilled
Gross 5 7 20 19 5%
Net 3.0 4.2 14.0 11.4 23%
----------------------------------------------------------------------------
(1) Funds flow from operations ("funds flow" before changes in non-cash working
capital and reclamation costs) is used by management to analyze operating
performance and leverage. Funds flow as presented does not have any standardized
meaning prescribed by IFRS and therefore it may not be comparable with the
calculation of similar measures of other entities. Funds flow is not intended to
represent operating cash flow or operating profits for the period nor should it
be viewed as an alternative to cash flow from operating activities, net earnings
or other measures of financial performance calculated in accordance with IFRS.
(2) Cost of capital expenditures, excluding any asset retirement obligation and
excluding the impact of changes in foreign exchange rates.
(3) Cost of acquisitions, including deemed value of equity issued in the
transaction.
(4) Cost of acquisitions, excluding deemed value of equity issued in the
transaction.
(5) General & administrative expenses, excluding non-cash accretion on
decommissioning provision.
To view the maps and drilling chart associated with this press release, please
visit the following link: http://media3.marketwire.com/docs/poe_maps.pdf
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