Triton Announces 2007 Operational and Financial Results
18 April 2008 - 9:00AM
Marketwired Canada
Triton Energy Corp. ("Triton" or the "Corporation") (TSX VENTURE:TEZ) announces
financial results for the year and three months ended December 31, 2007. Triton
has filed its audited financial statements for the years ended December 31, 2007
and 2006, and the accompanying Management's Discussion and Analysis with
Canadian securities regulatory authorities. These filings are available for
review at www.sedar.com and on the Corporation's website, www.tritonenergy.ca.
2007 Highlights
- Capital expenditures totaled $17.5 million;
- Triton participated in the drilling of nineteen (15.3 net) wells resulting in
ten (8.425 net) natural gas wells, two (2.0 net) oil wells and seven (4.875 net)
dry holes;
- Production averaged 629 barrels of oil equivalent per day compared to 130
barrels of oil equivalent per day in 2006;
- Fourth quarter production averaged 780 barrels of oil equivalent per day
compared with 516 barrels of oil equivalent in the fourth quarter of 2006;
- Petroleum and natural gas sales totaled $9.17 million compared with $1.95
million in 2006;
- Funds from operations totaled $3.42 million compared with $0.33 million in
2006, representing $0.12 per common share (basic and diluted) compared with
$0.01 per common share (basic and diluted) in 2006 (see non-GAPP note in
Financial Summary table below);
- Based on total reserve additions of 1,320 thousand barrels of oil equivalent,
finding and development costs, including changes in future development costs,
improved to $19.96 per barrel of oil equivalent on a proved reserves basis and
$14.95 per barrel of oil equivalent on a proved plus probable reserves basis
compared to $24.80 and $19.41, respectively, in 2006;
- The Corporation closed two bought deal private placement financings for gross
proceeds of $10.0 million by issuing 9,383,524 common shares on a flow-through
basis at an average price of $1.07 per flow-through common share;
- The Corporation exited 2007 with an average daily production rate of
approximately 925 barrels of oil equivalent, a small working capital deficiency
and no bank debt.
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Financial Summary
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Year Ended Three months ended
December 31, December 31,
2007 2006 2007 2006
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Financial ($000's except for per
share amounts) (unaudited) (unaudited)
Petroleum and natural gas sales 9,170 1,952 2,808 1,952
Funds from operations(1) 3,420 326 782 859
Per share basic(1) 0.12 0.01 0.02 0.04
Per share diluted(1) 0.12 0.01 0.02 0.03
Net earnings (loss) (1,356) (637) (467) (174)
Per share basic & diluted(2) (0.05) (0.03) (0.01) (0.01)
Working capital (798) 4,049 (798) 4,049
Capital expenditures(3) 17,507 11,508 4,216 4,164
Total assets 32,096 23,353 32,096 23,353
Shareholders' equity 25,846 18,670 25,846 18,670
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Notes
(1) Funds from operations is a non-GAAP term and the Corporation calculates
this measure as cash provided from operations before changes in non-cash
operating working capital.
(2) At December 31, 2007 there were 3,175,000 options to purchase common
shares and 300,000 non-transferable common share warrants outstanding
that have not been included in the calculation of the weighted average
shares outstanding as the effect would be anti-dilutive.
(3) Excludes asset retirement obligations.
Operating Summary
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Year Ended Three months ended
December 31, December 31,
2007 2006 2007 2006
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Operating
Production
Crude oil & NGL's (bbls per day) 22 - 44 -
Natural gas (mcf per day) 3,638 780 4,416 3,094
BOE per day (6:1) 629 130 780 516
Netback per boe (6:1)
Petroleum and natural gas sales $ 39.96 $ 41.15 $ 39.12 $ 41.15
Royalties $ (9.66) $ (8.87) $ (9.82) $ (8.87)
Operating expenses $ (7.79) $ (5.89) $ (9.19) $ (5.89)
Transportation expenses $ (1.53) $ (1.49) $ (1.51) $ (1.49)
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Operating netback $ 20.98 $ 24.90 $ 18.60 $ 24.90
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Selected Reserves Information (1)
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Total proved 2007 2006
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Oil and NGL (mbbls) 295 37
Natural gas (mmcf) 5,446 2,457
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Total (mboe) 1,202 446
% Natural gas 75% 92%
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Total proved plus probable
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Oil and NGL (mbbls) 466 71
Natural gas (mmcf) 7,248 3,074
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Total (mboe) 1,674 583
% Natural gas 72% 88%
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Notes
(1) The Corporation's reserves were independently evaluated by AJM Petroleum
Consultants ("AJM") as of December 31, 2007 in accordance with NI
51-101. Additional information on the Corporation's reserves can be
found in the Annual Information Form ("AIF") on SEDAR at www.sedar.com
or the Corporation's website at www.tritonenergy.ca.
Outlook
Triton has a 2008 capital budget of $16.1 million, which includes drilling up to
fourteen (14 net) wells. Funding for this capital program is expected to be
derived essentially from cash flow and available credit facilities. To date in
2008, the Corporation has drilled four 100% working interest operated wells
resulting in two natural gas wells and two dry holes. Triton plans to commence
tie-in operations in the second quarter, following spring break-up, and drill up
to ten (10.0 net) additional wells in 2008.
At Sullivan Lake, the Corporation recently acquired an option on 14 sections of
undeveloped land, increasing Triton's total land holdings in the area to 29
sections. With five (4.93 net) wells currently on production and 24 sections of
undeveloped land, Sullivan Lake has become a core property for the Corporation.
Triton has recently completed shooting 9.5 square miles of proprietary 3-D
seismic over a portion of these lands and plans to drill a test well on the
option lands in the second quarter, following spring break-up.
The Corporation expects first quarter 2008 production to average approximately
875 barrels of oil equivalent per day with an estimated 300+ barrels of oil
equivalent of additional daily production awaiting evaluation and tie-in.
Additionally, there are numerous asset and corporate acquisition opportunities
available at this time and the Corporation believes similar opportunities will
continue to be available during 2008. Triton has evaluated several opportunities
this year and will continue to do so, primarily targeting corporate acquisition
opportunities that would augment organic growth and enable Triton to gain
operational mass, thereby increasing shareholder value.
Triton is a Calgary, Alberta based corporation engaged in the exploration,
development and production of petroleum and natural gas. The Corporation's
common shares are listed on the TSX Venture Exchange under the trading symbol
"TEZ".
Forward-Looking Statements
This news release may include forward-looking statements including opinions,
assumptions, estimates and management's assessment of future plans and
operations, budgeted capital expenditures and the method of funding thereof,
wells to be drilled, timing of drilling of wells, timing of completion and
tie-in of wells and commencement of production from wells and expected
production levels. When used in this document, the words "anticipate,"
"believe," "estimate," "expect," "intent," "may," "project," "plan", "should"
and similar expressions are intended to be among the statements that identify
forward-looking statements. Forward-looking statements are subject to a wide
range of risks and uncertainties, and although the Corporation believes that the
expectations represented by such forward-looking statements are reasonable,
there can be no assurance that such expectations will be realized. Any number of
important factors could cause actual results to differ materially from those in
the forward-looking statements including, but not limited to, risks associated
with oil and gas exploration, development, exploitation, results from testing,
production, marketing and transportation, the volatility of oil and gas prices,
currency fluctuations, the ability to implement corporate strategies, the state
of domestic capital markets, the ability to obtain financing, incorrect
assessment of the value of acquisitions, failure to realize the anticipated
benefits of acquisitions, changes in oil and gas acquisition and drilling
programs, delays resulting from inability to obtain required regulatory
approvals, delays resulting from inability to obtain drilling rigs and other
services, delays in tie-in operations, results from testing, environmental
risks, competition from other producers, imprecision of reserve estimates,
changes in general economic conditions and other factors more fully described
from time to time in the reports and filings made by Triton with securities
regulatory authorities. Readers are cautioned not to place undue reliance on
forward-looking statements, as no assurances can be given as to future results,
levels of activity or achievements. Except as required by applicable securities
laws, the Corporation does not undertake any obligation to publicly update or
revise any forward-looking statements.
Finding and development costs are calculated by dividing the sum of exploration
and development costs incurred in the most recent financial year plus the change
during the most recent financial year in estimated future development costs
relating to the reserves in question, by the reserve additions being considered
(being proved or proved and probable reserves) on a barrels of oil equivalent
basis. The aggregate of the exploration and development costs incurred in the
most recent financial year and the change during that year in estimated future
development costs generally will not reflect total finding and development costs
related to reserve additions for that year.
Disclosure provided herein in respect of barrels of oil equivalent ("boe") may
be misleading, particularly if used in isolation. A boe conversion ratio of
6,000 cubic feet of natural gas to 1 barrel of oil is based on an energy
equivalency conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead.
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