Triton Announces First Quarter 2009 Results
28 May 2009 - 6:36AM
Marketwired Canada
Triton Energy Corp. (TSX VENTURE:TEZ) ("Triton" or the "Corporation") announces
financial and operating results for the three months ended March 31, 2009.
Triton has filed its interim financial statements for the three months ended
March 31, 2009 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.
Highlights of the First Quarter of 2009
- Production averaged 909 boe per day compared to 888 boe per day during the
first quarter of 2008.
- The Corporation's realized sales price for petroleum and natural gas was 37%
lower compared to the first quarter of 2008, the results of which are reflected
in the Corporation's petroleum and natural gas sales, funds from operations and
net income (loss).
- Petroleum and natural gas sales were $2.56 million compared to $4.02 million
in the first quarter of 2008.
- Funds from operations were $0.71 million ($0.02 per share basic and diluted)
compared to $1.76 million ($0.05 per share basic and diluted) in the first
quarter of 2008.
- The Corporation had a net loss of $701,980 ($0.02 per share basic and diluted)
compared to net income of $9,141 ($0.00 per share basic and diluted) in the
first quarter of 2008.
- Capital expenditures totaled $4.23 million (2008 - $3.66 million), of which
$2.90 million was spent on drilling and completions, $0.80 million on land and
seismic and $0.53 million on facilities.
- Triton participated in the drilling of two (2.0 net) wells resulting in one
(1.0 net) shut-in operated natural gas well and one (1.0 net) dry hole.
Financial Summary
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Three months ended March 31,
2009 2008
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Financial ($000's except for per share amounts) (unaudited) (unaudited)
Petroleum and natural gas sales 2,557 4,023
Funds from operations(1) 713 1,760
Per share basic & diluted(1)(2) 0.02 0.05
Net earnings (loss) (702) 9
Per share basic & diluted(2) (0.02) 0.00
Working capital surplus (deficiency) (5,951) (2,694)
Capital expenditures(3) 4,226 3,656
Total assets 38,000 32,593
Shareholders' equity 25,088 23,091
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Common Shares (000's)
Shares outstanding, end of period 40,708 34,532
Weighted average common shares - basic & diluted 40,891 34,532
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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 March 31, 2009 there were 3,675,000 options to purchase common shares
and 900,000 non-transferable common share purchase 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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Three months ended March 31,
2009 2008
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Operating
Production
Crude oil & NGL's (bbls per day) 63 39
Natural gas (mcf per day) 5,076 5,091
BOE per day (6:1) 909 888
Netback per boe (6:1)
Petroleum and natural gas sales $ 31.24 $ 49.80
Royalties $ (6.69) $ (11.63)
Operating expenses $ (9.79) $ (9.85)
Transportation expenses $ (1.79) $ (1.76)
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Operating netback $ 12.97 $ 26.56
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Outlook
Average daily production volumes during the second quarter of 2009 are expected
to be similar to those in the first quarter. Current production is estimated to
be approximately 930 boe per day, comprised of approximately 95% natural gas and
5% petroleum. Triton's current production is from 11.0 (10.9 net) operated wells
and one (0.5 net) non-operated well.
Petroleum prices have recently rebounded to a six-month high above US$60 per
barrel from a low below US$33 per barrel in December 2008. Natural gas prices,
however, are down more than 33% year-to-date and continue to remain weak as
supply concerns persist. As a result, we expect revenue from petroleum and
natural gas sales in the second quarter of 2009 to be lower than in the first
quarter of the year resulting in a further reduction in funds from operations in
the second quarter of 2009. Consequently, the Corporation intends to reduce
capital expenditures in the second quarter of 2009.
Triton currently plans to drill two (2.0 net) operated wells in its core areas
following breakup in June. One of these wells will be located in the South
Sullivan Lake area targeting medium gravity oil in the Ellerslie formation at a
depth of approximately 1,200 meters. The second well will be located in the
Newton area targeting natural gas in the Ellerslie and Sparky formations at a
depth of approximately 1,225 meters.
While some economic indicators have recently shown signs of improvement, access
to capital markets for junior petroleum and natural gas producers remains very
restricted. Low commodity prices, particularly for natural gas, are continuing
to reduce cash flows while corporate debt levels are increasing. Consolidation
in the marketplace seems inevitable and may be the most viable way for junior
petroleum and natural gas producers to grow production, reserves and shareholder
values. Accordingly, the Corporation has been and will continue to review
potential merger and acquisition opportunities.
An updated presentation is available for viewing on the Corporation's website at
www.tritonenergy.ca. The presentation includes an internal estimate of Triton's
net asset value at March 31, 2009 based on a mechanical update of the
Corporation's reserves prepared by AJM Petroleum Consultants ("AJM") using AJM's
forecast prices at March 31, 2009.
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 and Cautionary Statements
This news release may include forward-looking statements including opinions,
assumptions, estimates and management's assessment of future plans and
operations, capital expenditures, number and location of wells to be drilled,
timing of drilling of wells, average daily production volumes, commodity prices,
revenue from petroleum and natural gas sales and funds from operations. 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, 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.
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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