CALGARY,
March 22, 2013 /CNW/ - Invicta Energy
Corp. ("Invicta" or the "Company") (TSXV: VCA) is pleased to report
its financial and operating results for year ended December 31, 2012. Invicta's audited
financial statements and related management's discussion and
analysis for three months and year ended December 31, 2012 have been filed and are
available on the SEDAR website at www.sedar.com and may also be
obtained on Invicta's website at www.invictaenergy.ca.
During 2012 Invicta continued the development of
its Lucky Hills light oil resource play at Kindersley, Saskatchewan. The following
are the financial and operating highlights of the year:
- Drilled 22 gross (12.1 net) Viking horizontal oil wells at
Lucky Hills resulting in a 140% increase in average production
volumes to 348 boe/d from 145 boe/d in 2011.
- Increased proved plus probable ("2P") reserves 39% to 3,541
mboe as per the December 31,
2012 independent reserve report prepared by Fekete
Engineering Assoc.
- Increased funds flow from operations per share by 250% to
$0.07/share ($5.2 million) from $0.02/share ($0.9
million) last year. Achieved fourth quarter funds flow per
share for 2012 of $0.02/share
($1.8 million), more than double the
$0.8 million reported last year.
- Achieved positive earnings by the end of the first quarter of
2012 and annual earnings of $1.3
million ($0.02/share) for the
year as compared to a loss of $0.6
million or ($0.01/share) last
year.
- Invicta financed the 2012 capital program with funds flow from
operations and advances on the Company's credit facility. The
credit facility at December 31, 2012
was $16.5 million ($9.5 million drawn). On January 15, 2013 the credit facility was raised
to $18.0 million.
Subsequent Event:
- On March 18, 2013, the Company
announced that it entered into an arrangement agreement with
Whitecap Resources Inc. for a total transaction value of
approximately $60.2 million,
including the assumption of net debt. The March 18, 2013 press release is available on the
SEDAR website at www.sedar.com and may also be obtained on
Invicta's website at www.invictaenergy.ca.
HIGHLIGHTS
|
|
|
|
|
Three months ended
December 31, |
|
Year ended
December 31, |
|
2012 |
2011 |
|
2012 |
2011 |
|
(unaudited) |
|
|
|
|
|
|
Operations |
|
|
|
|
|
|
|
|
|
|
|
Drilling |
|
|
|
|
|
|
|
|
|
|
|
|
Oil wells (net) |
|
7.0(3.9) |
|
|
2.0(1.1) |
|
|
22.0(12.1) |
|
|
11.0(6.7) |
|
|
|
|
|
|
|
|
|
|
|
|
Proved plus Probable Reserves
(mboe) |
|
3,541 |
|
|
2,545 |
|
|
3,541 |
|
|
2,545 |
|
|
|
|
|
|
|
|
|
|
|
|
Undeveloped land holdings (net
acres) |
|
51,900 |
|
|
41,900 |
|
|
51,900 |
|
|
41,900 |
|
|
|
|
|
|
|
|
|
|
|
|
Average daily production |
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil (bbls/d) |
|
396 |
|
|
174 |
|
|
290 |
|
|
100 |
|
Natural gas (mcf/d) |
|
234 |
|
|
359 |
|
|
349 |
|
|
268 |
|
Total equivalent (boe/d) |
|
435 |
|
|
234 |
|
|
348 |
|
|
145 |
|
|
|
|
|
|
|
|
|
|
|
|
Average product
prices(1) |
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil (Cdn $/bbl) |
$ |
78.77 |
|
$ |
93.40 |
|
$ |
81.76 |
|
$ |
91.31 |
|
Natural gas (Cdn $/mcf) |
$ |
3.05 |
|
$ |
2.94 |
|
$ |
2.14 |
|
$ |
3.46 |
|
Total equivalent (Cdn $/boe) |
$ |
73.32 |
|
$ |
73.99 |
|
$ |
70.24 |
|
$ |
69.52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Royalties (Cdn $/boe) |
$ |
3.92 |
|
$ |
4.05 |
|
$ |
2.80 |
|
$ |
5.36 |
|
Production and operating costs (Cdn
$/boe) |
$ |
10.62 |
|
$ |
11.78 |
|
$ |
10.69 |
|
$ |
15.41 |
|
Operating netback(1) (Cdn $/boe)
|
$ |
58.78 |
|
$ |
58.16 |
|
$ |
56.75 |
|
$ |
48.75 |
|
|
|
|
|
|
|
|
|
|
|
|
Financial |
|
|
|
|
|
|
|
|
|
|
|
Petroleum and natural gas
revenue |
$ |
2,932,566 |
|
$ |
1,492,370 |
|
$ |
8,931,887 |
|
$ |
3,673,844 |
Funds flow from operations
(2) |
$ |
1,777,396 |
|
$ |
817,696 |
|
$ |
5,200,749 |
|
$ |
903,091 |
|
Per share - basic and diluted |
$ |
0.02 |
|
$ |
0.01 |
|
$ |
0.07 |
|
$ |
0.02 |
Earnings (loss) |
$ |
496,994 |
|
$ |
95,082 |
|
$ |
1,326,174 |
|
$ |
(634,675) |
|
Per share - basic and diluted |
$ |
0.01 |
|
$ |
0.00 |
|
$ |
0.02 |
|
$ |
(0.01) |
Capital expenditures |
$ |
5,533,278 |
|
$ |
4,221,591 |
|
$ |
15,119,289 |
|
$ |
11,228,542 |
Net debt (2) |
$ |
13,021,372 |
|
$ |
3,104,894 |
|
$ |
13,021,372 |
|
$ |
3,104,894 |
Shares outstanding (000)
|
|
75,609 |
|
|
75,467 |
|
|
75,609 |
|
|
75,467 |
Weighted average shares |
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding (000) |
|
75,609 |
|
|
56,923 |
|
|
75,576 |
|
|
48,770 |
(1) |
|
Excluding gains on derivative contracts. |
|
|
|
(2) |
|
The term 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 IFRS as an indicator of
the Company's performance. Funds flow from operating activities is
a non-IFRS measure that represents loss and comprehensive loss
before non-cash items such as depletion, depreciation and
amortization, accretion expense, share-based compensation,
issuances of shares for services, deferred tax and unrealized gain
on derivative contracts. Per share amounts are calculated
using weighted average shares outstanding consistent with the
calculation of loss per share. Other industry benchmarks and terms
such as net debt and operating netback are not recognized measures
under IFRS. Management believes these are useful supplemental
measures of, firstly, the total amount of current and long-term
debt the Company has, and secondly, the amount of revenues received
after the royalties and operating costs. Net debt is a term which
represents current assets less current liabilities, excluding
assets or liabilities related to derivative contracts, and is used
to assess efficiency, liquidity and the general financial strength
of the Company. Readers are cautioned, however, that these measures
should not be construed as an alternative to other terms such as
current debt or net earnings in accordance with IFRS as measures of
performance. The Company's method of calculating these measures may
differ from other companies, and accordingly, may not be comparable
to measures used by other companies. |
About the Company
Invicta is a Calgary based,
emerging junior oil and gas company exploring and developing light
oil opportunities in Saskatchewan
and Alberta. The Company's
current focus is the development of its Viking resource play in
Kindersley, Saskatchewan.
Invicta's common shares trade on the TSX Venture Exchange under the
symbol VCA and the Company has 75.6 million shares outstanding.
Cautionary Statements:
This press release contains certain
forward-looking statements (forecasts) under applicable securities
laws relating to future events or future performance.
Forward-looking statements are necessarily based upon assumptions
and judgements with respect to the future including, but not
limited to, the outlook for commodity markets and capital markets,
the performance of producing wells and reservoirs, well development
and operating performance, general economic and business
conditions, weather, the regulatory and legal environment and other
risks associated with oil and gas operations. In some cases,
forward-looking statements can be identified by terminology such as
"may", "will", "should", "expect", "projects", "plans",
"anticipates" and similar expressions. These statements represent
management's expectations or beliefs concerning, among other
things, future operating results and various components thereof
affecting the economic performance of Invicta. Undue reliance
should not be placed on these forward-looking statements which are
based upon management's assumptions and are subject to known and
unknown risks and uncertainties, including the business risks
discussed above, which may cause actual performance and financial
results in future periods to differ materially from any projections
of future performance or results expressed or implied by such
forward-looking statements. Accordingly, readers are cautioned that
events or circumstances could cause results to differ materially
from those predicted.
In the interest of providing Invicta
shareholders and potential investors with information regarding
Invicta, including management's assessment of future plans and
operation, certain statements throughout this press release
constitute forward looking statements. All forward-looking
statements are based on Invicta's beliefs and assumptions based on
information available at the time the assumption was made.
The use of any of the words "anticipate", "continue", "estimate",
"expect", "may", "will", "project", "should", "believe" and similar
expressions are intended to identify forward looking
statements. By its nature, such forward-looking information
involves known and unknown risks, uncertainties and other factors
that may cause actual results or events to differ materially from
those anticipated in such forward looking statements. Invicta
believes the expectations reflected in those forward looking
statements are reasonable but no assurance can be given that these
expectations will prove to be correct and such forward looking
statements contained throughout this press release should not be
unduly relied upon. These statements speak only as of the
date specified in the statements.
In particular, this press release may contain
forward looking statements pertaining to the following:
- the performance characteristics of Invicta's oil and natural
gas properties;
- oil and natural gas production levels;
- capital expenditure programs;
- the quantity of Invicta's oil and natural gas reserves and
anticipated future cash flows from such reserves;
- projections of commodity prices and costs;
- supply and demand for oil and natural gas;
- expectations regarding the ability to raise capital and to
continually add to reserves through acquisitions and development;
and
- treatment under governmental regulatory regimes.
Invicta's actual results could differ
materially from those anticipated in the forward looking statements
contained throughout this press release as a result of the material
risk factors set forth below, and elsewhere in this press
release:
- volatility in market prices for oil and natural
gas;
- liabilities inherent in oil and natural gas
operations;
- uncertainties associated with estimating oil and natural gas
reserves;
- competition for, among other things, capital, acquisitions
of reserves, undeveloped lands and skilled personnel;
- incorrect assessments of the value of acquisitions and
exploration and development programs;
- geological, technical, drilling and processing
problems;
- fluctuations in foreign exchange or interest rates and stock
market volatility;
- failure to realize the anticipated benefits of
acquisitions;
- general business and market conditions; and
- changes in income tax laws or changes in tax laws and
incentive programs relating to the oil and gas industry.
These factors should not be construed as
exhaustive. Unless required by law, Invicta does not
undertake any obligation to publicly update or revise any forward
looking statements, whether as a result of new information, future
events or otherwise.
Barrels of oil equivalent (boe) may be misleading,
particularly if used in isolation. A boe conversion ratio of six
thousand cubic feet (mcf) of natural gas to one barrel (bbl) of oil
is based on an energy conversion method primarily applicable at the
burner tip and is not intended to represent a value equivalency at
the wellhead. All boe conversions in this press release are derived
by converting natural gas to oil in the ratio of six thousand cubic
feet of natural gas to one barrel of oil. Certain financial amounts
are presented on a per boe basis, such measurements may not be
consistent with those used by other companies.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this Press release.
SOURCE Invicta Energy Corp.