VANCOUVER, May 23, 2018 /CNW/ - PentaNova Energy Corp. (the
"Company") (TSXV: PNO) announces it has filed its financial
and operating results for the three months ended March 31, 2018. All dollar values in this news
release and the Company's financial disclosures are in United States dollars, unless otherwise
stated. All production figures are measured in barrels of oil
equivalent ("boe").
Financial Statements
Revenues for period were obtained from the working interest in
the Llancanelo and Mariposa Assets, which represent 90 days of
production during the period.
Highlights
Llancanelo
Operating
|
Three months
ended
March 31,
2018
|
Three months
ended
December 31, 2017
|
Gross production
(100%) boe
|
111,024
|
113,885
|
Net working interest
production boe
|
43,287
|
40,672
|
Average boe
production per day (boe/d)
|
481
|
452
|
The Llancanelo net production recorded for Q1 2018 is for the
39% working interest held during this time period. Subsequent to
the closing of the Roch acquisition on October 27, 2017, which included an additional
10% working interest in Llancanelo, the Company's Llancanelo net
production increased to 39% working interest.
Financial
($U.S. dollars)
|
Three months
ended
March 31,
2018
|
Three months
ended
December 31, 2017
|
|
Total
|
Per boe
|
Total
|
Per boe
|
Revenue
|
2,270,243
|
52.45
|
1,904,186
|
46.82
|
Royalties
|
(446,478)
|
(10.31)
|
(382,642)
|
(9.41)
|
Operating
expenses
|
(1,400,808)
|
(32.36)
|
(1,209,798)
|
(29.75)
|
Net operating profit
|
422,957
|
9.78
|
311,745
|
7.66
|
Mariposa
The Company holds a net working interest in the Estancia La
Mariposa block of 18%, entitling it to 18% of the oil, natural gas
and condensate sales, while the operator carries 100% of the
capital expenditures and field operating costs. The net revenue
figures associated with the Mariposa Asset are presented net of any
applicable royalties and certain operating costs of transportation,
treatment and processing. Oil and natural gas production is sold on
behalf of the Company, for which the Company receives proceeds from
the operator, net of the aforementioned royalties and operating
costs. The net revenue generated from this asset has not been
included in any "per barrel" pricing herein. Mariposa revenue, net
of royalties, of $351,606 and
$351,312 were realized for the three
months ended March 31, 2018 and
December 31, 2017, respectively.
These revenue amounts were derived from net sales of 14,550 boe and
14,668 boe during the respective periods.
Financial Results & Balances
- The Company had a working capital deficiency of $8.5 million as of March
31, 2018
($U.S.
dollars)
|
Three months
ended
March 31, 2018
|
Three months
ended
December 31, 2017
|
Cash and cash
equivalents
|
10,387,628
|
8,962,371
|
Working
Capital
|
(8,497,830)
|
1,931,860
|
Exploration and
Evaluation Assets
|
77,040,381
|
67,609,348
|
Property, Plants,
and Equipment
|
3,671,361
|
4,283,111
|
Total
Assets
|
100,252,972
|
98,596,379
|
Net Oil and
Natural Gas Production, boe
|
59,497
|
61,910
|
Net Oil and
Natural Gas Revenue
|
2,270,243
|
1,904,186
|
Net Revenue on
Carried Working Interest*
|
351,606
|
351,313
|
Royalty
Expense
|
446,478
|
382,642
|
Operating
Expenses
|
1,400,808
|
1,209,798
|
Net Operating
Profit
|
774,563
|
663,059
|
Net
Loss
|
1,975,398
|
867,706
|
Net Loss per
Share, basic & diluted
|
(0.01)
|
(0.00)
|
|
Note:
|
(1)
|
Represents net
revenue results from the carried interest held by the Company in
the Mariposa Asset.
|
Asset Rationalization Mandate Update
As previously announced on April 30,
2018, the Company is continuing to work on the
reorganization of its asset base and addressing its near-term
capital commitments.
Forward-Looking Information
Estimates of reserves and resources in this news release are
deemed to be forward-looking information as they involve the
implied assessment, based on certain estimates and assumptions,
that the reserves described exist in the quantities predicted or
estimated, and that the reserves described can be profitably
produced in the future.
This news release contains certain "forward-looking
statements" or "forward-looking information" (collectively referred
to herein as "forward-looking statements") within the meaning of
applicable securities legislation. Such forward-looking statements
include, without limitation, forecasts, estimates, expectations and
objectives for future operations that are subject to a number of
assumptions, risks and uncertainties, many of which are beyond the
control of the Company. Forward-looking statements are statements
that are not historical facts and are generally, but not always,
identified by the words "expects", "plans", "anticipates",
"believes", "intends", "estimates", "projects", "potential" and
similar expressions, or are events or conditions that "will",
"would", "may", "could" or "should" occur or be achieved. This news
release contains forward-looking statements, pertaining to, among
other things, the following: estimates of recoverable reserves
volumes and the future net revenues associated with those reserves;
the rationalization of the asset portfolio of the Company; future
acquisitions; cost reductions and head count and financial
commitment reductions; possible financing alternatives, including a
share consolidation; the Mandate; the goals of the board and
management relating to the Mandate and the Company generally; and
changes in the plans of the previous management team, including to
plans in respect of the development of the Company's reserves.
Statements regarding future production, capital expenditures and
development plans are subject to all of the risks and uncertainties
normally incident to the exploration for and development and
production of oil and gas that may cause actual results or events
to differ materially from those anticipated in such forward-looking
statements. These risks include, but are not limited to, inflation
or lack of availability of goods and services, environmental risks,
drilling risks, regulatory changes and certain other known and
unknown risks detailed from time to time in the Company's public
disclosure documents, copies of which are available on the
Company's SEDAR profile at www.sedar.com.
Although the Company believes that the material factors,
expectations and assumptions expressed in such forward-looking
statements are reasonable based on information available to it on
the date such statements were made, no assurances can be given as
to future results, levels of activity and achievements and such
statements are not guarantees of future performance. The Company's
actual results may differ materially from those expressed or
implied in forward-looking statements and readers should not place
undue importance or reliance on the forward-looking statements.
Statements including forward-looking statements are made as of the
date they are given and, except as required by applicable
securities laws, the Company disclaims any intention or obligation
to publically update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
The forward-looking statements contained in this news release are
expressly qualified by this cautionary statement.
Any "financial outlook" contained in this news release, as
such term is defined by applicable securities laws, is provided for
the purpose of providing information about management's current
expectations and plans relating to the future. Readers are
cautioned that reliance on such information may not be appropriate
for other purposes.
Neither the 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 PentaNova Energy Corp.