VANCOUVER, Aug. 23, 2018 /CNW/ - PentaNova Energy Corp. (the
"Company") (TSXV: PNO) announces it has filed its financial
and operating results for the three and six months ended
June 30, 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 the periods presented were obtained from the
working interest in the Llancanelo, Mariposa, and Sur Rio Deseado
assets which represent 90 and 92 days of production during Q1 2018
and Q2 2018, respectively.
Highlights
Llancanelo
Operating
|
Three months
ended
June 30,
2018
|
Three months
ended
March 31, 2018
|
Gross production
(100%) boe
|
105,302
|
111,024
|
Net working interest
production boe
|
41,057
|
43,287
|
Average boe
production per day (boe/d)
|
451
|
481
|
The Llancanelo net production recorded for each of the periods
is for the 39% working interest held during Q1 2018 and Q2 2018.
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.
During Q2 2018, the Llancanelo concession produced a total of
41,057 net boe (105,302 gross boe) compared to 43,827 net boe
(111,024 gross boe) in Q1 2018, representing roughly a 5% decrease
in production. This equated to average daily production of 451 net
boe/d in Q2 2018 compared to 481 net boe/d in Q1 2018. The
reduction in production can be attributed to scheduled maintenance
that required certain wells on the concession to be shut in during
the maintenance period.
Financial
($U.S. dollars)
|
Three months
ended
June 30,
2018
|
Three months
ended
March 31, 2018
|
|
Total
|
Per boe
|
Total
|
Per boe
|
Revenue
|
2,189,946
|
54.29
|
2,270,243
|
52.45
|
Royalties
|
(471,875)
|
(11.49)
|
(446,478)
|
(10.31)
|
Operating
expenses
|
(1,315,582)
|
(32.04)
|
(1,400,808)
|
(32.36)
|
Net operating
profit
|
402,489
|
10.76
|
422,957
|
9.77
|
Impairment Loss
During the six months ended June 30,
2018, the Company recognized impairments relating to the
Llancanelo Asset of $25.0 million.
These impairments were the result of the difference between the
period‐end net book value and management's assessment of the
recoverable amount of the Llancanelo Asset as of June 30, 2018 on account of the formal
notification received from YPF regarding the relinquishment of the
Company's working interest in the Llancanelo Asset and the
termination of the YPF Farm‐In. Following completion of the
write‐down, the Llancanelo Asset had a carrying value of
approximately $10.6 million.
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 $189,049 and
$351,606 were realized in Q2 2018 and
Q1 2018, respectively. These revenue amounts were derived from net
production of 11,653 boe and 16,210 boe during the respective
periods. Reduction of net revenue in Q2 2018 is the result of
decreased production from the Mariposa Asset due to a workover
campaign on some of the wells that was carried out by the operator
during the quarter.
Financial Results & Balances
- The Company had a working capital deficiency of $12.6 million as of June
30, 2018
- Impairment loss of $25.0 million
was recognized during the three months ended June 30, 2018
($U.S.
dollars)
|
Three months
ended
June 30, 2018
|
Three months
ended
March 31, 2018
|
Cash and cash
equivalents
|
5,448,124
|
10,387,628
|
Working
Capital
|
(12,570,299)
|
(8,497,830)
|
Exploration and
Evaluation Assets
|
53,436,511
|
77,040,381
|
Property, Plants,
and Equipment
|
3,153,224
|
3,671,361
|
Total
Assets
|
69,384,049
|
100,252,972
|
Net Oil and
Natural Gas Production, boe
|
57,033
|
59,497
|
Net Oil and
Natural Gas Revenue
|
2,255,336
|
2,270,243
|
Net Revenue on
Carried Working Interest (1)
|
189,049
|
351,606
|
Royalty
Expense
|
483,301
|
446,478
|
Operating
Expenses
|
1,351,745
|
1,400,808
|
Net Operating
Profit
|
609,339
|
774,563
|
Net
Loss
|
24,745,680
|
1,975,398
|
Net Loss per
Share, basic & diluted
|
0.10
|
0.01
|
Note:
|
(1) Represents net
revenue results from the carried interest held by the Company in
the Mariposa Asset.
|
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
Reserves Advisory
The Company's reserves estimates have been prepared and
evaluated in accordance with NI 51-101 and the COGE Handbook.
Proved reserves are those reserves that can be estimated with a
high degree of certainty to be recoverable. There is at least a 90%
probability that the quantities actually recovered will equal or
exceed the estimated proved reserves. Probable reserves are those
additional reserves that are less certain to be recovered than
proved reserves. There is at least a 50% probability that the
quantities actually recovered will equal or exceed the sum of the
estimated proved plus probable reserves.
It should not be assumed that the estimates of future net
revenues presented herein represent the fair market value of the
reserves or resources. Future net revenue values, whether
calculated without discount or using a discount rate, are estimated
values only and do not represent fair market value. There is no
assurance that the forecast prices and cost assumptions will be
attained and variances could be material. The reserve estimates
provided herein are estimates only and there is no assurance that
the estimated reserves will be recovered. Actual oil reserves may
be greater than or less than the estimates provided herein.
BOE Conversion
Advisory
The term "boe" is used in this news release. Boe
may be misleading, particularly if used in
isolation. A boe conversion ratio of
six thousand cubic feet of gas to one barrel of oil (6
Mcf : 1 bbl) is based on an
energy equivalency conversion method primarily
applicable at the burner tip and does not represent a
value equivalency at the wellhead. In this
news release, we have expressed boe using this standard conversion
ratio of 6 Mcf : 1 bbl.
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.