CALGARY, Alberta, Nov. 13, 2018 (GLOBE NEWSWIRE) -- Bengal Energy Ltd. (TSX: BNG) (“Bengal” or the “Company”) today announces its development program for 2019 and financial results for the second quarter of fiscal 2019 ended September 30, 2018.
CALENDAR 2019 DEVELOPMENT FORECAST:
All of the above growth objectives will be funded by the Company’s cash balance and cash flows.
FISCAL Q2 2019 SUMMARY:
|($000s except per share, %,|
|volumes and netback amounts)||Three months ended||Six months ended|
|September 30||September 30|
|Realized (loss) gain on financial|
|% of revenue||8||6||6||6|
|Cash from operations||$||603||$||648||$||1,622||$||2,338|
|Funds from operations(2)||$||750||$||110||$||1,625||$||1,944|
|Per share ($) (basic and diluted)||$||0.01||$||0.00||$||0.02||$||0.02|
|Net (loss) income||$||(728||)||$||(500||)||$||(1,214||)||$||49|
|Per share ($) (basic and diluted)||$||(0.01||)||$||0.00||$||(0.01||)||$||0.00|
|Adjusted net earnings(3) (loss)||$||350||$||(364||)||$||777||$||904|
|Per share ($) (basic and diluted)||$||0.00||$||0.00||$||0.01||$||0.01|
|Oil volumes (bbl/d)||292||383||305||376|
|(1) Netback is a non-IFRS measure and includes realized gain on financial instruments. Netback per bbl is calculated by dividing revenue (including realized gain on financial instruments) less royalties and operating costs by the total production of the Company measured in bbls.|
|(2) Funds from operations per share is a non-IFRS measure calculated by dividing funds from operations by weighted average basic and diluted shares outstanding for the periods disclosed.|
|(3) Adjusted net earnings and adjusted net earnings per share are non-IFRS measures. The comparable IFRS measure is net income (loss). A reconciliation of the two measures can be found in the table on page 18 of Bengal’s fiscal 2019 Q2 Management’s Discussion and Analysis (“MD&A”).|
Bengal has filed its consolidated financial statements and management’s discussion and analysis for the second fiscal quarter of 2019 with the Canadian securities regulators. The documents are available on SEDAR at www.sedar.com or by visiting Bengal’s website at www.bengalenergy.ca.
Bengal Energy Ltd. is an international junior oil and gas exploration and production company with assets in Australia. The Company is committed to growing shareholder value through international exploration, production and acquisitions. Bengal’s common shares trade on the TSX under the symbol “BNG.” Additional information is available at www.bengalenergy.ca .
This news release contains certain forward-looking statements or information ("forward-looking statements”) as defined by applicable securities laws that involve substantial known and unknown risks and uncertainties, many of which are beyond Bengal's control. These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward-looking statements. The use of any of the words "plan", "expect", "prospective", "project", "intend", "believe", "should", "anticipate", "estimate", or other similar words or statements that certain events "may" or "will" occur are intended to identify forward-looking statements. The projections, estimates and beliefs contained in such forward-looking statements are based on management’s estimates, opinions, and assumptions at the time the statements were made, including assumptions relating to: the impact of economic conditions in North America and Australia and globally; industry conditions; changes in laws and regulations including, without limitation, the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; increased competition; the availability of qualified operating or management personnel; fluctuations in commodity prices, foreign exchange or interest rates; stock market volatility and fluctuations in market valuations of companies with respect to announced transactions and the final valuations thereof; results of exploration and testing activities; and the ability to obtain required approvals and extensions from regulatory authorities. We believe the expectations reflected in those forward-looking statements are reasonable but, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Bengal will derive from them. As such, undue reliance should not be placed on forward-looking statements.
Forward-looking statements contained herein include, but are not limited to, statements regarding: the expected timing of the six well drilling program on the Barta Block in the Cuisinier oil field; the anticipated reservoir pressure for the fracture stimulation of Cuisinier-19 on the Barta Block in the Cuisinier oil field; the expected timing of the water injection pilot project and potential increase in oil recovery in the Cuisinier field. The forward-looking statements contained herein are subject to numerous known and unknown risks and uncertainties that may cause Bengal’s actual financial results, performance or achievement in future periods to differ materially from those expressed in, or implied by, these forward-looking statements, including but not limited to, risks associated with: liabilities inherent in oil and natural gas operations; the failure to obtain required regulatory approvals or extensions; failure to satisfy the conditions under farm-in and joint venture agreements; failure to secure required equipment and personnel; changes in general global economic conditions including, without limitations, the economic conditions in North America and Australia; uncertainties associated with estimating oil and natural gas reserves; increased competition for, among other things: capital, acquisitions of reserves, undeveloped lands and skilled personnel; the availability of qualified operating or management personnel; incorrect assessment of the value of acquisitions; fluctuations in commodity prices, foreign exchange or interest rates; inability to meet commitments due to inability to raise funds or complete farm-outs; geological, technical, drilling and processing problems; changes in laws and regulations including, without limitation, the adoption of new environmental, royalty and tax laws and regulations and changes in how they are interpreted and enforced; Bengal’s development and exploration opportunities; the results of exploration and development drilling and related activities; the ability to access sufficient capital from internal and external sources; and counter-party credit risk, stock market volatility and market valuation of Bengal’s stock. Statements relating to "reserves" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, which the reserves described, can be profitably produced in the future. Readers are encouraged to review the material risks discussed in Bengal’s Annual Information Form for the year ended March 31, 2018 under the heading “Risk Factors” and in Bengal’s Management's Discussion and Analysis for the Q2 fiscal year ending March 31,2019 under the heading “Risk Factors”. The Company cautions that the foregoing list of assumptions, risks and uncertainties is not exhaustive. The forward-looking statements contained in this news release speak only as of the date hereof and Bengal does not assume any obligation to publicly update or revise them to reflect new events or circumstances, except as may be require pursuant to applicable securities laws.
Certain Defined Terms
bbl – barrel
bbls – barrels
bbls/d –barrels per day
$/bbl – dollars per barrel
mcf – thousand cubic feet
Q2 – three months ended September 30
Within this release, references are made to terms commonly used in the oil and gas industry. Netbacks, netbacks per barrel, funds from operations, funds from operations per share, adjusted net earnings and adjusted net earnings per share do not have any standardized meaning under IFRS and are referred to as non-IFRS measures. Netback equals total revenue (including realized (loss) gain on financial instruments) less royalties and operating expenses. Netback per barrel equals netback divided by the applicable number of barrels. Management utilizes these measures for operational performance. Funds from operations is defined as cash from operations before changes in non-cash working capital. Funds from operations per share is a non-IFRS measure calculated by dividing funds from operations by weighted average basic and diluted shares outstanding for the periods disclosed. Adjusted net earnings is a non-IFRS measure, which should not be considered an alternative to “Net income (loss)” as presented in the consolidated statement of income (loss) and comprehensive income (loss), and is presented in the Company’s financial reports to assist management and investors in analyzing financial performance net of gains and losses outside of management’s immediate control. Adjusted net earnings equal net income (loss) less unrealized losses/gains on foreign exchange and unrealized losses/gains on financial instruments plus non-cash impairment of non-current assets. Adjusted net earnings per share is calculated based on the weighted average number of common shares outstanding consistent with the calculation of earnings (loss) per share. Management utilizes these measures to analyze operating performance. The Company’s calculation of the non-IFRS measures included herein may differ from the calculation of similar measures by other issuers. Therefore, the Company’s non-IFRS measures may not be comparable to other similar measures used by other issuers. Funds from operations is not intended to represent operating profit for the period nor should it be viewed as an alternative to operating profit, net income, cash flow from operations or other measures of financial performance calculated in accordance with IFRS. Non-IFRS measures should only be used in conjunction with the Company’s annual audited and interim financial statements. A reconciliation of these measures can be found in the table on page 18 of Bengal’s fiscal 2019 Q2 MD&A.
FOR FURTHER INFORMATION PLEASE CONTACT:
Bengal Energy Ltd.
Chayan Chakrabarty, President & Chief Executive Officer
Matthew Moorman, Chief Financial Officer