CALGARY, ALBERTA--(Marketwire - Aug. 17, 2011) - Pan Orient Energy Corp. ("Pan Orient") (TSX VENTURE:POE) is pleased to provide highlights of its 2011 second quarter consolidated financial and operating results. Please note that all amounts are in Canadian dollars unless otherwise stated and BOPD refers to barrels of oil per day net to Pan Orient.
The Corporation will file today its unaudited condensed consolidated financial statements as at and for the three and six months ended June 30, 2011 and related management's discussion and analysis with Canadian securities regulatory authorities. Copies of these documents may be obtained online at www.sedar.com or the Corporation's website, www.panorient.ca.
2011 SECOND QUARTER HIGHLIGHTS
- Pan Orient had total corporate funds flow from operations of $13.3 million for the second quarter of 2011 compared with $12.4 million for the first quarter of 2011 and $13.5 million for the second quarter of 2010. Funds flow from operations per share (basic) was $0.23 for the second quarter of 2011. For the six months ended June 30, 2011, Pan Orient had total corporate funds flow from operations of $25.6 million, or $0.48 per share (basic).
- Net income attributable to common shareholders of $4.6 million, or $0.08 per share (basic), for the second quarter of 2011 compared with net income attributable to common shareholders of $3.9 million ($0.08 per share - basic) for the first quarter of 2011 and $4.0 million ($0.09 per share - basic) for the second quarter of 2010. For the six months ended June 30, 2011, Pan Orient had net income attributable to common shareholders of $8.5 million, or $0.16 per share (basic).
- Total capital expenditures for the second quarter of 2011 were $22.5 million, with $13.3 million in Thailand, $9.0 million in Indonesia and $0.1 million in Canada. For the first six months of 2011, total capital expenditures have been $42.5 million, with $27.8 million in Thailand primarily for the drilling of 15 gross wells, $14.5 million in Indonesia for exploration activities and the Batu Gajah drilling program, and $0.2 million in Canada. For the first six months of 2011, Thailand funds flow from operations has funded 95% of capital expenditures in Thailand and the remaining capital expenditures have been funded from working capital.
- At June 30, 2011 Pan Orient had $60.5 million of working capital and non-current deposits, and no long-term debt. In addition, Pan Orient had $10.2 million of equipment inventory to be utilized for future Thailand and Indonesia operations that is included in petroleum and natural gas assets on the balance sheet. As at June 30, 2011 estimate commitments in Indonesia were $31.3 million for the Batu Gajah, Citarum and South CPP Production Sharing Contracts ("PSC's"), excluding commitments associated with the East Jabung PSC which is expected to be formally granted by the end of September. Estimated commitments in Thailand at June 30, 2011 were $0.8 million, principally for the drilling of two additional wells in Concession L53 which are scheduled for the fourth quarter of 2011.
- Indonesia
-- In the first quarter of 2011 Pan Orient repurchased carried interests in the Batu Gajah, Citarum and South CPP PSC's for $1.8 million, including the issuance of 50,677 shares in Pan Orient at a deemed market value of $0.3 million. After these transactions, Pan Orient has a 97% interest and is the operator at the Batu Gajah PSC, a 77% interest and is the operator at the Citarum PSC, and 97% interest and is the operator at the South CPP PSC.
-- At the Batu Gajah PSC on-shore Sumatra (Pan Orient operator and 97% ownership), Pan Orient commenced the exploration drilling program in late March 2011.
--- The Tuba Obi Utara-1 (NTO-1) exploration well encountered 10.5 feet of gas pay within good-quality sand near the top of the Lower Talang Akar formation ("LTAF"). The follow-up NTO-1ST side track well encountered the same gas sand formation identified at the NTO-1 well. Initial drilling results at North Tuba Obi are encouraging with proven gas in the LTAF and additional hydrocarbon potential in the overlying formations existing eastward towards the crest of the Tuba Obi structure. Further appraisal drilling will be required to determine the commerciality and size of this accumulation.
--- The SE Tiung-1 exploration well encountered oil shows and good quality sands within the primary Lower Talang Akar target horizon but wire line logging indicated the zone to be water bearing. The secondary objective of the Gumai and Upper Talang Akar formation sands were also present, but interpreted as being water bearing. The well is currently being plugged and abandoned. The results at SE Tiung-1 have no bearing whatsoever on the prospectivity of the upcoming three well program and we remain confident in the overall hydrocarbon potential of the Batu Gajah PSC.
--- There was repeated rig down time, rig repairs and resultant delays experienced during the drilling of Tuba Obi Utara-1 and SE Tiung-1 exploration wells. The decision has been made to release this drilling rig and defer the drilling of Betano-1 exploration well for cost and safety considerations.
--- Final location approval has been received for three additional wells planned for the Batu Gajah PSC (Tuba Obi Utara-2, Kemala-1 and Shinta-1) later in 2011 and final AFE approval is anticipated shortly. The Company is currently focused on accelerating the commencement of the drilling of these additional wells (two exploration wells and one appraisal well) with drilling to commence perhaps as early as October 2011.
-- At the Citarum PSC on-shore Java (Pan Orient operator and 77% ownership), land purchase has been finalized on two of three locations, contracts for a drilling rig and location construction have been awarded, site construction has been completed at Jatayu-1 and final acceptance of the three drilling locations is expected to be delayed from September 15, 2011 until October, 2011 due to the rerouting of location access at Cataka-1. Drilling of the first well is anticipated to commence in approximately the same October 2011 time frame as in Batu Gajah PSC.
-- It is expected that the East Jabung PSC will be formally granted to Pan Orient in September 2011. The 6,228 square kilometer East Jabung PSC is located on and offshore south Sumatra Indonesia, and directly east and adjacent to the company's 97% working interest and operated Batu Gajah PSC. The initial bonus and firm three year exploration commitment (including two wells and seismic) for the East Jabung PSC total $9.2 million.
- Thailand
-- Average 2011 oil sales in Thailand in the second quarter of 2011 of 2,052 BOPD with 1,289 BOPD from Concession L44, 505 BOPD from Concession L53, 155 BOPD from Concession L33, and 103 BOPD from Concession SW1. This compares with 2,246 BOPD in the first quarter of 2011 and 3,448 BOPD in the second quarter of 2010.
Average oil sales in July 2011 were 2,211 BOPD, with 1,353 BOPD from Concession L44, 537 BOPD from Concession L53, 134 BOPD from Concession L33, and 186 BOPD from Concession SW1.
-- Funds flow from Thailand operations was $13.5 million for the second quarter of 2011 ($72.27 per barrel) compared with $12.9 million for the first quarter of 2011 ($63.61 per barrel). Funds flow from Thailand operations increased 5% in the second quarter of 2011 due to a 9% increase in the realized price for crude oil and a decrease in current SRB and income taxes, partially offset by an 8% decrease in oil sales volumes.
For the second quarter of 2011, transportation expenses were $2.18 per barrel, operating expenses and other royalty $13.05 per barrel, general and administrative expenses $3.39 per barrel and amounts to the Thailand government of $8.51 per barrel resulted in after tax funds flow from operations per barrel of $72.27. The WTI reference price for crude oil per barrel increased 6% during the quarter to CDN$99.90 and the Company's realized price increased to 99% of this reference price based on strength of oil product prices in Singapore. For the second quarter of 2011, Thailand crude oil revenue of $99.19 per barrel was allocated 19% to expenses for transportation, operating, and general & administrative, 9% to the government of Thailand in the form of royalties, Special Remuneratory Benefit ("SRB") and Income Tax, and 72% to Pan Orient.
-- During the second quarter of 2011 Pan Orient drilled nine wells (6.6 net wells) in Thailand with capital expenditures of $13.3 million. One drilling rig was deployed at Concession L53 for most of the quarter drilling two development wells and an appraisal well which twinned the L53-D exploration well drilled in 2009. The second drilling rig at Concession L44 and Concession L33 drilled six wells, with two exploration wells, an appraisal well and a development well at the WBEXT field, the L33-4 exploration well in Concession L33, and the POE-6A appraisal well at the Wichian Buri field.
-- In the first six months of 2011 Pan Orient has drilled 15 wells (11.0 net wells) with total capital expenditures in Thailand of $27.8 million.
--- Pan Orient has drilled five wells in Concession L53 (Pan Orient operator and 100% ownership) including three development wells, the L53-B appraisal well, and the appraisal to the L53-D well which was drilled in 2009. Capital costs of $12.7 million to June 30, 2011 include this five well drilling program plus capital costs associated with the L53-C exploration well which spudded on December 30, 2010. This five well drilling program has resulted in four producing sandstone oil wells and the L53-B oil well which had produced 3,135 barrels of oil under a 90 day test period. These wells added 286 BOPD in the second quarter of 2011 and are currently producing 402 BOPD.
--- Pan Orient has drilled four wells at the WBEXT field in Concession L44 (Pan Orient operator and 60% ownership) at a cost of $5.2 million. This has resulted in two oil wells producing from sandstone zones and on oil well producing from the WBV2 volcanic zone. The WBEXT-1E development well is on production from the "E" sandstone zone, and the "E" sand reservoir will be a near term focus of drilling activity with 15-20 locations in the main WBEXT fault compartment. The WBEXT-1F exploration well resulted in the discovery of new "D" and "E" sandstone reservoir pools in the WBEXT-1F fault compartment for which a follow-up appraisal program is being defined. The WBEXT-2B appraisal well is producing from the WBEXT WBV2 volcanic zone. These wells added 79 BOPD of oil sales in the second quarter of 2011 and are currently producing 209 BOPD.
--- Another four exploration wells and one appraisal well were drilled in Concession L44 (Pan Orient operator and 60% ownership) at a cost of $5.1 million. In the first quarter of 2011 the Company had limited success in the four exploration wells drilled at Si Thep, Na Sanun East (the NSE-E4 well) and two new exploration areas (L44-E and L44-F) resulting in three unsuccessful wells and one well with minor oil production. The POE-6A appraisal well drilled in the second quarter of 2011 is producing oil from the "G" sandstone zone at 46 BOPD.
--- Pan Orient drilled the L33-4 exploration well in Concession L33 (Pan Orient operator and 60% ownership) plus completed sidetrack operations to evaluate the WBV1 volcanic reservoir at the L33-2 well with a capital cost of $3.0 million. These wells are shut-in.
- Andora Energy, a private company owned controlled by Pan Orient which has an oil sands project at Sawn Lake, Alberta, initiated a process to identity and consider strategic alternatives late in February 2011. It had been expected that an agreement associated with the strategic review would have been in place by the middle of June, however this did not happen and this process is ongoing with a number of parties having expressed interest, in addition to one entity that has only recently initiated their technical evaluation of the asset.
Thailand Operations Update
Concession L53 (Pan Orient 100% working interest and operator)
Concession L53 drilling in 2011 has established production from three different producing sandstone zones, the K40-D, K40-C and K40-A sands. Current production rates are at levels consistent with the proved and probable oil reserves assigned in the December 31, 2010 evaluation. At least one exploration well is planned in Concession L53 for the remainder of 2011 at the L53-G prospect targeting conventional sandstone reservoirs that are on trend with the L53-A field. Drilling is anticipated to commence in October or November 2011 upon completion of location construction after the monsoon season.
The operator of the concession immediately to the north of Concession L53 has conducted a higher level of activity in 2011 and requested permission to extend a small portion of a large 3D seismic survey into the northern part of Concession L53, which we have granted, in exchange for the receiving that portion of the seismic data located in Concession L53. To date, Pan Orient has concentrated drilling in a region 32 kilometers south of this northern boundary area where we completed a 3D seismic program in 2007. Recent mapping of limited old vintage 2D seismic over the northern boundary region indicates the presence of a mature source rock kitchen that in combination with a producing oil field located 3.6 kilometers north of the concession boundary, highlights the potential of this approximately 250 square kilometer area. A 2D seismic acquisition program is being considered for this northern area in late 2011.
Concessions L44, L33 & SW1 (Pan Orient 60% working interest and operator)
The POE-6A appraisal well is currently on production from a sandstone zone at a stabilized rate of 47 BOPD and NS-2A is currently on production from a sandstone zone at 86 BOPD. The NSW-A exploration well encountered a tight primary volcanic objective; however oil shows were encountered in sands below the volcanic zone. Unfortunately well bore conditions did not allow wire line logging despite repeated attempts. This well has been suspended and the deeper sandstone potential is being evaluated to determine if the sidetrack of the well is justified.
WBEXT-1DST2 development well is currently drilling ahead just above the primary WBV1 volcanic objective within the WBEXT field limits and is anticipated to reach total depth within the next few days. Upon the completion of WBEXT-1DST2, the rig will commence drilling of the first appraisal well of the NSE North volcanic discovery made back in August 2007.
In the first week of August, the second rig brought down from Concession L53 in June was released due to poor performance with continued mechanical and electronic issues experienced on every well drilled since January resulting in significant down time. The primary drilling rig used by Pan Orient has exhibited superior performance over the past year and the drilling rig company has indicated that a second rig may be available in the October 2011 time frame, if required.
Based on drilling and production performance achieved thus far in 2011, negative reserve revisions are anticipated at the L33-2 field based on the one unsuccessful appraisal well and one marginal producer drilled earlier this year.
At the WBEXT field we are currently evaluating the deeper WBV2 volcanic reservoir and the impact of the WBEXT-2B well that was drilled earlier in the year, whereby the field gas/oil contact was encountered at the structural level for possible oil reserves assigned in the December 31, 2010 evaluation but the oil/water contact appears to be at the structural level for proved oil reserves assigned in the December 31, 2010 evaluation based on the water production from the well. Successful wells have been drilled within the WBEXT "E" and "D" sand reservoirs, the POE-6 "G" sand reservoir and a new pool discovery at WBEXT-1F was made in the "E" and "D" sands in a fault compartment due east of the WBEXT reserve envelope assigned in the December 31, 2010 evaluation.
The go forward 2011 drill program anticipates approximately 14 development wells and five exploration wells. The development well program includes five wells targeting the WBEXT "E" sands once the first of two batches of environmental approvals are in place (anticipated September, 2011), an additional well into the POE-6 "G" sand, two wells targeting the "F" and "G" sands at the Wichian Buri field, two additional development wells targeting sandstone zones and four development wells targeting volcanic reservoirs. Generally, the sandstone target wells are shallow and are expected to take five days of drilling rig time versus the nine days of drilling rig time on the deeper volcanic target wells which will allow the drilling of the three potential exploration wells prior to year end. As indicated earlier, a second rig may also be available in October, 2011 if required.
Thailand Production
Thailand production has lagged the guidance as set out at the beginning of 2011 by a significant margin with production averaging 2,149 BOPD in the first half of 2011 versus the forecast of an average of 5,000 to 6,000 BOPD for 2011. Production in July 2011 averaged 2,211 BOPD. As a result, we expect to exit 2011 at a rate of 3,500 BOPD net to Pan Orient. This target anticipates the drilling of the approximately 14 development wells between now and year end with one active drilling rig, and each well producing at an average rate of 90 BOPD.
Pan Orient is a Calgary, Alberta based oil and gas exploration and production company with operations currently located onshore Thailand, Indonesia and in Western Canada.
This news release contains forward-looking information. Forward-looking information is generally identifiable by the terminology used, such as "expect", "believe", "estimate", "should", "anticipate" and "potential" or other similar wording. Forward-looking information in this news release includes, but is not limited to, references to: well drilling programs and drilling plans, estimates of reserves and potentially recoverable resources, and information on future production and project start-ups. By their very nature, the forward-looking statements contained in this news release require Pan Orient and its management to make assumptions that may not materialize or that may not be accurate. The forward-looking information contained in this news release is subject to known and unknown risks and uncertainties and other factors, which could cause actual results, expectations, achievements or performance to differ materially, including without limitation: imprecision of reserve estimates and estimates of recoverable quantities of oil, changes in project schedules, operating and reservoir performance, the effects of weather and climate change, the results of exploration and development drilling and related activities, demand for oil and gas, commercial negotiations, other technical and economic factors or revisions and other factors, many of which are beyond the control of Pan Orient. Although Pan Orient believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statements will prove to be correct.
Financial and Operating Summary |
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||
| (thousands of Canadian dollars except where indicated) | 2011 | 2010 | 2011 | 2010 | Change | |||||||||
| FINANCIAL | ||||||||||||||
| Oil revenue, before royalties and transportation expense | 18,521 | 22,436 | 36,970 | 47,474 | -22% | |||||||||
| Funds flow from operations (Note 1) | 13,283 | 13,461 | 25,644 | 25,797 | -1% | |||||||||
| Per share – basic | $ | 0.23 | $ | 0.28 | $ | 0.48 | $ | 0.54 | -12% | |||||
| Per share – diluted | $ | 0.23 | $ | 0.27 | $ | 0.47 | $ | 0.53 | -11% | |||||
| Funds flow from operations by region (Note 1) | ||||||||||||||
| Canada | 19 | 818 | (405 | ) | 849 | -146% | ||||||||
| Thailand | 13,494 | 12,756 | 26,353 | 25,119 | 5% | |||||||||
| Indonesia | (231 | ) | (113 | ) | (304 | ) | (171 | ) | 78% | |||||
| Total | 13,283 | 13,461 | 25,644 | 25,797 | -1% | |||||||||
| Net income attributable to common shareholders | 4,608 | 4,216 | 8,536 | 8,286 | 3% | |||||||||
| Per share - basic | $ | 0.08 | $ | 0.09 | $ | 0.16 | $ | 0.17 | -7% | |||||
| Per share - diluted | $ | 0.08 | $ | 0.09 | $ | 0.16 | $ | 0.17 | -7% | |||||
| Working capital | 56,686 | 20,035 | 56,686 | 20,035 | 183% | |||||||||
| Working capital & deposits | 60,469 | 24,029 | 60,469 | 24,029 | 152% | |||||||||
| Long-term debt | - | - | - | - | ||||||||||
| Capital expenditures (Note 2) | 22,495 | 16,409 | 42,467 | 36,678 | 16% | |||||||||
| Acquisitions – Indonesia (Note 3) | (19 | ) | - | 1,761 | - | |||||||||
| Acquisitions – Sawn Lake, Canada (Note 3) | - | - | 3,192 | - | ||||||||||
| Shares outstanding (thousands) | 56,685 | 48,594 | 56,685 | 48,594 | 17% | |||||||||
| Funds Flow from Operations per Barrel (Note 1) | ||||||||||||||
| Canada operations | $ | 0.10 | $ | 2.61 | $ | (1.04 | ) | $ | 1.29 | -181% | ||||
| Thailand operations | 72.27 | 40.66 | 67.76 | 38.22 | 77% | |||||||||
| Indonesia operations | (1.24 | ) | (0.36 | ) | (0.78 | ) | (0.26 | ) | 200% | |||||
| $ | 71.14 | $ | 42.90 | $ | 65.94 | $ | 39.25 | 68% | ||||||
| Capital Expenditures (Note 2) | ||||||||||||||
| Canada | 147 | 346 | 214 | 410 | -48% | |||||||||
| Thailand | 13,345 | 9,582 | 27,759 | 23,001 | 21% | |||||||||
| Indonesia | 9,003 | 6,481 | 14,494 | 13,267 | 9% | |||||||||
| Total | 22,495 | 16,409 | 42,467 | 36,678 | 16% | |||||||||
| Working Capital and Non-current Deposits | ||||||||||||||
| Working capital & non-current deposits - beginning of period | 69,166 | 25,358 | 31,396 | 32,738 | -4% | |||||||||
| Funds flow from operations (Note 1) | 13,283 | 13,461 | 25,644 | 25,797 | -1% | |||||||||
| Capital expenditures (Note 2) | (22,495 | ) | (16,409 | ) | (42,467 | ) | (36,678 | ) | 16% | |||||
| Acquisitions – Indonesia (Note 4) | 19 | - | (1,417 | ) | - | |||||||||
| Non-cash settlement of Andora receivable | - | - | - | (600 | ) | |||||||||
| Foreign exchange impact on working capital | 10 | (102 | ) | (303 | ) | (475 | ) | -36% | ||||||
| Net proceeds on share transactions | 486 | 1,721 | 47,616 | 3,247 | 1366% | |||||||||
| Working capital & non-current deposits - end of period | 60,469 | 24,029 | 60,469 | 24,029 | 152% | |||||||||
| Canada Operations | ||||||||||||||
| Interest income | 139 | 6 | 160 | 14 | 1043% | |||||||||
| General and administrative (expense) recovery (Note 5) | (43 | ) | 707 | (306 | ) | 737 | -142% | |||||||
| Realized foreign exchange (loss) gain | (77 | ) | 162 | (259 | ) | 155 | -267% | |||||||
| Foreign new ventures expenditures | - | (57 | ) | - | (57 | ) | ||||||||
| Funds flow from operations (Note 1) | 19 | 818 | (405 | ) | 849 | -148% | ||||||||
| Funds flow from operations per barrel | ||||||||||||||
| Interest income | $ | 0.75 | $ | 0.02 | $ | 0.41 | $ | 0.02 | 1950% | |||||
| General and administrative expense | (0.23 | ) | 2.25 | (0.79 | ) | 1.12 | -170% | |||||||
| Realized foreign exchange gain (loss) | (0.41 | ) | 0.52 | (0.67 | ) | 0.24 | -379% | |||||||
| Foreign new ventures expenditures | - | (0.18 | ) | - | (0.09 | ) | -100% | |||||||
| $ | 0.10 | $ | 2.61 | $ | (1.04 | ) | $ | 1.29 | -181% | |||||
| Indonesia Operations | ||||||||||||||
| General and administrative expense (Note 5) | (231 | ) | (113 | ) | (304 | ) | (171 | ) | 78% | |||||
| Wells drilled | ||||||||||||||
| Gross | 1 | - | 2 | - | ||||||||||
| Net | 1.0 | - | 2.0 | - | ||||||||||
| Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||
| (thousands of Canadian dollars except where indicated) | 2011 | 2010 | 2011 | 2010 | Change | |||||||||
| THAILAND OPERATIONS | ||||||||||||||
| Oil sales (bbls) | 186,727 | 313,757 | 388,894 | 657,157 | -41% | |||||||||
| Average daily oil sales (bbls/d) by Concession | ||||||||||||||
| L44 | 1,289 | 3,284 | 1,394 | 3,443 | -60% | |||||||||
| SW1 | 103 | 164 | 112 | 188 | -40% | |||||||||
| L33 | 155 | - | 183 | - | ||||||||||
| L53 | 505 | - | 460 | - | ||||||||||
| Total | 2,052 | 3,448 | 2,149 | 3,631 | -41% | |||||||||
| Average oil sales price, before transportation (CDN$/bbl) | $ | 99.19 | $ | 71.51 | $ | 95.06 | $ | 72.24 | 32% | |||||
| Reference Price (volume weighted) and differential | ||||||||||||||
| Crude oil (WTI $US/bbl) | $ | 102.10 | $ | 77.82 | $ | 98.18 | $ | 78.35 | 25% | |||||
| Exchange Rate $US/$Cdn | 0.98 | 1.04 | 0.99 | 1.05 | -6% | |||||||||
| Crude oil (WTI $Cdn/bbl) | $ | 99.90 | $ | 80.73 | $ | 96.87 | $ | 82.13 | 18% | |||||
| Sales price / WTI reference price | 99% | 89% | 98% | 88% | 10% | |||||||||
| Funds flow from operations (Note 1) | ||||||||||||||
| Crude oil sales | 18,521 | 22,436 | 36,970 | 47,474 | -22% | |||||||||
| Government royalty | (927 | ) | (1,358 | ) | (1,883 | ) | (2,947 | ) | -36% | |||||
| Other royalty | (40 | ) | (26 | ) | (85 | ) | (47 | ) | -81% | |||||
| Transportation expense | (407 | ) | (802 | ) | (876 | ) | (1,666 | ) | -47% | |||||
| Operating expense | (2,397 | ) | (1,949 | ) | (4,534 | ) | (4,147 | ) | 9% | |||||
| Field netback | 14,750 | 18,301 | 29,592 | 38,667 | -23% | |||||||||
| General and administrative expense | (634 | ) | (1,159 | ) | (1,626 | ) | (2,434 | ) | -33% | |||||
| Interest income | 41 | 24 | 58 | 52 | 11% | |||||||||
| Special Remuneratory Benefit tax (SRB) | 23 | (737 | ) | - | (2,906 | ) | -100% | |||||||
| Current income tax | (686 | ) | (3,673 | ) | (1,671 | ) | (8,260 | ) | -80% | |||||
| Funds flow from operations | 13,494 | 12,756 | 26,353 | 25,119 | 5% | |||||||||
| Funds flow from operations per barrel (CDN$/bbl) | ||||||||||||||
| Crude oil sales | $ | 99.19 | $ | 71.51 | $ | 95.06 | $ | 72.24 | 32% | |||||
| Government royalty | (4.96 | ) | (4.33 | ) | (4.84 | ) | (4.48 | ) | 8% | |||||
| Other royalty | (0.21 | ) | (0.08 | ) | (0.22 | ) | (0.07 | ) | 214% | |||||
| Transportation expense | (2.18 | ) | (2.56 | ) | (2.25 | ) | (2.53 | ) | -11% | |||||
| Operating expense | (12.84 | ) | (6.21 | ) | (11.66 | ) | (6.31 | ) | 85% | |||||
| Field Netback | 78.99 | 58.33 | 76.09 | 58.84 | 29% | |||||||||
| General and administrative expense (Note 5) | (3.39 | ) | (3.69 | ) | (4.18 | ) | (3.70 | ) | 13% | |||||
| Interest Income | 0.22 | 0.08 | 0.15 | 0.08 | 88% | |||||||||
| Special Remuneratory Benefit (SRB) | 0.12 | (2.35 | ) | - | (4.42 | ) | -100% | |||||||
| Current income tax | (3.67 | ) | (11.71 | ) | (4.30 | ) | (12.57 | ) | -66% | |||||
| Thailand - Funds flow from operations | $ | 72.27 | $ | 40.66 | $ | 67.76 | $ | 38.22 | 77% | |||||
| Government royalty as percentage of crude oil sales | 5.0% | 6.1% | 5.2% | 6.2% | -1.0% | |||||||||
| SRB as percentage of crude oil sales | -0.1% | 3.3% | 0.0% | 6.1% | -6.1% | |||||||||
| Income tax as percentage of crude oil sales | 3.7% | 16.4% | 4.5% | 17.4% | -12.9% | |||||||||
| As percentage of crude oil sales | ||||||||||||||
| Expenses - transportation, operating, G&A and other | 18.8% | 17.5% | 19.2% | 17.5% | 2% | |||||||||
| Government royalty, SRB and income tax | 8.6% | 25.7% | 9.7% | 29.7% | -20% | |||||||||
| Funds flow from operations, before interest income and realized foreign exchange gain | 72.6% | 56.8% | 71.1% | 52.8% | 18% | |||||||||
| Wells drilled | ||||||||||||||
| Gross | 9 | 7 | 15 | 12 | 25% | |||||||||
| Net | 6.6 | 4.2 | 11.0 | 7.2 | 53% | |||||||||
| (1) | Funds flow from operations ("funds flow" before changes in non-cash working capital and reclamation costs) is used by management to analyze operating performance and leverage. Funds flow as presented does not have any standardized meaning prescribed by IFRS and therefore it may not be comparable with the calculation of similar measures of other entities. Funds flow is not intended to represent operating cash flow or operating profits for the period nor should it be viewed as an alternative to cash flow from operating activities, net earnings or other measures of financial performance calculated in accordance with IFRS. All references to funds flow throughout this MD&A are based on funds flow from operations before changes in non-cash working capital and reclamation costs. |
| (2) | Cost of capital expenditures, excluding any asset retirement obligation and excluding the impact of changes in foreign exchange rates. |
| (3) | Cost of acquisitions, including deemed value of equity issued in the transaction. |
| (4) | Cost of acquisitions, excluding deemed value of equity issued in the transaction. |
| (5) | General & administrative expenses, excluding non-cash accretion on decommissioning provision |
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Contact Information:
Jeff Chisholm
President and CEO
(403) 294-1770
Pan Orient Energy Corp.
Bill Ostlund
Vice President Finance and CFO
(403) 294-1770
www.panorient.ca