CALGARY, ALBERTA--(Marketwire - Nov. 24, 2011) -
Pan Orient Energy Corp. ("Pan Orient") (TSX VENTURE:POE) is pleased to provide highlights of its 2011 third 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 nine months ended September 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 THIRD QUARTER HIGHLIGHTS
- Pan Orient had total corporate funds flow from operations of $13.2 million for the third quarter of 2011 compared with $13.3 million for the second quarter of 2011 and $15.4 million for the third quarter of 2010. Funds flow from operations per share (basic) was $0.23 for the third quarter of 2011. For the nine months ended September 30, 2011, Pan Orient had total corporate funds flow from operations of $38.8 million, or $0.71 per share (basic).
- Net income attributable to common shareholders of $3.9 million, or $0.07 per share (basic), for the third quarter of 2011 compared with net income attributable to common shareholders of $4.6 million ($0.08 per share - basic) for the second quarter of 2011 and $5.4 million ($0.11 per share - basic) for the third quarter of 2010. For the nine months ended September 30, 2011, Pan Orient had net income attributable to common shareholders of $12.4 million, or $0.23 per share (basic).
- Total capital expenditures for the third quarter of 2011 were $15.4 million, with $10.3 million in Thailand and $5.0 million in Indonesia. For the first nine months of 2011, total capital expenditures have been $57.8 million, with $38.1 million in Thailand primarily for the drilling of 20 gross wells, $19.5 million in Indonesia for exploration activities relating to the four Production Sharing Contracts ("PSC's") and the drilling of two wells at the Batu Gajah PSC, and $0.2 million in Canada. For the first nine months of 2011, capital expenditures in Thailand have been funded by Thailand funds flow from operations, and the capital expenditures in Indonesia and Canada have been funded from the $1.4 million of free cash flow from Thailand and $18.4 million from working capital.
- At September 30, 2011 Pan Orient had $58.0 million of working capital and non-current deposits, and no long-term debt. In addition, Pan Orient had $12.0 million of equipment inventory to be utilized for future Thailand and Indonesia operations which is included in exploration and evaluation costs on the balance sheet. As at September 30, 2011 estimated commitments in Indonesia were $31.9 million for the Batu Gajah, Citarum and South CPP PSC's, plus an estimated $7.3 million in commitments associated with the East Jabung PSC which was formally granted on November 21, 2011. Estimated commitments in Thailand at September 30, 2011 were $0.9 million, principally for the drilling of two additional wells in Concession L53.
- Indonesia
- 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 drilled at the end of the first quarter and into the second quarter 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 LTAF gas sand formation identified at the NTO-1 well, but of lower reservoir quality. Initial drilling results at North Tuba Obi are encouraging with proven gas in the LTAF and oil shows in the Upper Talang Akar sand. The first Appraisal of the North Tuba Obi gas discovery, NTO-2 is planned to be drilled in the first quarter of 2012 at a location approximately 5.5 kilometers east and 200 meters structurally higher than the NTO-1 discovery well. NTO-2 will be targeting natural gas in the LTAF and oil in the overlying Upper Talang Akar and Air Benakat sandstone zones.
- The SE Tiung-1 exploration well drilled in June and into July 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 results at SE Tiung-1 have no bearing whatsoever on the prospectivity of the upcoming two well program planned for the first quarter of 2011 and we remain confident in the overall hydrocarbon potential of the Batu Gajah PSC.
- Two wells are planned for the Batu Gajah PSC in the first quarter of 2012 with the North Tuba Obi Utara-2 (NTO-2) exploration / appraisal well and Shinta-1 exploration well. The Company is currently focused on finalizing a comprehensive surface access agreement which includes the use of roads and land area for well pads with the Indonesian company which holds the forestry surface rights. This agreement is estimated to be in place by year end.
- At the Citarum PSC on-shore Java (Pan Orient operator and 77% ownership), one location (Jatayu-1) has been completed and a second location (Cataka-1) is approximately 90% complete after having experienced some delay as a result of annual monsoon rains. Surface casing has been set on both wells utilizing a service rig and drilling rig mobilization on to the Cataka-1 location is planned to commence on November 26th with drilling to commence in early to mid-December. Construction on the third location of Geulis-1 will commence shortly after the completion of construction on Cataka-1. All three wells are planned to be drilled back to back starting with Cataka-1 in the first half of December 2011.
- East Jabung PSC was formally granted on a 100% basis to Pan Orient on November 21, 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 firm three year exploration commitment (including two wells and seismic) for the East Jabung PSC totals $7.3 million.
- 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.
- Thailand
- Average 2011 oil sales in Thailand in the third quarter of 2011 of 2,000 BOPD with 1,181 BOPD from Concession L44, 502 BOPD from Concession L53, 200 BOPD from Concession SW1 and 117 BOPD from Concession L33. This compares with 2,052 BOPD in the second quarter of 2011 and 4,211 BOPD in the third quarter of 2010.
- Funds flow from Thailand operations was $13.1 million for the third quarter of 2011 ($71.33 per barrel) compared with $13.5 million for the second quarter of 2011 ($72.27 per barrel). Funds flow from Thailand operations decreased 3% in the third quarter of 2011 due to a 3% decrease in oil sales volumes and a 1% decrease in the realized price for crude oil, partially offset a decrease in current income taxes.
For the third quarter of 2011, transportation expenses were $2.16 per barrel, operating expenses and other royalty $12.80 per barrel, general and administrative expenses $5.49 per barrel and amounts to the Thailand government of $6.54 per barrel resulted in after tax funds flow from operations per barrel of $71.33. The Company's realized price for crude oil per barrel of CDN$98.29 represents 87% of the Brent reference price for crude oil of CDN$112.47 per barrel, and 110% of the WTI reference price for crude oil of CDN$89.50 per barrel. For the third quarter of 2011, Thailand crude oil revenue of $98.29 per barrel was allocated 21% to expenses for transportation, operating, and general & administrative, 7% to the government of Thailand in the form of royalties, Special Remuneratory Benefit ("SRB") and Income Tax, and 72% to Pan Orient. - During the third quarter of 2011 Pan Orient drilled five wells (3.0 net wells) in Thailand with capital expenditures of $10.3 million. Four wells were drilled at Concession L44 with the NSW-A exploration well, the L44-G2 appraisal well in the Na Sanun East field, a development well at the NSE-F1 field and the POR-6B appraisal well at the Wichian Buri field, and the NS-2A appraisal well was drilled in Concession SW1. In addition, the WBEXT-1D well drilled in late 2010 was sidetracked.
- In the first nine months of 2011 Pan Orient has drilled 20 wells (14.0 net wells) with total capital expenditures in Thailand of $38.1 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 $13.8 million to September 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 three producing sandstone oil wells and oil produced from the appraisal wells under their 90 day test periods. These wells added 395 BOPD of oil sales in the third quarter of 2011 and 322 BOPD in October.
- Pan Orient has drilled four wells at the WBEXT field in Concession L44 (Pan Orient operator and 60% ownership) including one development well, one appraisal well, and two exploration wells. Capital costs to September 30, 2011 of $7.0 million include this four well program, the sidetrack to the WBEXT-1D well drilled in December 2010, plus capital costs of $1.4 million associated wells spudded in December 2010 that continued drilling into 2011. This has resulted in the WBEXT-1E and WBEXT-1F wells producing from sandstone zones, the WBEXT-2B well producing from the WBV2 volcanic zone, and the WBEXT-1D sidetrack producing from the WBV1 Volcanic zone. Appraisal of the "E" sand reservoir in the main WBEXT fault compartment will be a near term focus of drilling activity in 2012 after Environmental Impact Approval is received for drilling locations. 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 there will be follow-up appraisal drilling in 2012. The WBEXT-2B appraisal well is producing from the WBEXT WBV2 volcanic zone. The three new wells plus the WBEXT-1D side track added 267 BOPD of oil sales in the third quarter of 2011 and 144 BOPD in October.
- Another five exploration wells and two appraisal wells and two development wells were drilled in Concession L44 (Pan Orient operator and 60% ownership) at a cost of $9.5 million. The two development wells at POR-6B and NSE-F6 resulted in two producing oil wells (one from the "G" sandstone zone and one from the volcanic zone), and the two appraisal wells resulted in one new oil well producing from the "G" sandstone zone. The Company had limited success in the five exploration wells drilled at Si Thep, Na Sanun East (the NSE-E4 well) and three new exploration areas (L44-E, L44-F, and NSW-A) which did not add oil production. The three new wells (POR-6A, POR-6B and NSE-F6 added 228 BOPD in October.
- The NS-2A appraisal well was drilled in Concession SW1 at a capital cost of $0.5 million. This well is on production from the volcanic zone and added 66 BOPD of oil sales in the third quarter of 2011 and 61 BOPD in October.
- Pan Orient drilled the L33-4 exploration well in Concession L33 (Pan Orient operator and 60% ownership) and completed side track operations at the L33-2 well to evaluate the WBV1 volcanic reservoir at the L33-2 well with a capital cost of $3.0 million. These wells are shut-in.
Thailand Operations Update
Recent flooding in Thailand related to the historically high annual monsoon rains has had, and is expected to have, no impact on Thailand production and drilling operations.
Thailand production was 2,000 BOPD in the third quarter of 2011 and is currently approximately 1,960 BOPD with six new wells and one sidetrack well planned to be completed prior to year-end 2011 on Concession L44 and Concession L53 in addition to one new ICD technology recompletion on an existing well in L44 within the Bo Rang "B" volcanic reservoir. The vast majority of the production declines since the last update are attributed to a single well (NSE-F6) which declined from 600 BOPD net to 35 BOPD net in the intervening period.
Each of the remaining four development wells and 1 sidetrack well are estimated to be capable of initial production rates in excess of 300 BOPD per well net to Pan Orient. Year end production will be heavily influenced by: 1) the initial production rates observed in these yet to be drilled wells, 2) the decline rates these wells exhibit prior to year end, and 3) the results of the two well exploration program on concession L53.
The initial results of an ICD controlled in flow technology pilot on the BR-1RDST1 have been very encouraging with production at approximately 215 barrels of oil per day gross (129 BOPD net to Pan Orient) which is up 165 barrels of oil per day gross from the 50 barrels of oil per day gross production rate prior to the ICD recompletion. Current plans are to run one additional ICD recompletion prior to year end on an existing horizontal well within the Bo Rang "B" field and evaluate the results prior to making a decision on the redevelopment using ICD controlled in flow technology of the NSE Central, NSE South, NSE-E1, Bo Rang "A" and Bo Rang "B" fields.
Environmental approval is anticipated for up to 15 wells in the WBEXT "E" and "D" sandstone reservoir area at the end of December 2011, with an aggressive sandstone development program to follow in January 2012 (assuming environmental approval is granted at the upcoming December 30, 2011 meeting with the Government of Thailand environmental regulator). At least three sandstone exploration targets in close proximity to the WBEXT reservoir area are also planned to be drilled in 2012 and these locations are covered by the environmental approval referred to above.
The L53-D2 (L53-D East) and L53-G exploration wells at Concession L53 are planned to commence drilling multiple stacked sandstone reservoir targets in mid-December 2011. A 200 square kilometer 3D survey in Concession L53 is being considered for the second quarter of 2012 targeting an area which has minimal data coverage between Pan Orient's oil producing wells and a recent oil discovery made by a competitor to the North, adjacent to the concession boundary.
Thailand Drilling Update
Concessions L44, L33 & SW1 (Pan Orient 60% working interest and Operator)
L33-2A Exploration Well
The L33-2A exploration well targeted the unproven WBV2 volcanic zone below the proven oil producing WBV1 volcanic reservoir. Excellent fracturing was indicated by the drilling mud losses observed while drilling; however, only water was recovered on test.
BR-2ST3 Development Well
The BR-2ST3 deviated development well tested at an initial rate of approximately 306 BOPD net to Pan Orient and no water from the Bo Rang "A1" volcanic reservoir. The current production rate is approximately 70 BOPD net to Pan Orient with a stable water cut of approximately 30%.
BR-4ST1 Development Well
The BR-4ST1 development was targeting the Bo Rang "A1" reservoir at a location approximately 850 meters east of BR-2ST3 development well. Just prior to drilling the main target section the directional assembly ("MWD") was removed as is common practice in order to reduce the risk of sticking the MWD in the hole when massive drilling fluid losses are experienced in the target reservoir. A subsequent deviation survey indicated that the well deviated coming out of the casing shoe, just missing the top of the intended target. The well has been suspended with plans to re-enter the hole and drill into the intended target prior to year end.
NSE-F7 Horizontal Development Well
The NSE-F7 well encountered extensive fracturing within the target volcanic formation with over 2,000 barrels of fluid losses observed while drilling. The well is currently on production at a stabilized rate of 442 barrels of oil per day gross (264 BOPD net to Pan Orient) with a stabilized water cut of 40%. This well is a likely candidate for future ICD recompletion.
NSE-F5 Horizontal Development Well
The NSE-F5 horizontal well is currently setting casing just above target approximately 1.4 kilometers east of the NSE-F7 well.
Andora Energy Corporation Update
Andora Energy Corporation, a private oil company in which Pan Orient has 53% ownership, has an oil sands project in the Sawn Lake area of Northern Alberta and initiated a process earlier this year to identity and consider strategic alternatives. No binding proposals to purchase the Company or farm-in to the asset have been received to date and the process continues.
In the first quarter of 2011 Andora acquired an additional 10% working interest in the Sawn Lake Central and North Blocks with the issuance of 4,433,031 non-voting special warrants of Andora (with each special warrant entitling the holder thereof to receive one common share of Andora upon the happening of a liquidity event involving Andora). If a liquidity event is not completed by November 25, 2011 the acquired interests will be re-conveyed back to the vendor and the warrants will be cancelled.
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 September 30, |
Nine Months Ended September 30, |
Change | ||||||||||||
| (thousands of Canadian dollars except where indicated) | 2011 | 2010 | 2011 | 2010 | |||||||||||
| FINANCIAL | |||||||||||||||
| Oil revenue, before royalties and transportation expense | 18,083 | 27,050 | 55,053 | 74,524 | -26 | % | |||||||||
| Funds flow from operations (Note 1) | 13,165 | 15,412 | 38,809 | 41,209 | -6 | % | |||||||||
| Per share - basic | $ | 0.23 | $ | 0.32 | $ | 0.71 | $ | 0.85 | -17 | % | |||||
| Per share - diluted | $ | 0.23 | $ | 0.31 | $ | 0.71 | $ | 0.82 | -14 | % | |||||
| Funds flow from operations by region (Note 1) | |||||||||||||||
| Canada | 20 | (33 | ) | (384 | ) | 814 | -147 | % | |||||||
| Thailand | 13,123 | 15,370 | 39,477 | 40,490 | -3 | % | |||||||||
| Indonesia | 22 | 75 | (284 | ) | (95 | ) | 199 | % | |||||||
| Total | 13,165 | 15,412 | 38,809 | 41,209 | -6 | % | |||||||||
| Net income attributable to common shareholders | 3,882 | 5,405 | 12,418 | 13,691 | -9 | % | |||||||||
| Per share - basic | $ | 0.07 | $ | 0.11 | $ | 0.23 | $ | 0.28 | -19 | % | |||||
| Per share - diluted | $ | 0.07 | $ | 0.11 | $ | 0.23 | $ | 0.27 | -6 | % | |||||
| Working capital | 52,756 | 23,897 | 52,756 | 23,897 | 121 | % | |||||||||
| Working capital & non-current deposits | 58,016 | 27,746 | 58,016 | 27,746 | 109 | % | |||||||||
| Long-term debt | - | - | - | - | - | ||||||||||
| Capital expenditures (Note 2) | 15,364 | 11,012 | 57,831 | 47,690 | 21 | % | |||||||||
| Acquisitions - Indonesia (Note 3) | - | - | 1,761 | - | |||||||||||
| Acquisitions - Sawn Lake, Canada (Note 3) | - | - | 3,192 | - | |||||||||||
| Shares outstanding (thousands) | 56,685 | 48,619 | 56,685 | 48,619 | 17 | % | |||||||||
| Funds Flow from Operations per Barrel (Note 1) | |||||||||||||||
| Canada operations | $ | 0.11 | $ | (0.08 | ) | $ | (0.67 | ) | $ | 0.78 | -186 | % | |||
| Thailand operations | 71.33 | 39.67 | 68.91 | 38.76 | 78 | % | |||||||||
| Indonesia operations | 0.12 | 0.19 | (0.50 | ) | (0.09 | ) | 451 | % | |||||||
| $ | 71.56 | $ | 39.78 | $ | 67.74 | $ | 39.45 | 72 | % | ||||||
| Capital Expenditures (Note 2) | |||||||||||||||
| Canada | 22 | 185 | 236 | 595 | -60 | % | |||||||||
| Thailand | 10,310 | 8,694 | 38,069 | 31,695 | 20 | % | |||||||||
| Indonesia | 5,032 | 2,133 | 19,526 | 15,400 | 27 | % | |||||||||
| Total | 15,364 | 11,012 | 57,831 | 47,690 | 21 | % | |||||||||
| Working Capital and Non-current Deposits | |||||||||||||||
| Working capital & non-current deposits - beginning of period | 60,469 | 24,029 | 31,396 | 32,738 | -4 | % | |||||||||
| Funds flow from operations (Note 1) | 13,165 | 15,412 | 38,809 | 41,209 | -6 | % | |||||||||
| Capital expenditures (Note 2) | (15,364 | ) | (11,012 | ) | (57,831 | ) | (47,690 | ) | 21 | % | |||||
| Acquisitions - Indonesia (Note 4) | - | - | (1,417 | ) | - | ||||||||||
| Non-cash settlement of Andora receivable | - | - | - | (600 | ) | ||||||||||
| Foreign exchange impact on working capital | (254 | ) | (772 | ) | (557 | ) | (1,247 | ) | -55 | % | |||||
| Net proceeds on share transactions | - | 89 | 47,616 | 3,336 | 1327 | % | |||||||||
| Working capital & non-current deposits - end of period | 58,016 | 27,746 | 58,016 | 27,746 | 109 | % | |||||||||
| Canada Operations | |||||||||||||||
| Interest income | 109 | 15 | 269 | 29 | 828 | % | |||||||||
| General and administrative (expense) recovery (Note 5) | (157 | ) | (67 | ) | (462 | ) | 670 | -169 | % | ||||||
| Realized foreign exchange gain (loss) | 68 | 19 | (191 | ) | 172 | -211 | % | ||||||||
| Foreign new ventures expenditures | - | - | - | (57 | ) | ||||||||||
| Funds flow from operations (Note 1) | 20 | (33 | ) | (384 | ) | 814 | -147 | % | |||||||
| Funds flow from operations per barrel | |||||||||||||||
| Interest income | $ | 0.59 | $ | 0.04 | $ | 0.47 | $ | 0.03 | 1466 | % | |||||
| General and administrative expense (Note 5) | (0.85 | ) | (0.17 | ) | (0.81 | ) | 0.64 | -226 | % | ||||||
| Realized foreign exchange gain (loss) | 0.37 | 0.05 | (0.33 | ) | 0.16 | -308 | % | ||||||||
| Foreign new ventures expenditures | - | - | - | (0.05 | ) | ||||||||||
| $ | 0.11 | $ | (0.08 | ) | $ | (0.67 | ) | $ | 0.78 | -186 | % | ||||
| Indonesia Operations | |||||||||
| General and administrative recovery (expense) (Note 5) | 22 | 75 | (284 | ) | (95 | ) | 199 | % | |
| Wells drilled | |||||||||
| Gross | - | - | 2 | - | |||||
| Net | - | - | 2.0 | - | |||||
| Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||
| (thousands of Canadian dollars except where indicated) | 2011 | 2010 | 2011 | 2010 | Change | ||||||||||
| THAILAND OPERATIONS | |||||||||||||||
| Oil sales (bbls) | 183,973 | 387,444 | 572,867 | 1,044,601 | -45 | % | |||||||||
| Average daily oil sales (bbls/d) by Concession | |||||||||||||||
| L44 | 1,181 | 3,842 | 1,322 | 3,577 | -63 | % | |||||||||
| SW1 | 200 | 146 | 142 | 174 | -18 | % | |||||||||
| L33 | 117 | - | 160 | - | |||||||||||
| L53 | 502 | 223 | 474 | 75 | 528 | % | |||||||||
| Total | 2,000 | 4,211 | 2,098 | 3,826 | -45 | % | |||||||||
| Average oil sales price, before transportation (CDN$/bbl) | $ | 98.29 | $ | 69.82 | $ | 96.10 | $ | 71.34 | 35 | % | |||||
| Reference Price (volume weighted) and differential | |||||||||||||||
| Exchange Rate $US/$Cdn | 0.99 | 1.04 | 0.99 | 1.04 | -5 | % | |||||||||
| Crude oil (WTI $US/bbl) | $ | 90.31 | $ | 76.82 | $ | 95.65 | $ | 77.78 | 23 | % | |||||
| Sales price / WTI reference price | 110 | % | 88 | % | 102 | % | 88 | % | 14 | % | |||||
| Crude oil (Brent $US/bbl) | $ | 113.49 | $ | 77.07 | $ | 111.95 | $ | 77.35 | 45 | % | |||||
| Sale price / Brent reference price | 87 | % | 87 | % | 87 | % | 88 | % | -1 | % | |||||
| Funds flow from operations (Note 1) | |||||||||||||||
| Crude oil sales | 18,083 | 27,050 | 55,053 | 74,524 | -26 | % | |||||||||
| Government royalty | (894 | ) | (1,725 | ) | (2,777 | ) | (4,698 | ) | -41 | % | |||||
| Other royalty | (51 | ) | (26 | ) | (136 | ) | (47 | ) | 190 | % | |||||
| Transportation expense | (398 | ) | (970 | ) | (1,274 | ) | (2,636 | ) | -52 | % | |||||
| Operating expense | (2,314 | ) | (2,502 | ) | (6,848 | ) | (6,649 | ) | 3 | % | |||||
| 14,426 | 21,827 | 44,018 | 60,494 | -27 | % | ||||||||||
| General and administrative expense (Note 5) | (1,011 | ) | (937 | ) | (2,636 | ) | (3,370 | ) | -22 | % | |||||
| Interest income | 6 | 5 | 64 | 57 | 12 | % | |||||||||
| Special Remuneratory Benefit tax (SRB) | - | (1,957 | ) | - | (4,863 | ) | -100 | % | |||||||
| Current income tax | (298 | ) | (3,568 | ) | (1,969 | ) | (11,828 | ) | -83 | % | |||||
| Funds flow from operations | 13,123 | 15,370 | 39,477 | 40,490 | -3 | % | |||||||||
| Funds flow from operations / barrel (CDN$/bbl) (Note 1) | |||||||||||||||
| Crude oil sales | $ | 98.29 | $ | 69.82 | $ | 96.10 | $ | 71.34 | 35 | % | |||||
| Government royalty | (4.92 | ) | (4.45 | ) | (4.94 | ) | (4.50 | ) | 10 | % | |||||
| Other royalty | (0.22 | ) | (0.07 | ) | (0.15 | ) | (0.04 | ) | 271 | % | |||||
| Transportation expense | (2.16 | ) | (2.50 | ) | (2.22 | ) | (2.52 | ) | -12 | % | |||||
| Operating expense | (12.58 | ) | (6.46 | ) | (11.95 | ) | (6.36 | ) | 88 | % | |||||
| 78.41 | 56.34 | 76.84 | 57.92 | 33 | % | ||||||||||
| General and administrative expense (Note 5) | (5.49 | ) | (2.42 | ) | (4.60 | ) | (3.23 | ) | 42 | % | |||||
| Interest Income | 0.03 | 0.01 | 0.11 | 0.05 | 123 | % | |||||||||
| Special Remuneratory Benefit (SRB) | - | (5.05 | ) | - | (4.66 | ) | -100 | % | |||||||
| Current income tax | (1.62 | ) | (9.21 | ) | (3.44 | ) | (11.32 | ) | -70 | % | |||||
| Thailand - Funds flow from operations | $ | 71.33 | $ | 39.67 | $ | 68.91 | $ | 38.76 | 78 | % | |||||
| Government royalty as percentage of crude oil sales | 5.0 | % | 6.4 | % | 5.0 | % | 6.3 | % | -1.3 | % | |||||
| SRB as percentage of crude oil sales | 0.0 | % | 7.2 | % | 0.0 | % | 6.5 | % | -6.5 | % | |||||
| Income tax as percentage of crude oil sales | 1.6 | % | 13.2 | % | 3.6 | % | 15.9 | % | -12.3 | % | |||||
| As percentage of crude oil sales | |||||||||||||||
| Expenses - transportation, operating, G&A and other | 20.9 | % | 16.4 | % | 19.8 | % | 17.0 | % | 2.8 | % | |||||
| Government royalty, SRB and income tax | 6.6 | % | 26.8 | % | 8.6 | % | 28.7 | % | -20.1 | % | |||||
| Funds flow from operations, before interest income and realized foreign exchange gain | 72.5 | % | 56.8 | % | 71.6 | % | 54.3 | % | 17.3 | % | |||||
| Wells drilled | |||||||||||||||
| Gross | 5 | 7 | 20 | 19 | 5 | % | |||||||||
| Net | 3.0 | 4.2 | 14.0 | 11.4 | 23 | % | |||||||||
(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.
(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