CALGARY, ALBERTA--(Marketwired - April 19, 2013) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA.
Manitok Energy Inc. (the "Corporation" or "Manitok") (TSX VENTURE:MEI) announces its financial and operating results and reserves evaluation for the year ended December 31, 2012.
The full text of Manitok's year end report containing its audited financial statements as at and for the year ended December 31, 2012 and the related management's discussion and analysis will be available electronically on Manitok's profile on the System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com and also on Manitok's website at www.manitokenergy.com on April 19, 2013. Manitok's Annual Information Form for the year ended December 31, 2012 will be available electronically on SEDAR and on Manitok's website on or before April 30, 2013.
Operational & Financial Highlights:
Operational and Financial Summary
Three Months Ended December 31 |
Twelve Months Ended December 31 |
||||||||
2012 | 2011 | 2012 | 2011 | ||||||
Operating | |||||||||
Average daily production | |||||||||
Natural gas (mcf/d) | 8,344 | 8,314 | 8,556 | 2,773 | |||||
Light oil (bbls/d) | 1,618 | 29 | 793 | 7 | |||||
Heavy oil (bbls/d) | - | 332 | 94 | 204 | |||||
NGLs (bbls/d) | 69 | 59 | 76 | 16 | |||||
Total (boe/d) | 3,078 | 1,806 | 2,389 | 689 | |||||
Average realized sales price | |||||||||
Natural gas ($/mcf) | 3.64 | 3.33 | 2.62 | 3.42 | |||||
Light oil ($/bbl) | 82.53 | 96.94 | 82.87 | 96.94 | |||||
Heavy oil ($/bbl) | - | 73.52 | 76.29 | 69.73 | |||||
NGLs ($/bbl) | 77.71 | 91.97 | 77.60 | 91.38 | |||||
Total ($/boe) | 54.99 | 33.41 | 42.34 | 37.53 | |||||
Undeveloped Land (end of period) | |||||||||
Gross (acres) | 231,144 | 202,407 | 231,144 | 202,407 | |||||
Net (acres) | 178,938 | 149,993 | 178,938 | 149,993 | |||||
Netback and Cost | |||||||||
($/boe) | |||||||||
Petroleum and natural gas sales | 54.99 | 33.41 | 42.34 | 37.53 | |||||
Realized gain on financial instruments | 3.37 | - | 2.03 | - | |||||
Royalty income | 0.43 | 0.39 | 0.38 | 0.25 | |||||
Royalty expenses | (11.22 | ) | (4.37 | ) | (5.60 | ) | (4.04 | ) | |
Operating expenses, net | (10.48 | ) | (12.08 | ) | (9.14 | ) | (13.71 | ) | |
Transportation and marketing expenses | (3.17 | ) | (1.14 | ) | (2.39 | ) | (1.50 | ) | |
Operating netback | 33.92 | 16.21 | 27.62 | 18.53 | |||||
Administrative expenses, net | (6.79 | ) | (6.93 | ) | (5.65 | ) | (11.63 | ) | |
Interest expenses | (0.23 | ) | (0.35 | ) | (0.19 | ) | (0.23 | ) | |
Interest and other income | 0.10 | 0.12 | 0.04 | 1.00 | |||||
Funds from operations netback | 27.00 | 9.05 | 21.82 | 7.67 | |||||
Financial | |||||||||
Petroleum and natural gas revenue ($000) | 15,696 | 5,615 | 37,349 | 9,507 | |||||
Funds from operations ($000)(1) | 7,651 | 1,503 | 19,081 | 1,930 | |||||
Per share - basic ($)(1) | 0.11 | 0.03 | 0.30 | 0.04 | |||||
Per share - diluted ($)(1) | 0.11 | 0.03 | 0.29 | 0.04 | |||||
Net income (loss) ($000) | (2,157 | ) | (4,327 | ) | (2,657 | ) | (7,190 | ) | |
Per share - basic ($) | (0.03 | ) | (0.08 | ) | (0.04 | ) | (0.15 | ) | |
Per share - diluted ($) | (0.03 | ) | (0.08 | ) | (0.04 | ) | (0.15 | ) | |
Common shares outstanding | |||||||||
End of period - basic | 70,339,014 | 61,800,531 | 70,339,014 | 61,800,531 | |||||
End of period - diluted | 75,122,847 | 65,645,531 | 75,122,847 | 65,645,531 | |||||
Weighted average for the period - basic | 68,908,419 | 54,639,933 | 63,567,788 | 47,344,609 | |||||
Weighted average for the period - diluted | 70,986,540 | 55,665,947 | 64,702,325 | 48,264,141 | |||||
Capital expenditures, net ($000) | 13,421 | 55,526 | 36,965 | 74,747 | |||||
Working capital deficiency (surplus) ($000)(2) | 6,861 | 5,994 | 6,861 | 5,994 | |||||
Drawn on revolving credit facility ($000) | 3,101 | 1,960 | 3,101 | 1,960 | |||||
Total net debt ($000) | 9,962 | 7,954 | 9,962 | 7,954 |
(1) | Funds from operations and funds from operations per share amounts represent cash provided by operating activities from the Statement of Cash Flows before the effects of decommissioning expenditures and changes in non-cash working capital related to operating activities. |
(2) | Working capital deficiency (surplus) is defined as current assets less current liabilities excluding the current portion of the amount drawn on the revolving credit facility and the fair value of financial instruments. |
2012 Year-End Reserves
Manitok has had its reserves evaluation prepared by Sproule Associates Limited ("Sproule"), an independent qualified reserves evaluator, in accordance with the Canadian Oil and Gas Evaluation Handbook and National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101"), effective December 31, 2012 (the "Sproule Report"). Reserves estimates stated herein have been extracted from the Sproule Report.
2012 Year-End Reserves Highlights:
(1) | Estimates of future net revenues whether discounted or not do not represent fair market value. |
Sproule's estimates of Manitok's reserves and pre-tax discounted future net revenues based on forecast commodity prices and costs are set forth below:
Summary of Oil and Gas Reserves at December 31, 2012 (Forecast Prices and Costs) |
||||||||||||||||
Reserves Category |
Light and Medium Oil | Natural Gas(2) | NGLs | Total | ||||||||||||
Gross (Mbbl) |
Net (Mbbl) |
Gross (Mmcf) |
Net (Mmcf) |
Gross (Mbbl) |
Net (Mbbl) |
Gross (Mboe) |
Net (Mboe) |
|||||||||
Proved | ||||||||||||||||
Developed Producing | 1,063.0 | 744.9 | 16,590 | 14,733 | 157.5 | 103.6 | 3,985.5 | 3,304.1 | ||||||||
Developed Non-Producing | 1.3 | 1.2 | 8,374 | 6,772 | 21.7 | 13.5 | 1,418.6 | 1,143.4 | ||||||||
Undeveloped | 1,673.8 | 1,215.2 | 5,394 | 4,556 | 52.5 | 36.5 | 2,625.2 | 2,011.0 | ||||||||
Total Proved | 2,738.1 | 1,961.3 | 30,358 | 26,061 | 231.7 | 153.7 | 8,029.3 | 6,458.5 | ||||||||
Probable | 2,530.2 | 1,711.1 | 24,682 | 21,121 | 189.2 | 128.4 | 6,833.0 | 5,359.7 | ||||||||
Total Proved Plus Probable | 5,268.2 | 3,672.4 | 55,039 | 47,182 | 420.9 | 282.0 | 14,862.3 | 11,818.2 |
(1) | Based on Sproule's December 31, 2012 forecast prices. |
(2) | Estimates of reserves of natural gas include both associated and non-associated gas. |
(3) | Columns may not add due to rounding of individual items. |
Summary of Net Present Values of Future Net Revenue at December 31, 2012 (Forecast Prices and Costs) |
||||||||||
Reserves Category | Before Income Taxes Discounted at (%/year) |
|||||||||
0% (M$) |
5% (M$) |
10% (M$) |
15% (M$) |
20% (M$) |
||||||
Proved | ||||||||||
Developed Producing | 100,883 | 78,762 | 65,733 | 57,143 | 51,037 | |||||
Developed Non-Producing | 13,525 | 9,018 | 6,399 | 4,716 | 3,566 | |||||
Undeveloped | 66,029 | 42,995 | 30,775 | 23,167 | 17,926 | |||||
Total Proved | 180,437 | 130,775 | 102,907 | 85,026 | 72,529 | |||||
Probable | 198,633 | 106,702 | 70,704 | 51,991 | 40,522 | |||||
Total Proved Plus Probable | 379,070 | 237,477 | 173,611 | 137,017 | 113,051 | |||||
(1) | Based on Sproule's December 31, 2012 forecast prices. |
(2) | Columns may not add due to rounding of individual items. |
(3) | Estimates of future net revenues whether discounted or not do not represent fair market value. |
(4) | The forecast of commodity prices used by Sproule in its evaluation can be found at www.sproule.com. |
Reconciliation of Change in Gross Reserves(1) | ||||||
For the year ended December 31, 2012 | ||||||
Gross Proved (Mboe) |
Gross Probable (Mboe) |
Gross Proved Plus Probable (Mboe) |
||||
Opening balance | 4,539.6 | 4,280.6 | 8,820.2 | |||
Discoveries, extensions and improved recovery | 3,049.6 | 2,590.0 | 5,639.6 | |||
Acquisitions (dispositions) | (385.1 | ) | (225.1 | ) | (610.2 | ) |
Technical revisions | 1,748.5 | 203.9 | 1,952.4 | |||
Economic factors | (48.9 | ) | (16.6 | ) | (65.5 | ) |
Production over the year | (874.2 | ) | - | (874.2 | ) | |
Closing balance | 8,029.5 | 6,832.8 | 14,862.3 |
(1) | Based on Sproule's December 31, 2012 forecast prices. "Gross reserves" are the Corporation's working-interest share before deduction of any royalties and without including any royalty interests of the Corporation. |
(2) | Columns may not add due to rounding of individual items. |
F&D Costs and Finding, Development and Acquisition ("FD&A") Costs
The following table sets forth Manitok's actual capital expenditures for the years ended December 31, 2012 and 2011:
Capital Expenditures
(M$) | 2012 | 2011 | |
Exploration & Development(1) | 48,419 | 31,271 | |
Acquisitions/(Dispositions) | (12,927 | ) | 42,410 |
Total Capital Expenditures | 35,492 | 73,681 |
(1) | Exploration and development expenditures exclude capitalized overhead costs |
The following table sets forth the change in Manitok's undiscounted future development costs:
Change in Future Development Costs
(M$) | 2012 | 2011 |
Total Proved | 24,046 | 8,662 |
Proved Plus Probable | 17,564 | 46,636 |
The following table outlines Manitok's F&D and FD&A Costs based on Sproule Report and capital expenditures incurred:
Excluding the Change in Future Development Costs | 2012 | 2011 | Three Year Weighted Average | |
Proved ($/boe) | ||||
F&D Costs(1) | 10.20 | 30.76 | 14.58 | |
FD&A Costs(1) | 8.13 | 17.83 | 13.19 | |
Proved plus probable ($/boe) | ||||
F&D Costs(1) | 6.43 | 7.45 | 7.31 | |
FD&A Costs(1) | 5.13 | 9.01 | 7.54 | |
Recycle ratio | ||||
Proved(2) | 2.7 | 0.6 | ||
Proved plus probable(2) | 4.3 | 2.5 |
Including the Change in Future Development Costs | 2012 | 2011 | Three Year Weighted Average | |
Proved ($/boe) | ||||
F&D Costs(1) | 15.26 | 39.28 | 20.48 | |
FD&A Costs(1) | 13.64 | 19.93 | 17.23 | |
Proved plus probable ($/boe) | ||||
F&D Costs(1) | 8.77 | 18.56 | 12.82 | |
FD&A Costs(1) | 7.67 | 14.72 | 11.84 | |
Recycle ratio | ||||
Proved(2) | 1.8 | 0.5 | ||
Proved plus probable(2) | 3.2 | 1.0 |
(1) | The aggregate of the exploration and development costs incurred in the most recent financial year and change during that year in estimated future development costs generally will not reflect total finding and development costs related to reserve additions for that year. |
(2) | Recycle ratio is calculated as 2012 average operating netback divided by F&D costs. Operating netback is calculated as revenue (including realized hedging gains and losses and royalty income) minus royalty expenses, operating expenses and transportation and marketing expenses. |
2013 Guidance
The 2013 guidance remains unchanged from the press release dated February 12, 2013, and is available in the corporate presentation posted on Manitok's website at www.manitokenergy.com.
About Manitok
Manitok is a public oil and gas exploration and development company focusing on conventional oil and gas reservoirs in the Canadian foothills. Manitok's corporate strategy is that of being an "early mover" in the exploitation phase of the development life cycle of hydrocarbon reserves in the Canadian foothills. The Corporation will continue to utilize its experience and expertise to develop the untapped conventional sweet oil and liquids-rich natural gas pools in this large and under-exploited region of the Western Canadian Sedimentary Basin.
For further information view our website at www.manitokenergy.com.
Forward-looking Statements
This press release contains forward-looking statements. More particularly, this press release contains statements concerning planned capital expenditures, planned exploration and development activities, funds from operations in 2013 and the development and growth potential of Manitok's properties.
The forward-looking statements in this press release are based on certain key expectations and assumptions made by Manitok, including expectations and assumptions concerning the success of future drilling and development activities, the performance of existing wells, the performance of new wells, the successful application of technology, prevailing weather conditions, commodity prices, royalty regimes and exchange rates and the availability of capital, labour and services.
Although Manitok believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Manitok can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserves estimates; the uncertainty of estimates and projections relating to production, costs and expenses; and health, safety and environmental risks), uncertainty as to the availability of labour and services, commodity price and exchange rate fluctuations, unexpected adverse weather conditions and changes to existing laws and regulations. Certain of these risks are set out in more detail in Manitok's current Annual Information Form, which is available on Manitok's SEDAR profile at www.sedar.com.
The forward-looking statements regarding Manitok's expected 2013 funds from operations are included herein to provide readers with an understanding of Manitok's anticipated funds from operations and Manitok's ability to fund its expenditures based on the assumptions described herein. Readers are cautioned that this information may not be appropriate for other purposes.
Forward-looking statements are based on estimates and opinions of management of Manitok at the time the statements are presented. Manitok may, as considered necessary in the circumstances, update or revise such forward-looking statements, whether as a result of new information, future events or otherwise, but Manitok undertakes no obligation to update or revise any forward-looking statements, except as required by applicable securities laws.
Non-GAAP Financial Measures
This press release contains references to measures used in the oil and natural gas industry such as "funds from operations", "operating netback", "funds from operations netback", "funds from operations per share" and "net debt". These measures do not have any standardized meanings within International Financial Reporting Standards ("IFRS") and, therefore, reported amounts may not be comparable to similarly titled measures reported by other companies. These measures have been described and presented in this press release in order to provide shareholders and potential investors with additional information regarding Manitok's liquidity and its ability to generate funds to finance its operations.
Funds from operations should not be considered an alternative to, or more meaningful than, cash provided by operating, investing and financing activities or net earnings as determined in accordance with IFRS, as an indicator of Manitok's performance or liquidity. Funds from operations is used by Manitok to evaluate operating results and Manitok's ability to generate cash flow to fund capital expenditures and repay debt. Funds from operations denotes cash flow from operating activities as it appears on the Corporation's Statement of Cash Flows before decommissioning expenditures and changes in non-cash working capital related to operating activities.
Operating netback denotes petroleum and natural gas revenue and realized gain (loss) on financial instruments less royalty expenses, operating expenses and transportation and marketing expenses.
Funds from operations netback denotes net income (loss) plus non-cash items including deferred income tax expense (recovery), depletion and depreciation expense, exploration and evaluation expense, impairment expense, stock-based compensation expense, accretion expense, acquisition-related expenses, unrealized gains or losses on financial instruments and gains or losses on asset divestitures.
Manitok uses net debt as a measure to assess its financial position. Net debt includes current liabilities (including Manitok's credit facility and excluding the fair value of financial instruments) less current assets (excluding the fair value of financial instruments).
Reserves Data
There are numerous uncertainties inherent in estimating quantities of crude oil, natural gas and NGLs reserves and the future cash flows attributed to such reserves. The reserves and associated cash flow information set forth above are estimates only. In general, estimates of economically recoverable crude oil, natural gas and NGLs reserves and the future net cash flows therefrom are based upon a number of variable factors and assumptions, such as historical production from the properties, production rates, ultimate reserves recovery, timing and amount of capital expenditures, marketability of oil and natural gas, royalty rates, the assumed effects of regulation by governmental agencies and future operating costs, all of which may vary materially. For these reasons, estimates of the economically recoverable crude oil, NGLs and natural gas reserves attributable to any particular group of properties, classification of such reserves based on risk of recovery and estimates of future net revenues associated with reserves prepared by different engineers, or by the same engineers at different times, may vary. Manitok's actual production, revenues, taxes and development and operating expenditures with respect to its reserves will vary from estimates thereof and such variations could be material.
The reserves data provided in this press release presents only a portion of the disclosure required under NI 51-101. All of the required information will be contained in Manitok's Annual Information Form for the year ended December 31, 2012, which will be filed on SEDAR (accessible at www.sedar.com) on or before April 30, 2013.
Barrels of Oil Equivalent
The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. Per boe amounts have been calculated using a conversion ratio of six thousand cubic feet of natural gas (6 mcf) to one barrel of oil (1 bbl). This boe conversion ratio of 6 mcf to 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. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact Information: