CALGARY, ALBERTA--(Marketwired - Aug. 21, 2014) - Pan Orient Energy Corp. ("Pan Orient") (TSX VENTURE:POE) is providing its 2014 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 is today filing its unaudited consolidated financial statements as at and for the six months ended June 30, 2014 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.
Highlights
2014 SECOND QUARTER OPERATING RESULTS
OUTLOOK
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, information on future production and project start-ups and the status and likelihood of farmout negotiations and agreements. 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.
Neither 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.
Financial and Operating Summary | Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||
(thousands of Canadian dollars except where indicated) | 2014 | 2013 | 2014 | 2013 | Change | ||||||
FINANCIAL | |||||||||||
Oil revenue, before royalties and transportation expense | 7,285 | 8,475 | 14,035 | 15,919 | -12 | % | |||||
Funds flow from operations (Note 1) | 4,600 | 6,537 | 8,967 | 12,201 | -27 | % | |||||
Per share - basic and diluted | $ 0.08 | $ 0.11 | $ 0.16 | $ 0.21 | -25 | % | |||||
Funds flow from (used in) operations by region (Note 1) | |||||||||||
Canada | (609 | ) | (65 | ) | (509 | ) | (188 | ) | 171 | % | |
Thailand | 5,423 | 6,632 | 10,404 | 12,492 | -17 | % | |||||
Indonesia | (214 | ) | (30 | ) | (928 | ) | (103 | ) | 801 | % | |
Total | 4,600 | 6,537 | 8,967 | 12,201 | -27 | % | |||||
Net loss attributed to common shareholders | (147 | ) | (97,677 | ) | (332 | ) | (97,336 | ) | -100 | % | |
Per share - basic and diluted | $ (0.01 | ) | $ (1.73 | ) | $ (0.01 | ) | $ (1.72 | ) | -100 | % | |
Working capital | 41,291 | 52,091 | 41,291 | 52,091 | -21 | % | |||||
Working capital & non-current deposits | 43,789 | 54,345 | 43,789 | 54,345 | -19 | % | |||||
Long-term debt | - | - | - | - | 0 | % | |||||
Petroleum and natural gas properties | |||||||||||
Capital expenditures (Note 2) | 4,182 | 37,978 | 15,192 | 72,487 | -79 | % | |||||
Dispositions (Note 3) | - | - | (2,698 | ) | - | 100 | % | ||||
Shares outstanding (thousands) | 56,760 | 56,760 | 56,760 | 56,760 | 0 | % | |||||
Funds Flow from (used in) Operations per Barrel (Note 1) | |||||||||||
Canada operations | $ (8.70 | ) | $ (0.75 | ) | $ (3.79 | ) | $ (1.17 | ) | 224 | % | |
Thailand operations | 77.45 | 76.27 | 77.56 | 77.78 | 0 | % | |||||
Indonesia operations | (3.05 | ) | (0.35 | ) | (6.92 | ) | (0.64 | ) | 980 | % | |
$ 65.70 | $ 75.17 | $ 66.85 | $ 75.97 | -12 | % | ||||||
Capital Expenditures (Note 2) | |||||||||||
Canada | 2,576 | 2,268 | 6,722 | 4,492 | 50 | % | |||||
Thailand | 879 | 19,145 | 3,433 | 32,938 | -90 | % | |||||
Indonesia | 727 | 16,565 | 5,037 | 35,057 | -86 | % | |||||
Total | 4,182 | 37,978 | 15,192 | 72,487 | -79 | % | |||||
Working Capital and Non-current Deposits | |||||||||||
Beginning of period | 44,040 | 87,442 | 47,889 | 116,376 | -59 | % | |||||
Funds flow from operations (Note 1) | 4,600 | 6,537 | 8,967 | 12,201 | -27 | % | |||||
Proceeds from 2012 sale of Thailand interests | 174 | - | 174 | - | 100 | % | |||||
Capital expenditures (Note 2) | (4,182 | ) | (37,978 | ) | (15,192 | ) | (72,487 | ) | -79 | % | |
Disposal of petroleum and natural gas assets (Note 3) | - | - | 2,698 | - | 100 | % | |||||
Settlement of decommissioning liabilities | (98 | ) | - | (98 | ) | - | 100 | % | |||
Recovery of 2012 taxes | - | 1,785 | - | 1,785 | -100 | % | |||||
Accrued relinquishment costs | - | (2,778 | ) | - | (2,778 | ) | -100 | % | |||
Foreign exchange impact on working capital | (745 | ) | (663 | ) | (649 | ) | (882 | ) | -26 | % | |
Net proceeds on share transactions | - | - | - | 130 | -100 | % | |||||
End of period | 43,789 | 54,345 | 43,789 | 54,345 | -19 | % | |||||
Canada Operations | |||||||||||
Interest income | 61 | 190 | 149 | 495 | -70 | % | |||||
General and administrative expense (Note 4) | (679 | ) | (411 | ) | (1,226 | ) | (841 | ) | 46 | % | |
Current income tax recovery | - | 70 | - | 152 | -100 | % | |||||
Realized foreign exchange gain | 9 | 86 | 568 | 6 | |||||||
Funds flow used in operations (Note 1) | (609 | ) | (65 | ) | (509 | ) | (188 | ) | 171 | % | |
Funds flow used in operations per barrel | |||||||||||
Interest income | $ 0.87 | $ 2.19 | $ 1.11 | $ 3.08 | -64 | % | |||||
General and administrative expense (Note 4) | (9.70 | ) | (4.74 | ) | (9.14 | ) | (5.24 | ) | 74 | % | |
Current income tax recovery | - | 0.81 | - | 0.95 | -100 | % | |||||
Realized foreign exchange gain | 0.13 | 0.99 | 4.24 | 0.04 | |||||||
Canada - Funds flow used in operations | $ (8.70 | ) | $ (0.75 | ) | $ (3.79 | ) | $ (1.17 | ) | 224 | % |
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||
(thousands of Canadian dollars except where indicated) | 2014 | 2013 | 2014 | 2013 | Change | ||||||
Thailand Operations | |||||||||||
Oil sales (bbls) | 70,016 | 86,949 | 134,133 | 160,615 | -16 | % | |||||
Average daily oil sales (BOPD) by Concession L53 | 769 | 955 | 741 | 887 | -16 | % | |||||
Average oil sales price, before transportation (CDN$/bbl) | $ 104.05 | $ 97.47 | $ 104.63 | $ 99.11 | 6 | % | |||||
Reference Price (volume weighted) and differential | |||||||||||
Crude oil (Brent $US/bbl) | $ 109.79 | $ 102.59 | $ 108.96 | $ 112.17 | -3 | % | |||||
Exchange Rate $US/$Cdn | 1.10 | 1.01 | 1.11 | 1.02 | 9 | % | |||||
Crude oil (Brent $Cdn/bbl) | $ 120.92 | $ 103.13 | $ 120.93 | $ 114.23 | 6 | % | |||||
Sale price / Brent reference price | 86 | % | 95 | % | 87 | % | 87 | % | -1 | % | |
Funds flow from operations (Note 1) | |||||||||||
Crude oil sales | 7,285 | 8,475 | 14,035 | 15,919 | -12 | % | |||||
Government royalty | (364 | ) | (425 | ) | (693 | ) | (784 | ) | -12 | % | |
Transportation expense | (116 | ) | (141 | ) | (220 | ) | (252 | ) | -13 | % | |
Operating expense | (884 | ) | (911 | ) | (1,922 | ) | (1,663 | ) | 16 | % | |
Field netback | 5,921 | 6,998 | 11,200 | 13,220 | -15 | % | |||||
General and administrative expense (Note 4) | (510 | ) | (388 | ) | (809 | ) | (752 | ) | 8 | % | |
Interest income | 12 | 22 | 14 | 25 | -44 | % | |||||
Current income tax | - | - | (1 | ) | (1 | ) | 0 | % | |||
Funds flow from operations | 5,423 | 6,632 | 10,404 | 12,492 | -17 | % | |||||
Funds flow from operations / barrel (CDN$/bbl) (Note 1) | |||||||||||
Crude oil sales | $ 104.05 | $ 97.47 | $ 104.63 | $ 99.11 | 6 | % | |||||
Government royalty | (5.20 | ) | (4.89 | ) | (5.17 | ) | (4.88 | ) | 6 | % | |
Transportation expense | (1.66 | ) | (1.62 | ) | (1.64 | ) | (1.57 | ) | 4 | % | |
Operating expense | (12.63 | ) | (10.48 | ) | (14.33 | ) | (10.35 | ) | 38 | % | |
Field netback | 84.56 | 80.48 | 83.49 | 82.31 | 1 | % | |||||
General and administrative expense (Note 4) | (7.28 | ) | (4.46 | ) | (6.02 | ) | (4.68 | ) | 29 | % | |
Interest Income | 0.17 | 0.25 | 0.10 | 0.16 | -38 | % | |||||
Current income tax | - | - | (0.01 | ) | (0.01 | ) | 0 | % | |||
Thailand - Funds flow from operations | $ 77.45 | $ 76.27 | $ 77.56 | $ 77.78 | 0 | % | |||||
Government royalty as percentage of crude oil sales | 5 | % | 5 | % | 5 | % | 5 | % | 0 | % | |
SRB as percentage of crude oil sales | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | |
Income tax as percentage of crude oil sales | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | |
As percentage of crude oil sales | |||||||||||
Expenses - transportation, operating, G&A and other | 21 | % | 17 | % | 21 | % | 17 | % | 26 | % | |
Government royalty, SRB and income tax | 5 | % | 5 | % | 5 | % | 5 | % | 0 | % | |
Funds flow from operations, before interest income | 74 | % | 78 | % | 74 | % | 78 | % | -5 | % | |
Wells drilled | |||||||||||
Gross | - | 6 | 1 | 12 | -92 | % | |||||
Net | - | 6.0 | 1.0 | 12.0 | -92 | % |
Indonesia Operations | |||||||||||
General and administrative expense (Note 4) | (255 | ) | (47 | ) | (552 | ) | (122 | ) | 352 | % | |
Exploration expense (Note 5) | 15 | - | (294 | ) | - | 100 | % | ||||
Realized foreign exchange gain (loss) | 26 | 17 | (82 | ) | 19 | -532 | % | ||||
Indonesia - Funds flow used in operations | (214 | ) | (30 | ) | (928 | ) | (103 | ) | 801 | % | |
Wells drilled | |||||||||||
Gross | - | 1 | - | 3 | -100 | % | |||||
Net | - | 1.0 | - | 3.0 | -100 | % |
(1) | Funds flow from operations (cash flow from operating activities prior to changes in non-cash working capital, reclamation costs and excluding the recovery of prior year income taxes) 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 decommissioning provision and the impact of changes in foreign exchange rates. |
(3) | Joint venture partners in Andora's Sawn Lake SAGD demonstration project repurchased the 3% gross overriding royalty on a portion of the non-owned working interests in 36.5 sections for $2.7 million. |
(4) | General & administrative expenses, excluding non-cash accretion on decommissioning provision and stock-based payments. |
(5) | Exploration expense relates to exploration costs associated with the Citarum and South CPP PSCs that are no longer being capitalized. |
(6) | Tables may not add due to rounding. |
Contact Information: