HOUSTON, TEXAS--(Marketwired - Aug. 29, 2014) -
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Greenfields Petroleum Corporation (the "Company" or "Greenfields") (TSX VENTURE:GNF)(TSX VENTURE:GNF.DB), an independent exploration and production company with producing assets in Azerbaijan, announces its financial results and operating highlights for the second quarter and year-to-date of 2014. Except as otherwise indicated, all dollar amounts referenced herein are expressed in United States dollars.
Second Quarter and Year-to-Date 2014 Financial Results and Operating Highlights
Operating highlights and plans
Selected Information
The selected information below is from the Greenfields' Management Discussion & Analysis for the three and six months ended June 30, 2014. The Company's complete financial statements as of and for the three and six months ended June 30, 2014 and 2013 with the notes thereto and the related Management's Discussion & Analysis can be found on Greenfields' website at www.Greenfields-Petroleum.com and on SEDAR at www.sedar.com. All amounts below are in thousands of US dollars unless otherwise noted.
Greenfields Petroleum Corporation
(US$000's,except as noted) | ||||
Three months ended June 30 |
Six months ended June 30 |
|||
2014 | 2013 | 2014 | 2013 | |
Financial | ||||
Revenues | 469 | 684 | 896 | 1,371 |
Net (loss) income | (4,900) | 517 | (3,799) | (3,286) |
Per share, basic and diluted | ($0.24) | $0.03 | ($0.20) | ($0.21) |
Capital Items | ||||
Cash and cash equivalents | 4,910 | 6,721 | ||
Total Assets | 65,772 | 41,973 | ||
Working capital | 4,865 | 7,716 | ||
Convertible debt and Shareholders' equity | 63,802 | 39,704 |
Bahar Energy Limited (a Joint Venture)
Total Joint Venture | Company's share | |||
(US$000's,except as noted) | Three months ended June 30 | |||
2014 | 2013 | 2014 | 2013 | |
Financial | ||||
Revenues | 17,453 | 20,996 | 5,817 | 6,998 |
Net (loss) income | (558) | 3,270 | (186) | 1,090 |
Operating | ||||
Average Entitlement Sales Volumes (1) | ||||
Oil and condensate (bbl/d) | 964 | 1,667 | 321 | 556 |
Natural gas (mcf/d) | 20,952 | 13,936 | 6,983 | 4,645 |
Barrel oil equivalent (boe/d) | 4,456 | 3,990 | 1,485 | 1,330 |
Average Oil Price | ||||
Oil price ($/bbl) | $101.83 | $97.52 | $101.83 | $97.52 |
Net realization price ($/bbl) | $99.47 | $95.56 | $99.47 | $95.56 |
Brent oil price ($/bbl) | $109.69 | $102.56 | $109.69 | $102.56 |
Natural gas price ($/mcf) | $3.96 | $3.96 | $3.96 | $3.96 |
Capital Items | ||||
Total Assets | 199,292 | 139,203 | 66,424 | 46,396 |
Total Liabilities | 42,175 | 40,147 | 14,058 | 13,381 |
Net Assets | 157,114 | 99,056 | 52,366 | 33,015 |
Total Joint Venture | Company's share | |||
(US$000's,except as noted) | Six months ended June 30 | |||
2014 | 2013 | 2014 | 2013 | |
Financial | ||||
Revenues | 40,351 | 38,746 | 13,449 | 12,914 |
Net (loss) income | 9,099 | (2,901) | 3,032 | (967) |
Operating | ||||
Average Entitlement Sales Volumes(1) | ||||
Oil and condensate (bbl/d) | 1,133 | 1,498 | 378 | 499 |
Natural gas (mcf/d) | 23,941 | 12,132 | 7,980 | 4,043 |
Barrel oil equivalent (boe/d) | 5,123 | 3,520 | 1,708 | 1,173 |
Average Oil Price | ||||
Oil price ($/bbl) | $102.13 | $101.26 | $102.13 | $101.26 |
Net realization price ($/bbl) | $100.04 | $99.26 | $100.04 | $99.26 |
Brent oil price ($/bbl) | $108.93 | $107.26 | $108.93 | $107.26 |
Natural gas price ($/mcf) | $3.96 | $3.96 | $3.96 | $3.96 |
Capital Items | ||||
Total Assets | 199,292 | 139,203 | 66,424 | 46,396 |
Total Liabilities | 42,175 | 40,147 | 14,058 | 13,381 |
Net Assets | 157,114 | 99,056 | 52,366 | 33,015 |
(1)Daily volumes represent the Company's share of the Contractor Parties entitlement volumes net of compensatory petroleum and the government's share of profit petroleum. Effective October 1, 2013, the compensatory petroleum increased from 5% to 10% where it will remain until specific cumulative oil and gas production milestones are attained. |
About Greenfields Petroleum Corporation
Greenfields is a junior oil and natural gas Company focused on the development and production of proven oil and gas reserves principally in the Republic of Azerbaijan. The Company plans to expand its oil and gas assets through further farm-ins, and acquisitions of Production Sharing Agreements from foreign governments containing previously discovered but under-developed international oil and gas fields, also known as "greenfields". More information about the Company may be obtained on the Greenfields website at www.greenfields-petroleum.com.
Forward-Looking Statements
This press release contains forward-looking statements. More particularly, this press release may include, but is not limited to, statements concerning: increased average production, drilling and completion plans and the expected timing thereof, seismic acquisition, construction activity, the Loan and the Company's operational plans. In addition, the use of any of the words "initial", "scheduled", "can", "will", "prior to", "estimate", "anticipate", "believe", "should", "forecast", "future", "continue", "may", "expect", and similar expressions are intended to identify forward-looking statements. The forward-looking statements contained herein are based on certain key expectations and assumptions made by the Company, including, but not limited to, expectations and assumptions concerning the success of optimization and efficiency improvement projects, the availability of capital, current legislation, receipt of required regulatory approval, the success of future drilling and development activities, the performance of existing wells, the performance of new wells, general economic conditions, availability of required equipment and services, weather conditions and prevailing commodity prices. Although the Company 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 the Company 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 most of which are beyond the control of Greenfields. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking information. These risks 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 reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety, political and environmental risks), commodity price and exchange rate fluctuations, changes in legislation affecting the oil and gas industry and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Additional risk factors can be found under the heading "Risk Factors" in Greenfields' Annual Information Form and similar headings in Greenfields' Management's Discussion & Analysis which may be viewed on www.sedar.com.
The forward-looking statements contained in this press release are made as of the date hereof and Greenfields undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. The Company's forward-looking information is expressly qualified in its entirety by this cautionary statement.
Notes to Oil and Gas Disclosures
Barrels Oil Equivalent or "boe" may be misleading, particularly if used in isolation. The volumes disclosed in this press release in regards to TPR2 production targets in the footnote under the headings "Second Quarter and Year-to-Date 2014 Financial Results and Operating Highlights" uses a 5.559 mcf: 1boe conversion ratio as the Bahar Contract (ERDPSA) uses a 5.559 mcf: 1boe conversion ratio to measure total field production in calculating the 9,258 boe production thresholds for determining TPR2 target production milestones.
All volumes disclosed elsewhere in this press release use a 6mcf: 1boe, as such is typically used in oil and gas reporting and is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. The Company uses a 6mcf: 1boe ratio to calculate its share of entitlement sales from the Bahar Project for its financial reporting and reserves disclosure.
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.
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