HOUSTON, TEXAS--(Marketwired - April 28, 2017) - Greenfields Petroleum Corporation (the "Company" or "Greenfields") (TSX VENTURE:GNF) is pleased to report its financial and operating results for the fourth quarter and year-ended December 31, 2016. Selected financial and operational information is set forth below and should be read in conjunction with the Company's December 31, 2016 audited annual financial statements and the related management's discussion and analysis ("MD&A"). Also, the Company today announces the filing of its Annual Information Form ("AIF") for the year-ended December 31, 2016 which contains the Company's reserves data and other oil and natural gas information, as required under National Instrument 51-101. The AIF, financial statements and MD&A are available for review at www.sedar.com or on the Company's website at www.greenfields-petroleum.com.
Except as otherwise indicated, all dollar amounts referenced herein are expressed in United States dollars.
Fourth Quarter and 2016 Fiscal Year Financial Results and Operating Highlights
Operating Highlights and Plans
Selected Financial Information
The selected information below is from the MD&A. The Company's complete financial statements as of and for the years ended December 31, 2016 and 2015, with the notes thereto and the related MD&A can be found either on Greenfields' website at www.Greenfields-Petroleum.com or on SEDAR at www.sedar.com.
Revenues and operating results in the "Selected Financial Information" have been adjusted to reflect the Company's share of BEL. Upon closing the acquisition of Baghlan Group Limited's 66.67% interest in BEL on August 9, 2016 (the "Acquisition") and BEL becoming a wholly-owned subsidiary, the Company consolidates the revenues and operating results from BEL on a going forward basis. Revenues, entitlement sales volumes and operating results presented in these tables have been adjusted to include the Company's 33.33% share of petroleum, natural gas and transportation revenues from BEL, previously included in the income or loss on Investment in Joint Venture under the equity method of accounting through August 8, 2016, combined with the Company's 100% share of BEL consolidated from the August 9, 2016 acquisition date. The combined financial and operating results have been presented only for comparative purposes and does not reflect proper accounting practices under GAAP.
Greenfields Petroleum Corporation
All amounts below are in thousands of US dollars unless otherwise noted.
(US$000's, except as noted) | Year ended December 31, |
|||
2016 | 2015 | |||
Financial | ||||
Revenues | 21,592 | 14,657 | ||
Net income (loss) (1) | 99,193 | (7,524 | ) | |
Per share, basic and diluted | $1.52 | ($0.34 | ) | |
Capital items | ||||
Cash and cash equivalents | 1,361 | 100 | ||
Total assets | 199,341 | 89,523 | ||
Working capital | (1,444 | ) | (6,478 | ) |
Long term debt and shareholders' equity | 185,103 | 55,600 |
(1) For the 2016 fiscal year, $113.6 million of net realized gains from the Acquisition and the debt restructuring transactions were included in income.
Bahar Energy Limited
Company's share | ||||||||
(US$000's, except as noted) | Year ended December 31, | |||||||
2016 | 2015 | 2016 | 2015 | |||||
Financial | ||||||||
Revenues | 33,507 | 39,313 | 20,783 | 13,103 | ||||
Operating | ||||||||
Average Entitlement Sales Volumes (1) | ||||||||
Oil and condensate (bbl/d) | 764 | 1,033 | 443 | 344 | ||||
Natural gas (mcf/d) | 15,691 | 14,837 | 9,833 | 4,945 | ||||
Barrel oil equivalent (boe/d) | 3,379 | 3,506 | 2,082 | 1,169 | ||||
Average Oil Price | ||||||||
Oil price ($/bbl) | $ | 38.44 | $ | 44.82 | $ | 38.44 | $ | 44.82 |
Net realization price ($/bbl) | $ | 37.52 | $ | 43.57 | $ | 37.52 | $ | 43.57 |
Brent oil price ($/bbl) | $ | 43.67 | $ | 52.42 | $ | 43.67 | $ | 52.42 |
Natural gas price ($/mcf) | $ | 3.96 | $ | 3.96 | $ | 3.96 | $ | 3.96 |
(1) Daily volumes represent the Company's share of the entitlement volumes of the contractor parties to the ERDPSA net of compensatory petroleum and the government's share of profit petroleum. Compensatory petroleum represents 10% of gross production and continues to be delivered until specific cumulative petroleum and natural gas production milestones are attained. Daily volumes for the year ended December 31, 2016 include the Company's 33.33% share of BEL entitlement volumes through August 8, 2016 and from August 9, 2016 through December 31, 2016, 100% of BEL's entitlement volumes resulting from the Acquisition.
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: operational plans; the Bahar and Gum Deniz field studies and the expectations in relation thereto; production; and programs initiated by BEOC. 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 under the headings "Financial Results and Operating Highlights" and "Selected Financial Information" 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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