Canacol Energy Ltd. Reports Fiscal 2013 Financial Results and 95% Increase in Proved Plus Probable Reserves and Deemed Volumes
(firmenpresse) - CALGARY, ALBERTA -- (Marketwired) -- 09/25/13 -- Canacol Energy Ltd. ("Canacol" or the "Corporation") (TSX: CNE)(BVC: CNEC) is pleased to report its financial results for the fiscal year ended June 30, 2013.
Charle Gamba, President and CEO of Canacol, stated: "New exploration discoveries and the Shona acquisition lifted proved plus probable reserves and deemed volumes by 95% to 34.7 million barrels of oil equivalent with a pre-tax NPV10 of $686 million. Although overall average Corporate production for fiscal 2013 was down 43% compared to fiscal 2012, average corporate sales prices increased by 40%, as low netback declining production from the Rancho Hermoso field was replaced with higher netback oil production from new discoveries at Labrador and Mono Arana in Colombia, from the Libertador and Atacapi fields in Ecuador, and through the execution of new sales contracts for the Nelson gas field in Colombia. Corporate net average production before royalties has increased steadily in the last three quarters, from 5,354 boepd in fiscal Q2 2013, to 7,659 boepd in fiscal Q3 2013, and to 8,269 boepd in fiscal Q4 2013. Corporate net production before royalties for the current quarter, which includes July and August 2013, averaged 9,278 boepd. In fiscal 2013 the Corporation also strengthened its balance sheet by consolidating senior debt into a single $140 million long-term senior debt facility with favorable terms and an 18 month grace period on repayments, thereby providing additional time to focus on building production, cash flows and reserves. With a sound financial footing and diversified production and exploration bases, the Corporation is well positioned for continued strong production, cash flow, and reserves growth throughout fiscal 2014 and beyond."
Highlights for Fiscal 2013
(in thousands of United States dollars, except as otherwise noted; production and reserves are stated as working-interest before royalties)
Financial, operating and reserve highlights of the Corporation include:
Outlook
The Corporation plans to spend capital expenditures of up to $80 million, net of dispositions, in calendar 2013 on drilling, work overs, seismic, production facilities and pipelines in Colombia and Ecuador, and anticipates net average production before royalties of 7,500 to 8,500 boepd over the period. The timing of several planned capital projects is expected to overlap into calendar 2014.
In the remainder of calendar 2013, the Corporation will focus on: 1) building out production and reserves from recent oil discoveries on LLA-23 and VMM-2 and increasing production levels from the Esperanza block in Colombia via new gas sales contracts; 2) continuing to increase production and reserves from the Libertador and Atacapi oil fields in Ecuador; and 3) executing a significant oil-focused exploration program in Colombia targeting 48 million barrels of net risked prospective conventional light and heavy oil, and unconventional light oil resources. Colombian development drilling for the remainder of calendar 2013 is expected to include the Labrador 5 light oil well on LLA-23, which is currently drilling, as well as 2 new wells in the Libertador - Atacapi fields in Ecuador. Exploration projects of significance for the remainder of calendar 2013 include the first of two additional exploration wells on LLA-23, Leono and Leno Sur, targeting light oil, testing of the Mono Arana deep shale oil exploration discovery on VMM-2, up to two new wells on the Corporation's three Middle Magdalena blocks (VMM-2 and VMM3) targeting both shallow conventional light oil and deeper unconventional shale oil, and the continuation of the heavy oil exploration program on assets in the Putumayo-Caguan Basin. Funding for the remaining calendar 2013 capital program is expected to come from working capital, operating cash flows and debt facilities.
By-Law Amendments
The Corporation is also pleased to announce that the Board of Directors of the Corporation has approved certain amendments to the by-laws of the Corporation (the "Amendments"). Included in the Amendments is the addition of a provision requiring advance notice to the Corporation in circumstances where director nominations are made by shareholders of the Corporation other than pursuant to a proposal or a requisition of shareholders made in accordance with the Business Corporations Act (Alberta). Among other things, the advance notice provision fixes a deadline by which holders of record of common shares of the Corporation must submit director nominations to the Corporation prior to any annual or special meeting of shareholders and sets forth the information that a shareholder must include in the notice to the Corporation.
The Amendments are subject to the approval of the Toronto Stock Exchange and ratification by the shareholders of the Corporation, which shareholder ratification is being sought at the Annual General and Special Meeting of Shareholders of the Corporation to be held on November 1, 2013 in Bogota, Colombia.
The Corporation's has filed its audited consolidated financial statements, its related Management's Discussion and Analysis, and its Annual Information Form as of and for the year ended June 30, 2013 with Canadian securities regulatory authorities. These filings are available for review at .
Canacol is an exploration and production corporation with operations in Colombia, Ecuador, Brazil, Guyana and Peru. The Corporation's common stock trades on the Toronto Stock Exchange and the Colombia Stock Exchange under ticker symbol CNE and CNEC, respectively.
This press release contains certain forward-looking statements within the meaning of applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur, including without limitation statements relating to estimated production rates from the Corporation's properties and intended work programs and associated timelines. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Corporation cannot assure that actual results will be consistent with these forward looking statements. They are made as of the date hereof and are subject to change and the Corporation assumes no obligation to revise or update them to reflect new circumstances, except as required by law. Information and guidance provided herein supersedes and replaces any forward looking information provided in prior disclosures. Prospective investors should not place undue reliance on forward looking statements. These factors include the inherent risks involved in the exploration for and development of crude oil and natural gas properties, the uncertainties involved in interpreting drilling results and other geological and geophysical data, fluctuating energy prices, the possibility of cost overruns or unanticipated costs or delays and other uncertainties associated with the oil and gas industry. Other risk factors could include risks associated with negotiating with foreign governments as well as country risk associated with conducting international activities, and other factors, many of which are beyond the control of the Corporation. Other risks are more fully described in the Corporation's most recent Management Discussion and Analysis, which is incorporated herein by reference and is filed on . Average production figures for a given period are derived using arithmetic averaging of fluctuating historical production data for the entire period indicated and, accordingly, do not represent a constant rate of production for such period and are not an indicator of future production performance. Detailed information in respect of monthly production in the fields operated by the Corporation in Colombia is provided by the Corporation to the Ministry of Mines and Energy of Colombia and is published by the Ministry on its website; a direct link to this information is provided on the Corporation's website. References to "net" production refer to the Corporation's working-interest production before royalties.
Boe conversion - The term "boe" is used in this news release. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of cubic feet of natural gas to barrels oil equivalent is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. In this news release, we have expressed boe using the Colombian conversion standard of 5.7 Mcf: 1 bbl required by the Ministry of Mines and Energy of Colombia.
The reserves evaluations, effective June 30, 2013, were conducted by the Corporation's independent reserves evaluators DeGolyer and MacNaughton, Collarini Associates and Petrotech Engineering Ltd. and are in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities. The reserves are provided on a net before royalty basis in units of millions of barrels of oil equivalent using a forecast price deck for gas and oil, adjusted for crude quality, in US dollars. The estimated values may or may not represent the fair market value of the reserve estimates.
"Deemed volumes" are defined as those volumes produced under a service agreement in which the Corporation does not have a direct interest, but represents reserves attributable to the Corporation as calculated using a deemed market price on an annualized basis over the life of the reserves. The Corporation has a risk service contract with Ecopetrol S.A. in the Mirador formation at its Rancho Hermoso field for which it receives a fixed tariff price for each gross barrel produced. The Corporation also has a non-operated 25% equity participation interest in an incremental production contract on the Libertador/Atacapi fields in Ecuador for which it receives a fixed price tariff for each incremental barrel produced.
Contacts:
Canacol Energy Ltd.
Investor Relations
888-352-0555
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Datum: 25.09.2013 - 10:30 Uhr
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News-ID 299983
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