Dundee Energy Limited Announces 2014 Financial Results
(firmenpresse) - TORONTO, ONTARIO -- (Marketwired) -- 02/20/15 -- Dundee Energy Limited ("Dundee Energy" or the "Corporation") (TSX: DEN) today announced its financial results for the year ended December 31, 2014. The Corporation's annual audited consolidated financial statements, along with management's discussion and analysis have been filed on the System for Electronic Document Analysis and Retrieval ("SEDAR") and may be viewed under the Corporation's profile at or the Corporation's website at .
FINANCIAL HIGHLIGHTS
SOUTHERN ONTARIO ASSETS
During 2014, daily production volumes increased marginally to 2,348 boe/d, compared with an average of 2,333 boe/d in 2013.
On a year over year basis, average daily natural gas production increased by approximately 4% over production volumes achieved in the prior year. Increased volumes from the acquisitions of additional working interests completed in each of August 2014 and July 2013 were offset by the natural decline in the Corporation's natural gas reserves, which has averaged approximately 5% per annum. Decreases in oil production volumes reflect the natural decline of approximately 14% per annum in the underlying assets.
Field Level Cash Flows and Field Netbacks
(in thousands)
Capital Expenditures and the 2015 Work Program
During 2014, the Corporation expended $6.3 million on capital expenditures. Approximately $1.0 million of capital expenditures were incurred offshore, including $0.9 million on four re-completions conducted on existing wellbores to access a bypassed pay zone. Capital expenditures on onshore properties were $2.0 million during 2014, including $1.4 million of drilling costs. Additionally, the Corporation incurred costs of $3.4 million in exploration activities, including $2.6 million of drilling costs and $0.8 million related to seismic work.
The Corporation intends to substantially reduce its 2015 work program, primarily in response to the considerable decline in the price for oil. As currently anticipated, the 2015 work program will consist of approximately $1.1 million to maintain the existing and essential land portfolio, and a further $0.6 million to complete offshore re-completions. These strategic endeavours will allow the Corporation to apply any residual cash flow from operations towards the repayment of outstanding debt.
CASTOR UNDERGROUND GAS STORAGE PROJECT
During 2014, Escal UGS S.L. relinquished the exploitation concession associated with the Castor development project in Spain. The relinquishment was formally accepted by the Spanish authorities by royal decree-law on October 4, 2014. In November 2014, Escal received EUR1.35 billion, being the net value of its investment, after deducting amounts of EUR110 million previously received by Escal during the pre-commissioning stage of development. These proceeds were applied towards the partial repayment of the EUR1.41 billion of outstanding bonds issued by Watercraft Capital S.A., Escal's financing vehicle. In November 2014, ACS Servicios Comunicaciones y Energia, S.L. ("ACS") arranged a EUR300 million refinancing of Escal, of which EUR60 million was applied to repay the balance of amounts owing pursuant to the outstanding bond arrangements. Castor UGS Limited Partnership ("CLP") is of the view that the refinancing arranged by ACS was not in the best interests of Escal and consequently, CLP has lodged a legal action challenging the approval of the refinancing. Additionally, CLP has determined that the use of proceeds from the refinancing may have compromised CLP's interests as a shareholder and, accordingly, CLP is currently evaluating the appropriate course of action to take in this regard.
NON-IFRS MEASURES
The Corporation believes that important measures of operating performance include certain measures that are not defined under International Financial Reporting Standards ("IFRS") and as such, may not be comparable to similar measures used by other companies. While these measures are non-IFRS, they are common benchmarks in the oil and natural gas industry, and are used by the Corporation in assessing its operating results, including net earnings and cash flows.
ABOUT THE CORPORATION
Dundee Energy Limited is a Canadian-based oil and natural gas company with a mandate to create long-term value for its shareholders through the exploration, development, production and marketing of oil and natural gas, and through other high impact energy projects. Dundee Energy holds interests, both directly and indirectly, in the largest accumulation of producing oil and gas assets in Ontario and, through a preferred share investment, in certain exploration and evaluation programs for oil and natural gas offshore Tunisia. The Corporation's common shares trade on the Toronto Stock Exchange under the symbol "DEN".
FORWARD-LOOKING STATEMENTS
Certain information set forth in these documents, including management's assessment of each of the Corporation's future plans and operations, contains forward-looking statements. Forward-looking statements are statements that are predictive in nature, depend upon or refer to future events or conditions or include words such as "expects", "anticipates", "intends", "plans", "believes", "estimates" or similar expressions. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Corporation's control, including: exploration, development and production risks; uncertainty of reserve estimates; project development risk; reliance on operators, management and key personnel; cyclical nature of the business; economic dependence on a small number of customers; additional funding that may be required to execute on exploration and development work; mitigation of environmental risks associated with induced or activated seismicity; the ability to obtain, sustain or renew licenses and permits; risks inherent to operating and investing in foreign countries; availability of drilling equipment and access; industry competition; environmental concerns; climate change regulations; volatility of commodity prices; hedging activities; potential defects in title to properties; potential conflicts of interest; changes in taxation legislation; insurance, health, safety and litigation risk; labour costs and labour relations; geo-political risks; risks relating to management of growth; aboriginal claims; volatility of the Corporation's share price; royalty rates and incentives; regulatory risks relating to oil and natural gas exploration; marketability and price of oil and natural gas; failure to realize anticipated benefits of acquisitions and dispositions; information system risk; and other risk factors discussed or referred to in the section entitled "Risk Factors" in the Corporation's Annual Information Form for the year ended December 31, 2014.
Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Corporation's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward- looking statements will transpire or occur, or if any of them do so, what benefits the Corporation will derive from them. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Contacts:
Dundee Energy Limited
Jaffar Khan
President & CEO
(403) 264-4985
(403) 262-8299 (FAX)
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Datum: 21.02.2015 - 01:28 Uhr
Sprache: Deutsch
News-ID 373220
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TORONTO, ONTARIO
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Oil & Gas
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