ROOSTER ENERGY LTD. (the "Company") (www.roosterenergyltd.com) (TSX VENTURE:COQ)
is pleased to announce it has filed on SEDAR (www.sedar.com) its audited
financial statements, related management discussion and analysis ("MD&A") for
the three months and twelve months ended December 31, 2012 ("Q4 2012"). The
Company has also filed its 2012 year-end, 51-101 reserve report on SEDAR.
Selected financial and operational information for Q4 2012, Full Year 2012 and
subsequent thereto is outlined below and should be read in conjunction with the
financial statements and related Management Discussion & Analysis.
HIGHLIGHTS IN 2012 INCLUDED:
-- Oil and Gas Reserves Increased 160% to 11.0 MMBOE (Proved + Probable)
-- Production Increased 128% to 2,244 Boe/day (34% Liquids)
-- EBITDAX $16.7 Million, Pre-Tax Net Income $1.6 Million
-- Q4 2012 Production Averaged 2,819 Boe/day (38% Liquids)
-- Completed Reverse Takeover Of Probe Resources Ltd.
-- Established Term Financing Of $22.5 Million With Sale of Senior Secured
Notes
-- Augmented Drilling Inventory with Addition of 2 New Gulf of Mexico Lease
Blocks
-- Completed Sale of the Interest in Ship Shoal Block 189 for $2.85 Million
Robert P. Murphy, President & Chief Executive Officer, comments that "2012 was a
transformative year for Rooster Energy Ltd. In the second quarter 2012, we
successfully completed the reverse takeover of Probe Resources Ltd. In
connection with that transaction we raised approximately $21MM in new equity,
elected a new board of directors and officers, and began trading on the TSXV
under the symbol COQ. Throughout the year the Company grew reserves and
production through the drill bit and key acquisitions that increased asset value
significantly for our shareholders. Additionally, our balance sheet improved
considerably with the completion of our term financing, increased operating cash
flow, and the sale of interest in Ship Shoal Block 189 Field. We are excited
about the Company's future growth potential through the drill bit and selective
acquisitions and look forward to growing the Company's reserve and production
base in 2013."
SUMMARY OF NI 51-101 RESERVE REPORT
Net Reserves
------------------------------------------------------------
Reserves Crude Oil Cond/NGLs Natural Gas Total
Category Bbls Bbls Mcfg Mboe
----------------------------------------------------------------------------
Proved Developed
Producing 1,263,302 191,502 5,884,870 2,435,616
Proved Developed
Non-Producing 41,050 171,516 4,458,228 955,604
Proved
Undeveloped 541,696 11,532 443,303 627,112
----------------------------------------------------------------------------
Total Proved 1,846,048 374,550 10,786,401 4,018,332
Probable 2,351,973 460,274 25,165,903 7,006,564
----------------------------------------------------------------------------
Total Proved +
Probable 4,198,021 834,824 35,952,304 11,024,896
Future Cash Flow (Pre-Tax)
------------------------------
Discounted
Reserves @
Category Undiscounted 10%
---------------- ------------------------------
Proved Developed
Producing $ 93,597,100 $ 78,281,200
Proved Developed
Non-Producing $ 24,611,600 $ 18,821,900
Proved
Undeveloped $ 24,318,200 $ 16,783,300
---------------- ------------------------------
Total Proved $ 142,526,900 $ 113,886,400
Probable $ 294,337,600 $ 206,032,300
---------------- ------------------------------
Total Proved +
Probable $ 436,864,500 $ 319,918,700
SUMMARY FINANCIAL RESULTS
For the three months
ended For the twelve months ended
December 31, December 31,
----------------------------------------------------------
2012 2011 2012 2011
----------------------------------------------------------
Sales
Oil (Bbl) 78,242 32,962 218,408 135,371
NGL (Bbl) 19,592 5,901 57,586 23,026
Natural gas
(Mcf) 969,198 252,355 3,272,161 1,210,933
Total (BOE/day)
(a) 2,819 880 2,244 987
Revenue $ 12,061,865 $ 4,941,551 $ 34,221,262 $ 21,001,250
Total costs and
expenses 12,551,855 3,280,738 31,772,397 16,523,729
----------------------------------------------------------
Operating income
(loss) (489,990) 1,660,813 2,448,865 4,477,521
Finance expenses
(b) (14,847) (245,416) (848,534) (952,237)
----------------------------------------------------------
Income (loss)
before tax
expense (504,837) 1,415,397 1,600,331 3,525,284
Deferred income
tax expense (5,288,000) - (5,288,000) -
----------------------------------------------------------
Income (loss) $ (5,792,837) $ 1,415,397 $ (3,687,669) $ 3,525,284
----------------------------------------------------------
Income (loss) per
share
Basic (0.05) 0.02 (0.04) 0.04
Diluted (0.05) 0.02 (0.04) 0.04
Capital
expenditures $ 1,305,351 $ 4,538,105 $32,208,705 (c) $ 11,001,357
EBITDAX (d) $ 7,349,497 $ 3,042,226 $ 16,721,070 $ 9,692,034
(a) Gas volumes are converted to BOE on the basis of 6 Mcfe per 1 barrel.
(b) Finance expense includes accretion for asset retirement obligations.
(c) Certain prior quarter amounts have been reclassified to conform to the
September 30, 2012 financial statement presentation.
(d) EBITDAX is a non-IFRS measure commonly used in the oil and gas industry.
Such measures do not conform to IFRS and may not be comparable to those
reported by other companies nor should they be viewed as an alternative
to other measures of financial performance calculated in accordance with
IFRS. The company defines EBITDAX as net income before finance expense,
taxes, depreciation, amortization, accretion, exploration and
evaluation, bad debt, impairments, stock-based compensation, and the
non-cash portion of plug and abandonment expense.
ABOUT ROOSTER ENERGY LTD.
The Company is a Houston, Texas, based independent oil and natural gas
exploration and production company focused on the development of resources in
the shallow waters of the Gulf of Mexico. At December 31, 2012, our primary
assets consist of interests in twenty-two producing oil and/or natural gas wells
and twenty federal lease blocks. The Company is the operator of the majority of
its properties and daily oil and gas production.
Investors are welcome to visit our website at www.roosterenergyltd.com or
contact Gary Nuschler, Jr. for all corporate updates and investor inquiries.
Forward Looking Information and Statements
Certain statements and information in this press release may constitute
"forward-looking information" or statements as such terms are used in applicable
Canadian securities laws. Any statement that expresses, involves or includes
expectations of future operations (including drill rig commitments and use of
proceeds), commerciality of any hydrocarbon discovered, production rates,
operating costs, commodity prices, administrative costs, commodity price risk
and other components of cash flow and earnings, management activity,
acquisitions and dispositions, capital spending, access to credit facilities
taxes, regulatory changes, projections, objective, assumptions or future events
that are not statements of historical fact should be viewed as "forward-looking
statements". Events or circumstances may cause actual results to differ
materially from those predicted, a result of numerous known and unknown risks,
uncertainties, and other factors, many of which are beyond the control of the
Company. These risks include, but are not limited to, the risks associated with
the oil and gas industry, commodity prices, and exchange rate changes. Industry
related risks could include, but are not limited to, operational risks in
exploration, development and production, delays or changes in plans, risks
associated with the uncertainty of reserve estimates, or reservoir performance,
health and safety risks and the uncertainty of estimates and projections of
production, costs and expenses. The reader is cautioned not to place undue
reliance on any forward-looking statement in this press release. The Company
disclaims any intention or obligation to update or revise any forward-looking
statement, whether as a result of new information, future events or otherwise,
except as required by applicable law.
Financial outlook information contained in this press release about the
Company's prospective cash flows and financial position is based on assumptions
about future events, including economic conditions and proposed courses of
action, based on management's assessment of the relevant information currently
available. Readers are cautioned that any such financial outlook information
contained herein should not be used for purposes other than for which it is
disclosed herein.
Note Regarding BOEs
The term barrel of oil equivalent ("boe") may be misleading, particularly if
used in isolation. A conversion ratio for gas of 6 mcf:1 boe is based on an
energy equivalency conversion method primarily applicable at the burner tip and
does not represent a value equivalency at the wellhead. Given that the value
ratio based on the current price of crude oil as compared to natural gas is
significantly equivalency conversion ratio of 6:1, utilizing a conversion on a
6:1 basis is misleading as an indication of value.
FOR FURTHER INFORMATION PLEASE CONTACT:
Gary Nuschler, Jr.
Vice President - Finance
16285 Park Ten Place
Suite 120
Houston, Texas, USA 77084
Telephone: (832) 463-0625
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