ROOSTER ENERGY LTD. (the "Company" or "Rooster") (www.roosterenergyltd.com) (TSX
VENTURE:COQ) is pleased to announce it has filed on SEDAR (www.sedar.com) its
unaudited interim financial statements, and related Management Discussion and
Analysis ("MD&A") for the three and six months ended June 30, 2013 ("Q2 2013").
Selected financial and operational information for Q2 2013 and subsequent
thereto is outlined below and should be read in conjunction with the financial
statements and related MD&A.
Q2 2013 HIGHLIGHTS
-- Production Increased 22% Year-Over-Year to 2,315 boe/day (40% Liquids)
-- EBITDAX of $6.2 Million vs. $2.2 Million in Q2 2012
-- Two Recent High Bid, Offshore Gulf of Mexico Acreage Blocks Awarded
-- Completion Operations Underway at High Island Block A-494 #B-4 Well
Robert P. Murphy, President & Chief Executive Officer, comments that, "The
Company's operating results continue to benefit from the execution of strategic
decisions made in 2012. Production volumes increased 22% from year-ago levels
due primarily to: 1) Rooster's successful three-well exploratory and
developmental drilling program at Vermilion Block 376 completed in June, 2012;
and 2) increased production volumes at East Cameron Block 37 resulting from a
major work over on an existing non- producing well, which was acquired in the
takeover of Probe Resources Ltd in April, 2012.
The Bureau of Ocean Energy Management has awarded the Company both of the leases
it bid at the Central Gulf of Mexico Lease held in March 2013. With these two
new leases, and two leases acquired in 2012, Rooster has expanded its acreage
position over 18,000 net acres in the Gulf of Mexico over the past year.
Following the Company's strategy to maximize the value of its existing
infrastructure, the majority of this new acreage is located adjacent to Company
operated production facilities allowing for rapid turnover time from drilling to
production for the newly exploited acreage.
Rooster has drilled its High Island Block A-494 #B-4 exploratory well to 14,796'
measured depth and has logged multiple apparent zones of interest. Completion
operations are underway to test the commercial viability of the well. Results
should be known by the end of September, 2013. The #B-4 well was drilled from an
existing operated production platform and if successful could be on production
in Q4 2013. The Company operates and owns a 75% working interest in the well. We
remain excited about the Company's future growth potential and look forward to
growing reserves and production in the remainder of 2013 and into 2014."
SUMMARY FINANCIAL RESULTS
For the three months
ended For the six months ended
June 30, June 30,
------------------------- -------------------------
2013 2012 2013 2012
------------ ------------ ------------ ------------
Sales
Oil (Bbl) 76,498 30,903 151,063 57,181
NGL (Bbl) 8,816 6,483 18,691 8,413
Natural gas (Mcf) 752,227 811,970 1,698,390 1,127,483
Total (BOE/day) (a) 2,315 1,898 2,502 1,393
Revenue $ 10,731,229 $ 5,403,881 $ 22,289,783 $ 9,161,802
Total costs and expenses 7,103,388 5,873,134 19,008,695 11,715,853
------------ ------------ ------------ ------------
Operating income (loss) 3,627,841 (469,253) 3,281,088 (2,554,051)
Unrealized loss on
financing warrants (1,515,000) - (1,464,000) -
Finance expenses (b) (1,295,045) (149,838) (2,564,765) (361,660)
------------ ------------ ------------ ------------
Income (loss) before tax
expense 817,796 (619,091) (747,677) (2,915,711)
Deferred tax expense
(recovery) 759,000 - (85,000) -
------------ ------------ ------------ ------------
Income (loss) 58,796 (619,091) (662,677) (2,915,711)
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Income (loss) per share
Basic 0.00 (0.01) (0.01) (0.03)
Diluted 0.00 (0.01) (0.01) (0.03)
Capital expenditures $ 9,677,716 $ 15,612,345 $ 9,920,031 $ 30,226,964
EBITDAX (c) $ 6,186,928 $ 2,217,349 $ 13,171,150 $ 764,934
(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) 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 an independent oil and natural gas exploration and production
company based in Houston, Texas, that is focused on the development of resources
in the shallow waters of the U.S. Gulf of Mexico. At June 30, 2013, our primary
assets consist of interests in 17 producing oil and/or natural gas wells and
interest in 19 federal leases or 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 the following 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.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICE PROVIDER (AS THAT
TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE RELEASE.
FOR FURTHER INFORMATION PLEASE CONTACT:
Rooster Petroleum, LLC
Gary Nuschler, Jr.
Vice President - Finance
(832) 463-0625
www.roosterenergyltd.com
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