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, 2013 ("Q4 2013"). The
Company has also filed its Form 51-101F1 containing reserves data and other oil
and gas information for 2013 on SEDAR. Selected financial and operational
information for Q4 2013, Full Year 2013 and events subsequent thereto is
outlined below and should be read in conjunction with the financial statements
and related Management Discussion & Analysis.
HIGHLIGHTS IN 2013 INCLUDED:
-- EBITDAX Grew 42% In 2013 To $23.7 Million
-- Production Averaged 2,190 Boe/Day, 40% Liquids
-- Proved + Probable Reserves Totaled 9.8 MMBoe With NPV-10% Of $266
Million
Robert P. Murphy, President & Chief Executive Officer, comments "with overall
production volumes flat to 2012, on a barrels of oil equivalent basis, the
Company's oil production in 2013 increased 33% resulting in a 42% increase in
EBITDAX over last year. Year-end 2013 proved and probable reserves declined 11%
principally due to production and a limited drilling program. Our 2013 drilling
program consisted of one well at our lease on High Island A-494. The apparent
geologic success at this location has been overshadowed by mechanical
difficulties that have resulted in production problems that we expect to resolve
in 2014. With resolution to these difficulties, we expect the full potential of
this project to become more visible to the Company and its shareholders.
We are very excited about our pending acquisitions, announced on March 7, 2014,
of Cochon Properties, LLC ("Cochon"), and Morrison Well Services, LLC ("Well
Services"), for consideration valued at $125 million. The acquisition of
Cochon's oil and gas producing properties along with Well Services, an
established leader for well abandonment services in the Gulf of Mexico, will
create an industry leading, truly integrated company with the ability to
maximize well economics from "Cradle to Grave."
Closing of the acquisitions is expected to occur in the second quarter of 2014,
subject to, among other conditions, receipt of required regulatory and
shareholder approvals. The acquisitions enable Rooster to continue its strategy
of near infrastructure exploration and development with the ability to dismantle
the infrastructure in a timely and efficient manner."
SUMMARY OF NI 51-101 RESERVE REPORT
Net Reserves
------------------------------------------------------------
Crude Oil Cond/NGLs Natural Gas Total
Bbls Bbls Mcfg BOE
Proved Developed
Producing 1,105,551 117,885 1,255,657 1,432,712
Proved Developed
Non-Producing 121,421 74,569 3,682,946 809,814
Proved
Undeveloped 516,706 4,410 389,497 586,032
----------------------------------------------------------------------------
Total Proved 1,743,678 196,864 5,328,100 2,828,559
Probable 2,376,572 348,238 25,504,302 6,975,527
----------------------------------------------------------------------------
Total Proved +
Probable 4,120,250 545,102 30,832,402 9,804,086
Future Cash Flow (Pre-Tax)
----------------------------------------
Discounted @
Undiscounted 10%
Proved Developed
Producing $ 58,862,400 $ 51,235,700
Proved Developed
Non-Producing $ 16,433,000 $ 14,003,400
Proved
Undeveloped $ 16,638,100 $ 12,146,200
---------------- ----------------------------------------
Total Proved $ 91,933,500 $ 77,385,300
Probable $ 252,505,000 $ 188,497,300
---------------- ----------------------------------------
Total Proved +
Probable $ 344,438,500 $ 265,882,600
SUMMARY FINANCIAL RESULTS
For the three months For the twelve months
ended ended
December 31, December 31,
-------------------------- ---------------------------
2013 2012 2013 2012
------------ ------------- ------------ --------------
Sales
Oil (Bbl) 63,260 78,242 289,419 218,408
NGL (Bbl) 9,193 19,592 33,874 57,586
Natural gas (Mcf) 462,735 969,198 2,856,270 3,272,161
Total (BOE/day) (a) 1,626 2,819 2,190 2,244
Revenue $ 8,128,381 $ 12,061,865 $41,048,401 $ 34,221,262
Total costs and
expenses 12,294,375 12,551,855 37,809,028 31,772,397
------------ ------------- ------------ --------------
Operating income
(loss) (4,165,994) (489,990) 3,239,373 2,448,865
Unrealized loss on
financing warrants 518,000 1,317,000 (25,000) 1,317,000
Finance expenses (b) (1,535,153) (1,331,847) (5,961,224) (2,165,534)
------------ ------------- ------------ --------------
Income (loss) before
tax expense (5,183,147) (504,837) (2,746,851) 1,600,331
Deferred tax expense
(recovery) (1,789,000) 5,288,000 (713,000) 5,288,000
------------ ------------- ------------ --------------
Income (loss) (3,394,147) (5,792,837) (2,033,851) (3,687,669)
------------ ------------- ------------ --------------
------------ ------------- ------------ --------------
Income (loss) per
share
Basic (0.03) (0.05) (0.02) (0.04)
Diluted (0.03) (0.05) (0.02) (0.04)
Capital expenditures $10,072,146 $ 5,466,310 $36,361,558 $ 32,208,705
EBITDAX (c) $ 3,944,969 $ 7,349,497 $23,711,324 $ 16,721,070
(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 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 adjacent to the states of Louisiana and
Texas. At December 31, 2013, our primary assets consist of interests in nineteen
producing oil and/or natural gas wells located on fourteen oil and gas leases.
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.
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 Boe
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
Rooster Energy Ltd. (TSXV:COQ)
Historical Stock Chart
From Apr 2024 to May 2024
Rooster Energy Ltd. (TSXV:COQ)
Historical Stock Chart
From May 2023 to May 2024
