Rooster Energy Announces Fourth Quarter and Full Year 2013 Financial, Operating and Reserve Report Results
April 28 2014 - 9:51AM
Marketwired
Rooster Energy Announces Fourth Quarter and Full Year 2013
Financial, Operating and Reserve Report Results
CALGARY, ALBERTA--(Marketwired - Apr 28, 2014) - 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 |
|
Future Cash Flow (Pre-Tax) |
|
|
Crude Oil |
Cond/NGLs |
Natural Gas |
Total |
|
|
Discounted @ |
|
|
Bbls |
Bbls |
Mcfg |
BOE |
|
Undiscounted |
10% |
|
Proved Developed Producing |
1,105,551 |
117,885 |
1,255,657 |
1,432,712 |
|
$ |
58,862,400 |
$ |
51,235,700 |
|
Proved Developed Non-Producing |
121,421 |
74,569 |
3,682,946 |
809,814 |
|
$ |
16,433,000 |
$ |
14,003,400 |
|
Proved Undeveloped |
516,706 |
4,410 |
389,497 |
586,032 |
|
$ |
16,638,100 |
$ |
12,146,200 |
|
Total Proved |
1,743,678 |
196,864 |
5,328,100 |
2,828,559 |
|
$ |
91,933,500 |
$ |
77,385,300 |
|
|
|
|
|
|
|
|
|
|
|
|
Probable |
2,376,572 |
348,238 |
25,504,302 |
6,975,527 |
|
$ |
252,505,000 |
$ |
188,497,300 |
|
Total Proved + Probable |
4,120,250 |
545,102 |
30,832,402 |
9,804,086 |
|
$ |
344,438,500 |
$ |
265,882,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SUMMARY FINANCIAL RESULTS |
|
|
|
|
For the three months ended |
|
|
For the twelve months 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.
Rooster Petroleum, LLCGary Nuschler, Jr.Vice President -
Finance(832) 463-0625www.roosterenergyltd.com
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