Rooster Energy Ltd. Announces Shareholder Approval of Pending Acquisitions and First Quarter 2014 Financial and Operating Res...
May 30 2014 - 5:00PM
Marketwired Canada
ROOSTER ENERGY LTD. (the "Company") (www.roosterenergyltd.com) (TSX VENTURE:COQ)
is pleased to announce that on May 16, 2014 the requisite majority of the
minority of Rooster shareholders approved the Company's acquisition of Cochon
Properties LLC, and Morrison Well Services, LLC. Upon close, the Company will
issue 218,631,179 common shares for all of the membership interest in each
company: 57,034,221 shares will be issued to the members of Cochon Properties,
LLC, and 161,596,958 shares will be issued to the member of Morrison Well
Services, LLC. The acquisitions are expected to close late second quarter or
early third quarter 2014. The Company also has filed on SEDAR its unaudited
interim financial statements, and related management discussion and analysis
("MD&A") for the three months ended March 31, 2014 ("Q1 2014"). Selected
financial and operational information for Q1 2014 and subsequent thereto is
contained in the below summary and should be read in conjunction with the
financial statements and related MD&A.
Robert P. Murphy, President & Chief Executive Officer, comments that "we are
very pleased with the overwhelming support received from our minority
shareholders in approving the transformative acquisitions of Cochon Properties
and Morrison Well Services. Our results in Q1 2014 continued to be hindered by
poor winter weather conditions and by a lack of new wells coming on, with
production dropping 27% sequentially to 1,182 barrels of oil equivalent per day.
We have since installed compression on our wells at Grand Isle 70 and resumed
production at High Island 141 that has been shut-in for almost 2 years.
Moreover, upon completion of the acquisition of Cochon, we estimate that
Rooster's daily production should increase by up to 75% and our proved reserves
by 95%. Additionally with Well Services' contracted and external backlog of well
plugging and abandonment work, we expect the Company to achieve higher growth
rates in both revenue and EBITDA. With all three companies integrated, we will
have a more diverse revenue stream, stronger balance sheet and more
opportunities to grow the Company. We are currently in discussions with
potential lenders for a new credit facility that will enable the Company to
close the acquisitions and refinance outstanding debt to improve our working
capital deficit. With a new credit facility, Rooster plans to move forward with
its development inventory in our existing portfolio, while also evaluating
bolt-on acquisition opportunities in our core Gulf of Mexico shelf area."
SUMMARY FINANCIAL RESULTS
For the three months ended
March 31,
---------------------------
2014 2013
---------------------------
Sales
Oil (Bbl) 58,312 74,565
NGL (Bbl) 5,301 9,876
Natural gas (Mcf) 270,545 946,163
Total (BOE/day) (a) 1,182 2,632
Revenue $ 7,694,141 $ 11,558,554
Total costs and expenses 5,030,910 11,905,307
---------------------------
Operating income (loss) 2,663,231 (346,753)
Unrealized gain (loss) on financing warrants 751,000 51,000
Finance expenses (b) (1,712,549) (1,269,721)
---------------------------
Income (loss) before tax expense 1,701,682 (1,565,474)
Deferred tax expense (recovery) 616,000 (844,000)
---------------------------
Income (loss) 1,085,682 (721,474)
---------------------------
Income (loss) per share
Basic 0.01 (0.01)
Diluted 0.01 (0.01)
Capital expenditures $ 1,988,493 $ 242,314
EBITDAX (c) $ 3,763,933 $ 6,984,221
(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.
Rooster Energy Ltd. is a Houston, Texas, based independent oil and natural gas
exploration & production company focused on the development of resources in the
shallow waters of the Gulf of Mexico. At March 31, 2014, our primary assets
consist of interests in 20 producing oil and/or natural gas wells and 14 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.
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:
Corporate updates and investor inquiries:
Rooster Petroleum, LLC
Gary Nuschler, Jr.
Vice President-Finance
(832) 463-0625
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
