CALGARY, March 20,
2013 /CNW/ - Toscana Energy Income Corporation ("Toscana
Energy" or the "Corporation") (TSX Venture: TEI) announces
financial and operating results for the year ended December 31, 2012, and the Corporation's 2012
year-end reserves.
Financial and operating results:
The following summarizes information contained
in the Consolidated Financial Statements and Management's
Discussion and Analysis ("MD&A") for the year ended
December 31, 2012. This news release
should not be considered a substitute for reading the full
disclosure documents, which are available on SEDAR at www.sedar.com
and on the Corporation's website at www.sprott-toscana.com
|
Year
ended |
|
2012 |
2011 |
Change |
Average daily production (boe/d) |
1,336 |
1,081 |
24%
|
|
|
|
|
Petroleum and natural gas revenue, net of royalties ($) |
16,221,276 |
14,935,948 |
9% |
|
Netback ($) |
10,748,715 |
9,719,488 |
11% |
Netback per boe ($) |
21.98 |
24.62 |
(11 %) |
|
|
|
|
Net Income ($) |
8,257,021 |
(340,977) |
> 1,000% |
Net Income per share ($) |
3.84 |
(0.18) |
> 1,000% |
|
|
|
|
Capital expenditures ($) |
36,806,462 |
66,642,498 |
(45%) |
|
|
|
|
Working capital surplus (deficit) excluding bank debt ($) |
(1,364,849) |
5,577,854 |
(124%) |
Bank debt ($) |
29,000,000 |
37,215,065 |
(22%) |
|
|
|
|
Total assets ($) |
90,672,218 |
76,684,189 |
18% |
|
|
|
|
Dividends paid per common share ($) |
1.62 |
1.30 |
25% |
|
|
|
|
Shareholder's equity ($) |
47,369,463 |
17,176,035 |
176% |
Number of common shares outstanding |
3,198,697 |
2,099,932 |
52% |
Number of common share special warrants outstanding |
666,700 |
- |
100% |
|
Corporate Reserves:
The reserves data set forth below is based upon an independent
reserve assessment and evaluation prepared by:
- Sproule Associates Limited ("Sproule") dated February 22, 2013 with an effective date of
December 31, 2012 and
- McDaniel and Associates Consultants Ltd. ("McDaniel") dated
February 26, 2013 with an effective
date of December 31, 2012
(together referred to as the "Reserve Reports").
The following summarizes the Corporation's crude oil, natural
gas liquids and natural gas reserves and the net present values
before income taxes of future net revenue for the Corporation's
reserves using forecast prices and costs based on the Reserve
Reports. The Reserve Reports have been prepared in accordance with
the standards contained in the Canadian Oil and Gas Evaluation
Handbook (the "COGE Handbook") and the reserve definitions
contained in NI 51-101.
All evaluations and reviews of future net cash flows are stated
prior to any provisions for interest costs or general and
administrative costs and after the deduction of estimated future
capital expenditures for wells to which reserves have been
assigned. It should not be assumed that the estimates of future net
revenues presented in the tables below represent the fair market
value of the reserves. There is no assurance that the forecast
prices and cost assumptions will be attained and variances could be
material. The recovery and reserve estimates of our crude oil,
natural gas liquids and natural gas reserves provided herein are
estimates only and there is no guarantee that the estimated
reserves will be recovered. Actual crude oil, natural gas and
natural gas liquids reserves may be greater than or less than the
estimates provided herein for the fiscal year ended 2012.
Reserves Summary
The Corporation's total proved plus probable reserves increased
by 38% in fiscal 2012 to 7,854 Mboe. Proved reserves increased by
24 % to 5,716 Mboe and comprised 73 % of the Corporation's total
proved plus probable reserves. Proved undeveloped reserves are 4%
of the total proved reserves.
The future capital in the Reserve Report (undiscounted) is
$6.96 million for the proved and
probable reserves and is $4.72
million for total proved reserves. The following table
provides summary reserve information based upon the Reserve Reports
and using published price forecasts used by the reserve evaluators
(Sproule and McDaniel).
|
Oil |
|
Natural Gas |
|
Natural Gas
Liquids |
|
Total BOEs |
|
Company
Interest |
Net |
|
Company
Interest
|
Net |
|
Company
Interest |
Net |
|
Company
Interest |
Net |
|
(Mbbl) |
(Mbbl) |
|
(Mmcf) |
(Mmcf) |
|
(Mbbl) |
(Mbbl) |
|
(Mboe) |
(Mboe) |
Proved Producing |
1,053.9 |
933.8 |
|
22,480.1 |
20,134.7 |
|
614.3 |
406.1 |
|
5,416.1 |
4,696.6 |
Non-producing |
11.9 |
10.5 |
|
273.0 |
256.0 |
|
13.9 |
10.3 |
|
71.1 |
63.4 |
Undeveloped |
200.0 |
181.6 |
|
141.2 |
401.3 |
|
5.0 |
16.4 |
|
228.8 |
265.2 |
Total Proved |
1,265.8 |
1,125.9 |
|
22,894.3 |
20,792.0 |
|
633.2 |
432.8 |
|
5,716.0 |
5,025.2 |
Probable |
398.9 |
336.8 |
|
9,201.0 |
8,273.2 |
|
206.1 |
145.4 |
|
2,138.4 |
1,861.2 |
Total Proved and
Probable |
1,664.7 |
1,462.7 |
|
32,095.3 |
29,065.2 |
|
839.3 |
578.2 |
|
7,854.4 |
6,886.4 |
Notes:
(1) "Company Interest" reserves means the Corporation's
working interest (operating and non-operating) share before
deduction of royalties and including any royalty interest of the
Corporation.
(2) "Net" reserves means the Corporation's working interest
(operated and non-operated) share after deduction of royalty
obligations, plus the Corporation's royalty interest in
reserves. |
Reserves Values
The estimated before tax net present value of future net
revenues associated with the Corporation's reserves effective
December 31, 2012 and based on the
published future price forecasts are summarized in the following
table:
Reserve Values (M$)
|
Undiscounted |
5% |
10% |
15% |
20% |
Proved Producing |
115,314 |
88,994 |
72,454 |
61,194 |
53,082 |
Non-producing |
1,380 |
1,173 |
1,011 |
882 |
778 |
Undeveloped |
9,384 |
6,839 |
5,138 |
3,935 |
3,047 |
Total Proved |
126,077 |
97,007 |
78,603 |
66,011 |
56,907 |
Probable |
54,227 |
34,083 |
23,738 |
17,698 |
13,852 |
Total Proved and Probable |
180,304 |
131,090 |
102,341 |
83,709 |
70,759 |
Notes:
(1) The estimated future net revenues are stated before
deducting future estimated site restoration costs and are reduced
for
estimated future abandonment costs and estimated capital for future
development associated with the reserves.
(2) The net present value of future revenues does not
represent fair market value. |
|
The following table sets forth development costs
deducted in the estimation of the future net revenue attributable
to the reserve categories noted below.
Year |
Forecast Prices and Costs |
|
|
|
|
Proved
Reserves |
Proved plus
Probable Reserves |
|
(M$) |
(M$) |
2013 |
4,701 |
5,305 |
2014 |
0 |
12 |
2015 |
26 |
758 |
2016 |
0 |
318 |
2017 |
0 |
566 |
2018 |
0 |
0 |
2019 |
0 |
0 |
2020 |
0 |
0 |
2021 |
0 |
0 |
Remainder |
0 |
0 |
Total Undiscounted (all years) |
4,727 |
6,959 |
Total Discounted (10%) |
4,698 |
6,483 |
Special Note Regarding Disclosure of Reserves and
Resources
Contingent resources is defined in the COGE
Handbook as those quantities of petroleum estimated, as of a given
date, to be potentially recoverable from known accumulations using
established technology or technology under development, but which
are not currently considered to be commercially recoverable due to
one or more contingencies. Contingencies may include factors such
as economic, legal, environmental, political, and regulatory
matters, or a lack of markets. It is also appropriate to classify
as contingent resources the estimated discovered recoverable
quantities associated with a project in the early evaluation stage.
Contingent resources are further classified in accordance with the
level of certainty associated with the estimates and may be sub
classified based on project maturity and/or characterized by their
economic status.The contingent resources estimates herein,
including the corresponding estimates of before tax present value
estimates, are estimates only and the actual results may be greater
than or less than the estimates provided herein. There is no
certainty that it will be commercially viable or technically
feasible to produce any portion of the resources.
Probability
"Low Estimate" is a classification of
estimated resources described in the COGE Handbook as being
considered to be a conservative estimate of the quantity that will
actually be recovered. It is likely that the actual remaining
quantities recovered will exceed the Low Estimate. If probabilistic
methods are used, there should be a 90% probability (P90) that the
quantities actually recovered will equal or exceed the Low
Estimate. "Best Estimate" is a classification of estimated
resources described in the COGE Handbook as being considered to be
the best estimate of the quantity that will actually be recovered.
It is equally likely that the actual remaining quantities recovered
will be greater or less than the Best Estimate. If probabilistic
methods are used, there should be a 50% probability (P50) that the
quantities actually recovered will equal or exceed the Best
Estimate. "High Estimate" is a classification of estimated
resources described in the COGE Handbook as being considered to be
an optimistic estimate of the quantity that will actually be
recovered. It is unlikely that the actual remaining quantities
recovered will exceed the High Estimate. If probabilistic methods
are used, there should be a 10% probability (P10) that the
quantities actually recovered will equal or exceed the High
Estimate.
BOE Equivalency
Barrel of oil equivalents or BOEs may be
misleading, particularly if used in isolation. A BOE conversion
ratio of 6 Mcf: 1 bbl 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 the value
ratio based on the current price of crude oil as compared to
natural gas is significantly different from the energy equivalency
of 6 Mcf: 1 bbl, utilizing a conversion ratio of 6 Mcf: 1 bbl may
be a misleading indication of value.
Oil and Gas Advisory
The reserves information contained in this
press release has been prepared in accordance with NI 51-101.
Complete NI 51- 101 reserves disclosure will be included in our
Annual Information Form for the year ended September 30, 2012. Listed below are cautionary
statements applicable to our reserves information that are
specifically required by NI 51-101:
Individual properties may not reflect the
same confidence level as estimates of reserves for all properties
due to the effects of aggregation.
With respect to finding and development
costs, the aggregate of the exploration and development costs
incurred in the most recent financial year and the change during
that year in estimated future development costs generally will not
reflect total finding and development costs related to reserve
additions for that year.
This press release contains estimates of the
net present value of our future net revenue from our reserves. Such
amounts do not represent the fair market value of our
reserves.
Reserves included herein are stated on a
company interest basis (before royalty burdens and including
royalty interests) unless noted otherwise as well as on a gross and
net basis as defined in NI 51-101. "Company interest" is not a term
defined by NI 51-101 and as such the estimates of Company interest
reserves herein may not be comparable to estimates of "gross"
reserves prepared in accordance with NI 51-101 or to other issuers'
estimates of company interest reserves.
Non-IFRS measures:
Management uses "netback" and "working
capital surplus (deficit) excluding credit facility" to analyze
operating performance and leverage. These terms, as presented, do
not have any standardized meaning prescribed by International
Financial Reporting Standards ("IFRS") and therefore may not be
comparable with the calculation of similar measures for other
entities.
Forward-Looking Statements:
This news release contains forward-looking
statements and forward-looking information within the meaning of
applicable securities laws. These statements relate to future
events or future performance. All statements other than statements
of historical fact may be forward-looking statements or
information. Forward-looking statements and information are often,
but not always, identified by the use of words such as "appear",
"seek", "anticipate", "plan", "continue", "estimate",
"approximate", "expect", "may", "will", "project", "predict",
"potential", "targeting", "intend", "could", "might", "should",
"believe", "would" and similar expressions.
More particularly and without limitation,
this news release contains forward-looking statements and
information concerning the Corporation's petroleum and natural gas
production and reserves with respect to the assets to be acquired.
The forward-looking statements and information are based on certain
key expectations and assumptions made by management of the
Corporation, including expectations and assumptions concerning well
production rates and reserve volumes in respect of the assets to be
acquired; Project development and overall business strategy.
Although management of the Corporation believes that the
expectations and assumptions on which such forward looking
statements and information are based are reasonable, undue reliance
should not be placed on the forward-looking statements and
information since no assurance can be given that they will prove to
be correct.
Forward-looking statements and information
are provided for the purpose of providing information about the
current expectations and plans of management of the Corporation
relating to the future. Readers are cautioned that reliance on such
statements and information may not be appropriate for other
purposes, such as making investment decisions. Since
forward-looking statements and information address future events
and conditions, by their very nature they involve inherent risks
and uncertainties. Actual results could differ materially from
those currently anticipated due to a number of factors and risks.
These include, but are not limited to, the risks associated with
the oil and gas industry in general such as operational risks in
development, exploration and production delays or changes in plans
with respect to exploration or development projects or capital
expenditures; the uncertainty of reserve estimates; the uncertainty
of estimates and projections relating to reserves, production,
costs and expenses; health, safety and environmental risks;
commodity price and exchange rate fluctuations; marketing and
transportation; loss of markets; environmental risks; competition;
incorrect assessment of the value of acquisitions and failure to
realize the anticipated benefits of acquisitions; ability to access
sufficient capital from internal and external sources; failure to
obtain required regulatory and other approvals and changes in
legislation, including but not limited to tax laws, royalties and
environmental regulations. Accordingly, readers should not place
undue reliance on the forward-looking statements, timelines and
information contained in this news release. Readers are cautioned
that the foregoing list of factors is not exhaustive.
The forward-looking statements and
information contained in this news release are made as of the date
hereof and no undertaking is given to update publicly or revise any
forward-looking statements or information, whether as a result of
new information, future events or otherwise, unless so required by
applicable securities laws or the TSX Venture Exchange. The
forward-looking statements or information contained in this news
release are expressly qualified by this cautionary
statement.
About Toscana Energy Income
Corporation
Toscana Energy Income Corporation is a
conventional oil and gas producer with the mandate to acquire high
quality, long life oil and gas assets including royalties,
non-operated working interests and unitized production for yield
and capital appreciation. Toscana Energy Income Corporation is
managed by Sprott Toscana through Toscana Energy Corporation.
Sprott Toscana is a member of the Sprott Group of Companies.
About Sprott Toscana
Sprott Toscana (formerly Toscana Merchant Group)
is a team of Calgary-based energy specialists that manage three
separate businesses: Toscana Energy Income Corporation (through
Toscana Energy Corporation), Toscana Financial Income Trust and
Maple Leaf Energy Income LPs. In July
2012, Toscana Merchant Group joined the Sprott Group of
Companies when it was acquired by Sprott Inc. (TSX: SII), Canada's
leading alternative asset manager and a global leader in resource
investing.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Toscana Energy Income Corporation