Toscana Energy Announces Second Quarter 2017 Results
July 28 2017 - 3:30PM
Toscana Energy Income Corporation ("TEI" or the
"Corporation") (TSX:TEI) announces financial and operating
results for the second quarter ended June 30, 2017.
Financial and operating
results:
This news release summarizes information
contained in the Condensed Consolidated Interim Financial
Statements (unaudited) and Management’s Discussion and Analysis
(“MD&A”) for the three and six month periods ended June 30,
2017. This news release should not be considered a substitute for
reading the full disclosure documents, which are available under
the Corporation’s profile on SEDAR at www.sedar.com and on the
Corporation’s website at www.sprott-toscana.com.
Highlights
- Changed banking arrangements that provides for greater
financial flexibility and lower interest costs
- Reduced debt by $3 Million as a result of sale of non-core
assets. Funds to be redeployed in expanding the company's
large oil in place oil assets
- Maintained production at first quarter 2017 levels despite
asset disposition
- Available credit of approximately $9.6 million at June 30, 2017
on a $34.5 million credit facility
- Recommenced Normal Course Issuer Bid (NCIB)
|
Three months endedJune 30 |
Six months endedJune 30 |
|
2017 |
2016 |
Change |
2017 |
2016 |
Change |
Average daily
production (boe/d) |
2,221 |
2,269 |
(2 |
%) |
2,234 |
2,435 |
(8 |
%) |
|
|
|
|
|
|
|
Petroleum and natural
gas revenue, net of royalties ($) |
5,623,571 |
5,169,619 |
9 |
% |
11,109,305 |
9,975,504 |
11 |
% |
|
|
|
|
|
|
|
Netback ($) |
2,182,198 |
3,758,463 |
(42 |
%) |
3,926,423 |
6,250,051 |
(37 |
%) |
Netback per boe
($) |
10.80 |
18.21 |
(41 |
%) |
9.71 |
14.10 |
(30 |
%) |
|
|
|
|
|
|
|
Funds flow from
operations ($)(1) |
458,258 |
2,192,248 |
(79 |
%) |
1,302,556 |
3,593,593 |
(64 |
%) |
1Impacted by one-time
site remediation and associated costs related to pipeline spill at
Clair.
Non-IFRS measures:
Management uses “net asset value”, “netback”,
“funds flow from operations”, “unused portion of credit facility”,
“credit facility utilization” and “credit facility availability” to
analyze operating performance and to determine the Corporation’s
ability to fund future capital investment. 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. Readers are cautioned regarding the reliability of
such measures.
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. 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;
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 Toronto Stock Exchange
(“TSX”). The forward-looking statements or information
contained in this news release are expressly qualified by this
cautionary statement.
About Toscana Energy Income
CorporationToscana 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.
For further information, please visit our website at
www.sprott-toscana.com or contact:Joseph S. Durante, Chief
Executive Officer Tel: (403) 410-6793 Fax: (403) 444-0090
E-Mail: jdurante@sprott-toscana.com