(TSX: AAV)
CALGARY, AB, Aug. 6, 2020 /CNW/ - Advantage Oil & Gas
Ltd. ("Advantage" or the "Corporation") is pleased to announce its
second quarter 2020 financial and operating results. The
Corporation's key priorities during the COVID-19 pandemic continue
to be the health and safety of all our personnel. We also wish to
thank all front-line workers who deliver our essential services,
including energy.
Highlights for the quarter include:
- Cash provided by operating activities was $24.4 million
- Adjusted funds flow(a) of $17.3 million, or $0.09 per share, exceeded net capital
expenditures(a) of $10.7
million and generated $6.6
million of excess cash
- Total production of 45,271 boe/d (up 5% from second quarter
2019)
- Liquids production achieved a record of 4,646 bbls/d, up 80%
from the second quarter 2019 and up 25% from the first quarter of
2020
- Gas production of 244 mmcf/d (up 1% from second quarter 2019),
demonstrating the low decline rates of our natural gas assets, with
only one Glacier well brought on-production this year
Advantage quickly responded to unprecedented market volatility
during the second quarter of 2020 by deferring spending on planned
liquids projects, restricting initial production from new oil wells
and reducing our 2020 capital budget with focus on short cycle
payout gas weighted projects. In addition, Advantage closed the
previously announced sale of 12.5% of its Glacier Gas Plant for
$100 million on July 2, 2020, reducing net debt(a) to
approximately $257 million from
$365 million as at March 31, 2020. Advantage anticipates generating
cash in excess of capital spending for the remainder of 2020 and
through 2021, reducing net debt to adjusted funds
flow(a) to less than 2 times.
During the second quarter, Advantage achieved several key
milestones which contributed to record liquids production. This
included commissioning of our 5,000 bbl/d Pipestone/Wembley oil battery and bringing on additional
production at both Progress and Wembley. These successes have derisked the
assets further and reinforced our ability to quickly shift back to
oil development once prices recover.
a.
|
Non-GAAP Measure
which may not be comparable to similar non-GAAP measures used by
other entities. Please see Advisory for reconciliations to the
nearest measure calculated in accordance with GAAP.
|
With a focus on delivering cash that exceeds capital spending
and modest growth, Advantage is well positioned to capitalize on
high-return, short payout projects throughout our natural gas,
condensate and light oil assets and continue reducing net debt.
Operational Update
Advantage invested $10.7 million
during the three months ended June 30,
2020. Development spending was primarily on the final steps
of equipping and tying-in wells that were completed during the
prior quarter with no wells drilled in the first half of 2020.
Pipestone/Wembley
Construction and commissioning of the 36 mmcf/d / 5,000 bbl/d
Wembley battery was completed in
the second quarter of 2020, resulting in increased well production
and reliability at a third-party gas plant. Advantage now has 8
(8.0 net) Montney wells and one
water disposal well operating, with results continuing to meet
expectations. Production at Pipestone/Wembley averaged 2,498 boe/d (1,284 bbls/d
oil, 660 bbls/d NGLs and 3.3 mmcf/d natural gas) during the second
quarter of 2020, despite proactively restricting production during
times of low oil prices.
Progress
During the first six months of 2020, Advantage completed two wells
and tied-in five wells, successfully proving up three layers of
development on the Progress land block. Consisting of 50 net
sections (100% working interest), the asset is now connected to our
Glacier Gas Plant and Valhalla
liquid hub. Progress has advanced to full commerciality adding
another, high-quality, cash-generating asset with attractive
economics on Advantage's land blocks.
During the second quarter of 2020, two additional oil wells were
brought on-stream, at restricted rates, further delineating the
asset and establishing commercial production from three zones
to-date. Preparations continued for the Progress 25 mmcf/d / 5,000
bbl/d oil battery; however, in response to the recent decline in
oil prices, construction of the facility has been delayed until oil
prices support growth beyond the current capacity of approximately
2,000 bbls/d. Production at Progress averaged 2,209 boe/d (711
bbls/d oil, 158 bbls/d NGLs and 8.0 mmcf/d natural gas) with the
wells performing at or above internal expectations, although
restricted by up to 900 boe/d as third-party facility
infrastructure is at capacity.
Valhalla
The 40 mmcf/d Valhalla facility is
now handling production from both Valhalla and initial production from the
Progress property. The facility remains fully utilized as a result
of the continued outperformance of the assets and is anticipated to
be full for the balance of 2020.
Glacier
One previously drilled Upper Montney well has been completed and
placed on-production in 2020. With increasing gas prices, Glacier
is expected to be the focus of our activity for the remainder of
the year. Advantage recently spud a three-well pad, targeted to
come on-stream in early fourth quarter; a total of six wells are
planned for the second half of 2020 when North American natural gas
prices are showing signs of improvement.
Hedging Update
Advantage has hedged approximately 51% of its natural gas
production for the second half of 2020. The Corporation continues
to increase its hedging position in 2021 and currently has 31% of
forecast natural gas production hedged between Henry Hub,
Chicago and Dawn at an average
price of US$2.51/mmbtu. Advantage has
hedged 33% of its crude oil and condensate production for the
second half of 2020 with WTI swaps at an average price of
US$55.44/bbl.
Second Quarter 2020 Financial and Operating Summary
- First half 2020 production was 45,864 boe/d (4% higher than
2019). Second quarter 2020 production was 45,271 boe/d (5% higher
than 2019).
- Cash provided by operating activities was $45.2 million for the first half of 2020 and
$24.4 million for the second quarter
of 2020.
- Adjusted funds flow(a) was $49.4 million or $0.26 per share for the first half of 2020 and
$17.3 million or $0.09 per share for the second quarter of
2020.
- Net loss was $20.1 million during
the second quarter of 2020 due to lower adjusted funds
flow(a) and $14.1 million
unrealized losses on derivatives.
- Bank indebtedness was $354.2
million and net debt(a) was $357.5 million. Subsequent to closing the sale of
12.5% of our Glacier Gas Plant on July 2,
2020, the Corporation used the proceeds of $100 million to reduce bank indebtedness,
resulting in a net debt to adjusted funds flow(a) ratio
of 2.1x.
- Maintained low costs including royalty costs of $0.58/boe, operating costs of $2.35/boe, transportation costs of $3.42/boe and general & administrative costs
of $0.57/boe over the first half of
2020.
Appointment of New Director
Advantage is also pleased to announce the appointment of Mr.
Don Clague to the Board of
Directors, which is now comprised of six independent directors. Mr.
Clague has had an extensive 35 year working career in oil and gas,
including diverse experience in North American domestic and
frontier areas, as well as internationally in North Africa, Norway and the United Kingdom. He is a Life Member (P. Geoph)
of the Association of Professional Engineers and Geoscientists of
Alberta and has served on
executive policy groups with the Canadian Association of Petroleum
Producers (CAPP) and the Colorado Oil and Gas Association
(COGA).
Financial
Highlights
|
|
Three months
ended June
30
|
|
Six months
ended June
30
|
($000, except as
otherwise indicated)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Financial
Statement Highlights
|
|
|
|
|
|
|
|
|
Sales including
realized derivatives (3)
|
$
|
48,593
|
$
|
60,017
|
$
|
114,365
|
$
|
141,389
|
Net income (loss) and
comprehensive income (loss)
|
$
|
(20,088)
|
$
|
3,372
|
$
|
(286,607)
|
$
|
4,053
|
per basic share
(2)
|
$
|
(0.11)
|
$
|
0.02
|
$
|
(1.53)
|
$
|
0.02
|
Basic weighted
average shares (000)
|
|
187,901
|
|
186,858
|
|
187,406
|
|
186,402
|
Cash provided by
operating activities
|
$
|
24,357
|
$
|
44,292
|
$
|
45,183
|
$
|
88,775
|
Cash provided by
(used in) financing activities
|
$
|
23,492
|
$
|
(20,309)
|
$
|
58,452
|
$
|
(808)
|
Cash used in
investing activities
|
$
|
44,855
|
$
|
27,303
|
$
|
110,076
|
$
|
87,017
|
Other Financial
Highlights
|
|
|
|
|
|
|
|
|
Adjusted funds flow
(1)
|
$
|
17,259
|
$
|
32,777
|
$
|
49,352
|
$
|
82,800
|
per boe
(1)
|
$
|
4.19
|
$
|
8.38
|
$
|
5.91
|
$
|
10.41
|
per basic share
(1)(2)
|
$
|
0.09
|
$
|
0.18
|
$
|
0.26
|
$
|
0.44
|
Net capital
expenditures (1)
|
$
|
10,663
|
$
|
19,578
|
$
|
104,293
|
$
|
77,000
|
Working capital
deficit (surplus) (1)
|
$
|
3,295
|
$
|
(1,891)
|
$
|
3,295
|
$
|
(1,891)
|
Bank
indebtedness
|
$
|
354,199
|
$
|
270,495
|
$
|
354,199
|
$
|
270,495
|
Net debt
(1)(4)
|
$
|
357,494
|
$
|
268,604
|
$
|
357,494
|
$
|
268,604
|
|
|
(1)
|
Non-GAAP measure
which may not be comparable to similar non-GAAP measures used by
other entities. Please see "Non-GAAP Measures".
|
(2)
|
Based on basic
weighted average shares outstanding.
|
(3)
|
Excludes net sales of
natural gas purchased from third parties.
|
(4)
|
On July 2, 2020,
Advantage closed the sale of a 12.5% interest in the Corporation's
100% owned 400 mmcf/d Glacier Gas Plant for $100 million. Advantage
utilized the cash proceeds from the sale to reduce net debt to $257
million.
|
Operating
Highlights
|
|
Three months
ended June
30
|
|
Six months
ended June
30
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Operating
|
|
|
|
|
|
|
|
|
Daily
Production
|
|
|
|
|
|
|
|
|
Crude oil and
condensate (bbls/d)
|
|
2,645
|
|
1,184
|
|
2,398
|
|
968
|
NGLs
(bbls/d)
|
|
2,001
|
|
1,396
|
|
1,782
|
|
1,338
|
Total liquids
production (bbls/d)
|
|
4,646
|
|
2,580
|
|
4,180
|
|
2,306
|
Natural gas
(mcf/d)
|
|
243,749
|
|
242,409
|
|
250,106
|
|
249,773
|
Total production
(boe/d)
|
|
45,271
|
|
42,982
|
|
45,864
|
|
43,935
|
Average realized
prices (including realized derivatives)
|
|
|
|
|
|
|
|
|
Natural gas ($/mcf)
(2)
|
$
|
1.72
|
$
|
2.17
|
$
|
1.92
|
$
|
2.65
|
Crude oil and
condensate ($/bbl)
|
$
|
32.44
|
$
|
70.33
|
$
|
45.09
|
$
|
66.98
|
NGLs
($/bbl)
|
$
|
14.44
|
$
|
35.99
|
$
|
22.57
|
$
|
40.90
|
Operating Netback
($/boe)
|
|
|
|
|
|
|
|
|
Petroleum and natural
gas sales from production
|
$
|
11.56
|
$
|
13.14
|
$
|
13.40
|
$
|
16.07
|
Net sales of natural
gas purchased from third parties (1)
|
|
-
|
|
-
|
|
-
|
|
(0.18)
|
Realized gains on
derivatives
|
|
0.23
|
|
2.20
|
|
0.30
|
|
1.71
|
Royalty (expense)
recovery
|
|
(0.26)
|
|
0.02
|
|
(0.58)
|
|
(0.28)
|
Operating
expense
|
|
(2.43)
|
|
(1.89)
|
|
(2.35)
|
|
(1.95)
|
Transportation
expense
|
|
(3.34)
|
|
(3.56)
|
|
(3.42)
|
|
(3.48)
|
Operating netback
(1)
|
$
|
5.76
|
$
|
9.91
|
$
|
7.35
|
$
|
11.89
|
|
|
(1)
|
Non-GAAP measure
which may not be comparable to similar non-GAAP measures used by
other entities. Please see "Non-GAAP Measures".
|
(2)
|
Excludes net sales of
natural gas purchased from third parties.
|
The Corporation's unaudited consolidated financial statements
for the three and six months ended June 30,
2020 together with the notes thereto, and Management's
Discussion and Analysis for the three and six months ended
June 30, 2020 have been filed on
SEDAR and are available on the Corporation's website at
http://www.advantageog.com/wp-content/uploads/2020/05/Q1-2020-Quarterly-Report.pdf.
Upon request, Advantage will provide a hard copy of any financial
reports free of charge.
Advisory
The information in this press release contains certain
forward-looking statements, including within the meaning of
applicable securities laws. These statements relate to future
events or our future intentions or performance. All statements
other than statements of historical fact may be forward-looking
statements. Forward-looking statements are often, but not always,
identified by the use of words such as "anticipate", "continue",
"demonstrate", "expect", "may", "can", "will", "believe", "would"
and similar expressions and include statements relating to, among
other things, Advantage's focus, strategy and development plans;
timing for wells to come on-stream at Glacier; number of wells
planned for the second half of 2020; ability to quickly shift back
to oil development once prices recover; anticipation that for the
remainder of 2020 and into 2021, capital expenditures will be below
cash flow and benefits to be derived therefrom; Advantage's ability
to reduce net debt to adjusted funds flow ratio in 2021 and
benefits to be derived therefrom; timing for construction of
facility at Progress; the anticipation that the compressor and
liquids hub will be full for the balance of 2021 and the
Corporation's hedging activities and the benefits to be derived
therefrom. Advantage's actual decisions, activities, results,
performance or achievement could differ materially from those
expressed in, or implied by, such forward-looking statements and
accordingly, no assurances can be given that any of the events
anticipated by the forward-looking statements will transpire or
occur or, if any of them do, what benefits that Advantage will
derive from them.
These statements involve substantial known and unknown risks
and uncertainties, certain of which are beyond Advantage's control,
including, but not limited to: changes in general economic, market
and business conditions; industry conditions, including as a result
of demand and supply effects resulting from the COVID-19 pandemic;
actions by governmental or regulatory authorities including
increasing taxes and changes in investment or other regulations;
changes in tax laws, royalty regimes and incentive programs
relating to the oil and gas industry; Advantage's success at
acquisition, exploitation and development of reserves; unexpected
drilling results; changes in commodity prices, currency exchange
rates, capital expenditures, reserves or reserves estimates and
debt service requirements; the occurrence of unexpected events
involved in the exploration for, and the operation and development
of, oil and gas properties, including hazards such as fire,
explosion, blowouts, cratering, and spills, each of which could
result in substantial damage to wells, production facilities, other
property and the environment or in personal injury; changes or
fluctuations in production levels; delays in anticipated timing of
drilling and completion of wells; individual well productivity;
competition from other producers; the lack of availability of
qualified personnel or management; credit risk; changes in laws and
regulations including the adoption of new environmental laws and
regulations and changes in how they are interpreted and enforced;
our ability to comply with current and future environmental or
other laws; stock market volatility and market valuations;
liabilities inherent in oil and natural gas operations; competition
for, among other things, capital, acquisitions of reserves,
undeveloped lands and skilled personnel; incorrect assessments of
the value of acquisitions; geological, technical, drilling and
processing problems and other difficulties in producing petroleum
reserves; ability to obtain required approvals of regulatory
authorities; and ability to access sufficient capital from internal
and external sources. Many of these risks and uncertainties and
additional risk factors are described in the Corporation's Annual
Information Form which is available at www.sedar.com ("SEDAR") and
www.advantageog.com. Readers are also referred to risk factors
described in other documents Advantage files with Canadian
securities authorities.
With respect to forward-looking statements contained in this
press release, Advantage has made assumptions regarding, but not
limited to: conditions in general economic and financial markets;
the impact and duration thereof that the COVID-19 pandemic will
have on (i) the demand for crude oil, NGLs and natural gas, (ii)
the supply chain including the Corporation's ability to obtain the
equipment and services it requires, and (iii) the Corporation's
ability to produce, transport and/or sell its crude oil, NGLs and
natural gas; effects of regulation by governmental agencies;
current and future commodity prices and royalty regimes; future
exchange rates; royalty rates; future operating costs; availability
of skilled labor; availability of drilling and related equipment;
timing and amount of net capital expenditures; the impact of
increasing competition; the price of crude oil and natural gas;
that the Corporation will have sufficient cash flow, debt or equity
sources or other financial resources required to fund its capital
and operating expenditures and requirements as needed; that the
Corporation's conduct and results of operations will be consistent
with its expectations; that the Corporation will have the ability
to develop the Corporation's properties in the manner currently
contemplated; current or, where applicable, proposed assumed
industry conditions, laws and regulations will continue in effect
or as anticipated; and the estimates of the Corporation's
production and reserves volumes and the assumptions related thereto
(including commodity prices and development costs) are accurate in
all material respects. Readers are cautioned that the foregoing
lists of factors are not exhaustive. These forward-looking
statements are made as of the date of this press release and
Advantage disclaims any intent or obligation to update publicly any
forward-looking statements, whether as a result of new information,
future events or results or otherwise, other than as required by
applicable securities laws.
Barrels of oil equivalent (boe) and thousand cubic feet of
natural gas equivalent (mcfe) may be misleading, particularly if
used in isolation. Boe and mcfe conversion ratios have been
calculated using a conversion rate of six thousand cubic feet of
natural gas equivalent to one barrel of oil. A boe and mcfe
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 that the
value ratio based on the current price of crude oil as compared to
natural gas is significantly different from the energy equivalency
of 6:1, utilizing a conversion on a 6:1 basis may be misleading as
an indication of value. References to natural gas or liquids
production in this press release refer to conventional natural gas
and natural gas liquids, respectively, product types as defined in
National Instrument 51-101.
This press release contains a number of oil and gas metrics,
including operating netback, which do not have standardized
meanings or standard methods of calculation and therefore such
measures may not be comparable to similar measures used by other
companies and should not be used to make comparisons. Such metrics
have been included herein to provide readers with additional
measures to evaluate the Corporation's performance; however, such
measures are not reliable indicators of the future performance of
the Corporation and future performance may not compare to the
performance in previous periods and therefore such metrics should
not be unduly relied upon. Management uses these oil and gas
metrics for its own performance measurements and to provide
securityholders with measures to compare Advantage's operations
over time. Readers are cautioned that the information provided by
these metrics, or that can be derived from the metrics presented in
this press release, should not be relied upon for investment or
other purposes.
Non-GAAP Measures
The Corporation discloses several financial and performance
measures in this press release that do not have any standardized
meaning prescribed under GAAP. These financial and performance
measures include "net capital expenditures", "adjusted funds flow",
"operating netback", "net debt", "net debt to adjusted funds flow",
"working capital" and "net sales of natural gas purchased from
third parties", which should not be considered as alternatives to,
or more meaningful than "net income", "comprehensive income", "cash
provided by operating activities", "cash used in investing
activities", or "bank indebtedness" presented within the
consolidated financial statements as determined in accordance with
GAAP. Management believes that these measures provide an indication
of the results generated by the Corporation's principal business
activities and provide useful supplemental information for analysis
of the Corporation's operating performance and liquidity.
Advantage's method of calculating these measures may differ
from other companies, and accordingly, they may not be comparable
to similar measures used by other companies.
Net Capital Expenditures
Net capital expenditures include total capital expenditures
related to property, plant and equipment and exploration and
evaluation assets incurred during the period. Management considers
this measure reflective of actual capital activity for the period
as it excludes changes in working capital related to other periods.
A reconciliation between net capital expenditures and the nearest
measure calculated in accordance with GAAP, cash used in investing
activities, is provided below:
|
Three months ended June
30
|
Six
months ended June 30
|
($000)
|
2020
|
2019
|
2020
|
2019
|
Cash used in
investing activities
|
$
|
44,855
|
$
|
27,303
|
$
|
110,076
|
$
|
87,017
|
Changes in non-cash
working capital
|
|
34,192
|
|
7,725
|
|
5,783
|
|
10,017
|
Net capital
expenditures
|
$
|
10,663
|
$
|
19,578
|
$
|
104,293
|
$
|
77,000
|
Working Capital
Working capital includes cash and cash equivalents, trade and
other receivables, prepaid expenses and deposits and trade and
other accrued payables at the reporting date. Working capital
provides Management and users with a measure of the Corporation's
operating
liquidity.
Net Debt
Net debt is comprised of bank indebtedness and working
capital. Net debt provides Management and users with a measure of
the Corporation's bank indebtedness and expected settlement of net
liabilities in the next year. Net debt subsequent to receiving
proceeds from the sale of 12.5% of the Glacier Gas Plant for
$100 million on July 2, 2020
was calculated by reducing net debt as at June 30, 2020 by $100
million. A detailed calculation of net debt is provided
below:
($000)
|
June
30 2020
|
December
31 2019
|
Bank indebtedness
(non-current)
|
$
|
354,199
|
$
|
295,624
|
Working capital
deficit
|
|
3,295
|
|
7,996
|
Net debt
|
$
|
357,494
|
$
|
303,620
|
Adjusted Funds Flow
The Corporation considers adjusted funds flow to be a useful
measure of Advantage's ability to generate cash from the production
of natural gas and liquids, which may be used to settle outstanding
debt and obligations, and to support future capital expenditures
plans. Changes in non-cash working capital are excluded from
adjusted funds flow as they may vary significantly between periods
and are not considered to be indicative of the Corporation's
operating performance as they are a function of the timeliness of
collecting receivables and paying payables. Expenditures on
decommissioning liabilities are excluded from the calculation as
the amount and timing of these expenditures are unrelated to
current production and are partially discretionary due to the
nature of our low liability. Adjusted funds flow has also been
presented per boe, by dividing adjusted funds flow by total
production in boe for the reporting period, and per basic share, by
dividing by the basic weighted average shares outstanding of the
Corporation.
A reconciliation between adjusted funds flow and the nearest
measure calculated in accordance with GAAP, cash provided by
operating activities, is provided below:
|
|
Three months
ended
June 30
|
|
Six months
ended
June 30
|
($000, except as
otherwise indicated)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Cash provided by
operating activities
|
$
|
24,357
|
$
|
44,292
|
$
|
45,183
|
$
|
88,775
|
Expenditures on
decommissioning liability
|
|
24
|
|
690
|
|
203
|
|
1,555
|
Changes in non-cash
working capital
|
|
(7,122)
|
|
(12,205)
|
|
3,966
|
|
(7,530)
|
Adjusted funds
flow
|
$
|
17,259
|
$
|
32,777
|
$
|
49,352
|
$
|
82,800
|
Net Debt to Adjusted Funds Flow
Net debt to adjusted funds flow is calculated by dividing
net debt by adjusted fund flow for the previous four quarters.
Net debt to adjusted funds flow is a coverage ratio that provides
Management and users the ability to determine how long it would
take the Corporation to repay its bank debt if it devoted all its
adjusted funds flow to bank debt repayment.
Operating Netback
Advantage calculates operating netback on a per boe basis.
Operating netback is comprised of sales revenue, realized gains
(losses) on derivatives and net sales of natural gas purchased from
third parties, net of expenses resulting from field operations,
including royalty expense, operating expense and transportation
expense. Operating netback provides Management and users with a
measure to compare the profitability of field operations between
companies, development areas and specific wells.
|
Three months
ended
June 30
|
|
2020
|
2019
|
|
|
$000
|
|
per boe
|
|
$000
|
|
per boe
|
Petroleum and natural
gas sales from production
|
$
|
47,634
|
$
|
11.56
|
$
|
51,395
|
$
|
13.14
|
Realized gains on
derivatives
|
|
931
|
|
0.23
|
|
8,622
|
|
2.20
|
Royalty (expense)
recovery
|
|
(1,086)
|
|
(0.26)
|
|
75
|
|
0.02
|
Operating
expense
|
|
(9,993)
|
|
(2.43)
|
|
(7,381)
|
|
(1.89)
|
Transportation
expense
|
|
(13,771)
|
|
(3.34)
|
|
(13,908)
|
|
(3.56)
|
Operating
netback
|
$
|
23,715
|
$
|
5.76
|
$
|
38,803
|
$
|
9.91
|
|
Six months
ended June 30
|
|
2020
|
2019
|
|
|
$000
|
|
per boe
|
|
$000
|
|
per boe
|
Petroleum and natural
gas sales from production
|
$
|
111,819
|
$
|
13.40
|
$
|
127,788
|
$
|
16.07
|
Net sales of natural
gas purchased from third parties
|
|
-
|
|
0.00
|
|
(1,400)
|
|
(0.18)
|
Realized gains on
derivatives
|
|
2,518
|
|
0.30
|
|
13,601
|
|
1.71
|
Royalty
expense
|
|
(4,841)
|
|
(0.58)
|
|
(2,227)
|
|
(0.28)
|
Operating
expense
|
|
(19,640)
|
|
(2.35)
|
|
(15,538)
|
|
(1.95)
|
Transportation
expense
|
|
(28,575)
|
|
(3.42)
|
|
(27,658)
|
|
(3.48)
|
Operating
netback
|
$
|
61,281
|
$
|
7.35
|
$
|
94,566
|
$
|
11.89
|
Net Sales of Natural Gas Purchased from Third Parties
Net sales of natural gas purchased from third parties
represents the revenue or loss generated from the sale of natural
gas volumes purchased from third parties, after deducting the cost
to purchase the volumes. The purchase and sale transactions are
non-routine and are considered by Management to be related for
performance purposes.
The following terms and abbreviations used in this press
release have the meanings set forth below:
bbl
|
one
barrel
|
bbls
|
barrels
|
bbls/d
|
barrels per
day
|
boe
|
barrels of oil
equivalent of natural gas, on the basis of one barrel of oil or
NGLs for six thousand cubic feet of natural gas
|
boe/d
|
barrels of oil
equivalent of natural gas per day
|
mcf
|
thousand cubic
feet
|
mcf/d
|
thousand cubic fee
per day
|
mcfe
|
thousand cubic
feet equivalent on the basis of six thousand cubic feet of natural
gas for one barrel of oil or NGLs
|
mcfe/d
|
thousand cubic
feet equivalent per day
|
mmbtu
|
million British
thermal units
|
mmcf
|
million cubic
feet
|
mmcf/d
|
million cubic feet
per day
|
mmcfe/d
|
million cubic feet
equivalent per day
|
Crude oil
and
condensate
|
Light crude oil
and medium crude oil as defined in National Instrument
51-101
|
NGLs
|
Natural Gas
Liquids as defined in National Instrument 51-101
|
Natural
gas
|
Conventional
Natural Gas as defined in National Instrument 51-101
|
SOURCE Advantage Oil & Gas Ltd.