Border Announces Filing of Financials, Annual Information Form and Reserves Data and Provides Operational and Corporate Update
July 29 2013 - 5:20PM
Marketwired Canada
Border Petroleum Corp. ("Border" or the "Corporation") (TSX VENTURE:BOR) today
announces financial results for its year ended March 31, 2013. The audited
financial statements and management's discussion & analysis ("MD&A") have been
filed on SEDAR. The Corporation also announces that pursuant to NI 51-101 it has
filed its Form 51-101F1 Statement of Reserves Data and Other Oil and Gas
Information, Form 51-101F2 Report on Reserves Data by Independent Qualified
Reserves Evaluator and Form 51-101F3 Report of Management and Directors on Oil
and Gas Disclosure. Border's Annual Information Form for the year ended March
31, 2013 has also been filed on SEDAR. Copies of the annual and NI 51-101
filings of the Corporation are available for viewing at www.sedar.com.
HIGHLIGHTS
The following are the highlights of Border's operations for the year ended March
31, 2013:
-- On July 16, 2012, the Corporation released initial results from its
first two Slave Point horizontal wells in the Red Earth area (the
"Initial Wells").
-- On September 28, 2012, Border completed a short form prospectus offering
for aggregate gross proceeds of $18,001,080.
-- On November 29, 2012, Border announced the completion of its first long-
leg Slave Point horizontal well located at 10-15-85-10W5M (the "10-15
Well") on the Loon River Cree Nation and the acquisition of 17 square
kilometers of 3D seismic on the Loon Block.
-- On February 28, 2013, Border provided an update with respect to the
completion and testing of the 10-15 Well.
-- Subsequent to its year-end, on April 29, 2013 Border announced the
formation of a Special Committee of independent directors and the
initiation of a strategic review process to identify, examine and
consider a range of strategic alternatives with a view to maximizing
shareholder value. The Special Committee retained Dundee Securities Ltd.
and Macquarie Capital Markets Canada Ltd. as co-financial advisors to
assist in the strategic review process.
FINANCIAL OVERVIEW
Certain selected financial and operational information for the year ended March
31, 2013 is set out below and should be read in conjunction with the
Corporation's audited consolidated financial statements and related MD&A. The
following table provides a summary of key financial results for the twelve
months ended March 31, 2013 and 2012:
A summary of financial and operating results for the year ended March 31, 2013
and 2012 are outlined in the following table.
YEAR ENDED
MARCH 31
2013 2012
--------------- -------------
Financial
Petroleum and natural gas revenues $ 3,110,509 $ 3,324,944
Funds flow from operations $ (2,312,666) $ (1,841,348)
per share - basic and diluted $ (0.01) $ (0.01)
Net loss $ (17,683,890) $ (12,836,158)
per share - basic and diluted $ (0.06) $ (0.09)
Capital expenditures, including
decommissioning liabilities $ 11,984,240 $ 34,377,339
Weighted average shares outstanding
basic and diluted 279,204,101 135,394,501
Operational
Production
Oil and liquids (bbls/d) 97 79
Natural gas (mcf/d) 718 891
Oil equivalent (boe/d) 216 227
Sales price per unit
Oil and liquids ($/bbl) 68.32 80.25
Natural gas ($/mcf) 2.68 3.10
Oil equivalent (boe/d) 39.42 39.97
Reserves (Proved plus probable)
Oil and liquids (mbbls) 1,286 1,820
Natural gas (mmcf) 1,994 2,523
Oil equivalent (boe/d) 1,619 2,240
RED EARTH UPDATE
Further to the press release issued on April 29, 2013, with respect to the long
leg Slave Point horizontal well located at 10-15-85-10W5M (the "10-15 Well") in
the Red Earth area of northern Alberta, the 10-15 Well has been shut in since
April 12, 2013 due to access issues related to wet weather conditions.
With respect to Border's two short-leg horizontal wells on the Loon Block, the
two wells are also currently shut-in due to weather related access issues.
LEDUC & NORRIS UPDATE
Border's current net production at Leduc is approximately 158 boepd
(approximately 8 percent oil). Border has an interest in 4,564 net acres in the
Leduc area of central Alberta.
At Norris, Border is continuing pump optimization work on a number of its
Mannville wells. Current production at Norris, where Border holds working
interests varying from 57.5 percent to 100 percent in 452 net acres, is
approximately 9 boepd net to Border (91 percent oil).
CORPORATE UPDATE
Border currently has a positive working capital balance of approximately $7.2
million and an unutilized bank line of $3.5 million. Border's current total
production is approximately 176 boepd (15 percent liquids). Border's tax pool
balance as at March 31, 2013 was approximately $45.4 million. Further, after
taking into account qualifying expenditures of approximately $1.0 million in the
quarter ended March 31, 2013, the Company has approximately $2.0 million of
outstanding obligations to incur Canadian Exploration Expenses related to the
September, 2012 flow-through share issuance.
On April 29, 2013, Border announced that it had formed a Special Committee of
independent directors and initiated a strategic review process to identify,
examine and consider a range of strategic alternatives available to Border, with
a view to maximizing shareholder value. This process could result in a sale of
the Corporation, a sale of a material portion of the Corporation's assets, a
merger, business combination or a corporate reorganization, among other
alternatives. The Special Committee has retained Dundee Securities Ltd. and
Macquarie Capital Markets Canada Ltd. as co-financial advisors to assist in the
strategic review process.
The strategic review process is ongoing and Border does not intend to disclose
developments with respect to the strategic review process unless and until the
Board of Directors has approved a definitive transaction or strategic option, or
unless otherwise required by law or disclosure of which is deemed appropriate.
EXECUTIVE CHANGE
Border announces that Kelly Kimbley, President and Chief Executive Officer, and
Peter Fridrich, Vice President, Exploration, are no longer with the Corporation.
Mr. Kimbley has also stepped down as a director of the Corporation. The
Corporation wishes to thank Mr. Kimbley and Mr. Fridrich for their efforts and
tenacity that allowed Border to pursue a unique and substantive opportunity. We
wish them every deserved success in their future endeavours.
Border's Chairman, Al Kroontje, P. Eng., has been appointed Interim Chief
Executive Officer until the successful completion of the strategic review
process currently being undertaken by the Special Committee and their financial
advisors. Mr. Kroontje has accepted this appointment without compensation.
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.
Forward-Looking Statements
The forward-looking statements contained in this document are based on certain
key expectations and assumptions made by Border. Although Border believes that
the expectations and assumptions on which the forward-looking statements are
based are reasonable, undue reliance should not be placed on the forward-looking
statements because Border can give no assurance that they will prove to be
correct.
Since forward-looking statements 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 failure to obtain
necessary regulatory approvals, risks associated with the oil and gas industry
in general (e.g., 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 production, costs and expenses, and
health, safety and environmental risks), commodity price and exchange rate
fluctuations and uncertainties resulting from potential delays or changes in
plans with respect to exploration or development projects or capital
expenditures. A description of assumptions used to develop such forward-looking
information and a description of risk factors that may cause actual results to
differ materially from forward-looking information can be found in Border's
disclosure documents on the SEDAR website at www.sedar.com.
The forward-looking statements contained in this document are made as of the
date hereof and Border undertakes no obligation 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.
BOE
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Border Petroleum Corp.
Al Kroontje
2000, 840 - 7th Avenue SW
Calgary, AB T2P 3G2
(403) 538-8448
Border Petroleum Corp.
Douglas Stuve
1600, 333 - 7th Avenue S.W.
Calgary, AB T2P 2Z1
Direct Line: (403) 234-3337
Border Petroleum (TSXV:BOR)
Historical Stock Chart
From Apr 2024 to May 2024
Border Petroleum (TSXV:BOR)
Historical Stock Chart
From May 2023 to May 2024
