Triton Announces Second Quarter 2008 Results
August 19 2008 - 3:01PM
Marketwired Canada
Triton Energy Corp. (TSX VENTURE:TEZ) ("Triton" or the "Corporation") announces
financial and operating results for the three and six months ended June 30,
2008. Triton has filed its unaudited financial statements for the three and six
months ended June 30, 2008 and the accompanying Management's Discussion and
Analysis with Canadian securities regulatory authorities. These filings are
available for review at www.sedar.com and on the Corporation's website,
www.tritonenergy.ca.
Highlights of the Second Quarter of 2008
- Petroleum and natural gas sales increased 113% to $3.54 million compared to
$1.66 million in the second quarter of 2007.
- Funds from operations increased 149% to $1.77 million ($0.05 per share)
compared to $0.71 million ($0.03 per share) in the second quarter of 2007.
- Net income totaled $294,946 compared to a net loss of $153,914 in the second
quarter of 2007.
- Production increased 65% to an average of 689 barrels of oil equivalent
("boe") per day during the quarter compared to an average of 418 boe per day
during the second quarter of 2007.
- Capital expenditures totaled $3.72 million, of which $1.94 million was spent
on land and seismic, $0.90 million on drilling and completions, and $0.85
million on facilities.
- Triton drilled two 100% working interest wells resulting in two successful
natural gas wells.
- Both successful wells were tied-in during June with one well placed on
production in late June while the other well was completed and production tested
in-line (on production in late July).
- An additional 3,200 net acres of undeveloped land were acquired at Crown land
sales, bringing the Corporation's total undeveloped land position to
approximately 53,000 net acres at June 30, 2008.
Financial Summary
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Three months ended Six months ended
June 30, June 30,
2008 2007 2008 2007
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Financial ($000's except (unaudited) (unaudited) (unaudited) (unaudited)
for per share amounts)
Petroleum and natural
gas sales 3,538 1,656 7,561 4,409
Funds from (used in)
operations(1) 1,765 706 3,525 1,951
Per share basic &
diluted(1) 0.05 0.03 0.10 0.07
Net earnings (loss) 295 (154) 304 (326)
Per share basic &
diluted(2) 0.01 (0.01) 0.01 (0.01)
Working capital (4,111) 2,091 (4,111) 2,091
Capital expenditures(3) 3,716 3,030 7,372 8,531
Total assets 34,573 26,672 34,573 26,672
Shareholders' equity 23,943 22,009 23,943 22,009
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Notes
(1) Funds from (used in) operations is a non-GAAP term and the Corporation
calculates this measure as cash provided from operations before changes
in non-cash operating working capital.
(2) At June 30, 2008 there were 2,725,000 options to purchase common shares
and 1,200,000 non-transferable common share purchase warrants
outstanding that have not been included in the calculation of the
weighted average shares outstanding as the effect would be anti-
dilutive.
(3) Excludes asset retirement obligations.
Operating Summary
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Three months ended Six months ended
June 30, June 30,
2008 2007 2008 2007
----------------------------------------------------------------------------
Operating
Production
Crude oil (bbls per day) 24 8 32 11
Natural gas (mcf per day) 3,994 2,458 4,542 3,201
BOE per day (6:1) 689 418 789 544
Netback per boe (6:1)
Petroleum and natural gas
sales $ 56.39 $ 43.56 $ 52.68 $ 44.74
Royalties, net of ARTC $ (9.66) $ (9.32) $(10.77) $(10.95)
Operating expenses $ (9.35) $ (6.66) $ (9.63) $ (6.45)
Transportation expenses $ (1.85) $ (1.54) $ (1.80) $ (1.62)
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Operating netback $ 35.53 $ 26.04 $ 30.48 $ 25.72
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On July 2, 2008 Triton closed a sale of its 25% non-operated working interest in
three (0.75 net) natural gas wells in the Girouxville area for $1 million, with
an effective date of July 1, 2008. The sale included approximately 17 boe per
day of net production. Current net production is estimated to be approximately
825 to 850 boe per day from 14 (13.6 net) wells, all of which are operated by
Triton, with an additional estimated 500 boe per day of production that is
expected to be on-stream in the fourth quarter.
Outlook
Triton's 2008 capital expenditures budget includes drilling up to seven (7.0
net) wells in the second half of 2008, four wells targeting natural gas and
three wells targeting oil, all in formations between 1,000 and 1,500 meters in
depth. Triton's summer drilling program and field operations have been
proceeding with a focus at Newton and at Sullivan Lake.
At Newton, Triton has four (4.0 net) operated natural gas wells currently
producing approximately 347 boe per day. A fifth successful well has recently
been drilled and completed and is expected to be on production by the end of
October. The Corporation has 13 (12.75 net) sections of land at Newton (8,160
net acres) and plans to drill one or possibly two additional 100% working
interest wells here before year-end at seismically and geologically identified
locations.
At Sullivan Lake, Triton has five (4.85 net) operated natural gas wells
currently producing approximately 314 boe per day. The Corporation has 16 (15.75
net) sections of land at Sullivan Lake (10,080 net acres) and an additional 14
sections (8,960 acres) under option. Two 100% working interest wells are
budgeted for drilling in the second half of 2008 at seismically and geologically
identified locations.
Additionally, Triton will be participating in the completion and tie-in of one
(0.5 net) non-operated oil well at Lanaway with completion operations scheduled
to begin in late August.
The Corporation currently plans to finance the balance of its 2008 capital
expenditures program utilizing funds from operations and available credit
facilities.
Triton is a Calgary, Alberta based corporation engaged in the exploration,
development and production of petroleum and natural gas. The Corporation's
common shares are listed on the TSX Venture Exchange under the trading symbol
"TEZ".
Forward-Looking Statements
This news release may include forward-looking statements including opinions,
assumptions, estimates and management's assessment of future plans and
operations, budgeted capital expenditures and funding thereof, wells to be
drilled, timing of drilling of wells and commencement of production from wells.
When used in this document, the words "anticipate," "believe," "estimate,"
"expect," "intent," "may," "project," "plan", "should" and similar expressions
are intended to be among the statements that identify forward-looking
statements. Forward-looking statements are subject to a wide range of risks and
uncertainties, and although the Corporation believes that the expectations
represented by such forward-looking statements are reasonable, there can be no
assurance that such expectations will be realized. Any number of important
factors could cause actual results to differ materially from those in the
forward-looking statements including, but not limited to, risks associated with
oil and gas exploration, development, exploitation, results from testing,
production, marketing and transportation, the volatility of oil and gas prices,
currency fluctuations, the ability to implement corporate strategies, the state
of domestic capital markets, the ability to obtain financing, incorrect
assessment of the value of acquisitions, failure to realize the anticipated
benefits of acquisitions, changes in oil and gas acquisition and drilling
programs, delays resulting from inability to obtain required regulatory
approvals, delays resulting from inability to obtain drilling rigs and other
services, delays in tie-in operations, results from testing, environmental
risks, competition from other producers, imprecision of reserve estimates,
changes in general economic conditions and other factors more fully described
from time to time in the reports and filings made by Triton with securities
regulatory authorities. Readers are cautioned not to place undue reliance on
forward-looking statements, as no assurances can be given as to future results,
levels of activity or achievements. Except as required by applicable securities
laws, the Corporation does not undertake any obligation to publicly update or
revise any forward-looking statements.
Disclosure provided herein in respect of barrels of oil equivalent ("boe") may
be misleading, particularly if used in isolation. A boe conversion ratio of
6,000 cubic feet of natural gas to 1 barrel of oil is based on an energy
equivalency conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead.
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