Traverse Energy Announces 2012 Second Quarter Results
16 Agosto 2012 - 10:38PM
Marketwired Canada
Traverse Energy Ltd. ("Traverse" or "the Company") (TSX VENTURE:TVL) presents
financial and operating results for the six months ended June 30, 2012. Unless
otherwise stated, the volume conversion of natural gas to barrel of oil
equivalent (BOE) is presented on the basis of 6 thousand cubic feet of natural
gas being equal to 1 barrel of oil. This conversion ratio is based upon an
energy equivalent conversion method primarily applicable at the burner tip and
does not represent value equivalence at the wellhead. BOE figures may be
misleading, particularly if used in isolation.
HIGHLIGHTS Three months ended Six months ended
June 30, June 30, June 30, June 30,
(Unaudited) 2012 2011 2012 2011
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Financial ($ thousands, except per share amounts)
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Revenue 1,430 903 3,258 1,887
Funds flow from operations 990 458 2,207 862
Per share - basic and diluted 0.02 0.01 0.05 0.03
Cash flow from operations 1,209 176 2,263 944
(including changes in working
capital)
Per share - basic and diluted 0.03 0.01 0.05 0.03
Net income (loss) 39 (152) 395 (159)
Per share - basic and diluted 0.00 0.00 0.01 0.00
Capital expenditures, net of
dispositions 430 3,415 2,913 4,293
Total assets 18,590 19,294 18,590 19,294
Working capital 1,826 4,314 1,826 4,314
Common shares
Outstanding (millions) 42.2 38.5 42.2 38.5
Weighted average (millions) 42.2 35.0 42.2 33.5
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Operations (units as noted)
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Average production
Natural gas (mcf/day) 702 399 699 401
Oil and NGL (bbls/day) 184 89 198 104
Working interest production
(BOE/day) 169 133 188 147
Royalty income (BOE/day) 132 22 127 24
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Total (BOE/day) 301 155 315 171
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Average sales price
Natural gas ($/mcf) 2.02 4.06 2.18 4.01
Oil and NGL ($/bbl) 77.92 93.68 82.73 84.73
Operating netback ($/BOE)
Petroleum and natural gas revenue 48.16 69.71 50.33 65.80
Royalties 0.85 4.75 2.43 4.22
Operating and transportation costs 13.16 16.30 14.19 16.13
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Working interest operating netback
($/BOE) 34.15 48.66 33.71 45.45
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Royalty income netback ($/BOE) 57.62 28.96 66.62 31.48
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Total Company operating netback
($/BOE) 44.45 45.89 47.00 43.50
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Non-GAAP measures
Management uses funds flow from operations and operating netback to analyze
operating performance. These measures are commonly utilized in the oil and gas
industry and are considered informative for management and stakeholders. The
reconciliation between cash flow from operations and funds flow from operations
can be found in the statement of cash flows in the financial statements with
funds flow from operations calculated before non-cash working capital and asset
retirement expenditures. Management believes that in addition to net income
(loss), funds flow from operations is a useful supplemental measure as it
provides an indication of Traverse's operating performance. Operating netback
reflects petroleum and natural gas revenues less royalties, operating and
transportation costs and is calculated on a per unit basis. Investors should be
cautioned, however, that these measures may not be comparable to measures
reported by other companies nor should they be construed as an alternative to
cash flow from operations or other measures of financial performance calculated
in accordance with GAAP.
Operations Review
All of the Company's oil and gas properties are located in Alberta. Traverse is
focusing on its' existing medium and light oil properties located in central and
southern Alberta. At June 30, 2012 undeveloped land holdings totalled 158,900
gross (156,100 net) acres at an average working interest of 98%.
No wells were drilled by the Company during the second quarter of 2012. In early
July, Traverse commenced drilling on its' Turin property (which totals in excess
of 9,000 acres) located in southern Alberta. Five gross (4.5 net) wells were
drilled to test coincidental seismic and geological targets. This drilling
resulted in 1.75 net oil wells, 1 natural gas well (0.75 net), 1 potential
natural gas well and 1 well that likely will be abandoned upon conclusion of
ongoing testing. The natural gas wells will remain shut-in pending an improved
natural gas pricing environment. The first oil well (Traverse 75%) was placed on
production August 1, since then the well has produced at an average rate of 85
barrels of oil per day. The second oil well (Traverse 100%) was placed on
production August 14 and appears to be capable of producing at a similar rate.
Both wells have been tied into Traverse's Turin battery which was expanded in
the first quarter of 2012. The battery includes a water disposal and injection
facility and a treater capable of handling up to 2,500 barrels of fluid per day.
Traverse plans additional seismic surveying and several follow up drilling
locations.
In the Brazeau area of west central Alberta, Traverse has a gross overriding
royalty interest in 10 sections of land (6,400 acres). By June 30, 2012 a total
of 9 horizontal Cardium wells were drilled on these lands by an industry
partner. Seven of the wells were on production during the quarter resulting in
113 BOE per day (76% light oil) net to the Company. Subsequent to June 30, 2012
two additional wells were drilled by an industry partner.
Traverse set an initial budget of up to $15 million for 2012 to be funded from
working capital, cash flow, new equity issues and debt where appropriate.
Exploration plans for the remainder of the year include seismic acquisition;
follow up drilling in the Turin area, and 2 to 3 wells in the greater Carbon
area where Traverse owns in excess of 40,000 acres at a 100% working interest.
Forward-looking information
This press release contains forward-looking information. Forward-looking
information is based upon the opinions, expectations and estimates of management
as at the date the information is provided and, in some cases, information
received from or disseminated by third parties. In particular, the Company's
statements with respect to the Company's focus in 2012 on its existing medium
and light oil properties in central and southern Alberta; planned additional
seismic surveying and follow up drilling on the Company's Turin property and
exploration plans for the remainder of 2012 contain forward-looking information.
This forward-looking information is subject to a variety of substantial known
and unknown risks and uncertainties and other factors that could cause actual
events or outcomes to differ materially from those anticipated or implied by
such forward-looking information. The Company's Annual Information Form filed
with securities regulatory authorities (accessible through the SEDAR website
www.sedar.com) describes the risks, material assumptions and other factors that
could influence actual results and which are incorporated herein by reference.
The forward-looking information contained in this press release is made as of
the date hereof and the Company undertakes no obligation to update publicly or
revise any forward-looking information, whether as a result of new information,
future events or otherwise, unless so required by applicable securities laws.
Further details on the Company including the June 30, 2012 unaudited interim
financial statements, the related management's discussion and analysis and
Annual Information Form are available on the Company's website and SEDAR.
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