|By Marketwired .||
|February 28, 2014 07:29 PM EST||
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 03/01/14 -- Lynden Energy Corp. (TSX VENTURE:LVL) (the "Company") reports its second quarter 2014 results. Highlights for the six months ended December 31, 2013 (the "Current Period"), compared to the six months ended December 31, 2012 (the "Prior Period"), include:
-- Total production increased 157% to 294,365 boe (1,598 boe/d) -- Gross revenues, net of royalties, increased 173% to $16,016,198 -- Sale of 12 gross (4.7 net) Wolfberry Project wells, to BreitBurn Energy Partners L.P. for $19.3 million, effective December 30, 2013. (the "BreitBurn Sale")
Production for the six months ended December 31, 2013 totaled 294,365 boe (1,598 boe/d). Production for the three months ended December 31, 2013 totaled 141,277 boe (1,536 boe/d), a decrease of 8% over production in the three months ended September 30, 2013. Production volumes in November and December 2013 were negatively impacted as a result of suspensions of production due to severe winter weather conditions.
All of the production is attributable to the Wolfberry Project. The production mix, on a percent per boe basis, from the Wolfberry Project is approximately 60% oil and 40% natural gas and associated products.
Financial Results for the 6 months and 3 months ended December 31, 2013
This news release should be read in conjunction with the Company's consolidated financial statements for the six months ended December 31, 2013 and the notes thereto, together with the MD&A for the corresponding period, which are available under the Company's profile on SEDAR at www.sedar.com. All monetary references in this news release are to U.S. dollars unless otherwise stated.
Results of Operations
The Company reported operating earnings of $18,385,808 for the Current Period compared to operating earnings of $14,486,807 for the Prior Period. The Company's net earnings of $12,595,155 and total comprehensive income of $12,295,936 for the Current Period compared to net earnings of $10,485,597 and total comprehensive income of $10,648,864 for the Prior Period. Significant components of the Current Period net earnings were net revenue of $15,942,860, depletion and depreciation of $4,716,132 gain on disposition of property, plant and equipment of $9,937,842 and income tax expense of $5,780,000.
Petroleum and Natural Gas ("P&NG") Revenue
The Company reported gross P&NG revenues of $20,888,456 (Prior Period - $12,243,919) for the Current Period, all from its Wolfberry Project wells. In conjunction with the revenues, the Company reported royalties paid of $4,872,258 (Prior Period - $2,964,775) and paid production and operating expenses of $2,148,810 (Prior Period - $1,505,529) for the Current Period. The Company also incurred $4,716,132 (Prior Period - $3,485,932) of depletion and depreciation for the Current Period. Average realized prices for the Current Period, were $98 per barrel ("Bbl") of oil and $4.65 per thousand cubic feet ("Mcf") of natural gas, compared to $86 per Bbl of oil and $4.89 per Mcf of natural gas, for the Prior Period. The natural gas selling price is reflective of the thermal value of gas and associated products sold.
The Company also reported gross P&NG revenues of $9,305,437 for the three months ended December 31, 2013 compared to $6,202,197 for the three months ended September 30, 2013 ("Q1/2014"). In conjunction with the revenues, the Company reported royalties paid of $2,174,904 (Q1/2013 - $1,571,024) and paid production and operating expenses of $1,154,131 (Q1/2013 - $834,113) for the three months ended December 31, 2013. Average realized prices for the three months ended December 31, 2013 were $94 per Bbl of oil and $4.85 per Mcf of natural gas, compared to $101 per Bbl of oil and $4.42 per Mcf of natural gas, for Q1/2014.
The Company has a $100 million (increased from $50 million subsequent to December 31, 2013) reducing revolving line of credit. Effective December 31, 2013, the line of credit had a $25 million borrowing base of which $12.25 million was outstanding. The amount drawn on the line of credit has decreased from $29 million at September 30, 2013 primarily as a result of applying a portion of the proceeds of the December 30, 2013 BreitBurn Sale against the outstanding amount.
The Company anticipates financing the majority of its Wolfberry Project capital expenditures through operating revenues, draw downs on the line of credit, and cash on hand at December 31, 2013 of approximately $14.5 million.
The Wolfberry Project
The Company is currently carrying out a rapid oil and gas development program on its Wolfberry Project, where the Company now has 75 gross (31.0 net) wells tied-in and producing. As a result of the BreitBurn Sale, during the three months ended December 31, 2013 there was a net decrease of 4 gross (2.0 net) wells tied into production. At December 31, 2013, the Company had 3 gross (1.27 net) wells spud or drilled awaiting completion and/or tie-in.
The Company's current plans call for 24 gross (9.92 net) Wolfberry Project wells to spud in the balance of calendar 2014 (March 1 to December 31, 2014) at an estimated cost to the Company of $23.8 million. The Company's funding amount for the 9.92 net wells is equivalent to 11.34 wells. The gross cost of a Wolfberry well is currently approximately $2.1 million.
The Company's capital budget is subject to change depending upon a number of factors, including economic and industry conditions at the time of drilling, prevailing and anticipated prices for oil and gas, the availability of sufficient capital resources for drilling prospects, the Company's financial results and the availability of lease extensions and renewals on reasonable terms.
Mitchell Ranch Project
The Company's Mitchell Ranch project covers approximately 102,000 acres of P&NG leases located primarily in Mitchell County, West Texas where the Company has a 50% working interest in approximately 67,000 acres, and a 1.25% overriding royalty interest on approximately 35,000 acres subject to a term assignment with a large, independent exploration and production company.
The Company currently has one (0.5 net) producing well, the Spade 17#1, where several rounds of completions have been carried out. During the Current Period, the Company received $46,829 of net revenue from sales from the Spade 17#1 well. The most recent completion was carried out in mid-February 2014. The results from this completion are pending. The Mitchell Ranch Project is in the exploration and evaluation stage and as such, the net revenues have been credited to capitalized costs.
As a result of significant new drilling activity in the general area around the Mitchell Ranch Project, the timing of the new wells has been pushed out in order to best incorporate the results of other operators into the development plan on the Mitchell Ranch Project. The Company has participated in a seismic shoot over a portion of the ranch as a preparatory step for a new well program. Initial processing and interpretation of the new seismic data and of the existing seismic data covering much of the ranch is expected in early 2014.
Lynden Energy Corp. is in the business of acquiring, exploring and developing petroleum and natural gas rights and properties. The Company has various working interests in the Wolfberry Project and Mitchell Ranch Project, located in the Permian Basin in West Texas, USA.
NI 51-101 requires that we make the following disclosure: we use oil equivalents (boe) to express quantities of natural gas and crude oil in a common unit. A conversion ratio of 6 mcf of natural gas to 1 barrel of oil is used. Boe may be misleading, particularly if used in isolation. The conversion ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
FORWARD-LOOKING STATEMENTS DISCLAIMER: This news release contains forward-looking statements. The reader is cautioned that assumptions used in the preparation of such statements, although considered accurate at the time of preparation, may prove incorrect, and the actual results may vary materially from the statements made herein. Expectations of spudding 24 gross (9.92 net) Wolfberry Project wells from March 1, 2014 to December 31, 2014, and expected timelines relating to oil and gas operations, are subject to the customary risks of the oil and gas industry, and are subject to the company having sufficient cash to fund the drilling and completion of these wells. For a more detailed description of these risks, and others, see http://lyndenenergy.com/risk-factors.
ON BEHALF OF THE BOARD OF DIRECTORS
LYNDEN ENERGY CORP.
Colin Watt, President and CEO
Lynden Energy Corp.
President and CEO
(604) 602-9311 (FAX)
There are 66 million network cameras capturing terabytes of data. How did factories in Japan improve physical security at the facilities and improve employee productivity? Edge Computing reduces possible kilobytes of data collected per second to only a few kilobytes of data transmitted to the public cloud every day. Data is aggregated and analyzed close to sensors so only intelligent results need to be transmitted to the cloud. Non-essential data is recycled to optimize storage.
Feb. 20, 2017 08:15 AM EST Reads: 1,135
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
Feb. 20, 2017 07:45 AM EST
Information technology (IT) advances are transforming the way we innovate in business, thereby disrupting the old guard and their predictable status-quo. It’s creating global market turbulence. Industries are converging, and new opportunities and threats are emerging, like never before. So, how are savvy chief information officers (CIOs) leading this transition? Back in 2015, the IBM Institute for Business Value conducted a market study that included the findings from over 1,800 CIO interviews ...
Feb. 20, 2017 07:30 AM EST Reads: 1,381
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
Feb. 20, 2017 07:30 AM EST Reads: 129
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
Feb. 20, 2017 07:15 AM EST Reads: 103
Stratoscale, the software company developing the next generation data center operating system, exhibited at SYS-CON's 18th International Cloud Expo®, which took place at the Javits Center in New York City, NY, in June 2016.Stratoscale is revolutionizing the data center with a zero-to-cloud-in-minutes solution. With Stratoscale’s hardware-agnostic, Software Defined Data Center (SDDC) solution to store everything, run anything and scale everywhere, IT is empowered to take control of their data ce...
Feb. 20, 2017 07:15 AM EST Reads: 664
In his session at @DevOpsSummit at 19th Cloud Expo, Robert Doyle, lead architect at eCube Systems, will examine the issues and need for an agile infrastructure and show the advantages of capturing developer knowledge in an exportable file for migration into production. He will introduce the use of NXTmonitor, a next-generation DevOps tool that captures application environments, dependencies and start/stop procedures in a portable configuration file with an easy-to-use GUI. In addition to captur...
Feb. 20, 2017 07:15 AM EST Reads: 3,376
SYS-CON Events announced today that SD Times | BZ Media has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. BZ Media LLC is a high-tech media company that produces technical conferences and expositions, and publishes a magazine, newsletters and websites in the software development, SharePoint, mobile development and commercial UAV markets.
Feb. 20, 2017 07:00 AM EST Reads: 1,454
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain.
Feb. 20, 2017 06:45 AM EST Reads: 257
In the first article of this three-part series on hybrid cloud security, we discussed the Shared Responsibility Model and examined how the most common attack strategies persist, are amplified, or are mitigated as assets move from data centers to the cloud. Today, we’ll look at some of the unique security challenges that are introduced by public cloud environments. While cloud computing delivers many operational, cost-saving and security benefits, it takes place in a public, shared and on-demand ...
Feb. 20, 2017 06:30 AM EST Reads: 1,086
Both SaaS vendors and SaaS buyers are going “all-in” to hyperscale IaaS platforms such as AWS, which is disrupting the SaaS value proposition. Why should the enterprise SaaS consumer pay for the SaaS service if their data is resident in adjacent AWS S3 buckets? If both SaaS sellers and buyers are using the same cloud tools, automation and pay-per-transaction model offered by IaaS platforms, then why not host the “shrink-wrapped” software in the customers’ cloud? Further, serverless computing, cl...
Feb. 20, 2017 06:00 AM EST Reads: 1,629
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin, ...
Feb. 20, 2017 05:30 AM EST Reads: 4,580
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
Feb. 20, 2017 03:30 AM EST Reads: 6,152
“We're a global managed hosting provider. Our core customer set is a U.S.-based customer that is looking to go global,” explained Adam Rogers, Managing Director at ANEXIA, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Feb. 20, 2017 03:15 AM EST Reads: 1,342
Security, data privacy, reliability and regulatory compliance are critical factors when evaluating whether to move business applications from in-house client hosted environments to a cloud platform. In her session at 18th Cloud Expo, Vandana Viswanathan, Associate Director at Cognizant, In this session, will provide an orientation to the five stages required to implement a cloud hosted solution validation strategy.
Feb. 20, 2017 02:00 AM EST Reads: 4,168