|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)
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it ...
Jul. 27, 2016 11:35 AM EDT
Aspose.Total for .NET is the most complete package of all file format APIs for .NET as offered by Aspose. It empowers developers to create, edit, render, print and convert between a wide range of popular document formats within any .NET, C#, ASP.NET and VB.NET applications. Aspose compiles all .NET APIs on a daily basis to ensure that it contains the most up to date versions of each of Aspose .NET APIs. If a new .NET API or a new version of existing APIs is released during the subscription peri...
Jul. 27, 2016 11:15 AM EDT Reads: 881
Enterprise networks are complex. Moreover, they were designed and deployed to meet a specific set of business requirements at a specific point in time. But, the adoption of cloud services, new business applications and intensifying security policies, among other factors, require IT organizations to continuously deploy configuration changes. Therefore, enterprises are looking for better ways to automate the management of their networks while still leveraging existing capabilities, optimizing perf...
Jul. 27, 2016 11:00 AM EDT Reads: 1,206
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Jul. 27, 2016 11:00 AM EDT Reads: 675
Ixia (Nasdaq: XXIA) has announced that NoviFlow Inc.has deployed IxNetwork® to validate the company’s designs and accelerate the delivery of its proven, reliable products. Based in Montréal, NoviFlow Inc. supports network carriers, hyperscale data center operators, and enterprises seeking greater network control and flexibility, network scalability, and the capacity to handle extremely large numbers of flows, while maintaining maximum network performance. To meet these requirements, NoviFlow in...
Jul. 27, 2016 10:45 AM EDT Reads: 597
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle. In his session at 18th Cloud Expo, ...
Jul. 27, 2016 10:30 AM EDT Reads: 1,048
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
Jul. 27, 2016 10:30 AM EDT Reads: 1,211
Hostway Services, Inc. and WSM International have partnered to deliver trouble free migration services for any organization that wishes to bring their IT infrastructure to Hostway's Azure managed cloud services. WSM is the leader in providing turn-key IT migration services since 2003 and is now the preferred provider to any Hostway customer that is seeking to move its computer infrastructure to the Hostway Azure-based cloud.
Jul. 27, 2016 10:00 AM EDT Reads: 229
Ovum, a leading technology analyst firm, has published an in-depth report, Ovum Decision Matrix: Selecting a DevOps Release Management Solution, 2016–17. The report focuses on the automation aspects of DevOps, Release Management and compares solutions from the leading vendors.
Jul. 27, 2016 10:00 AM EDT Reads: 1,725
Continuous testing helps bridge the gap between developing quickly and maintaining high quality products. But to implement continuous testing, CTOs must take a strategic approach to building a testing infrastructure and toolset that empowers their team to move fast. Download our guide to laying the groundwork for a scalable continuous testing strategy.
Jul. 27, 2016 10:00 AM EDT Reads: 1,996
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet a...
Jul. 27, 2016 09:45 AM EDT Reads: 433
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
Jul. 27, 2016 09:30 AM EDT Reads: 2,057
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.
Jul. 27, 2016 09:30 AM EDT Reads: 1,021
"We formed Formation several years ago to really address the need for bring complete modernization and software-defined storage to the more classic private cloud marketplace," stated Mark Lewis, Chairman and CEO of Formation Data Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 27, 2016 09:30 AM EDT Reads: 1,625
Deploying applications in hybrid cloud environments is hard work. Your team spends most of the time maintaining your infrastructure, configuring dev/test and production environments, and deploying applications across environments – which can be both time consuming and error prone. But what if you could automate provisioning and deployment to deliver error free environments faster? What could you do with your free time?
Jul. 27, 2016 09:17 AM EDT Reads: 190