|By PR Newswire||
|April 23, 2014 04:09 PM EDT|
CUT BANK, MT, April 23, 2014 /PRNewswire/ - Mountainview Energy Ltd. ("Mountainview" or the "Company") (TSXV: MVW) is pleased to announce its operating and financial results for the year ended December 31, 2013. The Company also announces that its audited financial statements and management's discussion and analysis for the year ended December 31, 2013, is available on SEDAR at www.sedar.com, and on Mountainview's website at www.mountainviewenergy.com.
During 2013, Mountainview continued to build its production and reserve base through the drill bit, which resulted in an increase in revenue and funds flow from operations.
Highlights of Mountainview's successful 2013 are as follows:
- Completed an organic capital program of $46.9 million, including the drilling of 8 gross (4.8 net) wells at a 100% success rate.
- Increased average Q4 production by 510% to 1,183 boe/d, while increasing the oil & liquids weighting to 88% from 74% in the prior period quarter.
- Funds flow from operations increased by a multiple of 30.3 times year over year, with $6.5 million for the year ended December 31, 2013, as compared to ($0.2) for the year ended December 31, 2012.
- Generated operating netbacks of $38.84 per boe in 2013, an increase of 23% when compared to $29.14 per boe in 2012.
Certain selected financial and operational information for the three and twelve months ended December 31, 2013 and 2012 is outlined below and should be read in conjunction with Mountainview's audited financial statements for the years ended December 31, 2013 and 2012 and the accompanying management discussion and analysis filed with the Canadian securities regulatory authorities which may be accessed through the SEDAR website (www.sedar.com) and also on the Company's website: www.mountainviewenergy.com.
|Three months ended December 31||Twelve months ended December 31|
|2013||2012||% Change||2013||2012||% Change|
|Financial (US $ 000's, except per share amounts)|
|Petroleum and natural gas sales||7,418||690||975%||20,527||3,560||477%|
|Funds flow from operations (1)||2,085||150||1290%||6,453||(220)||-3033%|
|Per share basic||0.02||nil||N/A||0.07||nil||N/A|
|Per share diluted||0.02||nil||N/A||0.06||nil||N/A|
|Net income (loss)||(3,141)||(7,345)||-57%||(5,974)||(8,397)||-29%|
|Per share basic||(0.04)||(0.08)||-58%||(0.07)||(0.10)||-29%|
|Per share diluted (2)||(0.04)||(0.08)||-49%||(0.07)||(0.10)||-30%|
|Capital expenditures (3)||16,584||6,296||163%||48,707||10,365||370%|
|Net debt (4)||59,244||19,804||199%||59,244||19,804||199%|
|Average daily production|
|Light crude oil (bbl per day)||1,039||143||627%||644||147||338%|
|Natural gas (Mcf per day)||864||306||182%||632||285||122%|
|Barrels of oil equivalent (boe per day, 6:1)||1,183||194||510%||749||195||285%|
|% Oil and NGLs||88%||74%||123%||86%||76%||119%|
|Average sales price|
|Light crude oil ($ per bbl)||77.02||52.26||47%||86.20||63.06||37%|
|Natural gas ($ per Mcf)||2.94||3.45||-15%||2.98||1.59||87%|
|Barrels of oil equivalent ($ per boe, 6:1)||68.16||44.55||53%||75.08||49.63||51%|
|Operating netback ($ per boe) (5)|
|Petroleum and natural gas sales||68.16||44.55||53%||75.08||49.63||51%|
|Shares outstanding, end of period||87,820,443||87,245,443||1%||87,820,443||87,245,443||1%|
|(1)||Funds flow from operations should not be considered an alternative to, or more meaningful than, cash flow from operating activities as determined in accordance with International Financial Reporting Standards as an indicator of Mountainview's performance. Funds flow from operations represents cash flow from operating activities prior to changes in non-cash working capital, transaction costs and decommissioning provision expenditures incurred. Mountainview also presents funds flow from operations per share whereby per share amounts are calculated using weighted average shares outstanding consistent with the calculation of earnings per share.|
|(2)||Due to the anti-dilutive effect of Mountainview's net loss for the three months and year ended December 31, 2013 and 2012, the diluted number of shares is equal to the basic number of shares. Therefore, diluted per share amounts of the net loss are equivalent to basic per share amounts. (2) Capital expenditures is a non-GAAP measure calculated as the purchase or sale price of an asset, plus development capital expenditures added to PP&E. Corporate acquisitions are excluded from this measure.|
|(3)||Capital expenditures are a non-GAAP measure, calculated as the purchase or sale price of an asset, plus development capital expenditures added to PP&E. Corporate acquisitions are excluded from this measure.|
|(4)||Net debt is a non-GAAP measure representing the total of bank indebtedness, accounts payables and accrued liabilities, less accounts receivables, deposits and prepaid expenses.|
|(5)||Operating netback is a non-GAAP measure calculated as the average per boe of the Company's oil and gas sales plus realized gains on derivatives, less royalties, operating and transportation expenses.|
As highlighted by the Company's year-end financial and operational results, Mountainview added significant production, resulting in substantial growth in oil and natural gas sales, while also showing an increase in funds flow from operations and per boe netbacks. This is the result of strong financial discipline and a focused and successful capital plan. The results of the 2013 capital plan further de-risked the 12 Gage asset, adding a sizeable infill drilling inventory with capital efficiencies associated with pad drilling.
Mountainview's strategic shift to drilling higher working interest wells in 2013, versus lower working interest wells drilled in 2012, delivered positive results evidenced by the growth in revenue and operating netbacks.
At year-end 2013, Company net debt, was approximately $59.2 million and the Company had $39.3 drawn on its available credit facility of $51.2 million. Funds flow from operations for 2013 increased significantly from 2012, reaching $6.5 million.
In response to exposure to volatility of differentials from WTI and industry concerns with respect to transportation restrictions in the Williston Basin, which translated into realized prices ranging from $71.27 per barrel of oil in Q1, to $90.61 per barrel of oil in Q3, 2013, the Company has entered into a financial hedging program commencing in January, 2014. Mountainview has 30% of its production hedged for Q1, 2014, with a floor of $85.00 and a ceiling of $97.70. The Company plans to actively manage its hedging program as its production base grows.
The Company's 2013 capital plan, including all drilling operations, was focused on its core 12 Gage asset in Divide County, N.D. The $46.9 million capital program in 2013 included the drilling of 8 wells (4.8 net), with a 100% success rate. At year end, there were 2 wells (1.8 net) that had been drilled and were awaiting completion. The Company has selectively increased its working interest in its assets whenever appropriate as it has become more experienced operationally. This experience has resulted in decreased capital costs on a per well basis from $8.3 million per well to $6.3 million per well.
Mountainview has continued to deliver on its strategy of production and reserve growth. With anticipated 2014 funds flow from operations in excess of $8 million, and available credit on its existing credit facility, Mountainview will continue to focus on the development of its core 12 Gage asset in Divide County, N.D.
The Company will continue to pursue an aggressive growth strategy using a combination of cash flow and available credit. Recent positive movement in both oil pricing and the WTI oil differentials, combined with the Company's new hedge position, allows Mountainview to remain confident in the long term sustainability of the 2014 capital plan.
With the de-risking of the 12 Gage drilling inventory, Mountainview has identified 72 infill Three Forks locations. Adding Bakken potential, there are an additional 80 drilling locations, all on the 12 Gage acreage. With 152 potential drilling locations on the 12 Gage acreage, Mountainview is strongly positioned to review acquisition opportunities to further diversify and enhance the Company's commodity and play type risk.
Mountainview Energy Ltd. is a public oil and gas company listed on the TSX Venture Exchange, with a primary focus on the exploration, production and development of the Bakken and Three Forks Shale in the Williston Basin and the South Alberta Bakken.
Certain information contained in this press release constitutes forward-looking statements. Statements relating to "reserves" are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and can be profitably produced in the future. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Company's control including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, environmental risks, competition from other industry participants, the lack of availability of qualified service providers, personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources, inability to meet or continue to meet listing requirements, the inability to obtain required consents, permits or approvals and the risk that actual results will vary from the results forecasted and such variations may be material. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company's actual results, performance or achievement could differ materially from those expressed in or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom.
The forward-looking statements contained in this press release are made as of the date of this press release. Mountainview disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Additionally, Mountainview undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.
Barrels of Oil Equivalent
The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent (6 mcf/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. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value. All boe conversions in this report are derived from converting gas to oil in the ratio of six thousand cubic feet of gas to one barrel of oil.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Mountainview Energy Ltd.
Redis is not only the fastest database, but it has become the most popular among the new wave of applications running in containers. Redis speeds up just about every data interaction between your users or operational systems. In his session at 18th Cloud Expo, Dave Nielsen, Developer Relations at Redis Labs, shared the functions and data structures used to solve everyday use cases that are driving Redis' popularity.
Dec. 3, 2016 04:15 AM EST Reads: 3,410
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Dec. 3, 2016 04:15 AM EST Reads: 1,691
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, will share examples from a wide range of industries – includin...
Dec. 3, 2016 02:30 AM EST Reads: 1,509
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.
Dec. 3, 2016 02:15 AM EST Reads: 1,485
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Phil Hombledal, Solution Architect at CollabNet, discussed how customers are able to achieve a level of transparency that e...
Dec. 3, 2016 02:15 AM EST Reads: 711
"We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 3, 2016 01:45 AM EST Reads: 748
Much of the value of DevOps comes from a (renewed) focus on measurement, sharing, and continuous feedback loops. In increasingly complex DevOps workflows and environments, and especially in larger, regulated, or more crystallized organizations, these core concepts become even more critical. In his session at @DevOpsSummit at 18th Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, showed how, by focusing on 'metrics that matter,' you can provide objective, transparent, and meaningful f...
Dec. 3, 2016 01:45 AM EST Reads: 4,527
"We are the public cloud providers. We are currently providing 50% of the resources they need for doing e-commerce business in China and we are hosting about 60% of mobile gaming in China," explained Yi Zheng, CPO and VP of Engineering at CDS Global Cloud, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 3, 2016 01:15 AM EST Reads: 848
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at 20th Cloud Expo, Ed Featherston, director/senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Dec. 3, 2016 12:30 AM EST Reads: 1,518
Between 2005 and 2020, data volumes will grow by a factor of 300 – enough data to stack CDs from the earth to the moon 162 times. This has come to be known as the ‘big data’ phenomenon. Unfortunately, traditional approaches to handling, storing and analyzing data aren’t adequate at this scale: they’re too costly, slow and physically cumbersome to keep up. Fortunately, in response a new breed of technology has emerged that is cheaper, faster and more scalable. Yet, in meeting these new needs they...
Dec. 3, 2016 12:15 AM EST Reads: 1,748
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 2, 2016 11:15 PM EST Reads: 898
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
Dec. 2, 2016 10:30 PM EST Reads: 1,729
"We are an all-flash array storage provider but our focus has been on VM-aware storage specifically for virtualized applications," stated Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 2, 2016 08:30 PM EST Reads: 386
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effici...
Dec. 2, 2016 08:30 PM EST Reads: 4,977
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
Dec. 2, 2016 08:15 PM EST Reads: 1,560