News Feed Item

Suroco Energy Inc. Announces Filing of Year-End Financial Statements, MD&A and Annual Information Form

CALGARY, ALBERTA -- (Marketwired) -- 04/28/14 --


Suroco Energy Inc. (TSX VENTURE:SRN) (the "Corporation") is pleased to announce that it has filed its Audited Consolidated Financial Statements and the related Management's Discussion and Analysis ("MD&A") for the year ended December 31, 2013 and its Annual Information Form for the year ended December 31, 2013 on the System for Electronic Document Analysis and Retrieval ("SEDAR").

Copies of these documents can be found on the SEDAR website at www.sedar.com.

Financial & Operating Highlights                                            
(All references to $ are United States dollars unless otherwise noted)      
                      3 months ended December 31 12 months ended December 31
                              2013          2012          2013          2012
                                   (Restated)(3)               (Restated)(3)
Oil and gas revenue                                                         
 ($)                    14,617,482     9,345,598    50,431,015    35,314,518
Funds flow from                                                             
 operations (1) ($)      1,805,780       268,469    13,014,383     8,916,025
  Per share - basic                                                         
   ($)                        0.01          0.00          0.10          0.07
  Per share - diluted                                                       
   ($)                        0.01          0.00          0.09          0.07
Net income (loss) ($)      101,874    (1,812,790)    1,105,515     1,745,122
  Per share - basic                                                         
   and diluted ($)            0.00         (0.01)         0.01          0.01
Adjusted net income                                                         
 (1) ($)                  (472,005)   (1,812,790)    2,026,273     1,745,122
  Per share - basic                                                         
   and diluted($)             0.01         (0.01)         0.01          0.01
Total assets ($)        84,018,279    61,006,917    84,018,279    61,006,917
Working capital                                                             
 surplus (deficit) (1)                                                      
 ($)                      (893,742)      395,140      (893,742)      395,140
Common shares                                                               
 outstanding, end of                                                        
  Basic                134,329,734   134,329,734   134,329,734   134,329,734
  Fully Diluted        151,809,734   147,839,734   151,809,734   147,839,734
Weighted average                                                            
 common shares                                                              
  Basic                134,329,734   134,329,734   134,329,734   130,133,459
  Diluted (2)          138,770,746   138,897,055   139,145,173   134,816,152
Average daily net                                                           
 after royalty                                                              
 production (bopd)           1,810         1,101         1,517           991
Average reference                                                           
 price - WTI ($ per                                                         
 barrel)                     97.50         88.01         97.98         94.05
Operating Netback ($                                                        
 per barrel)                                                                
  Average realized                                                          
   price                     83.51         91.39         88.89        100.96
  Royalties                   6.89          7.31          7.24          8.08
  Production and                                                            
   expenses                  41.29         51.43         32.35         39.21
  Operating Netback          35.33         32.65         49.30        53.67 


1.  Funds flow from operations is cash flow from operating activities before
    changes in other non-cash working capital items. Funds flow from
    operations is not a measure recognized by generally accepted accounting
    principles ("GAAP"). See "Non-GAAP Measures" in the MD&A. 
2.  Working capital surplus includes current assets less current
    liabilities. Working capital surplus is not a measure recognized by
    GAAP. See "Non-GAAP Measures" in the MD&A. 
3.  In periods where there were losses attributable to shareholders, all
    potentially dilutive securities were considered anti- dilutive and were
    therefore excluded from the fully diluted number of weighted average
    common shares outstanding calculation. All potentially dilutive
    securities were considered for the calculation of diluted number of
    shares outstanding at the end of period. 

Proposed Transaction

On April 26, 2014, the Corporation entered into an arrangement agreement ("Arrangement Agreement") with Petroamerica Oil Corp ("Petroamerica") pursuant to which Petroamerica has agreed to acquire all the issued and outstanding common shares of the Corporation on the basis of 1.7627 of Petroamerica common shares for each outstanding common share of the Corporation (the "Arrangement"). The Arrangement is to be completed by way of a plan of arrangement under the Business Corporations Act (Alberta), subject to customary conditions for a transaction of this nature including, but not limited to the requisite approval of shareholders of the Corporation. A special meeting of the holders of common shares of the Corporation is scheduled to take place in June 2014. Closing of the Arrangement is expected to occur shortly thereafter.

Highlights from 2013

--  Increased average production (net to the Corporation after royalty) to
    1,517 barrels of oil per day ("bopd"), an increase of 53% from the prior
    year and increased average fourth quarter production to 1,810 bopd (net
    to the Corporation after royalty), an increase of 64% over the prior
--  Drilled and placed on permanent production 4 new Cohembi wells. 
--  Closed on acquisition of a 25% economic interest in the PUT-2 Block in
    the Putumayo basin of Colombia. 
--  Established $21 MM senior secured bank credit facility with Macquarie
    Bank Limited. 
--  Decreased production costs on a per barrel basis of approximately 17%
    for the year from $39.21/bbl to $32.35/bbl. 
--  Announced 32% increase in proved producing reserves for 2013. 
--  The Pinuna 7 was drilled in Q3 of 2013 and reached a planned total depth
    of 10,200 feet however, the Corporation and its partner in the well were
    unable to produce oil due to pump electrical problems and are planning
    to go back and retest the well in 2014. 
--  Spudded the Canelo Sur-2 well during 2013, however, due to mechanical
    difficulties, the Corporation and its partner in the well were not able
    to get to total depth prior to year-end. 
--  Successfully Drilled Quinde 2 well, which encountered 10 feet of oil-
    bearing Upper Villeta Sand. 
--  The Quinde 4 was successfully drilled to a total depth of 10,100 feet,
    encountering approximately 30 feet of oil- bearing Upper Villeta Sand. 

The Corporation is a Calgary-based junior oil and gas company, which explores for, develops, produces and sells crude oil, natural gas liquids and natural gas in Colombia. The Corporation's common shares trade on the TSX Venture Exchange under the symbol "SRN".

Reserves Information

"Proved" reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves.


Certain statements included in this press release constitute forward-looking statements under applicable securities legislation. These statements relate to future events or future performance of the Corporation. All statements other than statements of historical fact are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", or the negative of these terms or other comparable terminology. Forward-looking statements or information in this press release include, but are not limited to, the completion of the Arrangement, the characteristics of the Corporation's oil and natural gas properties, reserve quantities and the discounted present value of future net cash flows from such reserves, net revenue, capital expenditures, operating costs, exploration plans and development plan. In addition, this press release may contain forward-looking statements attributed to third party industry sources. Undue reliance should not be placed on these forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, estimates, forecasts, projections and other forward-looking statements will not occur, which may cause actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These assumptions, risks and uncertainties include, among other things, the state of the economy in general and capital markets in particular; fluctuations in oil prices; the results of exploration and development drilling, recompletions and related activities; changes in environmental and other regulations; risks associated with oil and gas operations and future exploration activities; receipt of securityholder and third party approvals; and other factors, many of which are beyond the control of the Corporation. You can find an additional discussion of those assumptions, risks and uncertainties in the Corporation's Canadian securities filings.

The forward-looking statements contained in this press release are made as of the date of this press release. Except as required by law, the Corporation 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. Additionally, the Corporation undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above. New factors emerge from time to time, and it is not possible for management of the Corporation to predict all of these factors and to assess in advance the impact of each such factor on the Corporation's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement or information. The forward-looking statements contained herein are expressly qualified by this cautionary statement. Moreover, neither the Corporation nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements.

Statements relating to "reserves" are deemed to be forward-looking statements or information, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described can be profitable in the future. There are numerous uncertainties inherent in estimating quantities of proved reserves, including many factors beyond the control of the Corporation. The reserve data included herein represents estimates only. In general, estimates of economically recoverable oil and natural gas reserves and the future net cash flows therefrom are based upon a number of variable factors and assumptions, such as historical production from the properties, the assumed effects of regulation by governmental agencies and future operating costs, all of which may vary considerably from actual results. All such estimates are to some degree speculative and classifications of reserves are only attempts to define the degree of speculation involved. For those reasons, estimates of the economically recoverable oil and natural gas reserves attributable to any particular group of properties and classification of such reserves based on risk of recovery and estimates of future net revenues expected therefrom, prepared by different engineers or by the same engineers at different times, may vary substantially. The actual production, revenues, taxes and development and operating expenditures of the Corporation with respect to these reserves will vary from such estimates, and such variances could be material.

Estimates with respect to proved reserves that may be developed and produced in the future are often based upon volumetric calculations and upon analogy to similar types of reserves rather than actual production history. Estimates based on these methods are generally less reliable than those based on actual production history. Subsequent evaluation of the same reserves based upon production history will result in variations, which may be substantial, in the estimated reserves.

Consistent with the securities disclosure legislation and policies of Canada, the Corporation has used forecast prices and costs in calculating reserve quantities included herein. Actual future net cash flows also will be affected by other factors such as actual production levels, supply and demand for oil and natural gas, curtailments or increases in consumption by oil and natural gas purchasers, changes in governmental regulation or taxation and the impact of inflation on costs.

The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed Arrangement and has neither approved nor disapproved the contents of this press release.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Suroco Energy Inc.
Alastair Hill
President and Chief Executive Officer
(403) 232-6784
(403) 264-7455 (FAX)

Suroco Energy Inc.
Travis Doupe
VP Finance and Chief Financial Officer
(403) 232-6784
(403) 264-7455 (FAX)

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that Sheng Liang to Keynote at SYS-CON's 19th Cloud Expo, which will take place on November 1-3, 2016 at the Santa Clara Convention Center in Santa Clara, California.
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Effectively SMBs and government programs must address compounded regulatory compliance requirements. The most recent are Controlled Unclassified Information and the EU’s GDPR have Board Level implications. Managing sensitive data protection will likely result in acquisition criteria, demonstration requests and new requirements. Developers, as part of the pre-planning process and the associated supply chain, could benefit from updating their code libraries and design by incorporating changes.
@ThingsExpo has been named the Top 5 Most Influential Internet of Things Brand by Onalytica in the ‘The Internet of Things Landscape 2015: Top 100 Individuals and Brands.' Onalytica analyzed Twitter conversations around the #IoT debate to uncover the most influential brands and individuals driving the conversation. Onalytica captured data from 56,224 users. The PageRank based methodology they use to extract influencers on a particular topic (tweets mentioning #InternetofThings or #IoT in this ...
What are the new priorities for the connected business? First: businesses need to think differently about the types of connections they will need to make – these span well beyond the traditional app to app into more modern forms of integration including SaaS integrations, mobile integrations, APIs, device integration and Big Data integration. It’s important these are unified together vs. doing them all piecemeal. Second, these types of connections need to be simple to design, adapt and configure...
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. In this power panel at @...
November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Penta Security is a leading vendor for data security solutions, including its encryption solution, D’Amo. By using FPE technology, D’Amo allows for the implementation of encryption technology to sensitive data fields without modification to schema in the database environment. With businesses having their data become increasingly more complicated in their mission-critical applications (such as ERP, CRM, HRM), continued ...
The IoT has the potential to create a renaissance of manufacturing in the US and elsewhere. In his session at 18th Cloud Expo, Florent Solt, CTO and chief architect of Netvibes, discussed how the expected exponential increase in the amount of data that will be processed, transported, stored, and accessed means there will be a huge demand for smart technologies to deliver it. Florent Solt is the CTO and chief architect of Netvibes. Prior to joining Netvibes in 2007, he co-founded Rift Technologi...
SYS-CON Events announced today that Streamlyzer 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. Streamlyzer is a powerful analytics for video streaming service that enables video streaming providers to monitor and analyze QoE (Quality-of-Experience) from end-user devices in real time.
@DevOpsSummit has been named the ‘Top DevOps Influencer' by iTrend. iTrend processes millions of conversations, tweets, interactions, news articles, press releases, blog posts - and extract meaning form them and analyzes mobile and desktop software platforms used to communicate, various metadata (such as geo location), and automation tools. In overall placement, @DevOpsSummit ranked as the number one ‘DevOps Influencer' followed by @CloudExpo at third, and @MicroservicesE at 24th.
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
Established in 1998, Calsoft is a leading software product engineering Services Company specializing in Storage, Networking, Virtualization and Cloud business verticals. Calsoft provides End-to-End Product Development, Quality Assurance Sustenance, Solution Engineering and Professional Services expertise to assist customers in achieving their product development and business goals. The company's deep domain knowledge of Storage, Virtualization, Networking and Cloud verticals helps in delivering ...
Most of us already know that adopting new cloud applications can boost a business’s productivity by enabling organizations to be more agile and ready to change course in our fast-moving and connected digital world. But the rapid adoption of cloud apps and services also brings with it profound security threats, including visibility and control challenges that aren’t present in traditional on-premises environments. At the same time, the cloud – because of its interconnected, flexible and adaptable...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...