Welcome!

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 --

(NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA)

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)
----------------------------------------------------------------------------
Financial                                                                   
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                                                        
 period                                                                     
  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                                                              
 outstanding                                                                
  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
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Operational                                                                 
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                                                            
   transportation                                                           
   expenses                  41.29         51.43         32.35         39.21
----------------------------------------------------------------------------
  Operating Netback          35.33         32.65         49.30        53.67 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Notes:


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
    year. 
    
--  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.

FORWARD LOOKING STATEMENTS

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.

Contacts:
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)
www.suroco.com

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
The Internet giants are fully embracing AI. All the services they offer to their customers are aimed at drawing a map of the world with the data they get. The AIs from these companies are used to build disruptive approaches that cannot be used by established enterprises, which are threatened by these disruptions. However, most leaders underestimate the effect this will have on their businesses. In his session at 21st Cloud Expo, Rene Buest, Director Market Research & Technology Evangelism at Ara...
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), provided an overview of various initiatives to certify the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldwide re...
It is ironic, but perhaps not unexpected, that many organizations who want the benefits of using an Agile approach to deliver software use a waterfall approach to adopting Agile practices: they form plans, they set milestones, and they measure progress by how many teams they have engaged. Old habits die hard, but like most waterfall software projects, most waterfall-style Agile adoption efforts fail to produce the results desired. The problem is that to get the results they want, they have to ch...
Cloud Expo, Inc. has announced today that Andi Mann and Aruna Ravichandran have been named Co-Chairs of @DevOpsSummit at Cloud Expo Silicon Valley which will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. "DevOps is at the intersection of technology and business-optimizing tools, organizations and processes to bring measurable improvements in productivity and profitability," said Aruna Ravichandran, vice president, DevOps product and solutions marketing...
"Loom is applying artificial intelligence and machine learning into the entire log analysis process, from start to finish and at the end you will get a human touch,” explained Sabo Taylor Diab, Vice President, Marketing at Loom Systems, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Wooed by the promise of faster innovation, lower TCO, and greater agility, businesses of every shape and size have embraced the cloud at every layer of the IT stack – from apps to file sharing to infrastructure. The typical organization currently uses more than a dozen sanctioned cloud apps and will shift more than half of all workloads to the cloud by 2018. Such cloud investments have delivered measurable benefits. But they’ve also resulted in some unintended side-effects: complexity and risk. ...
"We are a monitoring company. We work with Salesforce, BBC, and quite a few other big logos. We basically provide monitoring for them, structure for their cloud services and we fit into the DevOps world" explained David Gildeh, Co-founder and CEO of Outlyer, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, 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. Me...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that Enzu will exhibit at SYS-CON's 21st Int\ernational Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their ...
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...
In 2014, Amazon announced a new form of compute called Lambda. We didn't know it at the time, but this represented a fundamental shift in what we expect from cloud computing. Now, all of the major cloud computing vendors want to take part in this disruptive technology. In his session at 20th Cloud Expo, Doug Vanderweide, an instructor at Linux Academy, discussed why major players like AWS, Microsoft Azure, IBM Bluemix, and Google Cloud Platform are all trying to sidestep VMs and containers wit...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
Amazon started as an online bookseller 20 years ago. Since then, it has evolved into a technology juggernaut that has disrupted multiple markets and industries and touches many aspects of our lives. It is a relentless technology and business model innovator driving disruption throughout numerous ecosystems. Amazon’s AWS revenues alone are approaching $16B a year making it one of the largest IT companies in the world. With dominant offerings in Cloud, IoT, eCommerce, Big Data, AI, Digital Assista...