News Feed Item

Dundee Energy Limited Announces First Quarter 2014 Financial Results

TORONTO, ONTARIO -- (Marketwired) -- 04/30/14 -- Dundee Energy Limited ("Dundee Energy" or the "Corporation") (TSX: DEN) today announced its financial results for the three months ended March 31, 2014. The Corporation's unaudited condensed interim consolidated financial statements, along with management's discussion and analysis have been filed on the System for Electronic Document Analysis and Retrieval ("SEDAR") and may be viewed under the Corporation's profile at www.sedar.com or the Corporation's website at www.dundee-energy.com.

--  Net earnings attributable to owners of the parent during the three
    months ended March 31, 2014 were $3.2 million, compared with a net loss
    attributable to owners of the parent of $1.1 million incurred during the
    same period of the prior year.

--  Production volumes during the three months ended March 31, 2014 averaged
    8,485 Mcf/d of natural gas and 562 bbls/d of oil and liquids, a decrease
    from 9,093 Mcf/d of natural gas and 640 bbls/d of oil and liquids during
    the first quarter of the prior year.

--  Revenues, before royalty interests, earned from oil and natural gas
    sales during the three months ended March 31, 2014 were $15.0 million, a
    significant increase over the $8.7 million of revenues earned during the
    first quarter of the prior year. The increase in revenues resulted
    primarily from substantial improvements in commodity prices, offset
    marginally by lower production volumes.

--  Field netbacks during the three months ended March 31, 2014, before
    realized amounts related to risk management contracts, were $8.89/Mcf
    (three months ended March 31, 2013 - $1.85/Mcf) from natural gas and
    $60.70/bbl (three months ended March 31, 2013 - $52.10/bbl) from oil and

--  Capital expenditures during the three months ended March 31, 2014 were
    $1.5 million.

--  Cash and available credit under the Corporation's credit facilities
    totalled $10.0 million at March 31, 2014.


During the first quarter of 2014, daily production volumes decreased to 1,976 boe/d, compared with an average of 2,156 boe/d in the same period of 2013.

Average daily volume during the three months ended
 March 31,                                                  2014        2013
Natural gas (Mcf/d)                                        8,485       9,093
Oil (bbls/d)                                                 549         619
Liquids (bbls/d)                                              13          21
Total (boe/d)                                              1,976       2,156

Average daily natural gas production dropped by approximately 7% on a period-over-period basis. The decrease is partially a result of the natural decline rate of the Corporation's assets. However, natural gas production was also adversely affected by the severing of an offshore gas pipeline following ice scouring on Lake Erie during the month of February. Production declines in natural gas were partially offset by increased volumes from the acquisition of an additional 20% working interest in the southern Ontario assets, which the Corporation completed during the second half of the prior year. Oil and liquids daily production declined by 12% during the first quarter of 2014, compared with the same period of the prior year. The decrease reflects natural declines in the underlying assets.

Field Level Cash Flows and Field Netbacks
(in thousands)

For the three months ended March 31,       2014                         2013
                     Natural   Oil and            Natural   Oil and
                         Gas   Liquids    Total       Gas   Liquids    Total
Total sales      $     9,694 $   5,283 $ 14,977 $   3,431 $   5,241 $  8,672
Royalties            (1,425)     (808)  (2,233)     (509)     (804)  (1,313)
 expenditures        (1,474)   (1,406)  (2,880)   (1,412)   (1,436)  (2,848)
                       6,795     3,069    9,864     1,510     3,001    4,511
Realized risk
 (loss) gain               -      (92)     (92)         -       243      243
Field level cash
 flows           $     6,795 $   2,977 $  9,772 $   1,510 $   3,244 $  4,754

For the three months ended March 31,       2014                         2013
                     Natural   Oil and            Natural   Oil and
                         Gas   Liquids    Total       Gas   Liquids    Total
                       $/Mcf     $/bbl    $/boe     $/Mcf     $/bbl    $/boe
Total sales      $     12.69 $  104.48 $  84.22 $    4.19 $   90.98 $  44.70
Royalties             (1.87)   (15.98)  (12.55)    (0.62)   (13.95)   (6.77)
 expenditures         (1.93)   (27.80)  (16.19)    (1.72)   (24.93)  (14.68)
                        8.89     60.70    55.48      1.85     52.10    23.25
Realized risk
 (loss) gain               -    (1.82)   (0.52)         -      4.22     1.25
Field netbacks   $      8.89 $   58.88 $  54.96 $    1.85 $   56.32 $  24.50

Capital Expenditures and the 2014 Work Program

Due to severe winter weather experienced across southern Ontario, the Corporation was limited in completing scheduled capital projects and accordingly, during the three months ended March 31, 2014, the Corporation incurred $1.5 million of capital expenditures on its oil and gas properties, compared with $1.9 million of capital expenditures incurred during the first quarter of 2013.

The Corporation anticipates spending $6.6 million on the remainder of its 2014 work program. Approximately $4.9 million will be directed towards exploration and optimization of its oil fields in southern Ontario; a further $0.5 million will be directed towards the Corporation's offshore natural gas assets; and, approximately $1.2 million will be incurred to acquire or maintain mineral rights for both producing and undeveloped properties.

The 2014 onshore capital work program includes a drilling and completion program of two new vertical wells and three existing horizontal well re-entries estimated to cost $3.8 million. Based on reprocessing of previously obtained seismic information, the Corporation has identified ten possible re-entry and vertical drill locations and it is currently assessing each location in order to determine the appropriate drilling selection. In addition, the Corporation has budgeted approximately $1.1 million for the acquisition and processing of both 2-D and 3-D seismic as well as other activities to work up additional locations.

The Corporation has limited its 2014 offshore capital work program to approximately $0.5 million needed to complete four workovers in a shallow gas horizon to partially offset some of the natural decline of the Corporation's natural gas assets. With continued higher natural gas prices and if the four workovers are successful, these completions could lead to a horizontal well drilling program in the future.


In September 2013, seismic activity was detected in the area surrounding the Castor Project. While the seismic activity did not affect the integrity of the facility and the underground reservoir, the Spanish authorities have implemented a suspension to the injection of cushion gas until they have completed a review of independent assessments of the source of seismic activity. In the interim, Escal UGS S.L., the owner of the Castor Project, has completed the technical and economic audits required for the inclusion of the Castor Project to the Spanish gas system. These audits have concluded that the Castor Project is technically fit to store and deliver gas; it has an appropriate process design and configuration and it has sufficient safety engineering for operation. The audits have also concluded that the capital costs employed for the construction of the Castor Project are reasonable. These audit findings are now subject to review and concurrence by the Spanish authorities.


At March 31, 2014, the Corporation held 32.2 million Series A Preference Shares of Eurogas International Inc. ("Eurogas International"), at a nominal value. During the first quarter of 2014, Eurogas International, together with its joint venture partner, entered into a farmout arrangement with DNO Tunisia AS ("DNO") in respect of the Sfax Permit. The arrangement provides DNO with an 87.5% interest in the Sfax Permit in exchange for a cash payment of US$6 million and the assumption of all future costs and obligations related to the Sfax Permit. During the three months ended March 31, 2014, Eurogas International received cash of US$2.7 million in respect of the transaction, representing its share of the total cash proceeds, and it retains a 5.625% interest in the Sfax Permit, subject to certain thresholds.


The Corporation believes that important measures of operating performance include certain measures that are not defined under International Financial Reporting Standards ("IFRS") and as such, may not be comparable to similar measures used by other companies. While these measures are non-IFRS, they are common benchmarks in the oil and natural gas industry, and are used by the Corporation in assessing its operating results, including net earnings and cash flows.

--  "Field Level Cash Flows" are calculated as revenues from oil and gas
    sales, less royalties and production expenditures, adjusted for realized
    gains or losses on risk management contracts.
--  "Field Netbacks" refers to field level cash flows expressed on a
    measurement unit or barrel of oil equivalent basis.


Dundee Energy Limited is a Canadian-based oil and natural gas company with a mandate to create long-term value for its shareholders through the exploration, development, production and marketing of oil and natural gas, and through other high impact energy projects. Dundee Energy holds interests, both directly and indirectly, in the largest accumulation of producing oil and gas assets in Ontario, in the development of an offshore underground natural gas storage facility in Spain and, through a preferred share investment, in certain exploration and evaluation programs for oil and natural gas offshore Tunisia. The Corporation's common shares trade on the Toronto Stock Exchange under the symbol "DEN".


Certain information set forth in these documents, including management's assessment of each of the Corporation's future plans and operations, contains forward-looking statements. Forward-looking statements are statements that are predictive in nature, depend upon or refer to future events or conditions or include words such as "expects", "anticipates", "intends", "plans", "believes", "estimates" or similar expressions. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Corporation's control, including: exploration, development and production risks; uncertainty of reserve estimates; reliance on operators, management and key personnel; cyclical nature of the business; economic dependence on a small number of customers; additional funding that may be required to execute on exploration and development work; the ability to obtain, sustain or renew licenses and permits; risks inherent to operating and investing in foreign countries; availability of drilling equipment and access; industry competition; environmental concerns; climate change regulations; volatility of commodity prices; hedging activities; potential defects in title to properties; potential conflicts of interest; changes in taxation legislation; insurance, health, safety and litigation risk; labour costs and labour relations; geo-political risks; risks relating to management of growth; aboriginal claims; volatility of the Corporation's share price; royalty rates and incentives; regulatory risks relating to oil and natural gas exploration; marketability and price of oil and natural gas; failure to realize anticipated benefits of acquisitions and dispositions; information system risk; and other risk factors discussed or referred to in the section entitled "Risk Factors" in the Corporation's Annual Information Form for the year ended December 31, 2013.

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 Corporation'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 Corporation will derive from them. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Dundee Energy Limited
c/o Dundee Corporation
21st Floor,
1 Adelaide Street East
Toronto, ON M5C 2V9

Dundee Energy Limited
Jaffar Khan
President & CEO
(403) 264-4985
(403) 262-8299 (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
Join Impiger for their featured webinar: ‘Cloud Computing: A Roadmap to Modern Software Delivery’ on November 10, 2016, at 12:00 pm CST. Very few companies have not experienced some impact to their IT delivery due to the evolution of cloud computing. This webinar is not about deciding whether you should entertain moving some or all of your IT to the cloud, but rather, a detailed look under the hood to help IT professionals understand how cloud adoption has evolved and what trends will impact th...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, will discuss how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team a...
A completely new computing platform is on the horizon. They’re called Microservers by some, ARM Servers by others, and sometimes even ARM-based Servers. No matter what you call them, Microservers will have a huge impact on the data center and on server computing in general. Although few people are familiar with Microservers today, their impact will be felt very soon. This is a new category of computing platform that is available today and is predicted to have triple-digit growth rates for some ...
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 @...
Governments around the world are adopting Safe Harbor privacy provisions to protect customer data from leaving sovereign territories. Increasingly, global companies are required to create new instances of their server clusters in multiple countries to keep abreast of these new Safe Harbor laws. Is it worth it? In his session at 19th Cloud Expo, Adam Rogers, Managing Director of Anexia, Inc., will discuss how to keep your data legal and still stay in business.
The Internet of Things (IoT), in all its myriad manifestations, has great potential. Much of that potential comes from the evolving data management and analytic (DMA) technologies and processes that allow us to gain insight from all of the IoT data that can be generated and gathered. This potential may never be met as those data sets are tied to specific industry verticals and single markets, with no clear way to use IoT data and sensor analytics to fulfill the hype being given the IoT today.
Successful transition from traditional IT to cloud computing requires three key ingredients: an IT architecture that allows companies to extend their internal best practices to the cloud, a cost point that allows economies of scale, and automated processes that manage risk exposure and maintain regulatory compliance with industry regulations (FFIEC, PCI-DSS, HIPAA, FISMA). The unique combination of VMware, the IBM Cloud, and Cloud Raxak, a 2016 Gartner Cool Vendor in IT Automation, provides a co...
SYS-CON Events announced today that Numerex Corp, a leading provider of managed enterprise solutions enabling the Internet of Things (IoT), will exhibit at the 19th International Cloud Expo | @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Numerex Corp. (NASDAQ:NMRX) is a leading provider of managed enterprise solutions enabling the Internet of Things (IoT). The Company's solutions produce new revenue streams or create operating...
SYS-CON Events announced today that MathFreeOn 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. MathFreeOn is Software as a Service (SaaS) used in Engineering and Math education. Write scripts and solve math problems online. MathFreeOn provides online courses for beginners or amateurs who have difficulties in writing scripts. In accordance with various mathematical topics, there are more tha...
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
@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 ...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm ...
Although it has gained significant traction in the consumer space, IoT is still in the early stages of adoption in enterprises environments. However, many companies are working on initiatives like Industry 4.0 that includes IoT as one of the key disruptive technologies expected to reshape businesses of tomorrow. The key challenges will be availability, robustness and reliability of networks that connect devices in a business environment. Software Defined Wide Area Network (SD-WAN) is expected to...
SYS-CON Events announced today that StarNet Communications 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. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...