Welcome!

News Feed Item

Petrobank Announces Q1 2014 Financial and Operating Results

CALGARY, ALBERTA -- (Marketwired) -- 05/08/14 -- Petrobank Energy and Resources Ltd. (TSX: PBG) announces our 2014 first quarter financial and operating results.

This news release includes forward-looking statements and information within the meaning of applicable securities laws. Readers are advised to review "Forward-Looking Information and Statements" at the conclusion of this news release. A full copy of our 2014 First Quarter Financial Statements and Management's Discussion and Analysis ("MD&A") have been filed on our website at www.petrobank.com and under our profile on SEDAR at www.sedar.com.

All financial figures are unaudited and in Canadian dollars ($) unless otherwise noted. Comparisons presented in this press release are the first quarter of 2014 compared to the first quarter of 2013, unless otherwise noted.

OVERVIEW

Q1 Financial and Operating Highlights

--  Average production at our Kerrobert THAI® project was 335 barrels of
    oil per day ("bopd") in Q1 2014 compared to 222 bopd in Q4 2013 and 202
    bopd in Q1 2013. Kerrobert THAI® production averaged 345 bopd in
    April, 2014.

--  We operate two cold conventional heavy oil wells which produced
    approximately 50 bopd combined in Q1 2014. These cold wells currently
    produce approximately 75 bopd.

--  At Dawson, we initiated steam injection in one of the two horizontal
    THAI® wells in late December 2013 and in the second well in mid-
    February 2014. Initial production is expected in Q2 2014 with each well
    expected to produce for approximately nine months before starting a
    second steam and production cycle.

--  We recognized a non-cash accounting impairment related to our Kerrobert
    THAI® project of $0.9 million, reflecting assessed fair value less
    costs of disposal at March 31, 2014.

--  Petrobank reported expenditures on exploration assets of $5.8 million in
    Q1 2014 compared to $8.4 million in Q1 2013. The decrease was primarily
    related to a decrease in capitalized pre-commercial operating costs at
    our Kerrobert project and reduction in expenditures on land, seismic and
    exploration, partially offset by an increase in expenditures at our
    Dawson project for cyclic steam stimulation "(CSS") operations.

--  At March 31, 2014, we had $42.0 million of positive working capital and
    no debt, including 3.5 million Lightstream Resources Ltd.
    ("Lightstream") shares which earn a $0.04 per share monthly cash
    dividend based on Lightstream's current dividend policy. At March 31,
    2014, the Lightstream shares were valued at $5.62 per share compared to
    $7.23 per share on May 8, 2014.

PLAN OF ARRANGEMENT WITH TOUCHSTONE EXPLORATION INC.

On April 30, 2014, Petrobank and Touchstone Exploration Inc. ("Touchstone") received approval from the Court of Queen's Bench of Alberta for the combination of Petrobank and Touchstone, to be effected by way of a plan of arrangement (the "Arrangement") under the Business Corporations Act (Alberta). Shareholder approval for the Arrangement was received on April 28, 2014.

Under the terms of the Arrangement Agreement dated March 6, 2014 between Petrobank and Touchstone, the Arrangement will become effective after all of the conditions to closing are satisfied or waived. Touchstone and Petrobank are currently working to bring about the satisfaction of all remaining closing conditions. Full details regarding the terms of the Arrangement are set out in the Joint Management Information Circular and Proxy Statement dated March 28, 2014 which is available on SEDAR at www.sedar.com.

OPERATIONAL UPDATE

Kerrobert THAI® Project and Saskatchewan Conventional Cold Production

First quarter 2014 Kerrobert THAI® production averaged 335 bopd, an increase from 222 bopd in Q4 2013 and 202 bopd in the Q1 2013. April 2014 production was 345 bopd based on field estimates.

As announced in late 2013, Petrobank is committed to eliminating the negative field operating netbacks at our Kerrobert THAI® project by mid-2014. This may include investing small amounts of capital to test new processes to increase production and reducing costs by shutting-in low-volume wells that require workovers. We are planning to test steam injection in the near future at one of our air injection wells. It is our intention to suspend THAI® operations in the event the negative netback cannot be eliminated by the end of the first half of 2014. We have also filed a regulatory approval application to test steam assisted gravity drainage ("SAGD") operations at one of our THAI® wells. We will continue to evaluate the economics, opportunities and challenges with SAGD as we await regulatory approval.

Petrobank currently has two conventional cold production wells operating. These wells averaged approximately 50 bopd combined in Q1 2014 and are currently producing approximately 75 bopd combined.

Dawson Project

At Dawson, we commenced CSS operations at one of the two horizontal THAI® production wells in late-December 2013 and initiated steaming operations at the second well in mid-February 2014. First production is expected in Q2 2014. We are planning a nine-month production cycle followed by a second steam and production cycle. If these two CSS wells are successful, Petrobank intends to prepare and submit an application for full field CSS development at Dawson.

LIQUIDITY AND CAPITAL RESOURCES

At March 31, 2014, we had positive working capital of $42.0 million, including $45.9 million of cash and marketable securities, and no third party debt. We own 3.5 million Lightstream shares and are receiving monthly cash dividends of $0.04 per share based on Lightstream's current dividend rate. At March 31, 2014, the Lightstream shares were valued at $5.62 per share compared to $7.23 per share on May 8, 2014.

Our current capital resources are expected to be adequate for our planned 2014 expenditures. Petrobank will announce revised 2014 capital and operating plans once the Arrangement is completed.

SUMMARY OF FINANCIAL RESULTS

The following table provides a summary of Petrobank's financial results for the three months ending March 31, 2014 and 2013. Unaudited consolidated financial statements with MD&A will be available on the Company's website at www.petrobank.com and on the SEDAR website at www.sedar.com.

Three months ended March 31,                     2014       2013   % Change
----------------------------------------------------------------------------
Financial ($000s except where noted)
  Net loss                                     (3,967)    (3,008)        32
    Per share - basic and diluted ($)           (0.04)     (0.03)        33
  Expenditures on exploration assets            5,811      8,422        (31)
  Total assets                                 92,952    155,183        (40)
  Common shares outstanding, end of period
   (000s)
    Basic and diluted                          97,575     97,597          -
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Petrobank Energy and Resources Ltd. is a Calgary-based oil and natural gas exploration and production company with operations in western Canada. Petrobank's common shares are traded on the TSX under the symbol "PBG".

Forward-Looking Statements: Certain information provided in this press release constitutes forward-looking statements. Specifically, this press release contains forward-looking statements relating to financial results, results from operations, plans related to and the timing of certain projects, anticipated sources of available financing and the anticipated timing for the closing of the Arrangement. Forward-looking statements are necessarily based on a number of assumptions and judgments, including but not limited to, assumptions relating to the outlook for commodity and capital markets, the success of future resource evaluation and development activities, the successful application of our technology, the performance of producing wells and reservoirs, well development and operating performance, general economic conditions, weather, the regulatory and legal environment, the ability of Petrobank and Touchstone to receive, in a timely manner, the necessary regulatory, stock exchange and other third party approvals related to the Arrangement and the ability of Petrobank and Touchstone to satisfy, in a timely manner, the other conditions to the closing of the Arrangement. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. You can find a discussion of those risks and uncertainties in our Canadian securities filings. Such factors include, but are not limited to: general economic, market and business conditions; weather conditions and access to our properties; fluctuations in oil prices; the results of exploration and development drilling, recompletions and related activities; timing and rig availability; outcome of exploration contract negotiations; fluctuation in foreign currency exchange rates; the uncertainty of reserve estimates; changes in environmental and other regulations; uncertainties associated with the regulatory review and approval process in respect to our projects; risks associated with the application of early stage technology; risks associated with oil and gas operations; the failure of Petrobank or Touchstone to obtain necessary regulatory, stock exchange and other third party approvals, or to otherwise satisfy the conditions to the Arrangement, in a timely manner, or at all, and other factors, many of which are beyond the control of Petrobank. There is no representation by Petrobank that actual results achieved during the forecast period will be the same in whole or in part as those forecasted. Except as may be required by applicable securities laws, Petrobank assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.

Contacts:
Petrobank Energy and Resources Ltd.
John D. Wright
Chairman and Chief Executive Officer

Petrobank Energy and Resources Ltd.
Peter Cheung
Vice President Finance and Chief Financial Officer
403.750.4400
403.266.5794 (FAX)
[email protected]
www.petrobank.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
DX World EXPO, LLC, a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Conference Guru has been named “Media Sponsor” of the 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great deals to gre...
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and...
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. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develop...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
The next XaaS is CICDaaS. Why? Because CICD saves developers a huge amount of time. CD is an especially great option for projects that require multiple and frequent contributions to be integrated. But… securing CICD best practices is an emerging, essential, yet little understood practice for DevOps teams and their Cloud Service Providers. The only way to get CICD to work in a highly secure environment takes collaboration, patience and persistence. Building CICD in the cloud requires rigorous ar...
Companies are harnessing data in ways we once associated with science fiction. Analysts have access to a plethora of visualization and reporting tools, but considering the vast amount of data businesses collect and limitations of CPUs, end users are forced to design their structures and systems with limitations. Until now. As the cloud toolkit to analyze data has evolved, GPUs have stepped in to massively parallel SQL, visualization and machine learning.
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
"ZeroStack is a startup in Silicon Valley. We're solving a very interesting problem around bringing public cloud convenience with private cloud control for enterprises and mid-size companies," explained Kamesh Pemmaraju, VP of Product Management at ZeroStack, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Enterprises are adopting Kubernetes to accelerate the development and the delivery of cloud-native applications. However, sharing a Kubernetes cluster between members of the same team can be challenging. And, sharing clusters across multiple teams is even harder. Kubernetes offers several constructs to help implement segmentation and isolation. However, these primitives can be complex to understand and apply. As a result, it’s becoming common for enterprises to end up with several clusters. Thi...