|By Marketwired .||
|May 14, 2014 06:21 PM EDT||
CALGARY, ALBERTA -- (Marketwired) -- 05/14/14 -- Artek Exploration Ltd. (TSX:RTK) of Calgary, Alberta ("Artek" or the "Company") is pleased to provide this summary of its financial and operating results for the quarter ended March 31, 2014. A complete copy of the Company's comparative financial statements for the quarter ended March 31, 2014, along with management's discussion and analysis in respect thereof will be filed on SEDAR and on the Company's website at www.artekexploration.com.
---------------------------------------------------------------------------- Three Months Ended March 31, 2014 2013 Change ---------------------------------------------------------------------------- (000s, except per share amounts) ($) ($) (%) Financial Petroleum and natural gas revenues 20,396 14,449 41 Funds flow from operations (1) 9,872 6,919 43 Per share - basic 0.15 0.13 15 - diluted 0.14 0.13 8 Cash from operating activities 7,703 7,488 3 Net earnings 1,267 1,460 (13) Per share - basic 0.02 0.03 (33) - diluted 0.02 0.03 (33) Capital expenditures 29,462 20,687 42 Net debt (2) (87,882) (25,845) 240 Shareholders' equity 170,671 152,603 12 ---------------------------------------------------------------------------- (000s) (#) (#) (%) Share Data At period-end Basic 67,025 62,471 7 Options 4,800 4,001 20 Weighted average Basic 67,001 51,983 29 Diluted 68,943 53,648 29 ---------------------------------------------------------------------------- (%) Operating Production Natural gas (mcf/d) 15,789 12,675 25 Crude oil (bbls/d) 1,025 1,134 (10) NGLs (bbls/d) 491 357 38 Total (boe/d)(3) 4,147 3,603 15 Average wellhead prices (4) Natural gas ($/mcf) 6.04 3.58 69 Crude oil ($/bbl) 90.57 84.25 8 NGLs ($/bbl) 67.76 52.96 28 Total ($/boe)(5) 53.48 44.55 20 Royalties ($/boe) (8.58) (8.13) 6 Operating cost ($/boe) (12.44) (9.53) 31 Transportation cost ($/boe) (2.61) (1.88) 39 Operating netback ($/boe)(6) 29.85 25.00 19 General and administrative expense ($/boe) (2.02) (2.48) (19) Interest expense ($/boe) (1.39) (1.19) 17 Funds flow netback ($/boe)(7) 26.45 21.33 24 Drilling activity - gross (net) Development (#) 7 (4.5) 6 (3.0) Exploration (#) - 1 (0.6) Total (#) 7 (4.5) 7 (3.6) ---------------------------------------------------------------------------- Average working interest (%) 64 51 ---------------------------------------------------------------------------- (1) Funds flow from operations is calculated using cash from operating activities, as presented in the statement of cash flows, before changes in non-cash working capital and settlement of decommissioning costs. Funds flow from operations is used to analyze the Company's operating performance and leverage. Funds flow from operations does not have a standardized measure prescribed by International Financial Reporting Standards ("IFRS"), and therefore, may not be comparable with the calculations of similar measures for other companies. (2) Current assets less current liabilities, excluding fair value of derivative instruments. (3) For a description of the boe conversion ratio, refer to the advisories contained herein. (4) Product prices include realized gains/losses from financial derivative instruments. (5) Oil equivalent price includes minor sulphur sales revenue. (6) Operating netback equals petroleum and natural gas revenues plus realized gains or losses on financial derivatives less royalties, transportation and operating costs calculated on a per boe basis. Operating netback does not have a standardized measure prescribed by IFRS, and therefore, may not be comparable with the calculations of similar measures for other companies. (7) Funds flow netback equals petroleum and natural gas revenues plus realized gains or losses on financial derivatives less royalties, transportation, operating costs, general and administrative expenses and interest calculated on a per boe basis. Funds flow netback does not have a standardized measure prescribed by IFRS, and therefore, may not be comparable with the calculations of similar measures for other companies.
First Quarter Financial and Operating Highlights
-- Increased average production to 4,147 boe/d (37% liquids), up 15% and 3% from the first and fourth quarters of 2013, respectively despite production curtailments and facility restrictions. -- Increased funds flow from operations to $9.9 million, up 43% and 53% from the first and fourth quarters of 2013, respectively. On a per share basis, funds flow rose to $0.15 per basic share, an increase of 15% and 50% compared to the first and fourth quarters last year, respectively. -- Improved operating netback to $29.85/boe, up 19% and 46% from the first and fourth quarters of 2013, respectively. -- Increased funds flow netback to $26.45/boe, representing a 24% and 53% improvement from the 2013 first and fourth quarters, respectively. -- Drilled 7 (4.5 net) wells, including 3 (1.7 net) wells at Inga/Fireweed, British Columbia, 2 (2.0 net) wells at Mulligan, Alberta and 2 (0.8 net) wells at Leduc Woodbend, Alberta. -- Invested $29.5 million in capital expenditures, including $1.7 million on undeveloped land acquisitions in our core operating areas and $2.9 million on facilities.
The Company invested $29.5 million in capital expenditures during the first quarter of 2014, including the drilling of 3 (1.7 net) wells at Inga/Fireweed, 2 (2.0 net) wells at Mulligan and 2 (0.8 net) wells at Leduc Woodbend. First quarter capital investment included $1.7 million on undeveloped land acquisitions in our core operating areas and $2.9 million on facilities.
Artek's average production for the three-month period ended March 31, 2014 was 4,147 boe/d (37% liquids), up 15% from the previous year and up 3% from the 2013 fourth quarter. First quarter funds flow increased 43% to $9.9 million and 15% to $0.15 per basic share from the same period of 2013. During the first three months of 2014, the Company's operating netback was $29.85/boe, up 19% from the 2013 first quarter, while funds flow per boe increased 24% to $26.45/boe from the previous year. Artek's natural gas price for the quarter rose 69% to $6.04/mcf compared to the same period in 2013. General and administrative costs on a boe basis fell 19% to $2.02/boe compared to the first quarter last year.
Artek has secured several commodity contracts to protect its cash flow and support its 2014 capital budget. The Company has entered into natural gas production swaps on 10,000 mmbtu/d from April to October 2014 at an average fixed price of $3.64/GJ. In addition, 400 bbls/d of crude oil production has been fixed at an average price of CDN$100.75/bbl WTI for 2014. Lastly, the AECO basis on 2,000 mmbtu/d of natural gas has been fixed at 12.85% of Henry Hub for 2014.
Following spring breakup, the Company will be back drilling with plans to start in the liquids-rich Inga South area. Artek is currently planning to drill up to an additional seven horizontal wells in the greater Inga/Fireweed area targeting natural gas and condensate in the Doig and Montney formations, and an additional horizontal well targeting the Charlie Lake formation in the Mulligan area.
Subsequent to quarter-end, on May 13, 2014, the Company announced that it entered into an agreement with a syndicate of underwriters pursuant to which the underwriters have agreed to purchase, on a bought deal basis, and Artek has agreed to issue 8,050,000 common shares at a price of $4.10 per share and 1,987,000 flow-through common shares at a price of $5.04 per share for aggregate gross proceeds of approximately $43,019,000. The offering is expected to close on or about June 3, 2014 and remains subject to satisfaction of customary conditions and approvals. Proceeds of the offering will initially be used to reduce bank indebtedness, thereby freeing up additional borrowing capacity to fund a portion of the Company's ongoing capital program with the flow-through share proceeds used to incur eligible Canadian exploration expenses that will be renounced to subscribers effective on or before December 31, 2014. The Company and its Board reviews its capital expenditure program on an ongoing basis.
Forward Looking Statements: This press release contains forward-looking statements. Management's assessment of future plans and operations and the timing thereof, including the number and locations of wells to be drilled, financial capacity to carry out its planned 2014 capital program, completion of the offering and timing thereof, may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, the Company's actual results may differ materially from those expressed in, or implied by, the forward looking statements. Forward looking statements or information are based on a number of factors and assumptions which have been used to develop such statements and information but which may prove to be incorrect. Although Artek believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward looking statements because the Company can give no assurance that such expectations will prove to be correct.
In addition to other factors and assumptions which may be identified in this document and other documents filed by the Company, assumptions have been made regarding, among other things: the impact of increasing competition; the general stability of the economic and political environment in which Artek operates; the ability of the Company to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects which the Company has an interest in to operate the field in a safe, efficient and effective manner; Artek's ability to obtain financing on acceptable terms; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development or exploration; the timing and costs of pipeline, storage and facility construction and expansion; the ability of the Company to secure adequate product transportation; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which the Company operates; and Artek's ability to successfully market its oil and natural gas products. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the Company's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) or at the Company's website (www.artekexploration.com). Furthermore, the forward looking statements contained in this document are made as at the date of this document and the Company does not undertake any obligation to update publicly or to revise any of the included forward looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
BOE Conversions: Barrel of oil equivalent ("BOE") amounts may be misleading, particularly if used in isolation. A BOE conversion ratio has been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel. This conversion ratio of six thousand cubic feet of natural gas to one barrel is based on an energy equivalent 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 ratio on a 6:1 basis may be misleading as an indication of value.
Artek is a crude oil and natural gas exploration, development and production company headquartered in Calgary, Alberta, Canada. Artek's shares trade on the TSX under the symbol "RTK".
Artek Exploration Ltd.
President and Chief Executive Officer
Artek Exploration Ltd.
Vice President Finance and Chief Financial Officer
"We've just seen a huge influx of new partners coming into our ecosystem, and partners building unique offerings on top of our API set," explained Seth Bostock, Chief Executive Officer at IndependenceIT, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Aug. 2, 2015 10:00 PM EDT Reads: 676
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.
Aug. 2, 2015 07:15 PM EDT Reads: 216
Digital Transformation is the ultimate goal of cloud computing and related initiatives. The phrase is certainly not a precise one, and as subject to hand-waving and distortion as any high-falutin' terminology in the world of information technology. Yet it is an excellent choice of words to describe what enterprise IT—and by extension, organizations in general—should be working to achieve. Digital Transformation means: handling all the data types being found and created in the organizat...
Aug. 2, 2015 06:00 PM EDT Reads: 1,122
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Aug. 2, 2015 05:45 PM EDT Reads: 505
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...
Aug. 2, 2015 04:00 PM EDT Reads: 416
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
Aug. 2, 2015 03:00 PM EDT Reads: 544
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
Aug. 2, 2015 02:00 PM EDT Reads: 247
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
Aug. 2, 2015 12:00 PM EDT Reads: 342
With SaaS use rampant across organizations, how can IT departments track company data and maintain security? More and more departments are commissioning their own solutions and bypassing IT. A cloud environment is amorphous and powerful, allowing you to set up solutions for all of your user needs: document sharing and collaboration, mobile access, e-mail, even industry-specific applications. In his session at 16th Cloud Expo, Shawn Mills, President and a founder of Green House Data, discussed h...
Aug. 2, 2015 11:45 AM EDT Reads: 479
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducte...
Aug. 2, 2015 11:15 AM EDT Reads: 354
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, analyzed a range of cloud offerings (IaaS, PaaS, SaaS) and discussed the benefits/challenges of migrating to each offe...
Aug. 2, 2015 11:00 AM EDT Reads: 172
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
Aug. 2, 2015 09:00 AM EDT Reads: 1,698
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
Aug. 2, 2015 08:15 AM EDT Reads: 182
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
Aug. 2, 2015 07:00 AM EDT Reads: 179
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Aug. 1, 2015 10:00 AM EDT Reads: 334