Welcome!

News Feed Item

Sonde Resources Corp. Provides Second Quarter 2014 Financial and Operating Results

CALGARY, ALBERTA -- (Marketwired) -- 08/14/14 -- Sonde Resources Corp. ("Sonde" or the "Company") (TSX VENTURE:SOQ)(NYSE MKT:SOQ) announced today the release of its financial and operating results for the quarter ended June 30, 2014. The Company's Management's Discussion and Analysis ("MD&A") and Financial Statements for the quarter ended June 30, 2014 can be viewed on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com, and on the Securities and Exchange Commission's Electronic Document Gathering and Retrieval System (EDGAR) at www.sec.gov. Shareholders have the ability to receive a hard copy of the Company's financial statements free of charge upon request.

Sonde will be hosting a conference call on Friday, August 15, 2014 at 2:00 p.m. MDT to provide and report on the second quarter 2014 results. Mr. Toufic Nassif, President and CEO and Mr. Kurt Nelson, Chief Financial Officer, will host the call. All interested parties may join the call by Dialing 416-340-8530 or 800-769-8320. Please dial-in 15 minutes prior to the call to secure a line. The conference call will be archived for replay on the Sonde website within 48 hours of this conference call.

North Africa update

As previously announced, Sonde has retained Taylor-DeJongh, Inc. ("Taylor-DeJongh") to initiate a process to explore and evaluate potential strategic alternatives to enhance shareholder value with regard to the Joint Oil Block. As financial advisor to the Board of Directors of Sonde, Taylor-DeJongh is assisting in the process of analyzing and evaluating prospects and options available to the Company, including but not limited to securing financing for the drilling of the Fisal-1 exploration well. The process is advancing and discussions with both international and Middle Eastern companies have commenced. Selected interested companies are reviewing the Virtual Data Room. The Company will provide updates on this process once more definitive results are achieved.

During the three months ended June 30, 2014 the Company completed the previously announced seismic acquisition interpretation covering the Hadaf prospect in Libyan waters as well as the reinterpretation of the other Joint Oil Block prospects. The result of this work has reaffirmed the prospectively of the Joint Oil Block and further reconfirmed and highlighted the significant potential of the three exploration prospects. In addition, the Company is preparing for the drilling of the Fisal-1 well during fourth quarter of 2014. Virtually all long lead items have been procured and most of it has arrived at the Company's Sfax shore base in Tunisia. Other preparations, including the drilling site survey and the geotechnical survey, are complete. As a result of these preparations, the Company has incurred advance costs for the Fisal-1 well. Discussions are at an advanced stage with other operators in Tunisia and a rig provider to secure the second rig slot in a shared rig program for the Fisal-1 well. The finalization of this rig arrangement remains contingent on securing a partner and/or external financing. The Company has received written notice from the Tunisian Energy Directorate ("DGE") with a formal goal of having the Unitization Agreement finalized and signed by all the parties and submitted to DGE for ratification by the end of October and to submit to DGE a mutually agreed Plan of Development by December 31, 2014.

Substantial capital requirements

The Company has significant work commitments in connection with the EPSA in North Africa and the Company may make substantial capital expenditures for the acquisition, exploration, development and production of oil and natural gas reserves in the future. Details of the Company's financial commitments are described under "Contingencies and commitments" in the MD&A.

There can be no assurance that debt or equity financing will be available or sufficient to meet these requirements or for other corporate purposes or, if debt or equity financing is available, that it will be on terms acceptable to the Company. Additionally, there can be no assurance that the current strategic process will result in an agreement to farm-out or finance the Company's financial commitments under the EPSA. There is a risk that the Company may exhaust its working capital prior to the execution of new financings, farm-outs or property dispositions. The penalty for failure to drill the Fisal-1 well prior to November 30, 2014 would allow Joint Oil to draw US$15 million under the Letter of Credit to satisfy this penalty.

Second Quarter 2014 Financial Highlights


----------------------------------------------------------------------------
                                      Q2 2014        Q1 2014        Q2 2013 
----------------------------------------------------------------------------
Petroleum & natural gas sales                                               
 (1)                                        -              -          6,071 
Net loss from continuing                                                    
 operations                            (3,904)        (5,410)        (3,057)
Net loss from continuing                                                    
 operations per share - basic                                               
 and diluted (2)                        (0.08)         (0.10)         (0.05)
Net loss (3)                           (4,391)        (5,743)        (4,857)
Net loss per share - basic and                                              
 diluted (3)                            (0.09)         (0.10)         (0.09)
Funds (used for) from                                                       
 operations (3) (4)                    (1,877)        (2,187)           593 
Funds (used for) from                                                       
 operations per share - basic                                               
 and diluted (3) (4)                    (0.03)         (0.04)          0.01 
----------------------------------------------------------------------------
As at                                 Q2 2014        Q1 2014        Q2 2013 
----------------------------------------------------------------------------
Total assets (3)                       75,706         84,753        177,267 
Working capital surplus (3) (5)        20,357          8,474         20,366 
----------------------------------------------------------------------------
(1) Petroleum and natural gas sales and realized gains on financial         
    instruments net of royalties and transportation. All petroleum and      
    natural gas sales relate to discontinued operations.                    
(2) All per share amounts presented in this table were calculated using     
    56,071,313 common shares.                                               
(3) Includes both continuing operations and discontinued operations.        
(4) Non-IFRS measures as defined below and in the MD&A.                     
(5) Working capital surplus as at March 31, 2014 excludes $16.9 million of  
    restricted cash.                                                        

The Company's financial statements have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities and commitments in the normal course of business and does not reflect adjustments that would otherwise be necessary if the going concern assumption was not valid. For the three and six months ended June 30, 2014, the Company had an operating loss of $3.9 million and $9.3 million respectively (three and six months ended June 30, 2013 - $3.2 million and $8.1 million). As at June 30, 2014, the Company had an accumulated deficit of $319.8 million.

In December 2013 the Company sold all of its revenue generating assets and as such has no source of revenue as of December 31, 2013. Management believes that the going concern assumption is appropriate for the Company's financial statements; however, there are significant uncertainties that cast substantial doubt over the Company's ability to continue as a going concern. If this assumption is not appropriate, adjustments to the carrying amounts of assets and liabilities, revenues and expenses and the statement of financial position classifications used may be necessary and these adjustments could be material.

Sonde Resources Corp. is a Calgary, Alberta, Canada based energy company engaged in the exploration and development of oil and natural gas. Its operations are located offshore North Africa and in Western Canada. See Sonde's website at www.sonderesources.com to review further detail on Sonde's operations.

Non-IFRS Measures - This document contains references to funds used for operations and funds used for operations per share, which are not defined under IFRS as issued by the International Accounting Standards Board and are therefore non-IFRS financial measures that do not have any standardized meaning prescribed by IFRS and are, therefore, unlikely to be comparable to similar measures presented by other issuers. Management of the Company believes funds from (used for) operations and funds from (used for) operations per share are relevant indicators of the Company's financial performance and ability to fund future capital expenditures.

Funds used for operations should not be considered an alternative to or more meaningful than cash flow from operating activities, as determined in accordance with IFRS, as an indicator of the Company's performance. In our second quarter 2014 MD&A, a reconciliation has been prepared of funds from (used for) operations to cash flow from operating activities, the most comparable measure calculated in accordance with IFRS.

Forward Looking Information - This news release contains "forward-looking information" within the meaning of applicable Canadian securities laws and "forward looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements include, among others, those concerning the evaluation of potential strategic alternatives to enhance shareholder value with regard to the Joint Oil Block and to provide the necessary funding to meet the Company's obligations under the Exploration and Production Sharing Agreement for the Joint Oil Block, the results of the seismic program covering the Hadaf prospect, the planned drilling of the Fisal-1 well and the timing thereof and the preparation of the Company's financial statements on a going concern basis.

Such forward-looking information or statements are based on a number of risks, uncertainties and assumptions which may cause actual results or other expectations to differ materially from those anticipated and which may prove to be incorrect. Assumptions have been made regarding, among other things, market and operating conditions, access to additional sources of liquidity, timing and amount of capital expenditures and access to a drilling rig, equipment and services necessary to drill the Fisal-1 well. Actual results could differ materially due to a number of factors, including, without limitation, changes in market conditions or inability to access additional sources of liquidity on terms acceptable to the Company or at all.

Additional assumptions and risks relating to the Company and its business and affairs are set out in detail in the Company's AIF, available on SEDAR at www.sedar.com, and the Corporation's annual report on Form 40-F on file with the U.S. Securities and Exchange Commission. Although management believes that the expectations reflected in the forward-looking information or forward-looking statements are reasonable, prospective investors should not place undue reliance on forward-looking information or forward-looking statements because Sonde can provide no assurance those expectations will prove to be correct. Sonde bases its forward-looking statements and forward-looking information on information currently available and does not assume any obligation to update the forward-looking information or forward-looking statements unless required by law.

Neither the TSX Venture Exchange nor its Regulation Services 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:
Sonde Resources Corp.
Kurt A. Nelson
Chief Financial Officer
(281) 928-9659

P.O. Box 65161 North Hill NW Calgary, Alberta
Canada T2N 4T6
www.sonderesources.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
In the world of DevOps there are ‘known good practices’ – aka ‘patterns’ – and ‘known bad practices’ – aka ‘anti-patterns.' Many of these patterns and anti-patterns have been developed from real world experience, especially by the early adopters of DevOps theory; but many are more feasible in theory than in practice, especially for more recent entrants to the DevOps scene. In this power panel at @DevOpsSummit at 18th Cloud Expo, moderated by DevOps Conference Chair Andi Mann, panelists discussed...
After more than five years of DevOps, definitions are evolving, boundaries are expanding, ‘unicorns’ are no longer rare, enterprises are on board, and pundits are moving on. Can we now look at an evolution of DevOps? Should we? Is the foundation of DevOps ‘done’, or is there still too much left to do? What is mature, and what is still missing? What does the next 5 years of DevOps look like? In this Power Panel at DevOps Summit, moderated by DevOps Summit Conference Chair Andi Mann, panelists loo...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists examined how DevOps helps to meet the de...
"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.
A look across the tech landscape at the disruptive technologies that are increasing in prominence and speculate as to which will be most impactful for communications – namely, AI and Cloud Computing. In his session at 20th Cloud Expo, Curtis Peterson, VP of Operations at RingCentral, highlighted the current challenges of these transformative technologies and shared strategies for preparing your organization for these changes. This “view from the top” outlined the latest trends and developments i...
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations might...
"When we talk about cloud without compromise what we're talking about is that when people think about 'I need the flexibility of the cloud' - it's the ability to create applications and run them in a cloud environment that's far more flexible,” explained Matthew Finnie, CTO of Interoute, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
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.
No hype cycles or predictions of zillions of things here. IoT is big. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, Associate Partner at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He discussed the evaluation of communication standards and IoT messaging protocols, data analytics considerations, edge-to-cloud tec...
@DevOpsSummit at Cloud Expo taking place Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center, Santa Clara, CA, is co-located with the 21st International 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 ...
When growing capacity and power in the data center, the architectural trade-offs between server scale-up vs. scale-out continue to be debated. Both approaches are valid: scale-out adds multiple, smaller servers running in a distributed computing model, while scale-up adds fewer, more powerful servers that are capable of running larger workloads. It’s worth noting that there are additional, unique advantages that scale-up architectures offer. One big advantage is large memory and compute capacity...
The financial services market is one of the most data-driven industries in the world, yet it’s bogged down by legacy CPU technologies that simply can’t keep up with the task of querying and visualizing billions of records. In his session at 20th Cloud Expo, Karthik Lalithraj, a Principal Solutions Architect at Kinetica, discussed how the advent of advanced in-database analytics on the GPU makes it possible to run sophisticated data science workloads on the same database that is housing the rich...
What's the role of an IT self-service portal when you get to continuous delivery and Infrastructure as Code? This general session showed how to create the continuous delivery culture and eight accelerators for leading the change. Don Demcsak is a DevOps and Cloud Native Modernization Principal for Dell EMC based out of New Jersey. He is a former, long time, Microsoft Most Valuable Professional, specializing in building and architecting Application Delivery Pipelines for hybrid legacy, and cloud ...
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...
Artificial intelligence, machine learning, neural networks. We’re in the midst of a wave of excitement around AI such as hasn’t been seen for a few decades. But those previous periods of inflated expectations led to troughs of disappointment. Will this time be different? Most likely. Applications of AI such as predictive analytics are already decreasing costs and improving reliability of industrial machinery. Furthermore, the funding and research going into AI now comes from a wide range of com...