Tuscany Announces Record Financial and Operating Results for the First Six Months, 2014 and Updates Its Saskatchewan Drilling Program
August 28, 2014 (Source: Marketwired) — Tuscany Energy Ltd. (TSX VENTURE:TUS) is pleased to report record increases in production, revenues and cash flow from operations for the six months ended June 30, 2014, compared to the same period of 2013.
For the first half of 2014, Tuscany’s revenues totalled $9.0 million compared with $2.9 million in 2013. Cash flow from operations increased to $4.3 million or $0.11 per share, significantly higher than the $0.6 million reported in 2013.
Net earnings for 2014 totalled $218,000 compared with a loss of $880,000 in the prior year. The Company’s net debt totalled $6.3 million at the end of June 2014. Proforma the net proceeds of the equity issue, which closed on July 17, 2014, net debt would have been $3.7 million.
For the quarter ended June 30, 2014 production averaged a record 758 BOED compared with 675 BOED in Q1 2014. For the first half average production increased to 717 BOED compared with 295 BOED in 2013.
The financial improvements resulted from a combination of the acquisition of Diaz Resources Ltd. in July 2013, together with increased oil production from the Evesham and Macklin areas, where Tuscany drilled 5 heavy oil wells from the Diaz acquisition to the end of Q1 2014.
In July, Tuscany completed a $3 million equity offering to permit an acceleration in its heavy oil development program and commenced a 5 well drilling program, where the three wells, resulted in a new pool oil discovery at Rutland and two new oil development wells at Evesham. The Evesham wells are currently being placed on stream while the first well of a two well program in Macklin has commenced drilling.
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During the balance of 2014 Tuscany plans to expand its water handling facilities by drilling a new Duperow disposable well at Macklin and recompleting a similar well at Evesham. The resulting expansion of water disposal capacity will enable Tuscany to place 6 of its non- producing wells on stream, and increase overall production rates at the pools.
In the last half of 2014 Tuscany also plans initial wells on its Morgan prospect, in Alberta and its Winter prospect in Saskatchewan. In addition the Company is formulating plans for its first well on the Sparky project in the Macklin area which is anticipated to be drilled in Q4 2014.
|Three months ended||Six months ended|
|June 30||June 30|
|($ Thousands, unless otherwise indicated)|
|Oil & gas revenue||$||4,931||$||1,651||$||8,988||$||2,938|
|Cash flow from operations *||2,461||324||4,295||621|
|per share, diluted *||0.06||0.01||0.11||0.02|
|Net earnings (loss) for the period||440||(445||)||220||(877||)|
|per share, diluted||0.01||(0.01||)||0.01||(0.03||)|
|Capital expenditures, net of dispositions||1,618||478||3,394||1,248|
|Net debt *||(6,334||)||(322||)||(6,334||)||(322||)|
|Total shares outstanding at period end||38,653||29,985||38,653||29,985|
|BOEd (6 Mcf = 1 Bbl)||758||290||717||295|
|* See non-GAAP measures in Tuscany’s MD&A for the six months ended June 30, 2014|
Tuscany has filed its Interim Financial Statements and MD&A for the six months ended June 30, 2014 on SEDAR and its website.
ADVISORY: This news release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends” and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this news release contains forward-looking information and statements’ pertaining to Tuscany’s drilling plans. The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such planned drilling involves known and unknown risks, uncertainties and other factors that may cause actual drilling plans to differ materially from those anticipated. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release 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.
Where amounts are expressed on a barrel of oil equivalent (BOE) basis, natural gas volumes have been converted to barrels of oil on the basis of six thousand cubic feet (mcf) per barrel (bbl). BOE figures may be misleading, particularly if used in isolation. A BOE conversion of six thousand cubic feet per barrel is based on an energy equivalency 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 mcf : 1 bbl, using a conversion on a 6 mcf : 1 bbl basis may be misleading as an indication of value. References to oil in this discussion include crude oil and natural gas liquids (NGLs).
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.
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