Tuscany Reports Significant Financial and Operating Improvements for the Nine Months Ended September 2014
November 28, 2014 (Source: Marketwired) — Tuscany Energy Ltd. (TSX VENTURE:TUS) –
Tuscany is pleased to report on a very successful nine months ended September 30, 2014. Highlights of the period were:
- Revenues increased to $12.9 million from $6.8 million reported for the prior year. Cash flow increased to $6.2 million from $2.1 million in 2013 and net earnings increased to $836,000 from a loss of $961,000.
- Production averaged 696 BOEd from the 402 BOEd reported in the prior year.
- In July, the Company successfully placed a common and flow through share issue to raise approximately $3 million.
- Tuscany drilled five successful Dina oil wells with the proceeds, all of which were placed on stream during the quarter and four of which had initial production rates exceeding 100 barrels per day.
- The Company upgraded its water handling facilities by deepening a well at Evesham and drilling a new water disposal well at Macklin, which also resulted in a significant Dina oil discovery and enlargement of the Macklin pool.
- As a result of these activities the Company increased its’ production at the end of the quarter to average 748 BOEd for the month of September, and 950 BOEd for October.
Subsequent to the period end Tuscany closed an additional flow through share offering, issuing 2.7 million shares at a price of $0.44 per share for total consideration of $1.2 million. At November 27, the Company has 48.8 million shares outstanding.
The share issue has allowed the Company to commence its Q4 planned three well drilling program. The initial well at Macklin North has been drilled and is currently being completed and tied in. Drilling operations have commenced on the second Macklin North well.
|Three months ended||Nine months ended|
|September 30||September 30|
|($ Thousands, unless otherwise indicated)|
|Oil & gas revenue||$ 3,934||$ 3,842||$ 12,922||$ 6,780|
|Cash flow from operations (1)||1,862||1,477||6,152||2,098|
|per share, diluted (1)||0.04||0.05||0.15||0.07|
|Net earnings (loss) for the period||616||(84)||836||(961)|
|per share, diluted||0.01||0.00||0.02||-0.03|
|Capital expenditures, net of dispositions||4,547||2,669||7,941||3,917|
|Net debt (1)||(6,555)||(8,139)||(6,555)||(8,139)|
|Total shares outstanding at period end||46,153||29,985||46,153||29,985|
|BOEd (6 Mcf = 1 Bbl)||654||613||696||402|
|Oil ($/Bbl)||$ 78.23||$ 86.39||$ 78.46||$ 72.26|
|Gas ($/Mcf)||$ 3.84||$ 2.44||$ 4.60||$ 2.43|
|(1) See non-GAAP measures in MD&A for the nine months ended September 30, 2014.|
Tuscany has filed its Interim Financial Statements and MD&A for the nine months ended September 30, 2014.
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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).
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