(TSX: AAV)
CALGARY, AB, July 29, 2021 /CNW/ - Advantage Energy Ltd.
("Advantage" or the "Corporation") is pleased to report its second
quarter 2021 results including record production of 50,011 boe/d, a
significant increase in free cash flow(a) and
accelerated debt reduction.
Production from the winter drilling program continued to exceed
expectations while gas prices remained elevated during the quarter,
with the payout of new wells averaging 8 months from the on-stream
date. Production was relatively stable through the extreme
heat event in June thanks to the outstanding efforts of our field
staff and robust facility designs. Drilling and completions
activities resumed approximately 3 to 4 weeks ahead of schedule
made possible by an unusually brief spring breakup.
Operating and Financial Highlights for the Quarter
- Cash provided by operating activities was $57.1 million
- Adjusted funds flow ("AFF")(a) increased 168% from
second quarter 2020 to $46.3 million
($0.24 per share)
- Cash used in investing activities was $20.8 million while net capital
expenditures(a) were $22.5
million
- Free cash flow ("FCF")(a) was $23.8 million, representing 51% of AFF
- Net debt(a) fell to $195.3
million, a reduction of $19.2
million from Q1 2021 and $162.2
million from Q2 2020
- Reduced net debt to AFF(a) ratio to 1.3x
- Record total production of 50,011 boe/d, up 10% over Q2 2020,
with record gas production of 274 mmcf/d
- Liquids production of 4,290 bbls/d (1,163 bbls/d crude oil, 637
bbls/d condensate, and 2,490 bbls/d NGLs)
- Maintained low cash costs including operating costs of
$2.21/boe
- Increased operating netbacks(a) to $12.51/boe, up 117% from second quarter 2020
Operational Update
- At Glacier, the continued outperformance of new wells and
available capacity in the Advantage owned and operated Glacier Gas
Plant provide flexibility to increase production while natural gas
prices remain elevated
- Completions on a five-well Glacier pad drilled in Q1 began
ahead of schedule, with wells currently flowing back on
clean-up
- Two wells were drilled at Valhalla with completions planned for Q3
2021
- Thirteen additional wells are scheduled to be drilled in the
second half of 2021 with the primary focus remaining on
Glacier
- The northwest segment of the Glacier gas gathering system was
commissioned in early April, increasing capacity and eliminating
restrictions on existing and future well pads
- All major equipment for the Glacier Gas Plant Carbon Capture
and Storage project (phase 1) has been ordered and expected
on-stream date remains April
2022
Marketing Update
Advantage has hedged approximately 47% of its natural gas
production for this summer and 21% for winter 2021/22. These hedges
are fixed price swaps denominated at AECO, Henry Hub, Dawn and
Chicago, reflective of the market
exposures in our natural gas diversification strategy. Advantage
has 48% of its total liquids production hedged for the remainder of
2021 with WTI swaps at an average price of US$49.14/bbl.
Looking Forward
As production has grown in the first half of 2021 and with
continued strengthening of North American oil and natural gas
prices, Advantage has delivered a significant increase to FCF and
debt has been reduced faster than expected. Current guidance
for 2021 remains at $115 to
$135 million of capital (and tracking
below the mid-point), delivering production of 48,000 to 51,000
boe/d. Targeted annual production per share growth remains
between 5 and 10%.
Operationally, Advantage is well ahead of schedule due to the
short spring break-up season and continued outperformance by the
drilling team. As a result, Advantage has the opportunity to
accelerate drilling in the fourth quarter of 2021, which would
serve to increase 2022 production and reduce Q1 2022
spending. Advantage will continue to monitor market
conditions and may accelerate $10 to
$20 million in capital spending from
Q1 2022 into the Q4 2021 program.
Advantage will continue to fortify its balance sheet and
maximize returns for its shareholders by executing on its strategy
to:
- Continue to deliver moderate production growth (between 5% and
10%) utilizing existing capacity at our Glacier Gas Plant
- Enhance corporate resilience and scale through:
-
- balancing our exposure to gas pricing by growing our liquids
production
- revenue-generating cleantech investments through the
Corporation's subsidiary Entropy Inc. ("Entropy") that will
leverage our carbon capture and sequestration technology and
expertise
- acquisitions that create efficiencies and scale
- Potentially return capital to shareholders
CEO Retirement Plan and Management Succession Update
Mr. Andy Mah has confirmed his
plan to retire from the role of Chief Executive Officer of the
Corporation effective December 31,
2021. Mr. Mah has provided over 15 years of corporate
leadership including the successful conversion of Advantage from a
Canadian Royalty Trust to a low cost, low emission, progressive
Montney natural gas and liquids
energy business. Advantage would like to thank Andy for his
strong, dynamic leadership and lengthy track record of
accomplishments. Mr. Mah will continue to provide his
expertise and experience as a director on Advantage's Board after
his retirement as Chief Executive Officer.
In accordance with the Corporation's management succession plan,
Mr. Michael Belenkie will be
appointed to the role of Chief Executive Officer effective
January 1, 2022. Mr. Belenkie
joined Advantage in 2018 and currently serves as President and
Chief Operating Officer. Mr. Belenkie has been instrumental
in expanding Advantage's corporate strategy and development
approach while helping to lead the repositioning of the Corporation
for the new energy market. Mr. Belenkie will provide leadership to
Entropy through the existing management services agreement between
Entropy and Advantage.
Adoption of Automatic Securities Disposition Plan
Advantage has adopted an automatic securities disposition plan
(the "ASDP") specifically to enable Mr. Mah, to sell, on an
automatic basis through an independent third-party broker (the
"Broker"), certain securities of Advantage to facilitate
estate and tax planning. It is expected that sales under the ASDP
will commence after August 30,
2021. The ASDP will terminate in twelve (12) months subject
to earlier termination in accordance with the ASDP.
The ASDP facilitates: (i) the automatic exercise of performance
share awards granted to Mr. Mah by the Corporation
("Entitlements"); (ii) the automatic sale of common shares
of Advantage ("Common Shares") issuable on the exercise of
the Entitlements; and (iii) the automatic sale of Common
Shares.
Mr. Mah established the ASDP to sell up to an aggregate 700,000
Common Shares for estate and tax planning purposes in connection
with his pending retirement. Mr. Mah provided the Broker with a set
of written trading instructions pursuant to an agreement which
required Mr. Mah to, among other things, certify that he is not in
possession of material non-public information regarding
Advantage.
The Broker will sell the securities under the ASDP according to
the predetermined trading instructions given by Mr. Mah. Among
other things, the trading instructions provide a minimum trading
price at which the Common Shares may be sold pursuant to the
ASDP. Sales will automatically occur on the open market
through the facilities of the Toronto Stock Exchange and may occur
under circumstances where Mr. Mah would ordinarily not be permitted
to sell his securities due to restrictions under Canadian
securities laws or trading black-outs imposed by Advantage's
Disclosure, Confidentiality and Trading Policy.
Mr. Mah is subject to meaningful restrictions on his ability to
modify, suspend or terminate his participation in the ASDP that
have the effect of ensuring that Mr. Mah cannot benefit from
material non-public information. In addition, Mr. Mah may not amend
or modify his instructions under the ASDP more than one (1) time
during its term.
Mr. Mah may only participate in the ASDP if he continues to meet
the minimum share ownership requirements set out in Advantage's
Director and Executive Share Ownership Policy.
Financial & Operating Summary
Financial
Highlights
|
|
Three months
ended
June
30
|
|
Six months
ended
June
30
|
($000, except as
otherwise indicated)
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Financial
Statement Highlights
|
|
|
|
|
|
|
|
|
Sales including
realized derivatives
|
$
|
88,512
|
$
|
48,593
|
$
|
183,309
|
$
|
114,365
|
Net income (loss) and
comprehensive income (loss)
|
$
|
8,725
|
$
|
(20,088)
|
$
|
8,300
|
$
|
(286,607)
|
per basic share
(2)
|
$
|
0.04
|
$
|
(0.11)
|
$
|
0.04
|
$
|
(1.53)
|
Basic weighted
average shares (000)
|
|
190,501
|
|
187,901
|
|
189,313
|
|
187,406
|
Cash provided by
operating activities
|
$
|
57,134
|
$
|
24,357
|
$
|
108,700
|
$
|
45,183
|
Cash provided by
(used in) financing activities
|
$
|
(21,480)
|
$
|
23,492
|
$
|
(29,028)
|
$
|
58,452
|
Cash used in
investing activities
|
$
|
(20,834)
|
$
|
(44,855)
|
$
|
(35,903)
|
$
|
(110,076)
|
Other Financial
Highlights
|
|
|
|
|
|
|
|
|
Adjusted funds flow
(1)
|
$
|
46,266
|
$
|
17,259
|
$
|
100,244
|
$
|
49,352
|
per boe
(1)
|
$
|
10.17
|
$
|
4.19
|
$
|
11.10
|
$
|
5.91
|
per basic share
(1)(2)
|
$
|
0.24
|
$
|
0.09
|
$
|
0.53
|
$
|
0.26
|
Net capital
expenditures (1)
|
$
|
22,482
|
$
|
10,663
|
$
|
59,667
|
$
|
104,293
|
Working capital
surplus (deficit) (1)
|
$
|
24,520
|
$
|
(3,295)
|
$
|
24,520
|
$
|
(3,295)
|
Bank
indebtedness
|
$
|
219,856
|
$
|
354,199
|
$
|
219,856
|
$
|
354,199
|
Net debt
(1)
|
$
|
195,336
|
$
|
357,494
|
$
|
195,336
|
$
|
357,494
|
(1)
|
Non-GAAP measure
which may not be comparable to similar non-GAAP measures used by
other entities. Please see "Non-GAAP Measures".
|
(2)
|
Based on basic
weighted average shares outstanding.
|
Operating
Highlights
|
|
Three months
ended
June
30
|
|
Six months
ended
June
30
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Operating
|
|
|
|
|
|
|
|
|
Daily
Production
|
|
|
|
|
|
|
|
|
Crude
oil (bbls/d)
|
|
1,163
|
|
2,018
|
|
1,278
|
|
1,595
|
Condensate (bbls/d)
|
|
637
|
|
627
|
|
679
|
|
803
|
NGLs
(bbls/d)
|
|
2,490
|
|
2,001
|
|
2,492
|
|
1,782
|
Total
liquids production (bbls/d)
|
|
4,290
|
|
4,646
|
|
4,449
|
|
4,180
|
Natural
gas (mcf/d)
|
|
274,328
|
|
243,749
|
|
272,804
|
|
250,106
|
Total
production (boe/d)
|
|
50,011
|
|
45,271
|
|
49,916
|
|
45,864
|
Average realized
prices (including realized derivatives)
|
|
|
|
|
|
|
|
|
Natural
gas ($/mcf)
|
$
|
2.81
|
$
|
1.72
|
$
|
2.93
|
$
|
1.92
|
Crude
oil ($/bbl)
|
$
|
39.30
|
$
|
37.52
|
$
|
43.43
|
$
|
46.08
|
Condensate ($/bbl)
|
$
|
81.67
|
$
|
16.09
|
$
|
75.35
|
$
|
43.11
|
NGLs
($/bbl)
|
$
|
42.09
|
$
|
14.44
|
$
|
42.30
|
$
|
22.57
|
Operating Netback
($/boe)
|
|
|
|
|
|
|
|
|
Petroleum and natural gas sales from production
|
$
|
21.76
|
$
|
11.56
|
$
|
21.96
|
$
|
13.40
|
Realized
gains (losses) on derivatives
|
|
(2.12)
|
|
0.23
|
|
(1.50)
|
|
0.30
|
Royalty
expense
|
|
(1.20)
|
|
(0.26)
|
|
(1.17)
|
|
(0.58)
|
Operating expense
|
|
(2.21)
|
|
(2.43)
|
|
(2.33)
|
|
(2.35)
|
Transportation expense
|
|
(3.72)
|
|
(3.34)
|
|
(3.64)
|
|
(3.42)
|
Operating netback (1)
|
$
|
12.51
|
$
|
5.76
|
$
|
13.32
|
$
|
7.35
|
(1)
|
Non-GAAP measure
which may not be comparable to similar non-GAAP measures used by
other entities. Please see "Non-GAAP Measures".
|
The Corporation's unaudited consolidated financial statements
for the three and six months ended June 30,
2021 together with the notes thereto, and Management's
Discussion and Analysis for the three and six months ended
June 30, 2021 have been filed on
SEDAR and are available on the Corporation's website at
https://www.advantageog.com/investors/financial-reports. Upon
request, Advantage will provide a hard copy of any financial
reports free of charge.
Advisory
The information in this press release contains certain
forward-looking statements, including within the meaning of
applicable securities laws. These statements relate to future
events or our future intentions or performance. All statements
other than statements of historical fact may be forward-looking
statements. Forward-looking statements are often, but not always,
identified by the use of words such as "guidance", "anticipate",
"target", "objectives", "estimates", "continue", "demonstrate",
"expect", "may", "can", "will", "believe", "would" and similar
expressions and include statements relating to, among other things,
Advantage's focus, strategy, priorities and development plans;
timing for wells to come on-stream at Glacier and Valhalla; number of wells planned for the
second half of 2021 and the primary focus; anticipated capital
spending, production and production growth in 2021; Advantage's
ability to fortify its balance sheet and maximize returns for its
shareholders; Advantage's ability to enhance corporate resilience
and scale; Advantage's expectations to return capital to its
shareholders; the anticipated timing of when the ASDP will be
effective and when sales will commence thereunder; Advantage's
hedging program; and Advantage's go-forward strategy, its reasons
therefor and the results and benefits to be derived therefrom, and
the Corporation's targeted 2021 production growth and free cash
flow. Advantage's actual decisions, activities, results,
performance, or achievement could differ materially from those
expressed in, or implied by, such forward-looking statements and
accordingly, no assurances can be given that any of the events
anticipated by the forward-looking statements will transpire or
occur or, if any of them do, what benefits that Advantage will
derive from them.
These statements involve substantial known and unknown risks
and uncertainties, certain of which are beyond Advantage's control,
including, but not limited to: changes in general economic, market
and business conditions; industry conditions, including as a result
of demand and supply effects resulting from the COVID-19 pandemic;
actions by governmental or regulatory authorities including
increasing taxes and changes in investment or other regulations;
changes in tax laws, royalty regimes and incentive programs
relating to the oil and gas industry; Advantage's success at
acquisition, exploitation and development of reserves; unexpected
drilling results; changes in commodity prices, currency exchange
rates, net capital expenditures, reserves or reserves estimates and
debt service requirements; the occurrence of unexpected events
involved in the exploration for, and the operation and development
of, oil and gas properties, including hazards such as fire,
explosion, blowouts, cratering, and spills, each of which could
result in substantial damage to wells, production and processing
facilities, other property and the environment or in personal
injury; changes or fluctuations in production levels; delays in
anticipated timing of drilling and completion of wells; individual
well productivity; competition from other producers; the lack of
availability of qualified personnel or management; credit risk;
changes in laws and regulations including the adoption of new
environmental laws and regulations and changes in how they are
interpreted and enforced; Advantage's ability to comply with
current and future environmental or other laws; stock market
volatility and market valuations; liabilities inherent in oil and
natural gas operations; competition for, among other things,
capital, acquisitions of reserves, undeveloped lands and skilled
personnel; incorrect assessments of the value of acquisitions;
geological, technical, drilling and processing problems and other
difficulties in producing petroleum reserves; ability to obtain
required approvals of regulatory authorities; and ability to access
sufficient capital from internal and external sources. Many of
these risks and uncertainties and additional risk factors are
described in the Corporation's Annual Information Form which is
available at www.sedar.com ("SEDAR") and www.advantageog.com.
Readers are also referred to risk factors described in other
documents Advantage files with Canadian securities
authorities.
With respect to forward-looking statements contained in this
press release, Advantage has made assumptions regarding, but not
limited to: conditions in general economic and financial markets;
the impact and duration thereof that the COVID-19 pandemic will
have on (i) the demand for crude oil, NGLs and natural gas, (ii)
the supply chain including the Corporation's ability to obtain the
equipment and services it requires, and (iii) the Corporation's
ability to produce, transport and/or sell its crude oil, NGLs and
natural gas; effects of regulation by governmental agencies;
current and future commodity prices and royalty regimes; the
Corporation's current and future hedging program; future exchange
rates; royalty rates; future operating costs; future transportation
costs and availability of product transportation capacity;
availability of skilled labor; availability of drilling and related
equipment; timing and amount of net capital expenditures; the
number of new wells required to achieve the budget objectives; that
the Corporation will have sufficient adjusted funds flow, debt or
equity sources or other financial resources required to fund its
capital and operating expenditures and requirements as needed; that
the Corporation's conduct and results of operations will be
consistent with its expectations; that the Corporation will have
the ability to develop the Corporation's properties in the manner
currently contemplated; current or, where applicable, proposed
assumed industry conditions, laws and regulations will continue in
effect or as anticipated; that Entropy will have the ability to
develop its technology in the manner currently contemplated; the
anticipated benefits and results from Entropy's technology; and the
estimates of the Corporation's production and reserves volumes and
the assumptions related thereto (including commodity prices and
development costs) are accurate in all material respects.
Management has included the above summary of assumptions and
risks related to forward-looking information in order to provide
shareholders with a more complete perspective on Advantage's future
operations and such information may not be appropriate for other
purposes. Advantage's actual results, performance or achievement
could differ materially from those expressed in, or implied by,
these forward-looking statements and, accordingly, no assurance can
be given that any of the events anticipated by the forward-looking
statements will transpire or occur, or if any of them do so, what
benefits that Advantage will derive therefrom. Readers are
cautioned that the foregoing lists of factors are not exhaustive.
These forward-looking statements are made as of the date of this
press release and Advantage disclaims any intent or obligation to
update publicly any forward-looking statements, whether as a result
of new information, future events or results or otherwise, other
than as required by applicable securities laws.
Barrels of oil equivalent (boe) and thousand cubic feet of
natural gas equivalent (mcfe) may be misleading, particularly if
used in isolation. Boe and mcfe conversion ratios have been
calculated using a conversion rate of six thousand cubic feet of
natural gas equivalent to one barrel of oil. A boe and mcfe
conversion ratio of 6 mcf: 1 bbl 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 6:1, utilizing a conversion on a 6:1 basis may be misleading as
an indication of value.
Non-GAAP Measures
The Corporation discloses several financial and performance
measures in this press release that do not have any standardized
meaning prescribed under GAAP. These financial and performance
measures include "net capital expenditures", "adjusted funds flow",
"free cash flow", "net debt", "operating netback", "working capital
deficit" and "net debt to adjusted funds flow", which should not be
considered as alternatives to, or more meaningful than "net
income", "comprehensive income", "cash provided by operating
activities", "cash used in investing activities", or "bank
indebtedness" presented within the consolidated financial
statements as determined in accordance with GAAP. Management
believes that these measures provide an indication of the results
generated by the Corporation's principal business activities and
provide useful supplemental information for analysis of the
Corporation's operating performance and liquidity. Advantage's
method of calculating these measures may differ from other
companies, and accordingly, they may not be comparable to similar
measures used by other companies.
Net Capital Expenditures
Net capital expenditures include total capital expenditures
related to property, plant and equipment and exploration and
evaluation assets incurred during the period. Management considers
this measure reflective of actual capital activity for the period
as it excludes changes in working capital related to other periods.
A reconciliation between net capital expenditure is provided
below:
|
|
Three months
ended
June 30
|
|
Six months
ended
June 30
|
($000)
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Cash used in
investing activities
|
$
|
20,834
|
$
|
44,855
|
$
|
35,903
|
$
|
110,076
|
Changes in non-cash
working capital
|
|
1,625
|
|
(34,192)
|
|
3,741
|
|
(5,783)
|
Project funding
received, net of incurred cost
|
|
23
|
|
-
|
|
20,023
|
|
-
|
Net capital
expenditures
|
$
|
22,482
|
$
|
10,663
|
$
|
59,667
|
$
|
104,293
|
Working Capital
Working capital includes cash and cash equivalents, trade and
other receivables, prepaid expenses and deposits and trade and
other accrued payables at the reporting date. Working capital
provides Management and users with a measure of the Corporation's
operating liquidity.
Net Debt
Net debt is comprised of bank indebtedness and working
capital. Net debt provides Management and users with a measure of
the Corporation's bank indebtedness and expected settlement of net
liabilities in the next year. A detailed calculation of net debt is
provided below:
($000)
|
|
|
|
|
|
June 30
2021
|
|
December
31
2020
|
Bank indebtedness
(non-current)
|
|
|
|
|
$
|
219,856
|
$
|
247,105
|
Working capital
(surplus) deficit
|
|
|
|
|
|
(24,520)
|
|
4,292
|
Net debt
|
|
|
|
|
$
|
195,336
|
$
|
251,397
|
Adjusted Funds Flow
The Corporation considers adjusted funds flow to be a useful
measure of Advantage's ability to generate cash from the production
of natural gas and liquids, which may be used to settle outstanding
debt and obligations, and to support future capital expenditures
plans. Changes in non-cash working capital are excluded from
adjusted funds flow as they may vary significantly between periods
and are not considered to be indicative of the Corporation's
operating performance as they are a function of the timeliness of
collecting receivables and paying payables. Expenditures on
decommissioning liabilities are excluded from the calculation as
the amount and timing of these expenditures are unrelated to
current production and are partially discretionary due to the
nature of our low liability. Adjusted funds flow has also been
presented per boe, by dividing adjusted funds flow by total
production in boe for the reporting period, and per basic share, by
dividing by the basic weighted average shares outstanding of the
Corporation.
A reconciliation between adjusted funds flow and the nearest
measure calculated in accordance with GAAP, cash provided by
operating activities, is provided below:
|
|
Three months
ended
June 30
|
|
Six months
ended
June 30
|
($000)
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Cash provided by
operating activities
|
$
|
57,134
|
$
|
24,357
|
$
|
108,700
|
$
|
45,183
|
Expenditures on
decommissioning liability
|
|
328
|
|
24
|
|
342
|
|
203
|
Changes in non-cash
working capital
|
|
(11,196)
|
|
(7,122)
|
|
(8,798)
|
|
3,966
|
Adjusted funds
flow
|
$
|
46,266
|
$
|
17,259
|
$
|
100,244
|
$
|
49,352
|
Net Debt to Adjusted Funds Flow
Net debt to adjusted funds flow is calculated by dividing net
debt by adjusted fund flow for the previous four quarters. Net debt
to adjusted funds flow is a coverage ratio that provides Management
and users the ability to determine how long it would take the
Corporation to repay its bank debt if it devoted all its adjusted
funds flow to bank debt repayment.
Free Cash Flow
Free cash flow is calculated as adjusted funds flow less net
capital expenditures. Free cash flow is a useful measure of
Advantage's ability to settle outstanding debt and
obligations.
Operating Netback
Advantage calculates operating netback on a per boe basis.
Operating netback is comprised of sales revenue, realized gains
(losses) on derivatives, net of expenses resulting from field
operations, including royalty expense, operating expense and
transportation expense. Operating netback provides Management and
users with a measure to compare the profitability of field
operations between companies, development areas and specific
wells. A detailed calculation of operating netback is
provided below:
|
Three months
ended
June 30
|
|
2021
|
2020
|
|
|
$000
|
|
per boe
|
|
$000
|
|
per boe
|
Petroleum and natural
gas sales from production
|
$
|
99,053
|
$
|
21.76
|
$
|
47,634
|
$
|
11.56
|
Realized gains
(losses) on derivatives
|
|
(9,626)
|
|
(2.12)
|
|
931
|
|
0.23
|
Royalty
expense
|
|
(5,456)
|
|
(1.20)
|
|
(1,086)
|
|
(0.26)
|
Operating
expense
|
|
(10,071)
|
|
(2.21)
|
|
(9,993)
|
|
(2.43)
|
Transportation
expense
|
|
(16,918)
|
|
(3.72)
|
|
(13,771)
|
|
(3.34)
|
Operating
netback
|
$
|
56,982
|
$
|
12.51
|
$
|
23,715
|
$
|
5.76
|
|
Six months
ended
June 30
|
|
2021
|
2020
|
|
|
$000
|
|
per boe
|
|
$000
|
|
per boe
|
Petroleum and natural
gas sales from production
|
$
|
198,426
|
$
|
21.96
|
$
|
111,819
|
$
|
13.40
|
Realized gains
(losses) on derivatives
|
|
(13,527)
|
|
(1.50)
|
|
2,518
|
|
0.30
|
Royalty
expense
|
|
(10,543)
|
|
(1.17)
|
|
(4,841)
|
|
(0.58)
|
Operating
expense
|
|
(21,056)
|
|
(2.33)
|
|
(19,640)
|
|
(2.35)
|
Transportation
expense
|
|
(32,918)
|
|
(3.64)
|
|
(28,575)
|
|
(3.42)
|
Operating
netback
|
$
|
120,382
|
$
|
13.32
|
$
|
61,281
|
$
|
7.35
|
The following terms and abbreviations used in this press
release have the meanings set forth below:
bbl
|
one
barrel
|
bbls/d
|
barrels per
day
|
boe
|
barrels of oil
equivalent of natural gas, on the basis of one barrel of oil or
NGLs for six thousand cubic feet of natural gas
|
boe/d
|
barrels of oil
equivalent of natural gas per day
|
mcf
|
thousand cubic
feet
|
mcf/d
|
thousand cubic fee
per day
|
mcfe
|
thousand cubic
feet equivalent on the basis of six thousand cubic feet of natural
gas for one barrel of oil or NGLs
|
mmcf/d
|
million cubic feet
per day
|
Crude oil
and
condensate
|
Light crude oil
and medium crude oil as defined in National Instrument
51-101
|
NGLs
|
Natural Gas
Liquids as defined in National Instrument 51-101
|
Natural
gas
|
Conventional
Natural Gas as defined in National Instrument 51-101
|
SOURCE Advantage Energy Ltd.