Canext Announces Year End Results
08 April 2010 - 1:05AM
Marketwired Canada
Canext Energy Ltd. ("Canext" or the "Company") (TSX VENTURE:CXZ) is pleased to
announce its operating and financial results for the year ended December 31,
2009.
Highlights:
-- Production for the full year averaged 985 boe/d,
-- Oil and NGL production as a percentage of total production increased to
23% and 34% for the year and three months ended December 31, 2009,
respectively,
-- Constructed Sweeney battery and solution gas gathering system for $1.8
million, comprising 44% of the 2009 net capital expenditures of $4.1
million,
-- Successfully drilled and completed the first open hole horizontal well
at Sweeney,
-- Finding and Development costs including revisions and changes to future
development capital was $12.85/boe Proved and $9.16/boe Proved plus
Probable (P + P),
-- Finding, Development and Acquisition costs including revisions and
changes to future development capital was $6.70/boe Proved and $3.78/boe
P + P,
-- Operating netback averaged $12.99/boe for the year and $22.13/boe for
the three months ending December 31, 2009,
-- Recycle ratio (Operating netback/FD&A) was 3.4:1 for P+P reserve
additions.
In 2009, Canext greatly reduced its capital expenditures while focusing its
efforts on developing the Sweeney oil property. As a result, oil and NGL
production increased throughout the year while natural gas production decreased
due to property dispositions and minimal capital investments on natural gas
properties. The strategic change in direction combined with strengthening oil
prices helped improve the financial strength of the Company from prior financial
quarters ended in 2009. Approximately 50% of funds from operations for the year
ended December 31, 2009 were generated in the fourth quarter of 2009 despite
having lower production during this period.
The Company's year end reserve information was press released on February 26,
2010. As mandated by National Instrument 51-101 Standards of Disclosure for Oil
and Gas Activities issued by the Canadian Securities Administrators, detailed
information relating to Canext's reserves and other disclosure documents have
now been electronically filed on SEDAR (www.sedar.com).
The following table summarizes some of the key financial results. Audited
consolidated financial statements for the year ended December 31, 2009 with
accompanying notes along with management's discussion and analysis have also
been filed on SEDAR ( www.sedar.com ).
Year Ended December 31 2009 -2008
2009 2008 % change
---------------------------------------------------------------------------
Average daily
production
Oil and NGL's (bbls/d) 229 170 35%
Natural gas (mcf/d) 4,539 5,375 -16%
Production (boe/d) 985 1,066 -8%
Highlights ($000's)
Revenue 11,516 21,347 -46%
Funds from operations 2,732 9,656 -72%
Net income/(loss) (5,218) (1,376) 279%
Net capital spending 4,157 17,089 -76%
Per Common Share
Funds from operations 0.03 0.12 -73%
Net income/(loss) (0.06) (0.02) 279%
Balance Sheet at period
end (000's)
Property, plant and
equipment 62,821 66,998 -6%
Working Capital
Surplus/(Deficit) (9,545) (8,120) 18%
Shareholders' equity 51,640 57,259 -10%
Wt average shares 000's 87,981 82,554
Shares outstanding at
period end 87,981 87,981
Revenue $/boe 32.03 54.73 -41%
Royalty $/boe (6.83) (11.62) -41%
Opcost $/boe (11.75) (12.77) -8%
Transportation $/boe (0.46) (0.43) 7%
Operating Netback $/boe 12.99 29.91 -57%
Operational Update:
Canext drilled three (2.2 net) wells in the first quarter of 2010, resulting in
one (0.6 net) horizontal producing oil well, one (1.0 net) capped potential gas
well, and one (0.6 net) dry hole. The Corporation also completed, equipped and
tied in a 60% working interest horizontal oil well at Sweeney which was drilled
late in 2009.
Based on field estimates, Canext expects first quarter 2010 production to
average 1,050 boe/d, a 21% increase from the fourth quarter of 2009. Oil and NGL
production as a percentage of total production has increased to approximately
45% in the first quarter of 2010, up from 34% in the three months ended December
31, 2009.
Outlook
The Corporation has scheduled a special meeting of shareholders of Canext on
April 12, 2010 to vote on a proposed plan of arrangement with TriOil Resources
Ltd (formerly known as One Exploration Inc.). The information circular and proxy
materials were mailed to shareholders on March 18, 2010.
Reader advisory:
The term "BOE" may be misleading, particularly if used in isolation. In
accordance with NI 51-101, a BOE conversion ratio for natural gas of 6 mscf: 1
bbl has been used which is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.
Investors are cautioned that the preceding statement of the Company may include
certain estimates, assumptions and other forward-looking information. The actual
future performance, developments and/or results of the Company may differ
materially from any or all of the forward-looking statements, which include
current expectations, estimates and projections, in all or part attributable to
general economic conditions and other risks, uncertainties and circumstances
partly or totally outside the control of the Company, including natural gas/oil
prices, reserve estimates, drilling risks, future production of gas and oil,
rates of inflation, changes in future costs and expenses related to the
activities involving the exploration, development and production of gas and oil
hedging, financing availability and other risks related to financial activities.
Canext Energy Ltd (TSXV:CXZ)
Historical Stock Chart
Von Mai 2024 bis Jun 2024
Canext Energy Ltd (TSXV:CXZ)
Historical Stock Chart
Von Jun 2023 bis Jun 2024
