VANCOUVER, May 29, 2019 /CNW/ - CruzSur Energy Corp. (the
"Company") (TSXV: CZR) announces it has filed its financial
results for the three months ended March 31,
2019. All dollar values in this news release and the
Company's financial disclosures are in United States dollars, unless otherwise
stated. All production figures are measured in barrels of oil
equivalent ("boe").
Financial Statements
Revenues for the period presented were obtained from the working
interest in the Mariposa and KM8 Assets.
Highlights
Settlement and Assignment Agreement with YPF
In February 2019, the Company
completed the Settlement and Assignment Agreement with YPF SA, the
operator of the Llancanelo Asset, wherein both parties have agreed
upon terms of assignment of the Company's 39% participating
interest in the Llancanelo Asset to YPF. In return, YPF has
released the Company from all existing and future financial
obligations related to Llancanelo Asset operations. This has
resulted in the elimination of approximately $12.4 million of exploration and evaluation
assets, $1.0 million of property,
plant and equipment assets, $1.0
million of joint venture payables, $8.4 million in liabilities for cash calls
assumed on acquisitions, $2.5 million
in liabilities for considerations payable on acquisitions, and
$1.6 million in decommissioning
liabilities.
Mariposa
The Company holds a net working interest in the Estancia La
Mariposa block of 18%, entitling it to 18% of the oil, natural gas
and condensate sales, while the operator carries 100% of the
capital expenditures and field operating costs. The net revenue
figures associated with the Mariposa Asset are presented net of any
applicable royalties and certain operating costs of transportation,
treatment and processing. Oil and natural gas production is sold on
behalf of the Company, for which the Company receives proceeds from
the operator, net of the aforementioned royalties and operating
costs. The net revenue generated from this asset has not been
included in any "per barrel" pricing herein.
Mariposa
Results
|
Q1
2019
|
Q1
2018
|
Net
revenue
|
215,608
|
351,606
|
Net production
boe
|
13,803
|
16,210
|
Financial Results & Balances
- The Company had a working capital deficiency of $1.7 million as of March
31, 2019
Financial
Results
|
Q1
2019
|
Q1
2018
|
Cash and cash
equivalents
|
1,508,485
|
10,387,628
|
Working
Capital
|
(1,730,202)
|
(8,497,830)
|
Exploration and
Evaluation Assets
|
7,372,900
|
77,040,381
|
Property, Plants, and
Equipment
|
1,578,141
|
3,671,361
|
Total
Assets
|
15,724,738
|
100,252,972
|
Net Oil and Natural
Gas Production, boe
|
3,161
|
45,379
|
Net Oil and Natural
Gas Revenue
|
171,889
|
2,270,243
|
Net Revenue on
Carried Working Interest (1)
|
215,608
|
351,606
|
Royalty
Expense
|
20,154
|
446,478
|
Operating
Expenses
|
151,858
|
1,400,808
|
Net Operating
Profit
|
215,485
|
774,563
|
Net Loss
|
829,538
|
1,975,398
|
Net Loss per Share,
basic & diluted
|
(0.03)
|
(0.08)
|
|
|
Note:
|
|
(1)
|
Represents net
revenue results from the carried interest held by the Company in
the Mariposa Asset.
|
About CruzSur Energy Corp.
CruzSur Energy Corp. is a publicly traded E&P company
focused on proven oil & gas plays in Latin America. The Company holds a large
diversified portfolio of producing, development and unexploited
assets in Colombia and
Argentina where it will leverage
its amplitude of technical expertise and proven track record
building companies and creating value.
Complete reports and statements are available on SEDAR at
www.sedar.com and on the Company website www.cruzsur.energy.
Forward-Looking Information
Except for the statements of historical fact, this news
release contains "forward-looking information" within the meaning
of the applicable Canadian securities legislation that is based on
expectations, estimates and projections as at the date of this news
release. The information in this news release about the
completion of the operations described herein, and other
forward-looking information includes but is not limited to
information concerning the intentions, plans and future actions of
the parties to the transactions described herein and the terms of
such transaction.
Factors that could cause actual results to differ materially
from those described in such forward-looking information include,
but are not limited to, risks related to the Company's inability to
perform the proposed operations.
The forward-looking information in this news release reflects
the current expectations, assumptions and/or beliefs of the Company
based on information currently available to the Company. In
connection with the forward-looking information contained in this
news release, the Company has made assumptions about the Company's
ability to complete the planned operations and activities. The
Company has also assumed that no significant events will occur
outside of the Company's normal course of business. Although the
Company believes that the assumptions inherent in the
forward-looking information are reasonable, forward-looking
information is not a guarantee of future performance and
accordingly undue reliance should not be put on such information
due to the inherent uncertainty therein.
Any forward-looking information speaks only as of the date on
which it is made and, except as may be required by applicable
securities laws, the Company disclaims any intent or obligation to
update any forward-looking information, whether as a result of new
information, future events or results or otherwise.
BOE Conversion
Advisory
The term "boe" is used in this news release. Boe
may be misleading, particularly if used in
isolation. A
boe conversion ratio of
six thousand cubic feet of gas to one barrel of oil (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.
In this news release, we have expressed boe using this standard
conversion ratio of 6 Mcf : 1 bbl.
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE CruzSur Energy Corp.