CALGARY, Nov. 10, 2014 /CNW/ - LGX Oil + Gas Inc. ("LGX"
or the "Company") (TSXV:OIL) is pleased to announce it has filed on
SEDAR its unaudited financial statements and related Management's
Discussion and Analysis ("MD&A") for the three and nine months
ended September 30, 2014.
Selected financial and operational information is outlined below
and should be read in conjunction with LGX's unaudited financial
statements and the related MD&A which are available for review
at www.lgxoil.com or www.sedar.com.
FINANCIAL +
OPERATIONAL HIGHLIGHTS (1) |
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Three Months
Ended |
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Nine Months
Ended |
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September 30 |
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September 30 |
|
Unaudited (Cdn $, except per share amounts) |
2014 |
2013 |
%
change |
2014 |
2013 |
%
change |
Financial |
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Petroleum and natural gas sales, net of royalties |
4,331,707 |
4,819,532 |
(10) |
16,241,881 |
12,866,912 |
26 |
Funds
generated by operations (2) |
1,148,432 |
581,632 |
97 |
6,090,852 |
3,306,515 |
84 |
|
Per share
basic |
0.01 |
0.01 |
- |
0.07 |
0.04 |
75 |
|
Per share diluted
(3) |
0.01 |
0.01 |
- |
0.07 |
0.04 |
75 |
Net
income (loss) |
(1,074,202) |
(8,270,280) |
(87) |
(1,621,574) |
(12,551,276) |
(87) |
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Per share
basic |
(0.01) |
(0.09) |
(89) |
(0.02) |
(0.14) |
(86) |
|
Per share diluted
(3) |
(0.01) |
(0.09) |
(89) |
(0.02) |
(0.14) |
(86) |
Capital expenditures - Exploration and development
(4) |
5,872,876 |
1,696,828 |
246 |
8,298,683 |
2,538,904 |
227 |
Net
debt and working capital surplus (deficit) (2) |
(21,840,956) |
(9,189,958) |
138 |
(21,840,956) |
(9,189,958) |
138 |
Operating |
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Production |
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Crude oil and
natural gas liquids (Bbls per day) |
537 |
567 |
(5) |
638 |
586 |
9 |
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Natural gas (Mcf
per day) |
1,360 |
1,677 |
(19) |
1,318 |
1,736 |
(24) |
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Barrels of oil
equivalent (Boe per day) (5) |
764 |
847 |
(10) |
858 |
875 |
(2) |
Average realized
price |
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Crude oil and
natural gas liquids ($ per Bbl) |
92.22 |
102.23 |
(10) |
94.57 |
87.17 |
8 |
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Natural gas ($ per
Mcf) |
4.03 |
2.37 |
70 |
4.77 |
2.93 |
63 |
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Barrels of oil
equivalent ($ per Boe) (5) |
71.99 |
73.13 |
(2) |
78.81 |
64.19 |
23 |
Netback ($ per Boe) (2)(5) |
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Petroleum and
natural gas sales |
71.99 |
73.13 |
(2) |
78.81 |
64.19 |
23 |
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Royalties |
10.36 |
11.28 |
(8) |
9.47 |
10.32 |
(8) |
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Operating
expenses |
29.30 |
43.46 |
(33) |
27.51 |
28.32 |
(3) |
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Transportation
expenses |
4.35 |
2.63 |
65 |
4.49 |
2.48 |
81 |
Operating Netback ($ per Boe) (2)(5) |
27.98 |
15.76 |
78 |
37.34 |
23.07 |
62 |
Undeveloped land holdings (gross acres) |
116,479 |
129,724 |
(10) |
116,479 |
129,724 |
(10) |
(net
acres) |
110,672 |
123,185 |
(10) |
110,672 |
123,185 |
(10) |
Common Shares (000's) |
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Common
shares outstanding, end of period |
88,658 |
88,658 |
- |
88,658 |
88,658 |
- |
Weighted average common shares (basic) |
88,658 |
88,658 |
- |
88,658 |
88,658 |
- |
Weighted average common shares (diluted) (3) |
88,658 |
88,658 |
- |
88,658 |
88,658 |
- |
(1) |
Consolidated financial and operating highlights
for LGX Oil + Gas Inc. and all of its subsidiaries ("LGX" or the
"Company"). |
(2) |
Management uses funds generated by operations,
net debt and working capital surplus (deficit) and operating
netback to analyze operating performance and leverage. These
terms, as presented, do not have a standardized meaning prescribed
by International Financial Reporting Standards and therefore they
may not be comparable with the calculation of similar measures for
other entities. |
(3) |
In calculating the net income (loss) per share
diluted, the Company excludes the effect of outstanding stock
options and share warrants outstanding and uses the weighted
average common shares (basic) where the Company has a net loss for
the period. In calculating, funds generated by operations per
share diluted, the Company includes the effect of outstanding stock
options and share warrants using the treasury stock
method. |
(4) |
Refer to Capital Expenditures in the Management
Discussion and Analysis for the three and nine months ended
September 30, 2014. |
(5) |
Boe means barrel of oil equivalent. All
Boe conversions in this report are derived by converting natural
gas to oil equivalent at a ratio of six thousand cubic feet of
natural gas to one barrel of oil equivalent. Boe may be
misleading, particularly if used in isolation. A Boe
conversion rate of 1 Boe : 6 Mcf 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 of oil compared to natural gas based on currently
prevailing prices is significantly different than the energy
equivalency ratio of 1 Boe : 6 Mcf, utilizing a conversion ratio of
1 Boe : 6 Mcf may be misleading as an indication of value. |
ACCOMPLISHMENTS
- Increased funds generated from operations of $0.6 million ($0.01
per share) in the third quarter of 2013 to $1.1 million ($0.01
per share) in the third quarter of 2014 (97 percent increase on an
absolute basis)
- Increased operating netbacks from $15.76 per Boe in the third quarter of 2013 to
$36.43 per Boe in the third quarter
of 2014 (78 percent increase)
- Reduced operating expenses from $43.46 per Boe in the third quarter of 2013 to
$29.30 per Boe in the third quarter
of 2014 (33 percent decrease)
- Reduced net loss from $8.3
million ($0.09 per share) in
the third quarter of 2013 to $1.1
million ($0.01 per share) in
the third quarter of 2014 (87 percent decrease)
- Entered into a new banking facility with the Alberta Treasury
Branch consisting of a $20 million
revolving demand credit facility and a $10
million non-revolving term credit facility. The features of
the term credit facility include a two year committed term (subject
to extension upon mutual consent) available in two tranches with
full payment of the principle on maturity
- Drilled 2 gross (2.0 net) wells for a 100 percent success
rate
OPERATIONS REVIEW
Big Valley
and Banff
The Company spud both wells of its two well
commitment on the Blood Reserve in the quarter. The 15-25-8-24W4M
horizontal well spud mid-way through the quarter and was rig
released near the end of the quarter, while the 13-2-9-24W4M
horizontal well was spud at the end of the quarter and was rig
released early in the fourth quarter. Both wells encountered
over-pressured, oil saturated, fractured Big Valley (Three Forks) and Banff sections.
Subsequent to the third quarter, both wells were
completed in the Big Valley Formation with multi-stage fracture
stimulations and are in various stages of flowback and pressure
build-up. The Company did not plan for an extended flowback
test, choosing to test the wells through the nearly complete oil
battery to reduce capital and operating costs. LGX's average
and exit production guidance is dependent on the results from these
wells and production results will be released as they are
available.
Work is nearly complete on a multi-well battery
that will treat the production from the two new wells and the 14-2
well drilled in 2013. The battery will enable more consistent
well run times and reduced operating expenses.
Manyberries
The Company continued to complete workovers in
the Manyberries field during the
third quarter in accordance with the provisions of the previously
announced order for the protection of the Greater Sage-Grouse (the
"Emergency Order") and LGX is continuing to work with Environment
Canada to get additional clarity on the practical application of
the Emergency Order.
LGX is a uniquely positioned, technically
driven, junior oil and natural gas company with a proven management
team committed to aggressive, cost-effective growth of light oil
reserves and production combined with high impact exploration
potential in southern Alberta. LGX's common shares trade on
the TSX Venture Exchange under the symbol OIL.
Neither 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.
Meaning of Boe - Boe means barrel of oil
equivalent. All Boe conversions in this report are derived by
converting natural gas to oil equivalent at a ratio of six thousand
cubic feet of natural gas to one barrel of oil equivalent.
Boe may be misleading, particularly if used in isolation. A
Boe conversion rate of 1 Boe: 6 Mcf 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 of oil compared to
natural gas based on currently prevailing prices is significantly
different than the energy equivalency ratio of 1 Boe : 6 Mcf,
utilizing a conversion ratio of 1 Boe : 6 Mcf may be misleading as
an indication of value.
SOURCE LGX Oil + Gas Inc.