Torquay Oil Corp. Reports 2012 First Quarter Results
30 Mai 2012 - 1:04AM
Marketwired Canada
THIS NEWS RELEASE IS NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES,
TO UNITED STATES NEWS WIRE SERVICES OR TO UNITED STATES PERSONS.
Torquay Oil Corp. (TSX VENTURE:TOC.A) (TSX VENTURE:TOC.B) ("Torquay" or the
"Corporation") is pleased to announce that it has filed its unaudited financial
statements and related Management's Discussion and Analysis ("MD&A") as at and
for the three months ended March 31, 2012. The Corporation's unaudited financial
statements and related MD&A are available for review at www.torquayoil.com or
www.sedar.com.
Torquay Oil Corp. exited Q1 2012 producing 575 boe/day, and averaged production
of 561 boe/day throughout the quarter, an increase of 52% over the Q1 2011
average production.
Torquay experienced fluctuations in oil pricing throughout the quarter. Despite
these fluctuations, Torquay's field netbacks averaged $58.30/boe, an increase of
13% over the Q1 2011 average, while operating costs were reduced by 24% from Q1
2011 to $9.34/boe.
Funds flow from operations was $2,257,380 for the quarter ended March 31, 2012,
an increase of 126% over Q1 2011.
The Corporation had $9.4MM of net debt on its $11.5MM credit facility as of
March 31, 2012. Torquay plans to exit the year with a debt level of
approximately one times trailing cash flow.
During the first quarter Torquay drilled one (1.0 net) exploration well at
Willmar, Saskatchewan that proved to be uneconomic and one (1.0 net) well at
Queensdale, Saskatchewan. The well at Queensdale was the Corporation's third
well drilled into the pool and to date has averaged over 150 boe/day through the
first two months of production.
In Q1 2012 Torquay also shot a four square km 3D seismic program at Queensdale
to further delineate the pool and continues to focus on expanding this core
area.
The Company holds approximately 86 net sections of contiguous land in the Lake
Alma area. Economic Bakken wells have now been drilled to within five kilometers
south and six kilometers east of the land block. As well, Three Forks production
in the United States has now moved to within 50 kilometers of Torquay's land at
Lake Alma. The Company has identified numerous Three Forks shows on its land
base and continues to advance the Three Forks play alongside its Bakken play.
Financial and Operational Highlights
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Three months ended Three months ended
March 31, 2012 March 31, 2011
($000's except per share
amounts)
Petroleum & natural gas
revenue $ 4,034 $ 2,448
Funds flow from operations 2,257 1,000
Funds flow per share
(basic and diluted) 0.05 0.03
Net loss (1,240) (2,962)
Net loss per share (basic
and diluted) (0.03) (0.08)
Capital expenditures (net) 2,323 16,682
Weighted common shares
outstanding (1) 48,168 35,461
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Production
Crude oil (bbls/d) 492 287
NGL's (bbls/d) 28 49
Natural gas (mcf/d) 248 207
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Total boe/d 561 370
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Pricing
Crude oil ($/bbl) $ 87.05 $ 84.28
NGL's ($/bbl) 41.75 42.88
Natural gas ($/mcf) 1.43 4.39
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Average ($/boe) $ 78.99 $ 73.44
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Netbacks ($/boe)
Petroleum & Natural gas
revenue $ 78.99 $ 73.44
Royalties (11.35) (9.28)
Operating costs (9.34) (12.40)
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Field netback $ 58.30 $ 51.76
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(1) Basic per share amounts are calculated by dividing net income or loss
by the weighted average number of Class A outstanding during the period. In
addition, for the purpose of calculating diluted per share amounts the
effect of warrants, options and convertible Class B Shares are anti-
dilutive and consequently are not included in the determination of diluted
shares outstanding.
Torquay is a uniquely positioned, oil focused, junior exploration Corporation
formed to generate and develop its own prospects, acquire oil-weighted
properties and participate with joint venture partners in oil exploration and
development in the Western Canadian Sedimentary Basin. The Corporation's Class A
Shares and Class B Shares trade on the TSX Venture Exchange under the symbols
TOC.A and TOC.B. The Corporation currently has 48,659,448 Class A Shares and
1,260,000 Class B Shares outstanding.
FORWARD LOOKING STATEMENTS:
This news release contains forward-looking statements and forward-looking
information (collectively "forward looking information") within the meaning of
applicable securities laws. Forward-looking information typically use words such
as "anticipate", "believe", "project", "expect", "goal", "plan", "intend" or
similar words suggesting future outcomes, statements that actions, events or
conditions "may", "would", "could" or "will" be taken or occur in the future. In
particular, forward looking information in this news release includes, but is
not limited to: statements with respect to, debt to cash flow ratios, future
cash flows and the expected results from operations. The forward-looking
information is based on certain key expectations and assumptions made by
Torquay, including expectations and assumptions concerning prevailing commodity
prices, exchange rates, interest rates, applicable royalty rates and tax laws;
future well production rates and estimates of operating costs; reserve and
resource volumes; expected results of operating techniques; the state of the
economy and the exploration and production business; business prospects and
opportunities; the availability and cost of financing, labour and services; the
impact of increasing competition; ability to market oil and natural gas
successfully and the ability of the Corporation to access capital.
Although Torquay believes that the expectations and assumptions on which the
forward-looking statements are based are reasonable, undue reliance should not
be placed on the forward-looking statements because Torquay can give no
assurance that they will prove to be correct. Since forward-looking statements
address future events and conditions, by their very nature they involve inherent
risks and uncertainties. Actual results could differ materially from those
currently anticipated due to a number of factors and risks. These include, but
are not limited to, results from operations will not meet with expectations and
risks associated with the oil and gas industry generally. Additional information
on the foregoing risks and other factors that could affect Torquay' operations
and financial results are included in Torquay's annual information form and
other reports on file with Canadian securities regulatory authorities and may be
accessed through the SEDAR website (www.sedar.com). The forward-looking
statements contained in this news release are made as of the date hereof and
Torquay undertakes no obligation to update publicly or revise any
forward-looking statements or information, whether as a result of new
information, future events or otherwise, unless so required by applicable
securities laws. The term "boe" may be misleading, particularly if used in
isolation. A boe conversion of 6 Mcf: 1 bbl is based on an energy equivalency
conversion method primarily applicable at the burner tip and does not
necessarily represent a value equivalency at the wellhead. References to "funds
flow from operations" (cash flow from operating activities before changes in
non-cash working capital and decommissioning expenditures) and "operating
netbacks" (oil and gas revenue less royalties and operating costs) which are not
IFRS measures and do not have standardized meanings prescribed by IFRS and
therefore may not be comparable with the calculation of similar measures from
other entities.
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