Terrex Energy Inc. Reports Q1/2012 Operational and Financial Results
23 Mai 2012 - 11:30PM
PR Newswire (Canada)
CALGARY, May 23, 2012 /CNW/ - Terrex Energy Inc. ("Terrex" or the
"Company") is pleased to report its operational and financial
results for the three months ended March 31, 2012. The Company has
filed its unaudited condensed interim financial statements and
related management's discussion and analysis ("MD&A") for the
three months ended March 31, 2012 on SEDAR at www.sedar.com and on
the Company's website at www.terrexenergy.ca. Certain selected
financial information for the period, as set out below, should be
read in conjunction with the Company's unaudited condensed
financial statements and related MD&A for the period ended
March 31, 2012. OPERATIONS AND OUTLOOK Field rehabilitation
activities, in advance of the implementation of planned EOR
programs, were largely completed by year end and as a result,
operational activities during the first quarter of 2012 were much
reduced from prior periods. At Strathmore, efforts were focused on
finalizing the design and development of the planned ASP flood,
including the configuration of surface facilities. A substantial
amount of the required technical and planning work is complete and
the EOR project is in an advanced state of readiness for
implementation. At Two Creek, evaluation and planning for a Polymer
flood of the Jurassic A pool continued, including a realignment of
the existing water flood. The potential of a low pressure water
flood of the Jurassic B pool at Two Creek is being evaluated and an
application is being prepared for submission to the Energy
Resources Conservation Board. Subsequent to March 31, 2012, GLJ
Petroleum Consultants Ltd. ("GLJ") completed their independent
assessment and evaluation of the Company's reserves. As a result of
the Company's technical work and detailed development plans, GLJ
recognized significant reserve additions at both Strathmore and Two
Creek. The Company's EOR projects are now at a point where
additional capital is required to advance these projects and
realize on their potential. The Company is actively exploring
various financing options to fund these capital programs. To this
end, a special committee (the "Special Committee") of the board of
directors has been formed and has engaged Nova Bancorp Securities
Ltd., on a non-exclusive basis, to assist the Special Committee and
management with the identification and evaluation of various
financing strategies for the Company. On April 26, 2012, Mr.
Jonathan Lexier, P.Eng. was appointed President and CEO of the
Company. Mr. Lexier has been charged with pursuing all avenues to
realize on the Company's unique and valuable combination of assets
and expertise. His appointment reflects the Board's commitment to
the ongoing development of the Company. The Company has elected not
to provide market guidance at this time for 2012. OPERATIONAL AND
FINANCIAL SUMMARY THREE MONTH PERIODS ENDED MARCH 31 $000s except
as noted 2012 2011 Average production, Boe/d 336 353 Capital
expenditures, including acquisitions, $ 584 $ 15,044 Revenue, net
of royalties, $ 1,565 $ 1,651 Funds flow from operations (1) $
(347) $ (420) Per share, basic and diluted $ (0.004) $ (0.005)
Operating (loss) (1) $ (634) $ (725) Per share, basic and diluted $
(0.008) $ (0.009) Net (loss) $ (672) $ (701) Per share, basic and
diluted $ (0.008) $ (0.009) (1) Funds flow from operations and
operating loss are non-IFRS measures. Production for the three
months ended March 31, 2012 decreased from the comparable period in
2011 primarily as the result of down-hole mechanical problems at a
significant gas well at Two Creek. Well repairs will be delayed
until natural gas prices strengthen. Total revenues for the quarter
also decreased from those reported in 2011 as a result of the
reduced gas production and lower realized natural gas and crude oil
prices. As expected, the Company has continued to incur losses in
advance of the implementation of optimization and EOR projects. As
the Company's EOR and optimization projects progress, production
and revenue are anticipated to increase significantly. ABOUT TERREX
Terrex Energy Inc. is a Calgary based junior oil company that
focuses on the application of proven enhanced oil recovery ("EOR")
methods to improve oil production from existing mature fields.
Terrex targets underexploited and undercapitalized light to medium
oil reservoirs in Western Canada. The Company's shares are listed
on the TSX Venture Exchange under the trading symbol "TER". Neither
the TSX Venture Exchange nor its Regulation Service Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this
release. ADVISORIES Basis of Presentation - Production and reserve
information is commonly expressed in units of a barrel of oil
equivalent ("Boe"). For purposes of computing such units, natural
gas is converted to equivalent barrels of crude oil using a
conversion factor of six thousand cubic feet of natural gas to one
barrel of oil. This conversion ratio of 6:1 is based on an energy
equivalency at the burner tip and does not represent a value
equivalency at the well head. Used in isolation, barrels of oil
equivalent may be misleading. Forward-looking Information - This
News Release contains forward-looking information within the
meaning of applicable Canadian securities laws. All information
other than historical fact is forward-looking information.
Forward-looking information relates to future events or future
performance and is based on Terrex's current internal expectations,
estimates, projections, assumptions and beliefs. Forward-looking
information is often, but not always, identified by the use of
words such as "expect", "project", "proposed", "intend", "seek",
"anticipate", "budget", "plan", "continue", "estimate", "forecast",
"may", "will", "predict", "potential", "targeting", "could",
"might", "should", "believe" and similar expressions. Although
management considers the assumptions and estimates, reflected in
forward-looking information, to be reasonable, based on information
currently available, there can be no assurance that such
information will prove to be correct. As a consequence, actual
results may differ materially from those anticipated. In
particular, this News Release contains forward-looking information
relating to estimates and values of recoverable petroleum and
natural gas reserves. Information relating to reserves is
forward-looking as it involves the implied assessment, based on
certain estimates and assumptions, that the reserves exist in the
quantities estimated and that they will be commercially viable to
produce in the future. Estimates and assumptions upon which reserve
information is based include assumptions as to future commodity
prices, currency exchange rates, well production rates, well
drainage areas, success rates for future drilling, the timing,
implementation and effectiveness of tertiary production programs,
and the availability of labour and services. Undue reliance should
not be placed on forward-looking information which is inherently
uncertain, and subject to known and unknown risks and uncertainties
(both general and specific) that contribute to the possibility that
the future events or circumstances contemplated by the forward
looking information will not occur. These risks include, but are
not limited to risks associated with oil and natural gas
exploration, development and production, financial risks, the
history of losses, substantial capital requirements, political and
government risks, government regulations, environmental, prices,
dependence on key personnel, availability and access to equipment,
risks may not be insurable, licenses, resource estimates,
variations in exchange rates. Further information regarding these
factors may be found under the heading "Risk Factors" in the
company's Annual Information Form. Readers are cautioned the
foregoing list of factors that may affect future results is not
exhaustive. The forward-looking statements contained in this news
release are made as of the date hereof and Terrex does not
undertake any obligation to update publicly or to revise any of the
included forward-looking statements, except as required by
applicable law. The forward-looking statements contained herein are
expressly qualified by this cautionary statement. Non-IFRS Measures
- This news release makes reference to terms commonly used in the
oil and gas industry including funds flow from operations and
operating loss. Such terms do not have a standard meaning as
prescribed by IFRS and therefore may not be comparable with the
determination of similar measures for other entities. These
measures are identified as non-IFRS measures and are used by
management to analyze operating performance and leverage. These
measures should not be construed as an alternative to, or more
meaningful than measures determined in accordance with IFRS.
Terrex Energy Inc CONTACT: Jonathan Lexier, President &
CEO, or Norman Knecht, VP Financeand CFO,at (403) 264-4430, or
visit the Company's websiteat www.terrexenergy.ca
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