Traverse Energy Announces 2010 Year End Financial Results
27 Avril 2011 - 12:04AM
Marketwired Canada
Traverse Energy Ltd. ("Traverse" or "the Company") (TSX VENTURE:TVL) presents
financial and operating results for the year ended December 31, 2010. Unless
otherwise stated, the volume conversion of natural gas to barrel of oil
equivalent (BOE) is presented on the basis of 6 thousand cubic feet of natural
gas being equal to 1 barrel of oil.
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Three Months Ended
HIGHLIGHTS December 31 (unaudited) Year Ended December 31
2010 2009 2010 2009 2008
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Financial ($ thousands,
except per share
amounts)
Petroleum & natural
gas revenue $ 1,136 $ 156 $ 2,118 $ 547 $ 1,372
Funds flow from
operations 636 (29) 795 128 847
Per share
- basic and diluted 0.02 0.00 0.03 0.01 0.07
Cash flow from operations 244 17 487 (250) 974
Per share
- basic and diluted 0.01 0.00 0.02 (0.01) 0.08
Net income (loss) (1,191) (177) (2,106) (722) 408
Per share
- basic and diluted (0.04) (0.01) (0.08) (0.04) 0.03
Capital expenditures 3,569 1,290 7,970 1,790 457
Total assets 14,177 10,241 14,177 10,241 6,193
Working capital 2,358 4,546 2,358 4,546 2,501
Common shares
Outstanding (millions) 31.9 24.9 31.9 24.9 12.9
Weighted average
(millions) 30.1 24.1 27.4 18.2 12.9
Operations
(Units as noted)
Production (BOE/d) 214 48 121 48 65
Natural gas (Mcf per day) 423 233 370 237 346
Oil and NGL (bbls per day) 143 9 59 9 7
Average sale price
Natural gas ($/Mcf) 3.73 4.29 3.91 4.11 9.04
Oil and NGL ($/bbl) 75.10 73.85 73.46 60.44 89.93
Netback per BOE ($/BOE)
Petroleum & natural gas
revenue 57.73 35.84 47.98 31.26 57.83
Royalties 2.71 0.15 2.18 0.19 0.35
Operating 12.59 6.69 12.72 6.64 6.31
Transportation 1.76 1.22 1.63 0.69 1.04
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Operating netback 40.67 27.78 31.45 23.74 50.13
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Non-GAAP measures
Management uses funds flow from operations and operating netback to analyze
operating performance. These measures are commonly utilized in the oil and gas
industry and are considered informative for management and stakeholders. The
reconciliation between cash flow from operations and funds flow from operations
can be found in the statement of cash flows in the financial statements with
funds flow from operations calculated before non-cash working capital and asset
retirement expenditures. Management believes that in addition to net loss, funds
flow from operations is a useful supplemental measure as it provides an
indication of Traverse's operating performance. Operating netback reflects
petroleum and natural gas revenues less royalties, operating and transportation
costs and is calculated on a per unit basis. Investors should be cautioned,
however, that these measures may not be comparable to measures reported by other
companies nor should they be construed as an alternative to cash flow from
operations or other measures of financial performance calculated in accordance
with GAAP.
Financial and Operating Review
The change in management and business direction of Traverse that occurred in
June 2009 has significantly impacted the financial and operating results for
2010. Prior year revenue consisted mainly of natural gas royalty income and
minor working interest production. As a result comparison of certain items
between 2010 and prior years may not be meaningful.
In 2010 Traverse participated in the drilling of 10 gross (9.25 net) wells all
within the province of Alberta. This drilling resulted in 4.25 net oil wells, 1
net natural gas well, 2 net suspended potential natural gas wells and 2 net
abandonments. Production in the Turin area increased with the addition of 3 oil
wells (2.25 net), the installation of a natural gas sweetening unit and the
expansion of the oil battery. Oil production further increased with the success
in the fall of a single oil well at Long Coulee (100% working interest). Gas
production increased early in the year with the addition of a 100% interest well
in the Warwick area. Additional drilling operations in the Warwick area resulted
in two potential natural gas wells (100% working interest); however, additional
completion activities in the wells have been delayed due to depressed natural
gas prices. One horizontal well and one re-entry in the Manyberries area have
been abandoned. Late in the year, a successful oil well was drilled in the
Carbon area.
Drilling activities carried out during the fourth quarter included three 100%
working interest wells resulting in 1 oil well at Long Coulee, 1 oil well at
Carbon and 1 dry and abandoned well at Manyberries. Field activities also
included the construction of oil and natural gas production facilities at Long
Coulee. The Long Coulee well was drilled in October and placed on production in
early November. The addition of new oil production with associated natural gas
from Long Coulee is reflected in the daily production average of 214 BOE per day
in the fourth quarter versus 103 BOE per day in the third quarter. Undeveloped
lands holdings at December 31, 2010 totaled 155,500 gross, 147,400 net acres at
an average working interest of 94%.
Traverse plans an active 2011. The Company will focus on its' existing light oil
properties in central and southern Alberta. During the first quarter the oil
well at Carbon was flow tested. The well requires a pipeline tie-in to nearby
gas facilities in order to conserve natural gas. The tie-in is anticipated to be
completed after spring break-up. 3D Seismic shooting activities are planned at
Turin and Long Coulee. Drilling is planned at Carbon, Turin, Long Coulee, and
Alliance. All of these areas are targeting light to medium gravity oil with
associated natural gas. Further drilling is also planned in other areas
depending on the availability of working capital. The Company has set an initial
budget of $8-9 million to be funded from working capital, cash flow and the
issue of additional equity.
Forward-looking information
This press release contains forward-looking information. Forward-looking
information is based upon the opinions, expectations and estimates of management
as at the date the information is provided and, in some cases, information
received from or disseminated by third parties. In particular, the Company's
statements with respect to the tie-in at Carbon, seismic field activities at
Turin and Long Coulee, and planned drilling for the remainder of 2011 contain
forward-looking information. This forward-looking information is subject to a
variety of substantial known and unknown risks and uncertainties and other
factors that could cause actual events or outcomes to differ materially from
those anticipated or implied by such forward-looking information. The Company's
Annual Information Form filed with securities regulatory authorities (accessible
through the SEDAR website www.sedar.com) describes the risks, material
assumptions and other factors that could influence actual results and which are
incorporated herein by reference.
The forward-looking information contained in this press release is made as of
the date hereof and the Company undertakes no obligation to update publicly or
revise any forward-looking information, whether as a result of new information,
future events or otherwise, unless so required by applicable securities laws.
Further details on the Company including the 2010 year end audited financial
statements, the related management's discussion and analysis and Annual
Information Form are available on the Company's website and SEDAR.
Traverse Energy (TSXV:TVL)
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