CALGARY, Aug. 30, 2017 /CNW/ – Manitok Energy Inc. (the “Corporation” or “Manitok“) (TSX-V: MEI) announces its financial and operating results for the second quarter of 2017.
The full text of Manitok’s second quarter results are contained in its unaudited and unreviewed condensed interim consolidated financial statements as at and for the three and six months ended June 30, 2017 and the related management’s discussion and analysis, copies of which are available electronically on Manitok’s profile on the System for Electronic Document Analysis and Retrieval (“SEDAR“) at www.sedar.com and also on Manitok’s website at www.manitokenergy.com.
Second Quarter 2017 Results:
- Average production increased by 55%, year over year, to 5,556 boe/d (38% light oil and liquids) as compared to 3,587 boe/d (49% light oil and liquids) in the second quarter of 2016.
- Recorded negative funds from operations of $0.1 million in the second quarter of 2017 as compared to negative funds from operations of $0.2 million in the second quarter of 2016. The second quarter of 2017 included an $0.8 million one-time cash payment related to the amended Lease Issuance and Drilling Commitment Agreement (“LIDCA“), which contributed to the $32.0 million reduction in Manitok’s capital commitment over 2017 and 2018 as discussed below.
- Operating netback excluding the realized gain (loss) on financial instruments was $8.76/boe as compared to $2.45/boe in the second quarter of 2016.
- Per unit operating expenses decreased by 4% to $14.87/boe as compared to $15.44/boe in the second quarter of 2016.
- Per unit G&A expenses decreased by 45% to $2.79/boe as compared to $5.03/boe in the second quarter of 2016.
- As at June 30, 2017, net bank debt was $40.3 million and net debt was $73.4 million, which includes senior secured notes and long-term financial obligations.
- On May 24, 2017, Manitok announced amended terms to its LIDCA Agreement with an Alberta based royalty company, including a $32.0 million reduction of its capital commitment over 2017 and 2018. Full details are available in the press release which can be found either on Manitok’s website (www.manitokenergy.com) or under Manitok’s SEDAR profile at www.sedar.com.
- On June 6, 2017, Manitok closed the previously announced arrangement agreement to acquire Craft Oil Ltd. (“Craft Arrangement“), which includes approximately $4.5 million of cash, $0.9 million of working capital surplus and approximately 250 boe/d (22% oil and liquids) of production, subsequent to an asset divestiture by Craft, which closed prior to the Craft Arrangement. Craft shareholders received 56.9 million common shares of Manitok.
OPERATIONAL AND FINANCIAL SUMMARY
Three months ended June 30, |
Six months ended June 30, |
||||
2017 |
2016 |
2017 |
2016 |
||
Operating |
|||||
Average daily production |
|||||
Light oil (bbls/d) |
1,505 |
1,519 |
1,566 |
1,665 |
|
Natural gas (mcf/d) |
20,605 |
11,004 |
22,144 |
12,654 |
|
NGLs (bbls/d) |
617 |
235 |
669 |
223 |
|
Total (boe/d) |
5,556 |
3,587 |
5,926 |
3,997 |
|
Average realized sales price |
|||||
Light oil ($/bbl) |
57.00 |
49.42 |
57.82 |
42.38 |
|
Natural gas ($/mcf) |
3.02 |
1.49 |
2.94 |
1.79 |
|
NGLs ($/bbl) |
32.81 |
24.86 |
33.71 |
23.31 |
|
Total ($/boe) |
30.29 |
27.11 |
30.08 |
24.64 |
|
Netback and Cost ($ per boe) |
|||||
Petroleum and natural gas sales |
30.29 |
27.11 |
30.08 |
24.64 |
|
Processing revenue |
1.01 |
0.74 |
0.97 |
0.65 |
|
Realized gain (loss) on financial instruments |
(0.67) |
5.74 |
(0.75) |
24.47 |
|
Royalty income |
0.07 |
– |
0.05 |
– |
|
Royalty expenses |
(6.35) |
(8.57) |
(6.78) |
(7.28) |
|
Operating expenses |
(14.87) |
(15.44) |
(13.34) |
(15.03) |
|
Transportation and marketing expenses |
(1.39) |
(1.39) |
(1.44) |
(1.47) |
|
Operating netback (1) |
8.09 |
8.19 |
8.79 |
25.98 |
|
General and administrative expenses |
(2.79) |
(5.03) |
(2.82) |
(4.38) |
|
Interest and financing expenses |
(3.48) |
(3.90) |
(3.19) |
(4.02) |
|
Funds from operations netback (1) |
1.82 |
(0.74) |
2.78 |
17.58 |
|
Financial |
|||||
Petroleum and natural gas revenue ($000) |
15,352 |
8,849 |
32,314 |
17,923 |
|
Funds from operations ($000) (1) |
(92) |
(244) |
1,850 |
12,791 |
|
Per share – basic and diluted ($) (1) |
– |
– |
0.01 |
0.08 |
|
Net loss ($000) |
(8,549) |
(7,354) |
(12,375) |
(3,752) |
|
Per share – basic and diluted ($) (2) |
(0.03) |
(0.04) |
(0.05) |
(0.02) |
|
Common shares outstanding |
|||||
End of period – basic |
319,716,343 |
177,510,671 |
319,716,343 |
177,510,671 |
|
End of period – diluted |
386,267,338 |
193,888,631 |
386,267,338 |
193,888,631 |
|
Weighted average for the period – basic |
277,825,505 |
168,663,250 |
270,364,121 |
162,364,715 |
|
Weighted average for the period – diluted |
277,825,505 |
169,036,922 |
270,437,499 |
162,678,786 |
|
Capital expenditures, net of divestitures ($000) |
2,212 |
3,260 |
4,419 |
9,426 |
|
Adjusted working capital deficit (surplus) ($000) (1) |
3,044 |
1,853 |
3,044 |
1,853 |
|
Drawn on credit facilities ($000) |
37,209 |
43,693 |
37,209 |
43,693 |
|
Net bank debt ($000) (1) |
40,253 |
45,546 |
40,253 |
45,546 |
|
Senior Secured Notes |
18,363 |
– |
18,363 |
– |
|
Long-term financial obligations ($000) |
14,803 |
14,902 |
14,803 |
14,902 |
|
Net debt ($000) (1) |
73,419 |
60,448 |
73,419 |
60,448 |
(1) |
Funds from operations, funds from operations per share, funds from operations netback, operating netback, adjusted working capital deficit, net bank debt and net debt do not have standardized meanings prescribed by generally accepted accounting principles and therefore should not be considered in isolation. These reported amounts and their underlying calculations are not necessarily comparable or calculated in an identical manner to a similarly titled measure of other companies where similar terminology is used. Where these measures are used they should be given careful consideration by the reader. Refer to the Non-GAAP Financial Measures paragraph in the Advisories section of this press release. |
(2) |
The basic and diluted weighted average shares outstanding are the same for periods in which the Corporation records a net loss and when all the outstanding stock options and warrants are anti-dilutive. |
About Manitok
Manitok is a public oil and gas exploration and development company focusing on Lithic Glauconitic light oil in southeast Alberta and Cardium light oil in west central Alberta. The Corporation utilizes its expertise, combined with the latest recovery techniques, to develop the remaining oil and liquids-rich natural gas pools in its core areas of the Western Canadian Sedimentary Basin.