CALGARY, ALBERTA–(Marketwired – Nov. 27, 2013) – Anterra Energy Inc. (TSX VENTURE:AE.A)(OTCQX:ATERF) (“Anterra” or the “Company”) is pleased to announce financial and operating results for the three and nine months ended September 30, 2013. Selected information as outlined below should be read in conjunction with the Company’s unaudited consolidated financial statements and related management discussion and analysis available on SEDAR at www.sedar.com or the Company’s website at www.anterraenergy.com.
“Throughout 2013, we have made significant progress towards building our reserves and production base, as evidenced by the Terrex and recently announced Nipisi property acquisition,” stated Gang Fang, President and CEO. “With expected improving cash flow, available bank lines, access to capital and technical support from our strategic industry partner, we believe the Company is positioned to pursue an aggressive and also prudent growth strategy into 2014.”
Operations
Results for the third quarter of 2013 include the operations of Terrex Energy Inc. (“Terrex”), acquired on March 14, 2013. The inclusion of Terrex operating results is the major contributor to the increase in sales volumes and revenue over the third quarter of 2012. On a quarter over quarter basis, Q3 2013 production of 406 boe/d was relatively consistent with Q2 2013 production of 427 boe/d. Revenue for Q3 2013 increased approximately 10% over that of Q2 2013 as a result of higher realized oil prices.
Oil and gas operating expenses during the third quarter of 2013 also increased significantly over 2012 as a result of the Terrex acquisition. Q3 2013 operating costs totaled $1,566,638 or $41.97/boe compared to $588,044 or $32.84/boe in the same period last year. This per barrel increase is primarily due to the higher overall operating costs associated with the Terrex properties. As compared to Q2 2013, Q3 2013 operating costs, on a boe basis, decreased by 9.4% as a result of reduced remediation work at Strathmore and Two Creek during the quarter.
The Company reported losses of $584,159 and $818,613 respectively for the three and nine months ended September 30, 2013 as compared to losses of $46,189 and $386,668 for the comparable periods in 2012. Increased revenues in 2013, including the $1,192,666 gain recognized on the Terrex business combination, were more than offset by increased expenses. Higher than normal general and administrative and operating expenses, particularly during the second quarter, were largely the result of onetime costs associated with the Terrex acquisition. General and administrative and operating costs for the third quarter of 2013 decreased $421,967 from those in the second quarter of 2013.
Funds from operations for the three and nine months ended September 30 2013 were $226,689 and $142,590 respectively as compared to funds from operations of $366,600 and $976,328 for the comparable periods in 2012. Funds from operations for Q3 2013 were $226,689, an increase of $624,546 over Q2 2013 negative funds flow of ($397,857). The quarter over quarter improvement in funds from operations, reflects increased revenue and reduced operating and general and administrative expenses during the quarter.
Outlook
With the acquisition of Terrex during the first quarter of 2013, Anterra added two new development areas, Strathmore and Two Creek. These areas are in addition to the Company’s Cardium project at Buck Lake and its Belly River development property at Bretton. Each of these four properties presents the Company with differing and unique opportunities and potential. The Company will add an additional development area with the closing of the Nipisi acquisition announced in the Company’s News Release of November 26, 2013.
Anterra is currently preparing a comprehensive corporate development plan based upon a thorough technical and economic review and evaluation of each of these focus properties. The Company is working closely with, and has entered into a longer term technical support arrangement with LandOcean Energy Services Co., Ltd. (“LandOcean”), in conducting property evaluations and in preparing a comprehensive development plan which it expects will be completed by year-end. Plans for 2014 will be announced at that time. LandOcean is a Beijing headquartered, international service corporation that provides geological, geophysical, reservoir and other technical services to the oil and gas industry worldwide.
Financial and Operating Results
| Three Months Ended September 30, | Nine months ended September 30, | |||
| 2013 | 2012 | 2013 | 2012 | |
| Production | ||||
| Light crude oil (bbls/d) | 283 | 133 | 260 | 162 |
| Natural gas (mcf/d) | 652 | 338 | 639 | 362 |
| NGLs (bbls/d) | 14 | 10 | 17 | 11 |
| Total production (boe/d) | 406 | 199 | 384 | 233 |
| Total production (boe) | 37,327 | 17,907 | 104,797 | 63,276 |
| Revenue | ||||
| Light crude oil ($) | 2,469,024 | 994,222 | 6,147,499 | 3,680,272 |
| Natural gas ($) | 211,956 | 78,466 | 648,826 | 238,161 |
| NGLs ($) | 80,802 | 45,530 | 270,755 | 179,754 |
| Gross revenue ($) | 2,761,782 | 1,118,218 | 7,067,080 | 4,098,187 |
| Royalties ($) | 539,162 | 154,780 | 1,153,829 | |