CALGARY, ALBERTA–(Marketwired – Nov. 29, 2013) – Tuscany Energy Ltd. (TSX VENTURE:TUS).
Tuscany is pleased to report that its revenue for Q3 2013 totaled a record $3.7 million, compared with $1.6 million for the same period in 2012. Cash flow from operations for the quarter totaled $1.5 million. This was the seconded highest quarterly cash flow in the Company’s history and up from the $244,000 reported in Q3 2012.
Tuscany’s production for the third quarter of 2013 averaged 613 BOEd compared with 308 BOEd for Q3 2012 and Tuscany’s production in October exceeded 750 BOEd.
Two significant events impacted the Company in Q3 2013. During the quarter Tuscany completed the acquisition of Diaz Resources Ltd. and commenced development of two of its heavy oil properties in Saskatchewan.
The combination of the Diaz acquisition and three new wells increased the September production rate to a record 790 BOEd. Tuscany anticipates a normal decline from the initial rates from the new wells but is very pleased with the results so far.
Heavy oil prices recovered in Q3 2013 to average $86.39 per Bbl. However at the time of writing this press release the heavy oil differential has commenced its seasonal low cycle and the Company’s netback for oil is decreasing. The Company believes it will average approximately $60 per Bbl in Q4 2013 and that the price will recover in the spring of 2014.
As a result of the current low heavy oil price, the Company will delay major capital expenditures until early 2014. The Company plans to achieve sound 2014 growth by drilling additional wells in the spring in order to tie in new production at a time of the higher anticipated oil prices.
|Three months ended||Nine months ended|
|September 30||September 30|
|($ Thousands, unless otherwise indicated, unaudited)||2013||2012||2013||2012|
|Revenue, net of royalties||$||3,722||$||1,632||$||6,608||$||5,759|
|Cash flow from operations||1,477||244||2,098||1,941|
|per share, diluted *||0.08||0.02||0.13||0.13|
|Net earnings (loss)||(83||)||9||(960||)||(464||)|
|per share, diluted *||0.00||0.00||(0.06||)||(0.03||)|
|Comprehensive earnings (loss) for the period||(82||)||(52||)||(959||)||56|
|Net capital expenditures||(2,669||)||(689||)||(3,917||)||(3,790||)|
|Working capital (net debt)||(8,139||)||(63||)||(8,139||)||(63||)|
|Total shares outstanding at period end||18,315||15,365||18,315||15,365|
|BOEd (6 Mcf = 1 Bbl)||613||308||402||347|
* Adjusted to account for the 8 to 1 common share consolidation effective July 15, 2013
Tuscany has filed on SEDAR and its website its Interim Financial Statements and MD&A for the nine months ended September 30, 2013.
ADVISORY: Certain of the statements contained herein including, without limitation, management’s assessment of future plans and operations, drilling plans and the timing thereof, the effect of production from new wells at Macklin and Evesham, expected future oil prices and impact thereof, method of financing continuing exploration and development timing of completion of new facilities and the effect thereof, may be forward-looking statements. Words such as “may”, “will”, “should”, “could”, “anticipate”, “believe”, “expect”, “intend”, “plan”, “potential”, “continue” and similar expressions may be used to identify these forward-looking statements. These statements reflect management’s beliefs at the date of this press release and are based on information available to management at that time. Forward-looking statements involve significant risk and uncertainties.
A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including, but not limited to, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, environmental risks, competition from other producers, inability to retain drilling rigs and other services, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources and the risk factors outlined under “Risk Factors” in the Company’s Annual Information Form. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Tuscany’s operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) or at Tuscany’s website (www.Tuscanyenergy.com). Although the forward-looking statements contained herein are based upon what Management believes to be reasonable assumptions, including but not limited to assumptions as to the price of oil and natural gas, interest rates, exchange rates and the regulatory and legal environment in which Tuscany operates, the recoverability and production characteristics of Tuscany’s reserves, Tuscany’s capital expenditures program and future operations and other matters, there is no assurance that actual results will be consistent with these forward-looking statements. Investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and the Company assumes no obligation to update or review them to reflect new events or circumstances except as required by applicable securities laws.
Where amounts are expressed on a barrel of oil equivalent (boe) basis, natural gas volumes have been converted to barrels of oil at six thousand cubic feet (mcf) per barrel (bbl). Boe figures may be misleading, particularly if used in isolation. A boe conversion of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. References to oil in this discussion include crude oil and natural gas liquids (NGLs).
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
TUSCANY ENERGY LTD.
Telephone: (403) 269-9889
(403) 269-9890 (FAX)
Charles A. Teare, Executive Vice President & CFO
TUSCANY ENERGY LTD.
Telephone: (403) 269-9889
(403) 269-9890 (FAX)