CALGARY, ALBERTA–(Marketwired – May 29, 2014) – Tuscany Energy Ltd. (TSX VENTURE:TUS) is pleased to report significant increases in production revenue, cash flow and production volumes for the first quarter ended March 31, 2014 from those of the first quarter of the prior year.
Production revenues increased to $4.1 million in 2014 from $1.3 million in the prior year. Cash flow totaled $1.8 million or 9 cents per share compared with $0.3 million or 2 cents per share in 2013.
Corporate Summary
| Three months ended March 31, | 2014 | 2013 | ||||||
| ($ Thousands, unless otherwise indicated) | ||||||||
| Financial | ||||||||
| Production revenue | $ | 4,057 | $ | 1,287 | ||||
| Cash flow from operations * | 1,835 | 297 | ||||||
| per share, diluted | 0.09 | 0.02 | ||||||
| Net loss for the period | (220 | ) | (432 | ) | ||||
| per share, diluted | (0.01 | ) | (0.03 | ) | ||||
| Capital expenditures, net of dispositions | 1,449 | 770 | ||||||
| Net debt * | (7,074 | ) | (150 | ) | ||||
| Total assets | 34,847 | 24,246 | ||||||
| Total shares outstanding at period end | 19,331 | 14,992 | ||||||
| Operations | ||||||||
| Production | ||||||||
| Oil (Bopd) | 553 | 274 | ||||||
| Gas (Mcfd) | 732 | 162 | ||||||
| BOEd (6 Mcf = 1 Bbl) | 675 | 301 | ||||||
| Product Prices | ||||||||
| Oil ($/Bbl) | $ | 74.08 | $ | 50.65 | ||||
| Gas ($/Mcf) | $ | 5.62 | $ | 2.61 | ||||
* See non-GAAP measures in Tuscany’s MD&A for the three months ended March 31, 2014
Production volumes in Q1 2014 increased to average approximately 675 BOED from 301 BOED for Q1 2013. Production growth continued in April 2014, with the Company’s production averaging in excess of 750 BOED, resulting in production revenues of approximately $1.6 million for the month.
These improved financial and operating results resulted from the acquisition of Diaz Resources Ltd. in July 2013, together with increased oil production from the Evesham and Macklin areas, where Tuscany has drilled 5 heavy oil wells (4.2 net wells) since the Diaz acquisition.
Tuscany plans an active development program at Evesham and Macklin during the summer months, to benefit from higher prevailing heavy oil prices. In addition the Company is formulating plans for its first well on the Sparky project in the Macklin area which is anticipated to commence in the fall of 2014.
Tuscany has filed its Interim Financial Statements and MD&A for the three months ended March 31, 2014 on SEDAR and its website.
[expand title=”Advisories & Contact”]
ADVISORY: This news release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends” and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this news release contains forward-looking information and statements’ pertaining to Tuscany’s drilling plans. The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such planned drilling involves known and unknown risks, uncertainties and other factors that may cause actual drilling plans to differ materially from those anticipated.
Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be 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 on the basis of 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. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6 mcf : 1 bbl, using a conversion on a 6 mcf : 1 bbl basis may be misleading as an indication of value. 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.
Robert W. Lamond
President & CEO
(403) 269-9889
(403) 269-9890 (FAX)
TUSCANY ENERGY LTD.
Donald K. Clark
Vice President Operations
(403) 269-9889
(403) 269-9890 (FAX)
www.tuscanyenergy.com
[/expand]