CALGARY, Nov. 25, 2014 /CNW/ – Ikkuma Resources Corp. (“Ikkuma” or the “Corporation”) (TSXV: IKM) is pleased to report its financial and operating results for the three and nine months ended September 30, 2014. Ikkuma’s interim condensed financial statements and related management’s discussion and analysis for three months and nine months ended September 30, 2014 have been filed and are available on the SEDAR website at www.sedar.com and may also be obtained on Ikkuma’s website at www.ikkumarescorp.com.
Highlights
|
Three months ended |
Nine months ended |
||||||||||
|
September 30, |
September 30, |
||||||||||
|
2014 |
2013 |
2014 |
2013 |
||||||||
|
(unaudited) |
(unaudited) |
||||||||||
|
Operations |
|||||||||||
|
Average daily production |
|||||||||||
|
Natural gas (mcf/d)(1) |
22,453 |
75 |
7,734 |
72 |
|||||||
|
Light Oil (bbls/d) |
39 |
50 |
40 |
68 |
|||||||
|
NGL’s (bbl/d) |
9 |
1 |
6 |
1 |
|||||||
|
Total equivalent (boe/d) |
3,790 |
64 |
1,335 |
81 |
|||||||
|
Average product prices |
|||||||||||
|
Natural gas ($/mcf) |
$ |
3.96 |
$ |
7 |
$ |
3.98 |
$ |
2.83 |
|||
|
Light Oil ($/bbl) |
$ |
81.76 |
$ |
90.23 |
$ |
84.61 |
$ |
80.80 |
|||
|
NGL ($/bbl) |
$ |
82.51 |
$ |
51.37 |
$ |
75.07 |
$ |
53.05 |
|||
|
Total equivalent ($/boe) |
$ |
24.55 |
$ |
74.37 |
$ |
25.98 |
$ |
71.00 |
|||
|
Royalties ($/boe) |
$ |
5.76 |
$ |
13.38 |
$ |
5.95 |
$ |
14.19 |
|||
|
Operating and transportation |
|||||||||||
|
costs ($/boe) |
$ |
9.35 |
$ |
30.77 |
$ |
10.46 |
$ |
32.59 |
|||
|
Operating netback(1)($/boe) |
$ |
9.44 |
$ |
30.22 |
$ |
9.57 |
$ |
24.22 |
|||
|
Financial ($000) |
|||||||||||
|
Oil and gas sales (1) |
$ |
8,560 |
$ |
434 |
$ |
9,463 |
$ |
1,568 |
|||
|
Funds flow from operations(2) |
$ |
1,520 |
$ |
(75) |
$ |
(365) |
$ |
(207) |
|||
|
Per share – basic and diluted |
$ |
0.02 |
$ |
0.02 |
$ |
0.01 |
$ |
0.07 |
|||
|
Income (loss) |
$ |
1,499 |
$ |
2,068 |
$ |
(5,225) |
$ |
215 |
|||
|
Per share – basic & diluted |
$ |
0.02 |
$ |
0.72 |
$ |
(0.19) |
$ |
0.07 |
|||
|
Capital expenditures incl. acquisitions |
$ |
115,959 |
$ |
298 |
$ |
116,500 |
$ |
521 |
|||
|
Net debt (working capital)(2) |
$ |
(21,591) |
$ |
837 |
$ |
(21,591) |
$ |
837 |
|||
|
Shares outstanding (000)(3) |
80,159 |
2,878 |
80,159 |
2,878 |
|||||||
|
Weighted average shares outstanding |
|||||||||||
|
Basic (000)(3) |
62,885 |
2,878 |
27,023 |
2,878 |
|||||||
|
Diluted (000)(3) |
65,357 |
2,878 |
28,972 |
2,878 |
|||||||
|
(1) |
Natural gas volumes were reduced within the quarter due to third party maintenance of gas distribution and processing infrastructure. |
|
(2) |
Certain financial measures referred to in this press release, such as “funds flow”, “funds flow per boe”, “funds flow per share”, “operating netback” , and “Net debt” do not have standardized meanings prescribed by Canadian generally accepted accounting principles (“GAAP”). Management believes that in addition to net income, funds flow from operations and netback are useful supplemental measures as they provide an indication of the results generated by the Corporation’s principal business activities before the consideration of how those activities are financed or how the results are taxed. Investors are cautioned, however, that these measures should not be construed as alternatives to net income determined in accordance with IFRS, as an indication of Ikkuma’s performance. These financial measures do not have a standardized meaning prescribed by IFRS and are, therefore, unlikely to be comparable to similar measures presented by other issuers. “Funds flow” is calculated based on cash flows from operating activities before changes in non-cash working capital, transaction costs from acquisitions and decommissioning expenditures incurred. “Operating netback” is calculated by deducting royalties, production expenses and transportation expenses from oil and gas revenue. “Funds flow from operations per share” is calculated using weighted average number of shares outstanding consistent with the net income (loss) per share calculation. “Net debt” represents bank debt and accounts payable and accrued liabilities less accounts receivable and prepaid expenses and deposits. |
|
(3) |
On September 17, 2014, the shareholders of the Corporation approved a change of the Corporation’s name to “Ikkuma Resources Corp.” from Panterra Resource Corp. In addition, the Shareholders approved a 10 for 1 share consolidation. The number of shares, warrants and options outstanding have been adjusted on a retroactive basis. |
About Ikkuma
Ikkuma is a junior public oil and gas company listed on the TSX Venture Exchange under the symbol “IKM” (as of Monday, September 22, 2014), with conventional and unconventional assets in Western Canada. The technical team has worked together for over a decade in the Foothills Region of Western Canada, through two successful, publicly traded companies. The unique skills and repeat success at exploiting a complex, potentially prolific play type are fundamental ingredients for a successful growth-oriented company in Western Canada. Corporation information can be found at: www.ikkumarescorp.com.
[expand title=”Advisories & Contact”]Forward-Looking Statements and Information and Cautionary Statements
This press release contains forward‑looking statements and forward‑looking information within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “objective”, “ongoing”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends” and similar expressions are intended to identify forward‑looking statements or information. Although Ikkuma believes that the expectations and assumptions on which the forward‑looking statements and information are based are reasonable, undue reliance should not be placed on the forward‑looking statements and information because Ikkuma cannot give any assurance that they will prove to be correct. Since forward‑looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risk. These include but are not limited to the risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses; failure to obtain necessary regulatory approvals for planned operations; health, safety and environmental risks; uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures; volatility of commodity prices, currency exchange rate fluctuations; imprecision of reserve estimates; and competition from other explorers) as well as general economic conditions, stock market volatility, and the ability to access sufficient capital. We caution that the foregoing list of risks and uncertainties is not exhaustive.
In addition, the reader is cautioned that historical results are not necessarily indicative of future performance. The forward-looking statements and information contained in this press release are made as of the date hereof and Ikkuma undertakes no obligation to update publicly or revise any forward‑looking statement or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Certain information set out herein may be considered as “financial outlook” within the meaning of applicable securities laws. The purpose of this financial outlook is to provide readers with disclosure regarding Ikkuma’s reasonable expectations as to the anticipated results of its proposed business activities for the periods indicated. Readers are cautioned that the financial outlook may not be appropriate for other purposes.
Oil and Gas Advisory
In this press release, the abbreviation BOE means a barrel of oil equivalent derived by converting gas to oil in the ratio of 6 Mcf of gas to 1 bbl of oil (6 Mcf:1 bbl). BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf:1 bbl 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, utilizing a conversion ratio on a 6 Mcf of gas to 1 bbl of oil basis may be misleading as an indication of value.
NEITHER 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.
SOURCE Ikkuma Resources Corp.