CALGARY, ALBERTA–(Marketwired – May 28, 2015) – Forent Energy Ltd. (“Forent” or the “Company”) (TSX VENTURE:FEN) is pleased to announce that it has filed its Financial Statements and Management’s Discussion & Analysis, for the three months ended March 31, 2015, with applicable securities regulatory authorities in Canada. Copies of these documents can be accessed under the Company’s profile on the SEDAR website at www.sedar.com and on the Company’s website www.forentenergy.com.
Financial results during the first quarter of 2015 were directly impacted by the almost 50% reduction of commodity prices, even though oil and gas volumes were increased relative to the same time period of last year. In order to help mitigate losses, the Company focused on operating cost reductions, operational efficiency, and G&A cuts through staff reductions and substantial employee pay cuts. The Company’s long life oil and natural gas production remains steady and continues to underpin the Company’s production base. Recently there has been an abundance of available quality assets and potential corporate merger opportunities to amalgamate into Forent’s portfolio to improve financial results.
Forent’s revenues, net of royalties, for the three months ended March 31, 2015 decreased to $503,000 compared with $859,000 in the prior year quarter. As a result, Q1 2015 funds outflow from operations was a negative $449,000 compared with a positive $150,000 in Q1 2014.
Forent’s net debt (calculated as current liabilities less current assets) at March 31, 2015, was $6.3 million compared with net debt of $5.8 million at the beginning of the year. The Company has access to a credit facility of $7.0 million (currently under annual review) of which $6.7 million was drawn at the end of the quarter.
Forent’s oil and natural gas sales during the first quarter averaged 219 BOEd compared with 194 BOEd in Q1 2014. The overall quarterly rate was reduced by approximately 10 BOEd as a third party gas gathering system underwent repairs in late February, temporarily shutting in production at the Twining field (6 BOEd for the quarter) and oil inventories vs. sales increased (4 bopd for the quarter), at the Wayne field.
During Q1 2015 the Twining field experienced a 10 day production curtailment while a third party gas transportation line was temporarily removed from service. Following the 10 day outage, all operations were returned to normal production levels. Operational optimization efforts took place in Q1 to redirect our sales oil to terminals that provided superior netbacks, resulting in a 20 % decrease in commodity price offsetting costs.
The initial development phase of our Twining property was the first step in our plan to materially increase oil and associated gas production for the Company. Within our portfolio, we have several low risk exploitation opportunities available when prices recover. Meanwhile Forent has taken appropriate steps to reduce overhead, while actively pursuing its mandate of growth through asset acquisitions and corporate mergers.
Shares of Forent trade on the TSX Venture Exchange under the symbol “FEN”.
ADVISORY: Certain information in this news release, including the operations at the Company’s properties, constitute forward-looking statements under applicable securities laws. Although Forent believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Forent can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The forward-looking statements contained in this news release are made as at the date of this news release and the Corporation 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.
This release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company’s registered filings which are available at www.sedar.com.
This news release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.
Barrel (“bbl”) of oil equivalent (“boe”) amounts may be misleading particularly if used in isolation. All boe conversions in this report are calculated using a conversion of six thousand cubic feet of natural gas to one equivalent barrel of oil (6 mcf=1 bbl) and is based on an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the well head.
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.
FORENT ENERGY LTD.
President & CEO
(403) 262-9444 #211
FORENT ENERGY LTD.
Brad R. Perry
(403) 262-9444 #208