CALGARY, ALBERTA–(Marketwired – May 28, 2015) – Tuscany Energy Ltd. (TSX VENTURE:TUS) is pleased to report satisfactory financial and operating results for the first quarter of 2015.
It was a difficult quarter due to the sharp decline in heavy oil prices, which dictated an almost complete cessation of activity. Tuscany however did continue to optimize its oil production capability and purchased some additional oil prone acreage while focusing on maintaining its low balance sheet leverage.
Highlights of the quarter were:
- Revenues for the quarter totaled $2.6 million compared with $4.1 Million for Q1 2014.
- Cash flow for the quarter totaled $0.5 million compared with $1.8 million for Q1 2014.
- Quarter ended net debt totaled $7.2 million compared with $7.1 million at March 31, 2014.
- The Company reported average production of 879 BOEd for the quarter, substantially higher than the 676 BOEd for Q1 2014, and only slightly lower than the 916 BOEd reported for Q4 2014.
Due to the recent increase in US and Canadian oil prices since March 31, 2015, the significant drop in US drilling and the plateauing of US production, Tuscany is encouraged that the worst part of this oil cycle is behind us. With its conservative balance sheet and large portfolio of development locations, Tuscany expects to resume active drilling and completion operations during the 3rd quarter.
Management believes the Company will also benefit indirectly from any negative repercussions resulting from the recent government change in Alberta, as almost 90% of the Company’s assets are situated in Saskatchewan, which over the intermediate term, Management expects will represent a more certain and stable environment within which to incur substantial capital additions.
Tuscany has filed its Interim Financial Statements and MD&A for the three months ended March 31, 2015 on SEDAR and its website.
Please refer to Tuscany’s website at www.tuscanyenergy.com for more information on the Company’s Evesham and Macklin fields and other prospects in Alberta and Saskatchewan.
|Three months ended March 31,||2015||2014|
|($ Thousands, unless otherwise indicated)|
|Oil & gas revenue||2,631||4,057|
|Cash flow from operations (1)||509||1,835|
|$ per share, diluted (1)||0.01||0.05|
|Net loss for the period||(1,533||)||(220||)|
|$ per share, diluted||(0.03||)||(0.01||)|
|Capital expenditures, net of dispositions||513||1,776|
|Net debt (1)||(7,211||)||(7,074||)|
|Total shares outstanding at period end||50,931||38,663|
|Oil and NGLs (Bopd)||748||553|
|BOEd (6 Mcf = 1 Bbl)||879||675|
|(1) See Non-GAAP and Additional GAAP Measures in Tuscany’s MD&A for the three months ended March 31, 2015 which has been filed on SEDAR and the Company’s web site.|
Forward looking statements: 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.
Certain of the statements contained herein including, without limitation, Management’s assessment of the oil cycle, plans to resume active operations and the timing thereof, possible benefits from having assets in Saskatchewan and expectations that Saskatchewan will represent a more certain and stable environment to incur substantial capital additions may be forward-looking statements. These statements reflect Management’s beliefs at the date of the report 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, imprecision of reserve estimates, 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 and other documents filed by the Company. 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, Management cannot assure 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.
Forward-looking statements and other information contained herein concerning the oil and gas industry and the Company’s general expectations concerning this industry is based on estimates prepared by Management using data from publicly available industry sources as well as from reserve reports, market research and industry analysis and on assumptions based on data and knowledge of this industry which the Company believes to be reasonable. However, this data is inherently imprecise, although generally indicative of relative market positions, market shares and performance characteristics. While the Company is not aware of any misstatements regarding any industry data presented herein, the industry involves risks and uncertainties and is subject to change based on various factors.
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) 269-9890 (FAX)
Tuscany Energy Ltd.
Charles A. Teare
Executive Vice President & CFO
(403) 269-9890 (FAX)