CALGARY, ALBERTA–(Marketwired – April 20, 2016) – Relentless Resources Ltd. (TSX VENTURE:RRL) (“Relentless” or “the Company”) announces that it has issued and filed on SEDAR its December 31, 2015 audited financial statements and related MD&A. The Corporation has also filed on SEDAR its Form 51-101F1 – Statement of Reserves Data and Other Oil and Gas Information as of December 31, 2015; Form 51-101F2 – Report on Reserves Data by Independent Qualified Reserves Evaluator; and Form 51-101F3 – Report of Management and Directors on Oil and Gas Disclosure as mandated by National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities of the Canadian Securities Administrators. Additional information about Relentless is available on SEDAR at www.sedar.com or on the Company`s website at www.relentless-resources.com.
Corporate Update
Relentless averaged 225 boed (56% oil and liquids) in Q4 2015, down 13% from the same period last year, and down 21% from the previous quarter. Approximately 55 boed of production was shut in Q4 2015 due to low pricing. Royalties payable decreased 55% to $1.72/boe compared to the previous quarter due to the effect of lower commodity pricing on variable crown royalties. Operating costs were consistent compared to the previous quarter ($14.67/boe vs. $14.55/boe). General and administrative costs were also similar ($5.32/boe vs, $5.42/boe), but were down 23% on a gross basis compared to the previous quarter.
The independent reserves report prepared by Sproule Associates Ltd. effective December 31, 2015 assigned Relentless 514,900 boe (52% liquids) of Proved Developed Producing reserves, 663,400 boe (53% liquids) of Total Proved reserves and 1,106,900 boe (58% liquids) of Total Proved plus Probable reserves. The net present values of future revenue, before tax, discounted at 10% are $6,731,000, $8,915,000 and $15,730,000 respectively.
As of December 31, 2015 Relentless had net debt of $2.7 million dollars on a credit line of $4.0 million dollars which is currently under review.
At Heathdale, Relentless is currently producing 90 boed (65% oil). In July, 2015, a vertical step out well drilled at 16-6-27- 9 W4 was successfully cased, completed and tied in for Mannville oil. The vertical oil well serves as a control point for drilling future horizontal wells in the south half of the Heathdale property. The well was pipeline tied-in to the 9-7 multi-well battery and enables the drilling of up to 8 future horizontal oil wells without any significant additional tie -in capital. Relentless has constructed Heathdale so that production can be ramped up when feasible.
Relentless currently has approximately 80 boed of shut in gas due to poor pricing. It is expected that these volumes will come back on once the market improves.
Relentless’ go forward capital program depends on the price of oil and natural gas and the ability to finance, both of which are uncertain as of today. With current realized pricing, the Company will defer any drilling projects to conserve reserves and cash flow for future benefit. Relentless continues to explore various opportunities to grow and enhance shareholder value as we continue to move through challenging times for the industry.
Operating costs continue to be evaluated and reduced. Relentless would like to thank our service providers for their assistance while the Company positions to capitalize on a commodity price recovery.
The Management and Directors of Relentless once again thank-you for your patience and continued support.
Cash flow and comprehensive loss | ||||||
Three months ended December 31, | 2015 | 2014 | % Change |
2015 | 2014 | % Change |
($ / boe) | ($ / boe) | |||||
Oil and natural gas sales | 613,309 | 1,093,891 | (44) | 29.68 | 45.70 | (35) |
Royalties | (35,565) | (133,678) | (73) | (1.72) | (5.58) | (69) |
Revenue after royalties | 577,744 | 960,213 | (40) | 27.96 | 40.12 | (30) |
Production, operating and transportation expenses | (303,177) | (518,526) | (42) | (14.67) | (21.65) | (32) |
Operating cash flow (1) | 274,567 | 441,687 | (38) | 13.29 | 18.47 | (28) |
General & administrative expenses | (109,994) | (178,093) | (38) | (5.32) | (7.44) | (28) |
Bad debt expense | (181,018) | – | 100 | (8.76) | 0.00 | 100 |
Flow through share indemnification expense | (15,732) | (350,186) | (96) | (0.76) | (14.63) | (95) |
Interest and other financing charges | (36,305) | 1,582 | (2,395) | (1.76) | 0.07 | 2,758 |
Cash flow from operations (1) | (68,482) | (85,010) | (19) | (3.31) | (3.53) | 6 |
Other income | 26,192 | – | 100 | 1.27 | 0.00 | 100 |
Share based compensation | – | (421,711) | (100) | 0.00 | (17.62) | (100) |
Accretion | 21,758 | (829) | (2,725) | 1.05 | (0.03) | (3,140) |
Impairment | (234,506) | (1,745,934) | (87) | (11.35) | (72.94) | (84) |
Depletion and depreciation | (138,500) | (468,821) | (70) | (6.70) | (19.59) | (66) |
Comprehensive loss | (393,538) | (2,722,305) | (86) | (19.04) | (113.71) | (83) |
$ Per Share – Basic | (0.01) | (0.06) | ||||
$ Per Share – Diluted | (0.01) | (0.06) | ||||
Year ended December 31, | 2015 | 2014 | % Change |
2015 | 2014 | % Change |
($ / boe) | ($ / boe) | |||||
Oil and natural gas sales | 3,331,944 | 2,993,030 | 11 | 32.91 | 52.12 | (37) |
Royalties | (413,605) | (356,144) | 16 | (4.08) | (6.20) | (34) |
Revenue after royalties | 2,918,339 | 2,636,886 | 11 | 28.83 | 45.92 | (37) |
Production, operating and transportation expenses | (1,506,848) | (1,100,027) | 37 | (14.88) | (19.16) | (22) |
Operating cash flow (1) | 1,411,491 | 1,536,859 | (8) | 13.95 | 26.76 | (48) |
General & administrative expenses | (551,445) | (583,106) | (5) | (5.45) | (10.15) | (46) |
Bad debt expense | (181,018) | – | 100 | (1.79) | 0.00 | 100 |
Flow through share indemnification expense | (15,732) | (350,186) | (96) | (0.16) | (6.10) | (97) |
Interest and other financing charges | (72,628) | (10,651) | 582 | (0.72) | (0.19) | 287 |
Cash flow from operations (1) | 590,668 | 592,916 | (0) | 5.83 | 10.32 | (43) |
Other income | 305,223 | 166,667 | 83 | 3.01 | 2.90 | 4 |
Share based compensation | (132,027) | (577,434) | (77) | (1.30) | (10.06) | (87) |
Accretion | (64,901) | (47,599) | 36 | (0.64) | (0.83) | (23) |
Impairment | (1,903,931) | (1,745,934) | 9 | (18.80) | (30.40) | (38) |
Depletion and depreciation | (1,390,068) | (1,002,526) | 39 | (13.73) | (17.46) | (21) |
Comprehensive loss | (2,595,036) | (2,613,910) | (1) | (25.63) | (45.53) | (44) |
$ Per Share – Basic | (0.04) | (0.06) | ||||
$ Per Share – Diluted | (0.04) | (0.06) |
(1) Non-IFRS measure
Daily production and commodity prices | |||
Three months ended December 31, | 2015 | 2014 | % Change |
Daily production | |||
Oil and NGLs (bbl/d) | 125 | 145 | (14) |
Natural gas (mcf/d) | 600 | 691 | (13) |
Oil equivalent (boe/d @ 6:1) | 225 | 260 | (13) |
Realized commodity prices ($CDN) | |||
Oil and NGLs (bbl) | $40.62 | $62.58 | (35) |
Natural gas (mcf) | $2.67 | $4.08 | (34) |
Oil equivalent (boe @ 6:1) | $29.68 | $45.70 | (35) |
Year ended December 31, | 2015 | 2014 | % Change |
Daily production | |||
Oil and NGLs (bbl/d) | 150 | 74 | 103 |
Natural gas (mcf/d) | 766 | 500 | 53 |
Oil equivalent (boe/d @ 6:1) | 278 | 157 | 77 |
Realized commodity prices ($CDN) | |||
Oil and NGLs (bbl) | $47.95 | $79.35 | (40) |
Natural gas (mcf) | $2.55 | $4.66 | (45) |
Oil equivalent (boe @ 6:1) | $32.91 | $52.12 | (37) |