CALGARY, ALBERTA–(Marketwired – May 16, 2016) – Traverse Energy Ltd. (“Traverse” or “the Company“) (TSX VENTURE:TVL) presents financial and operating results for the three months ended March 31, 2016.
|Three Months Ended|
|Highlights (unaudited)||March 31, 2016||December 31, 2015||March 31, 2015|
|Financial ($ thousands, except per share amounts)|
|Petroleum and natural gas revenue||1,635||3,172||3,513|
|Cash flow from operating activities||612||1,642||2,000|
|Funds from operations (1)||389||2,024||1,739|
|Per share – basic and diluted||0.01||0.03||0.02|
|Per share – basic and diluted||(0.01||)||(0.05||)||(0.01||)|
|Capital expenditures, net of dispositions||998||3,913||2,322|
|Working capital (deficiency)||126||767||(5,240||)|
|Weighted average (millions)||71.9||71.6||70.5|
|Operations (Units as noted)|
|Natural gas (Mcf/day)||2,203||2,951||2,932|
|Oil and NGL (bbls/day)||409||563||627|
|Average sales price|
|Natural gas ($/Mcf)||2.21||2.72||3.66|
|Oil and NGL ($/bbl)||32.01||47.02||45.09|
|Petroleum and natural gas revenue||23.15||32.69||34.97|
|Operating netback (2)||9.23||19.67||20.74|
|General and administrative||(3.59||)||(2.25||)||(3.12||)|
|Finance expense (3)||(0.14||)||(0.05||)||(0.51||)|
|Current income tax recovery||–||3.49||0.20|
|Funds from operations (1)||5.50||20.86||17.31|
|(1)||Funds from operations represents cash flow from operating activities prior to changes in non-cash working capital and settlement of decommissioning obligations. Funds from operations per BOE is funds from operations divided by barrels of oil equivalent production volumes for the applicable period.|
|(2)||Operating netback represents revenue, less royalties, operating and transportation expenses. Operating netback per BOE is the operating netback divided by barrels of oil equivalent production volumes for the applicable period.|
|(3)||Excludes non-cash accretion.|
In April 2016 Traverse announced a reduction in the 2016 exploration and development program to $10 million and the deferral of drilling activities to the second half of 2016. Traverse will continue to monitor the commodity environment and adjust activity accordingly.
In the first quarter, Traverse finished installing a one kilometer water disposal line at Coyote. The water disposal facility will be completed in the second quarter and is expected to be commissioned by late May. At the Coyote 15-31 battery site the tank vent piping system was upgraded to allow for tank vapour recovery. The battery tank farm was also modified and upgraded for increased water storage in conjunction with the water disposal facility. At Turin, one previously flowing well was equipped with a pumpjack and a suspended well was acquired from a third party. This well will be further evaluated and tested in the second quarter.
Undeveloped land holdings in Alberta at March 31, 2016 were 191,700 gross (191,000 net) acres. At March 31, 2016 the Company had working capital of approximately $126,000 and unutilized credit facilities. On May 4, 2016 the Company announced a brokered private placement offering of up to $3.0 million in flow-through common shares. The offering is anticipated to close in late May.