CALGARY, ALBERTA–(Marketwired – May 25, 2016) – Relentless Resources Ltd. (“Relentless” or the “Company”) (TSX VENTURE:RRL) announces that it has issued its March 31, 2016 unaudited condensed interim financial statements and related MD&A. 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 232 boed (52% oil and liquids) in Q1 2016, down 1% from the same period last year, and up 3% from the previous quarter. Approximately 50 boed of gas production was shut-in during the quarter. Royalties payable decreased 10% to $1.55/boe compared to the previous quarter due to lower commodity pricing on variable Crown royalties. Operating costs were down 11% to $13.10/boe compared to the previous quarter. General and administration (“G&A”) costs were consistent with the previous quarter at $5.25/boe.
As of the date of this release, Relentless has net debt of approximately $2.7 million dollars on a newly confirmed credit facility of $3.0 million dollars. The demand facilities are subject to annual review, provided that the first such review date shall not occur prior to May 31, 2017.
Although current commodity prices have reduced capital spending and have not allowed for production growth, the Company’s Heathdale property provides high impact oil projects which can be easily ramped in an improved price environment. Relentless views the industry downturn as an opportunity to optimize the Heathdale asset and potentially align itself inside a larger company, with similar corporate direction. In the meantime, Relentless is moving forward several recompletion ideas on its W5 asset base as well as contemplating further delineation drilling at Heathdale.
Relentless’ go forward capital program depends on the price of oil and natural gas and the ability to finance. Without further increases to 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 values.
Relentless is a unique low G&A, high insider ownership and conforming junior oil and gas company with low risk, high working interest medium gravity oil opportunities at Heathdale. The Management and Directors once again thank you for your patience and continued support.
Financial summary
Three months ended March 31 | ||||||||||
2016 | 2015 | % | Change | |||||||
Oil and gas revenue | $ | 481,013 | $ | 632,026 | (24 | ) | ||||
Cash flow from operations (1) | 17,578 | 20,038 | 12 | |||||||
Per share – basic and diluted (1) | 0.000 | 0.000 | 20 | |||||||
Comprehensive income (loss) | (378,059 | ) | (686,787 | ) | (45 | ) | ||||
Per share – basic and diluted | (0.01 | ) | (0.01 | ) | (50 | ) | ||||
Total assets | 11,505,813 | 12,710,273 | (9 | ) | ||||||
Net surplus debt (1) | (2,701,014 | ) | (2,639,588 | ) | 2 | |||||
Capital expenditures, net | $ | 41,419 | $ | 3,643,654 | (99 | ) | ||||
Shares outstanding – end of period | 70,061,595 | 63,759,095 | 10 | |||||||
(1) Non IFRS measure |
Daily production and commodity prices
Three months ended March 31 | |||||||
2016 | 2015 | % | Change | ||||
Daily production | |||||||
Oil and NGLs (bbl/d) | 120 | 107 | 12 | ||||
Natural gas (mcf/d) | 674 | 769 | (12 | ) | |||
Oil equivalent (boe/d @ 6:1) | 232 | 235 | (1 | ) | |||
Realized commodity prices ($CDN) | |||||||
Oil and NGLs (bbl) | $ | 31.58 | $ | 42.12 | (25 | ) | |
Natural gas (mcf) | $ | 2.32 | $ | 3.27 | (29 | ) | |
Oil equivalent (boe @ 6:1) | $ | 23.03 | $ | 29.85 | (23 | ) |
Cash flow and netbacks
Three months ended March 31, | 2016 | 2015 | % Change | 2016 | 2015 | % Change | ||||||
($ / boe) | ($ / boe) | |||||||||||
Oil and natural gas sales | 481,013 | 632,026 | (24 | ) | 23.03 | 29.85 | (23 | ) | ||||
Royalties | (32,376 | ) | (65,718 | ) | (51 | ) | (1.55 | ) | (3.10 | ) | (50 | ) |
Revenue after royalties | 448,637 | 566,308 | (21 | ) | 21.48 | 26.75 | (20 | ) | ||||
Production, operating and transportation expenses | (273,696 | ) | (423,073 | ) | (35 | ) | (13.10 | ) | (19.98 | ) | (34 | ) |
Operating cash flow (1) | 174,941 | 143,235 | 22 | 8.38 | 6.77 | 24 | ||||||
General & administrative expenses | (109,742 | ) | (124,308 | ) | (12 | ) | (5.25 | ) | (5.87 | ) | (11 | ) |
Interest and other financing charges | (47,621 | ) | 1,111 | 4,386 | (2.28 | ) | 0.05 | 4,443 | ||||
Cash flow from operations (1) | 17,578 | 20,038 | (12 | ) | 0.84 | 0.95 | 11 | |||||
Other income | – | 166,666 | 100 | 0.00 | 7.87 | 100 | ||||||
Accretion | (16,213 | ) | (50,165 | ) | (68 | ) | (0.78 | ) | (2.37 | ) | (67 | ) |
Depletion and depreciation | (256,558 | ) | (438,157 | ) | (41 | ) | (12.28 | ) | (20.70 | ) | (41 | ) |
Impairment | (122,866 | ) | (385,169 | ) | (68 | ) | (5.88 | ) | (18.19 | ) | (68 | ) |
Comprehensive loss | (378,059 | ) | (686,787 | ) | (45 | ) | (18.10 | ) | (32.45 | ) | (44 | ) |
$ Per Share – Basic | (0.01 | ) | (0.01 | ) | ||||||||
$ Per Share – Diluted | (0.01 | ) | (0.01 | ) | ||||||||
(1) Non-IFRS measure |
About Relentless Resources Ltd.
Relentless is a Calgary based emerging oil and natural gas company, engaged in the exploration, development, acquisition and production of natural gas and light gravity crude oil reserves in Alberta, Canada. Relentless’s common shares trade on the TSX Venture Exchange under the symbol RRL.
Relentless’s primary corporate objective is to achieve non-dilutive growth and enhance shareholder value through internal prospect development, strategic production acquisitions and prudent financial management.