CALGARY, ALBERTA–(Marketwired – May 26, 2016) – Striker Exploration Corp. (“Striker” or the “Company”) (TSX VENTURE:SKX) is pleased to announce our operating and financial results for the three month period ended March 31, 2016. Our Consolidated Financial Statements and Notes, as well as Management’s Discussion and Analysis (“MD&A”) for the period ended March 31, 2016, are available on Striker’s website (www.strikerexp.com) and will be filed on SEDAR.
FIRST QUARTER 2016 HIGHLIGHTS
With the continued pull back of oil prices in early Q1/16 and a greater than 50% drop in natural gas prices, the Company only completed the carryover work from the Q4/15 capital program and suspended all other capital spending activities. The Company took steps to reduce staff & G&A following that time period.
As previously announced, the Company’s Board of Directors has determined that it is timely, prudent and in the best interests of shareholders to initiate a formal process to explore strategic alternatives with a view to enhancing shareholder value. Such strategic alternatives may include, but are not limited to, a corporate sale, merger or other business combination, the sale of all or a material portion of Striker’s assets, a reorganization, recapitalization or restructuring of Striker or any combination of the foregoing. FirstEnergy Capital Corp. has been retained by Striker to act as its exclusive financial advisor in connection with this comprehensive review and analysis of strategic alternatives.
Other highlights for the quarter were:
- Completed 1.0 gross and net well in the Wilson Creek area for $0.5 million. The Company also performed a number of recompletions in the Wilson Creek area and incurred equipping and facility costs related to 2015 drills;
- Maintained balance sheet strength with net debt of $8.35 million (current existing credit facilities – $40.0 million), representing debt to trailing annualized funds flow of 0.80x.
- Produced 2,490 boe/d, down 10% from the 2,778 boe/d in Q4/15. This reflects the natural declines and flush volumes coming on stream in Q4/15 from the completed capital spending program.
- Realized gains of $0.9 million or $3.92 per boe/d from financial instruments that were in place.
FINANCIAL AND OPERATING HIGHLIGHTS
|For the three months ended|
|(in thousands of dollars except where noted)|
|Oil and Gas Sales|
|Oil and NGLs||$4,529||$8,323||-46||%|
|Per share – basic & fully diluted (in dollars)(2)||$0.04||$0.14||-71||%|
|Property acquisitions/(dispositions)||$ –||$1,635|
|Net Debt and Working Capital Deficit(1)||$8,351||$7,695||9||%|
|Weighted Average Shares(2)|
|Basic & Fully diluted||32,236||26,830||20||%|
|Production (6:1 boe conversion)(3)|
|Oil and NGLs (bbls/d)||1,535||2,004||-23||%|
|Natural gas (mcf/d)||5,731||6,373||-10||%|
|Netbacks (in dollars /boe) (1) (3)|
|Production and royalty revenue||$24.58||$36.28||-32||%|
|Realized gain (loss) on financial instruments||$3.92||$ –|
|Operating & transportation costs (4)||($14.59||)||($12.05||)||-21||%|
|(1)||See “Non-IFRS Measures”|
|(2)||BOE conversion for natural gas of 1Boe:6Mcf has been used, which is based on an energy equivalency conversion method primarily applicable at the burner tip and does not necessarily represent a value equivalency at the wellhead. As the value ratio between natural gas and crude oil based on the current price of natural gas and crude oil is significantly different from the energy equivalency of 6:1 utilizing a conversion on a 6:1 basis may be misleading as an indication of value|
|(3)||Excludes unrealized risk management contracts|
Striker is a growth-oriented, light oil focused company operating predominantly in Alberta. Striker’s full-cycle business plan provides an excellent opportunity to position itself as a high-growth junior E&P company. With an experienced management team and a strong committed Board, growth is expected to occur through timely strategic acquisitions and drilling. Striker currently trades on the TSX Venture Exchange under ticker “SKX”.