CALGARY, ALBERTA–(Marketwired – Aug. 25, 2016) – Relentless Resources Ltd. (“Relentless” or “the Company”) (TSX VENTURE:RRL) announces that it has issued its June 30, 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.
Operational and Financial Highlights
Relentless averaged 170 boed (61% oil and liquids) in Q2 2016, down 52% from the same period last year. Approximately 100 boed of gas production continues to be shut in from properties in the Peace River Arch and Pageant due to low natural gas pricing. Royalties payable increased 14% to $1.77/boe compared to the previous quarter. Operating costs increased 14% to $14.93/boe compared to the previous quarter due to surface lease rentals, property taxes and the AER administration fee. General and administration costs also increased to $9.42/boe as a result of legal fees incurred during the quarter.
As of today’s date, Relentless has a net debt of approximately $2.72 million dollars on a credit line of $3.0 million dollars. Current production, based on field estimates, is approximately 175 boed (60% oil and liquids).
Although current commodity prices have reduced capital spending and have not allowed for production growth, the Heathdale property provides high impact oil projects which are easily ramped given a better 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 opportunities on its W5M 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 value.
Relentless is a unique low G&A, high insider ownership, 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 June 30 | |||||||||
2016 | 2015 | % Change | |||||||
Oil and gas revenue | $ | 477,228 | $ | 1,261,288 | (62 | ) | |||
Cash flow from operations (1) | 41,716 | 463,421 | (91 | ) | |||||
Per share – basic and diluted (1) | 0.00 | 0.01 | (92 | ) | |||||
Comprehensive loss | (198,687 | ) | (686,787 | ) | (71 | ) | |||
Per share – basic and diluted | (0.00 | ) | (0.01 | ) | (74 | ) | |||
Total assets | 10,303,063 | 11,950,979 | (14 | ) | |||||
Net debt (1) | 2,718,855 | 2,619,511 | 4 | ||||||
Capital expenditures, net | $ | 44,457 | $ | 443,343 | (90 | ) | |||
Shares outstanding – end of period | 70,061,595 | 63,759,095 | 10 | ||||||
Six months ended June 30 | |||||||||
2016 | 2015 | % Change | |||||||
Oil and gas revenue | $ | 958,241 | $ | 1,893,314 | (49 | ) | |||
Cash flow from operations (1) | 59,294 | 483,459 | (88 | ) | |||||
Per share – basic and diluted (1) | 0.00 | 0.01 | 89 | ||||||
Comprehensive loss | (576,746 | ) | (915,414 | ) | (37 | ) | |||
Per share – basic and diluted | (0.01 | ) | (0.01 | ) | (43 | ) | |||
Total assets | 10,303,063 | 11,950,979 | (14 | ) | |||||
Net debt (1) | 2,718,855 | 2,619,511 | 4 | ||||||
Capital expenditures, net | $ | 85,976 | $ | 4,086,988 | (98 | ) | |||
Shares outstanding – end of period | 70,061,595 | 63,759,095 | 10 | ||||||
Daily production and commodity prices
Three months ended June 30 | ||||||
2016 | 2015 | % Change | ||||
Daily production | ||||||
Oil and NGLs (bbl/d) | 104 | 204 | (49 | ) | ||
Natural gas (mcf/d) | 397 | 901 | (56 | ) | ||
Oil equivalent (boe/d @ 6:1) | 170 | 354 | (52 | ) | ||
Realized commodity prices ($CDN) | ||||||
Oil and NGLs (bbl) | $ | 44.83 | $ | 56.84 | (21 | ) |
Natural gas (mcf) | $ | 1.42 | $ | 2.53 | (44 | ) |
Oil equivalent (boe @ 6:1) | $ | 30.76 | $ | 39.17 | (21 | ) |
Six months ended June 30 | ||||||
2016 | 2015 | % Change | ||||
Daily production | ||||||
Oil and NGLs (bbl/d) | 112 | 156 | (28 | ) | ||
Natural gas (mcf/d) | 534 | 835 | (36 | ) | ||
Oil equivalent (boe/d @ 6:1) | 201 | 295 | (32 | ) | ||
Realized commodity prices ($CDN) | ||||||
Oil and NGLs (bbl) | $ | 37.79 | $ | 51.69 | (27 | ) |
Natural gas (mcf) | $ | 1.98 | $ | 2.87 | (31 | ) |
Oil equivalent (boe @ 6:1) | $ | 26.32 | $ | 35.44 | (26 | ) |
Cash flow, comprehensive loss and netbacks
Three months ended June 30, | 2016 | 2015 | % Change | 2016 | 2015 | % Change | ||||||
($ / boe) | ($ / boe) | |||||||||||
Oil and natural gas sales | 477,228 | 1,261,288 | (62 | ) | 30.76 | 39.17 | (21 | ) | ||||
Royalties | (27,439 | ) | (212,643 | ) | (87 | ) | (1.77 | ) | (6.60 | ) | (73 | ) |
Revenue after royalties | 449,789 | 1,048,645 | (57 | ) | 28.99 | 32.56 | (11 | ) | ||||
Production, operating and transportation expenses | (231,628 | ) | (398,239 | ) | (42 | ) | (14.93 | ) | (12.37 | ) | 21 | |
Operating cash flow (1) | 218,161 | 650,406 | (66 | ) | 14.06 | 20.20 | (30 | ) | ||||
General & administrative expenses | (146,153 | ) | (174,748 | ) | (16 | ) | (9.42 | ) | (5.43 | ) | 74 | |
Interest and other financing charges | (30,292 | ) | (12,237 | ) | 148 | (1.95 | ) | (0.38 | ) | 414 | ||
Cash flow from operations (1) | 41,716 | 463,421 | (91 | ) | 2.69 | 14.39 | (81 | ) | ||||
Other income | – | – | 100 | 0.00 | 0.00 | 100 | ||||||
Share based compensation | – | (132,027 | ) | (100 | ) | 0.00 | (4.10 | ) | (100 | ) | ||
Accretion | (14,337 | ) | (19,608 | ) | (27 | ) | (0.92 | ) | (0.61 | ) | 52 | |
Impairment | (16,352 | ) | (126,228 | ) | (87 | ) | (1.05 | ) | (3.92 | ) | (73 | ) |
Depletion and depreciation | (209,714 | ) | (414,185 | ) | (49 | ) | (13.52 | ) | (12.86 | ) | 5 | |
Comprehensive loss | (198,687 | ) | (228,627 | ) | (13 | ) | (12.82 | ) | (7.11 | ) | 80 | |
$ Per Share – Basic | (0.00 | ) | (0.00 | ) | ||||||||
$ Per Share – Diluted | (0.00 | ) | (0.00 | ) | ||||||||
Six months ended June 30, | 2016 | 2015 | % Change | 2016 | 2015 | % Change | ||||||
($ / boe) | ($ / boe) | |||||||||||
Oil and natural gas sales | 958,241 | 1,893,314 | (49 | ) | 26.32 | 35.44 | (26 | ) | ||||
Royalties | (59,816 | ) | (278,361 | ) | (79 | ) | (1.64 | ) | (5.21 | ) | (68 | ) |
Revenue after royalties | 898,425 | 1,614,953 | (44 | ) | 24.68 | 30.23 | (18 | ) | ||||
Production, operating and transportation expenses | (505,324 | ) | (821,312 | ) | (38 | ) | (13.88 | ) | (15.37 | ) | (10 | ) |
Operating cash flow (1) | 393,101 | 793,641 | (50 | ) | 10.80 | 14.86 | (27 | ) | ||||
General & administrative expenses | (255,894 | ) | (299,056 | ) | (14 | ) | (7.03 | ) | (5.60 | ) | 26 | |
Interest and other financing charges | (77,913 | ) | (11,126 | ) | 600 | (2.14 | ) | (0.21 | ) | 928 | ||
Cash flow from operations (1) | 59,294 | 483,459 | (88 | ) | 1.63 | 9.05 | (82 | ) | ||||
Other income | – | 166,666 | 100 | 0.00 | 3.12 | 100 | ||||||
Share based compensation | – | (132,027 | ) | (100 | ) | 0.00 | (2.47 | ) | (100 | ) | ||
Accretion | (30,550 | ) | (69,773 | ) | (56 | ) | (0.84 | ) | (1.31 | ) | (36 | ) |
Impairment | (139,218 | ) | (511,397 | ) | (73 | ) | (3.82 | ) | (9.57 | ) | (60 | ) |
Depletion and depreciation | (466,272 | ) | (852,342 | ) | (45 | ) | (12.81 | ) | (15.95 | ) | (20 | ) |
Comprehensive loss | (576,746 | ) | (915,414 | ) | (37 | ) | (15.84 | ) | (17.13 | ) | (8 | ) |
$ Per Share – Basic | (0.01 | ) | (0.01 | ) | ||||||||
$ Per Share – Diluted | (0.01 | ) | (0.01 | ) | ||||||||