CALGARY, AB–(Marketwired – May 01, 2017) – Point Loma Resources Ltd. (TSX VENTURE: PLX) (the “Corporation” or “Point Loma“) is pleased to report financial and operating results for the three months and year ended December 31, 2016. Highlights of the period and additional updates are summarized below:
|Financial||Year ended December
31, 2016 (1)
|Three Months ended
December 31, 2016
|($ thousands, except share amounts)|
|Cash used in operating activities||(638||)||(168||)|
|Funds used in operations (2)||(1,248||)||(618||)|
|Per share – basic||(0.07||)||(0.02||)|
|Per share – basic||(0.26||)||(0.10||)|
|Working capital deficit||1,491||1,491|
|Weighted average shares outstanding for period||17,366,757||21,655,040|
|Outstanding shares at end of period||27,353,325||27,353,325|
|Daily average production|
|Crude oil and liquids (bbls/d)||67||146|
|Natural gas (mcf/d)||450||1,171|
|Total production (boe/d at 6:1)||142||341|
|Average sales price|
|Crude oil and liquids ($/bbl)||46.33||48.18|
|Natural gas ($/mcf)||2.80||3.02|
|Operating expense (S/boe)||(21.89||)||(26.81||)|
|Transportation expense ($/boe)||(1.70||)||(0.80||)|
- Twelve months ended December 31, 2016 includes only the operations for the period from July 1, 2016 to December 31, 2016.
- Funds used in operations is cash flow used in operating activities less changes in non-cash working capital and transaction costs paid.
Fourth Quarter Summary
The fourth quarter of 2016 was challenging operationally for Point Loma as several wells had pumping and operational problems that were further magnified by wet conditions. As a result, the Corporation was unable to gain access to wellsites with the equipment required to rectify the operations in normal short order. This prevented Point Loma from producing at expected rates through the period resulting in higher operating costs per boe.
In addition Point Loma has worked through some issues related to repair and maintenance in the Paddle River area that resulted in additional costs in the fourth quarter.
It is expected in 2017 that improved run time and a return to expected levels of maintenance costs will result in improved volumes, revenues and netbacks.
With the return to production of the majority of wells that experienced operating challenges and the tie-in of a new Nordegg producer, Point Loma was able to achieve an exit rate for the quarter of 570 boe/d.
In January 2017, Point Loma announced two transactions that have increased the Corporations production to approximately 900 boe/d. These acquisitions also include additional production that Point Loma can re-activate with a negotiation of egress and some minor pipeline activity. Point Loma will pursue these opportunities in 2017.
In April 2017, Point Loma has announced a disposition and joint venture with Salt Bush Energy Ltd. that will see Point Loma sell a 20 percent interest in operating assets and receive cash consideration of $5 million upon closing which is expected prior to June 9, 2017. This capital will be utilized to accelerate activity on the Point Loma properties through drilling, facilities additions and certain targeted acquisitions.
Point Loma plans to begin drilling its large opportunity base which should include development locations and new pool targets.
Point Loma has filed its annual audited financial statements, Management’s Discussion and Analysis (MD&A) and Annual Information Form (AIF) for the year ended December 31, 2016 with Canadian securities regulators. These filings, and additional information including the Corporation’s recently updated corporate presentation can be found at Point Loma’s website at www.pointloma.ca or at Point Loma’s profile on the System for Electronic Document Analysis and Retrieval website at www.sedar.com.
About Point Loma
Point Loma is a public oil and gas development and exploration company focused on horizontally exploiting conventional oil and gas reservoirs in west central Alberta. Point Loma’s business plan is to utilize its experience to drill, develop and acquire accretive assets with potential for horizontal multi-stage frac technology and exploit opportunities for secondary recovery.