CALGARY, AB–(Marketwired – November 03, 2017) –
Toscana Energy Income Corporation (“TEI” or the “Corporation”) (TSX: TEI) announces financial and operating results for the third quarter ended September 30, 2017.
Financial and operating results:
This news release summarizes information contained in the Condensed Consolidated Interim Financial Statements (unaudited) and Management’s Discussion and Analysis (“MD&A”) for the for the three and nine month periods ended September 30, 2017. This news release should not be considered a substitute for reading the full disclosure documents, which are available under the Corporation’s profile on SEDAR at www.sedar.com and on the Corporation’s website at www.sprott-toscana.com.
- Continued to reduce net debt by disposing non-core assets. Non-core asset dispositions were $1 million in the third quarter and $4.0 million YTD. Subsequent to the third quarter, the Corporation entered into a purchase and sale agreement to dispose undeveloped land in Northern Alberta for cash consideration of $1.6 million — See press release dated November 1, 2017.
- Maintained production for both the quarter and YTD periods to 2016 levels despite non-core asset dispositions.
- Drilled a 100% WI oil well in Carmangay area — Completion anticipated in early November, 2017.
- Approximately $9 million available at September 30, 2017 on a $34.2 million credit facility.
- Continued to reduce G&A to below $3.00/boe.
- Hedging strategy allowed the Corporation to mitigate historically low natural gas prices in Q3. Hedging gains totaled $0.7 million during the third quarter.
|Three months ended
ended September 30
|Average daily production (boe/d)||2,197||2,056||7||%||2,222||2,308||(4||%)|
|Petroleum and natural gas revenue, net of royalties ($)||3,906,220||5,325,841||(27||%)||15,015,525||15,301,345||(2||%)|
|Netback per boe ($)||7.34||16.78||(56||%)||8.92||14.90||(40||%)|
|Funds flow from operations ($)(1)||589,528||2,125,201||(72||%)||1,892,084||5,718,794||(67||%)|
|1 Impacted by one-time site remediation and associated costs related to pipeline spill at Clair.|