CALGARY, Alberta , Aug. 29, 2018 (GLOBE NEWSWIRE) — Tanager Energy Inc. (“Tanager” or the “Corporation”) (TSX-V: TAN, OTCQB: TANEF) announces its financial and operating results for the three and six months ended June 30, 2018. This press release contains forward looking statements. Please refer to our cautionary language on forward-looking statements and other matters set forth at the end of this press release and the end of the Management’s Discussion and Analysis (the “MD&A”) for the three and six months ended June 30, 2018 and 2017. Tanager’s unaudited interim condensed consolidated financial statements and notes, and the MD&A for the three and six months ended June 30, 2018 and 2017 are filed on SEDAR at www.sedar.com.
Second Quarter 2018 Highlights
| Three months ended June 30, |
Six months ended June 30, |
||||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||||
| Selected Financial Results (Unaudited) | |||||||||||||
| (CDN$ except share and per share amounts) | |||||||||||||
| Revenue | 249,787 | 44,089 | 561,882 | 80,970 | |||||||||
| Royalties | 75,358 | 10,281 | 143,358 | 14,475 | |||||||||
| Production taxes | 16,071 | – | 40,081 | – | |||||||||
| Operating expenses | 78,956 | 34,297 | 151,358 | 74,231 | |||||||||
| General and administrative expenses | 342,450 | 389,525 | 651,907 | 689,040 | |||||||||
| Finance expenses | 87,087 | 358,020 | 491,705 | 769,582 | |||||||||
| Gain on unrealized embedded derivatives | – | 210,841 | 818,338 | 369,107 | |||||||||
| Foreign exchange loss (gain) | 3,757 | (150,186 | ) | 179,012 | (192,376 | ) | |||||||
| Net loss | (514,146 | ) | (481,867 | ) | (626,178 | ) | (1,031,329 | ) | |||||
| Per share – basic and fully diluted | $ | (0.00 | ) | $ | (0.01 | ) | $ | (0.00 | ) | $ | (0.01 | ) | |
| Comprehensive loss | (380,666 | ) | (761,377 | ) | (307,436 | ) | (1,404,665 | ) | |||||
| Cash flow from operating activities | (298,122 | ) | (403,667 | ) | (476,249 | ) | (1,309,812 | ) | |||||
| Per share – basic and fully diluted | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.01 | ) | |
| Total capital expenditures (excluding acquisitions) | 48,101 | 1,232,866 | 188,818 | 2,733,041 | |||||||||
| Total assets | 16,522,573 | 16,393,940 | 16,522,573 | 16,393,940 | |||||||||
| Total liabilities | 10,124,304 | 14,393,314 | 10,124,304 | 14,393,314 | |||||||||
| Shareholders’ equity (deficiency) | 6,398,269 | 1,970,626 | 6,398,269 | 1,970,626 | |||||||||
| Common shares | |||||||||||||
| Common shares outstanding | 235,286,816 | 107,716,388 | 235,286,816 | 107,716,388 | |||||||||
| Weighted average number of | |||||||||||||
| common shares outstanding | 235,286,816 | 107,716,388 | 183,417,361 | 107,716,388 | |||||||||
| TSX Venture Share Trading Statistics | |||||||||||||
| (CDN$/share except volumes based on intra-day trading) | |||||||||||||
| High | 0.135 | 0.200 | 0.135 | 0.200 | |||||||||
| Low | 0.045 | 0.135 | 0.045 | 0.085 | |||||||||
| Close | 0.045 | 0.160 | 0.045 | 0.160 | |||||||||
| Average daily volume | 29,746 | 72,166 | 26,312 | 110,625 | |||||||||
Financial highlights
| Three months ended June 30 | ||||||
| Operations by operating segment | 2018 | 2017 | ||||
| Canada | U.S. | Total | Canada | U.S. | Total | |
| Crude oil | 38,080 | – | 38,080 | 36,530 | – | 36,530 |
| Natural gas liquids | 2,870 | – | 2,870 | 3,657 | – | 3,657 |
| Natural gas | 994 | 207,507 | 208,501 | 3,839 | – | 3,839 |
| Petroleum and natural gas sales | 41,944 | 207,507 | 249,451 | 44,026 | – | 44,026 |
| Other income | 336 | – | 336 | 63 | – | 63 |
| Total revenue | 42,280 | 207,507 | 249,787 | 44,089 | – | 44,089 |
| Royalties | 8,065 | 67,293 | 75,358 | 10,821 | – | 10,821 |
| Production taxes | – | 16,071 | 16,071 | – | – | – |
| Operating expenses | 35,647 | 43,309 | 78,956 | 34,297 | – | 34,297 |
| Sales volumes | ||||||
| Light oil and natural gas liquids (bbls) | 543 | – | 543 | 720 | – | 720 |
| Natural gas (mcf) | 694 | 60,153 | 60,847 | 1,242 | – | 1,242 |
| Total sales volumes (boe) | 659 | 10,025 | 10,684 | 927 | – | 927 |
| Six months ended June 30 | ||||||
| Operations by operating segment | 2018 | 2017 | ||||
| Canada | U.S. | Total | Canada | U.S. | Total | |
| Crude oil | 78,005 | – | 78,005 | 64,600 | – | 64,600 |
| Natural gas liquids | 6,419 | – | 6,419 | 6,802 | – | 6,802 |
| Natural gas | 3,122 | 473,630 | 476,752 | 6,722 | – | 6,722 |
| Petroleum and natural gas sales | 87,546 | 473,630 | 561,176 | 78,124 | – | 78,124 |
| Other income | 706 | – | 706 | 2,846 | – | 2,846 |
| Total revenue | 88,252 | 473,630 | 561,882 | 80,970 | – | 80,970 |
| Royalties | 14,778 | 128,580 | 143,308 | 14,475 | – | 14,475 |
| Production taxes | – | 40,081 | 40,081 | – | – | – |
| Operating expenses | 78,195 | 73,164 | 151,359 | 74,231 | – | 74,231 |
| Sales volumes | ||||||
| Light oil and natural gas liquids (bbls) | 1,222 | – | 1,222 | 1,242 | – | 1,242 |
| Natural gas (mcf) | 1,757 | 130,922 | 132,679 | 2,165 | – | 2,165 |
| Total sales volumes (boe) | 1,515 | 21,820 | 23,335 | 1,603 | – | 1,603 |
Upcoming Changes in Issuer’s GAAP / Foreign Private Issuer Status
Under the US Securities Exchange Act of 1934, a foreign private issuer (“FPI”) is an entity incorporated or organized under the laws of a jurisdiction outside of the US, unless:
A company’s ongoing FPI status is tested annually at the end of the most recently completed second fiscal quarter. If an issuer fails to qualify as a FPI at the end of its second fiscal quarter, it remains eligible to use the forms and rules applicable to FPIs until the end of that financial year.
As of June 30, 2018, Tanager has determined that it no longer qualifies as a FPI. Therefore, Tanager must transition to U.S. domestic company reporting status and become subject to SEC reporting requirements applicable to a U.S. domestic company, beginning in 2019. These reporting requirements will require that the Company’s financial statements and selected financial data be recast into US GAAP and US dollar reporting currency for all periods presented, which will include the 2018 annual filings. The extent of the impact of adoption of these standards has not yet been determined. In addition, Tanager will be required to file annual, quarterly and current report filing with the SEC, comply with US insider filing requirements under the Exchange Act, and follow Regulation FD for “fair disclosure” of materially non-public information through public disclosure that is broadly available to all members of the public at the same time.