CALGARY, Alberta, March 15, 2019 (GLOBE NEWSWIRE) — Toscana Energy Income Corporation (“Toscana” or the “Corporation”) (TSX: TEI) announces financial and operating results for the fourth quarter ended December 31, 2018.
Financial and operating results:
This news release summarizes information contained in the Audited Consolidated Financial Statements and Management’s Discussion and Analysis (“MD&A”) for the three months and year ended December 31, 2018. 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.toscanaenergy.ca.
- Completed the previously announced Cortona Energy Ltd (“Cortona”) acquisition and consolidated its Barons light oil pool in Southern Alberta.
- Increased average daily oil production in the fourth quarter of 2018 by 48%, compared to the same period in 2017.
- Total oil reserves have increased and represents 47% of the overall reserve base versus 29% in 2017.
Toscana has been successful in growing its oil production, which should provide for better operating netbacks in the future. Unfortunately, in the fourth quarter of 2018, as with most of the Alberta industry oil producers, Toscana was impacted by an unprecedented widening of crude oil differentials. This resulted in a dramatic decrease in Toscana’s realized oil prices, which negatively impacted operating netbacks. In addition, natural gas prices were very weak, which saw marginal support to overall field netbacks.
Mandated crude oil production cuts implemented by the Alberta Government, have helped to significantly narrow the differential price for oil in 2019. While we are currently seeing a slight seasonal increase in natural gas prices, forecast pricing for the balance of the year remains weak. Takeaway capacity and NGTL allocations need to be resolved before Alberta natural gas pricing can significantly change to the upside.
|Three months ended||Year ended|
|December 31||December 31|
|Average daily production (boe/d)||1,745||1,985||(12||%)||1,650||2,162||(24||%)|
|Average prices received ($/boe)||23.51||27.77||(15||%)||28.56||26.32||9||%|
|Petroleum and natural gas revenue, net of royalty expense ($) (1)||3,263,464||4,673,222||(30||%)||15,147,313||19,688,747||(23||%)|
|Netback ($) (2)||(233,206||)||2,023,649||>(100||%)||2,105,648||7,434,050||(72||%)|
|Netback per boe ($/boe) (2)||(1.45||)||11.08||>(100||%)||3.50||9.42||(63||%)|
|Funds flow from (used-in) operations ($) (2)||(2,725,439||)||257,697||>(100||%)||(3,687,258||)||2,149,781||>(100||%)|
(1) Includes royalty revenue