Focus on Advancing Goldboro LNG Continues
CALGARY, Alberta, May 29, 2019 (GLOBE NEWSWIRE) — Pieridae Energy Limited (“Pieridae” or the “Company”) (PEA – TSXV) has filed its first quarter (“Q1”) unaudited condensed interim financial statements and related management’s discussion and analysis (“MD&A”) for the first three months of 2019. Pieridae’s unaudited condensed interim financial statements and MD&A are available on our website at www.pieridaeenergy.com and are filed on SEDAR at www.sedar.com.
Highlights of the Quarter:
On February 4, 2019 Pieridae signed a benefits agreement with the Assembly of Nova Scotia Mi’kmaq Chiefs. The agreement means the Mi’kmaq will benefit economically as the Goldboro LNG facility is developed, built and begins operations.
On February 28, 2019, Pieridae completed a brokered and non-brokered private placement of the Company’s common shares at a price of $2.00 per share. After giving effect to both the brokered and non-brokered tranches of the private placement, the Company issued 9,550,000 commons shares for gross proceeds of $19.1 million.
On April 1, 2019, the Company announced that it had engaged Kellogg Brown & Root Limited (“KBR”) to perform a review of an amended version of the previously prepared front-end engineering and design study for its proposed Goldboro LNG Facility. KBR will also conduct an open book estimate necessary for entering into a lumpsum engineering, procurement and construction contract. The total cost for this contract is expected to be approximately $13.0 million. The proposed activities are expected to occur over the next nine months.
“I was pleased we started the year off by signing a benefits agreement with the Nova Scotia Mi’kmaq, building on the respectful relationship we have worked to build with them for a number of years,” said Pieridae Energy CEO Alfred Sorensen. “The milestones this quarter dovetailed into work that continues to finalize an agreement with a contractor to build the Goldboro LNG facility, and also our ongoing efforts to secure the natural gas supply needed to supply the first facility or train at Goldboro.”
|Consolidated Performance Highlights:|
|For the three months ended|
|($000s, except where otherwise stated)||March 31, 2019||March 31, 2018|
|Revenue (net of royalties)||$||22,982||$||16|
|Net loss per common share – basic and diluted ($/share)||$||(0.17)||$||(0.06)|
|Cash flow from operating activities||$||(17,084)||$||(2,148)|
|Project expenditures (1)||$||1,061||$||1,132|
|Net working capital deficit (1)||$||(66,192)||$||(84,061)|
|Crude Oil and NGLs (bbl/d)||200||–|
|Natural gas (Mcf/d)||102,221||–|
|Barrels of oil equivalent (boe/d) (2)||17,236||–|
|(1) Non-IFRS measure. See page 18 of the Company’s MD&A.|
|(2) Excludes sulphur production. This was supplemented by an additional 20,172 tonnes of sulphur.|
Pieridae’s financial results for the first quarter of 2019 reflect the fact the Company has evolved into an upstream exploration and production company, as well as a development company focused on the construction of its proposed LNG facility. The Company’ operations are now dominated by the assets and activities associated with its acquisition of Ikkuma in late 2018. Management hopes to leverage off of these assets, and grow its upstream business, as it looks to fulfill its goal of becoming a fully integrated LNG company.
Management reaffirms guidance issued in April including average daily production for 2019 expected to be in the range of 16,000 to 18,000 boe/d. Production guidance excludes potential acquisitions. Pieridae’s 2019 upstream capital program will focus on necessary maintenance, equipping, tie-in and low cost, high-return optimization initiatives at a cost of approximately $8 to 10 million. Depending on funding initiatives, Pieridae would expect to incur up to $45 million in Goldboro development activities.
Founded in 2011, Pieridae, a majority Canadian owned corporation based in Calgary, is focused on the development of integrated energy-related activities, from the exploration and extraction of natural gas to the development, construction and operation of the Goldboro LNG facility and the production of LNG for sale to Europe and other markets. Pieridae is on the leading edge of the re-integration of the LNG value chain in North America. Pieridae has 84,121,990 common shares issued and outstanding which trade on the TSX Venture Exchange (PEA).