Calgary – Briko Energy Corp. (“Briko” or the “Corporation”) is pleased to report its financial and operating results for the three and nine months ended September 30, 2019. Financial and operational information is set out below and should be read in conjunction with Briko’s September 30, 2019 condensed unaudited interim financial statements and the related management’s discussion and analysis (“MD&A”). Briko’s condensed unaudited interim financial statements and MD&A are available for review at www.sedar.com and on the Corporation’s website at www.brikoenergy.com.
FINANCIAL AND OPERATING RESULTS
- Achieved average daily production of 678 boe per day for the nine months ended September 30, 2019, compared to 739 boe per day for the nine months ended September 30, 2018.
- Generated an operating netback of $8.53 per boe for the nine months ended September 30, 2019, compared to the $8.82 per boe for the nine months ended September 30, 2018.
- Generated adjusted funds flow for the nine months ended September 30, 2019 of $885,000 ($0.08/share) and cash provided by operating activities of $946,000 ($0.08/share).
- No debt outstanding at September 30, 2019.
(Expressed in thousands of Canadian dollars except per boe and share amounts) | Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||
OPERATIONS | ||||||||||||
Average daily production | ||||||||||||
Light oil (bbl/d) | 155 | 193 | 170 | 209 | ||||||||
Natural gas (mcf/d) | 2,639 | 3,242 | 2,675 | 2,788 | ||||||||
NGLs (bbl/d) | 57 | 88 | 62 | 65 | ||||||||
Total equivalent (boe/d) | 652 | 821 | 678 | 739 | ||||||||
Average prices | ||||||||||||
Light oil ($/bbl) | $ | 66.94 | $ | 80.42 | $ | 67.06 | $ | 75.38 | ||||
Natural gas ($/mcf) | 0.93 | 1.50 | 1.51 | 1.52 | ||||||||
NGLs ($/bbl) | 39.32 | 59.41 | 47.08 | 59.79 | ||||||||
Operating netback | ||||||||||||
Revenue ($/boe) | $ | 23.11 | $ | 31.18 | $ | 27.11 | $ | 32.33 | ||||
Realized loss on risk management | ||||||||||||
contracts ($/boe) | (0.27 | ) | (2.52 | ) | (0.15 | ) | (1.59 | ) | ||||
Royalties ($/boe) | (3.86 | ) | (6.53 | ) | (4.60 | ) | (7.32 | ) | ||||
Net operating expenses(1) ($/boe) | (11.03 | ) | (10.69 | ) | (11.50 | ) | (12.53 | ) | ||||
Transportation expenses ($/boe) | (2.61 | ) | (2.42 | ) | (2.33 | ) | (2.07 | ) | ||||
Operating netback (1) ($/boe) | $ | 5.34 | $ | 9.02 | $ | 8.53 | $ | 8.82 | ||||
FINANCIAL | ||||||||||||
Oil and natural gas revenues (2) | $ | 1,386 | $ | 2,355 | $ | 5,021 | $ | 6,523 | ||||
Operating income(1) | 321 | 679 | 1,580 | 1,780 | ||||||||
Cash provided by operating activities | 181 | 309 | 946 | 1,085 | ||||||||
Per share – basic and diluted | 0.02 | N/A | 0.08 | N/A | ||||||||
Adjusted funds flow (1) | 110 | 619 | 885 | 1,613 | ||||||||
Per share – basic and diluted | 0.01 | N/A | 0.08 | N/A | ||||||||
Net income (loss) and comprehensive | ||||||||||||
income (loss) | (407 | ) | 21 | (371 | ) | (672 | ) | |||||
Per share – basic and diluted | (0.04 | ) | N/A | (0.03 | ) | N/A | ||||||
Capital expenditures | 406 | 39 | 559 | 313 | ||||||||
Net working capital(1) | 19 | 274 | 19 | 274 | ||||||||
Shares outstanding (‘000s) | 11,207 | N/A | 11,207 | N/A | ||||||||
Weighted average shares outstanding | ||||||||||||
basic and diluted (‘000s) | 11,207 | N/A | 11,206 | N/A |
(1)Operating netback, operating income, net operating expenses, adjusted funds flow and net working capital are non-IFRS measures. See “Non- IFRS Measures”.
(2) Before royalties.
(3) N/A is defined as Not Applicable.
GUIDANCE
Briko’s average production for 2019 is expected to be in the range of 625 – 675 boe/d. Based on these production estimates, combined with the Corporation’s hedge position and its current cost structure, adjusted funds flow for 2019 is expected to be in excess of $1.0 million, representing approximately $0.09 per share in 2019.
About Briko Energy Corp.
Briko Energy Corp. is an Alberta Foothills Cardium light oil focused company with undeveloped land, crude oil and natural gas reserves and a production base with associated infrastructure. Corporate information can be found at: www.brikoenergy.com.