CALGARY, Alberta – Toscana Energy Income Corporation (“Toscana” or the “Corporation”) (TSX: TEI) announces financial and operating results for the first quarter ended March 31, 2020.
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 three months ended March 31, 2020. 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.
|Three months ended March 31|
|Average daily production (boe/d)||881||1,123||(22||%)|
|Natural Gas (Mcf/d)||2,019||2,664||(24||%)|
|Average prices received ($/boe)||31.76||41.22||(23||%)|
|Natural Gas ($/Mcf)||1.90||2.25||(16||%)|
|Petroleum and natural gas revenue, net of royalty expense ($)||2,313,277||3,931,178||(41||%)|
|Total revenues and other income ($)||4,273,057||2,810,984||52||%|
|Netback per boe ($/boe)(1)||(3.16||)||12.00||>100||%|
|Adjusted funds flow from (used-in) operations ($)(1)||(1,609,384||)||44,134||>100||%|
(1) Non – IFRS measure (see Non -IFRS Measures section in this MD&A).
As a result of the world wide COVID-19 pandemic and continued over-supply of oil by OPEC countries and other producing countries, global oil prices have declined significantly. The Corporation has shut-in its low netback oil wells and minimized future spending on all of its assets. Lower oil prices and the full effect of reduced average daily production volumes, due to shut-in oil wells, persisted into the second quarter of 2020 and continued to negatively impact the Corporation’s cash flows from operations. The COVID-19 pandemic is an evolving situation that is expected to continue to have widespread implications on the Corporation’s business, results of operations, financial condition and the environment in which it operates.