CALGARY, Alberta – Toscana Energy Income Corporation (“Toscana” or the “Corporation”) (TSX: TEI) announces financial and operating results for the second quarter ended June 30, 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 and six months ended June 30, 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 | Six months ended | |||||
June 30 | June 30 | |||||
2020 | 2019 | Change | 2020 | 2019 | Change | |
OPERATIONAL | ||||||
Average daily production (boe/d) | 661 | 1,080 | (39%) | 771 | 1,102 | (30%) |
Gas (Mcf/d) | 1,852 | 2,463 | (25%) | 1,936 | 2,563 | (24%) |
Oil (bbl/d) | 332 | 612 | (46%) | 413 | 604 | (32%) |
NGL (bbl/d) | 20 | 58 | (66%) | 35 | 70 | (50%) |
Average prices received ($/boe) | 14.78 | 45.87 | (68%) | 24.48 | 43.51 | (44%) |
Gas ($/Mcf) | 1.54 | 1.10 | 40% | 1.73 | 1.69 | 2% |
Oil ($/bbl) | 19.79 | 73.54 | (73%) | 35.54 | 68.47 | (48%) |
NGL ($/bbl) | 17.35 | 32.25 | (46%) | 24.04 | 31.60 | (24%) |
FINANCIAL | ||||||
Petroleum and natural gas revenue, net of royalty expense ($) | 736,771 | 4,035,543 | (82%) | 3,050,048 | 7,966,721 | (62%) |
Total revenues ($) | 838,207 | 5,334,208 | (84%) | 5,111,264 | 8,145,192 | (37%) |
Netback ($) (1) | (678,937) | 1,817,481 | >100% | (932,118) | 3,030,547 | >100% |
Netback per boe ($/boe) (1) | (11.29) | 18.49 | >100% | (6.64) | 15.20 | >100% |
Adjusted funds flow from (used-in) operations ($) (1) | (122,173) | 650,896 | >100% | (1,711,557) | 695,030 | >100% |
Notes:
(1) Non – IFRS measure.
Outlook
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 continue to remain volatile. The Corporation has shut-in its low netback oil wells and minimized future spending on all of its assets. Lower oil prices and the reduced average daily production volumes, due to shut-in oil wells continues 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.