Calgary, Alberta – 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, 2020. Financial and operational information is set out below and should be read in conjunction with Briko’s September 30, 2020 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
- Average daily production of 576 boe per day for the nine months ended September 30, 2020 compared to 678 boe per day for the nine months ended September 30, 2019.
- Decreased net operating expenses per boe by 4% for the nine months ended September 30, 2020 of $11.07/boe as compared to $11.50/boe for the nine months ended September 30, 2019.
- Decreased G&A expenses per boe by 28% to $2.69/boe for the nine months ended September 30, 2020 as compared to $3.75/boe for the nine months ended September 30, 2019.
- Adjusted funds flow for the nine months ended September 30, 2020 of $532,000 ($0.05/share) compared to $885,000 (0.08/share) for the nine months ended September 30, 2019.
- Maintained a strong Liability Management Rating (“LMR”) of 7.6 at September 30, 2020.
(Expressed in thousands of Canadian dollars except per boe and share amounts) | Three Months Ended September 30 |
Nine Months Ended September 30 | |||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
OPERATIONS | |||||||||||
Average daily production | |||||||||||
Light oil (bbl/d) | 119 | 155 | 114 | 170 | |||||||
Natural gas (mcf/d) | 2,315 | 2,639 | 2,441 | 2,675 | |||||||
NGLs (bbl/d) | 57 | 57 | 56 | 62 | |||||||
Total equivalent (boe/d) | 562 | 652 | 576 | 678 | |||||||
Average prices | |||||||||||
Light oil ($/bbl) | $ | 54.83 | $ | 66.94 | $ | 56.43 | $ | 67.06 | |||
Natural gas ($/mcf) | 1.83 | 0.93 | 1.71 | 1.51 | |||||||
NGLs ($/bbl) | 37.85 | 39.32 | 34.67 | 47.08 | |||||||
Operating netback | |||||||||||
Revenue ($/boe) | $ | 22.98 | $ | 23.11 | $ | 21.76 | $ | 27.11 | |||
Realized gain (loss) on risk management | |||||||||||
contracts ($/boe) | (0.42) | (0.27) | 1.03 | (0.15) | |||||||
Royalties ($/boe) | (2.81) | (3.86) | (3.57) | (4.60) | |||||||
Net operating expenses(1) ($/boe) | (11.85) | (11.03) | (11.07) | (11.50) | |||||||
Transportation expenses ($/boe) | (2.17) | (2.61) | (2.10) | (2.33) | |||||||
Operating netback (1) ($/boe) | $ | 5.73 | $ | 5.34 | $ | 6.05 | $ | 8.53 | |||
FINANCIAL | |||||||||||
Oil and natural gas revenues (2) | $ | 1,188 | $ | 1,386 | $ | 3,436 | $ | 5,021 | |||
Operating income(1) | 297 | 321 | 957 | 1,580 | |||||||
Cash provided by operating activities | 508 | 181 | 1,269 | 946 | |||||||
Per share – basic and diluted | 0.05 | 0.02 | 0.11 | 0.08 | |||||||
Adjusted funds flow (1) | 160 | 110 | 532 | 885 | |||||||
Per share – basic and diluted | 0.01 | 0.01 | 0.05 | 0.08 | |||||||
Net loss and comprehensive loss | (187) | (407) | (3,256) | (371) | |||||||
Per share – basic and diluted | (0.02) | (0.04) | (0.29) | (0.03) | |||||||
Capital expenditures | 39 | 406 | 69 | 559 | |||||||
Net working capital(1) | 453 | 19 | 453 | 19 | |||||||
Shares outstanding (‘000s) | 11,211 | 11,207 | 11,211 | 11,207 | |||||||
Weighted average shares outstanding | |||||||||||
basic and diluted (‘000s) | 11,211 | 11,207 | 11,208 | 11,206 |
(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.
GUIDANCE
Briko’s estimated production for the fourth quarter of 2020 is in the range of 525 – 575 boe/d and 2020 estimated production is in the range of 525 – 600 boe/d. Briko continues to establish a prudent capital expenditure program focussed on maintenance and optimization initiatives that is anticipated to be funded by adjusted funds flow for 2020.
About Briko Energy Corp.
Briko Energy Corp. is an Alberta Foothills Cardium 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.
For additional information, please contact:
Briko Energy Corp.
1710 736 6th Ave. SW
Calgary, Alberta
T2P 3T7
(587) 392-6317
info@brikoenergy.com
John H. Van de Pol
President & CEO
Kim Benders
Vice President & CFO