Calgary, Alberta – Briko Energy Corp. (“Briko” or the “Corporation”) is pleased to report its financial and operating results for the three months ended March 31, 2021. Financial and operational information is set out below and should be read in conjunction with Briko’s March 31, 2021 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 467 boe per day for the three months ended March 31, 2021 compared to 568 boe per day for the three months ended March 31, 2020.
- Operating netback of $8.11 per boe for the three months ended March 31, 2021 compared to $6.74 per boe for the three months ended March 31, 2020.
- Adjusted funds flow for the three months ended March 31, 2021 of $190,000 ($0.02/share) compared to $187,000 (0.02/share) for the three months ended March 31, 2020.
- Net income for the three months ended March 31, 2021 of $82,000.
- Net working capital at March 31, 2021 of $792,000.
- Maintained a strong Liability Management Rating (“LMR”) of 6.23 at May 1, 2021.
(Expressed in thousands of Canadian dollars except per boe and share amounts) | Three Months Ended | |||||
March 31, 2021 | March 31, 2020 | |||||
OPERATIONS | ||||||
Average daily production | ||||||
Light oil (bbl/d) | 140 | 138 | ||||
Natural gas (mcf/d) | 1,844 | 2,266 | ||||
NGLs (bbl/d) | 19 | 52 | ||||
Total equivalent (boe/d) | 467 | 568 | ||||
Average prices | ||||||
Light oil ($/bbl) | $ | 57.73 | $ | 57.42 | ||
Natural gas ($/mcf) | 2.57 | 1.61 | ||||
NGLs ($/bbl) | 58.32 | 45.72 | ||||
Operating netback | ||||||
Revenue ($/boe) | $ | 29.91 | $ | 24.58 | ||
Realized gain (loss) on risk management contracts ($/boe) | (0.66 | ) | 0.44 | |||
Royalties ($/boe) | (4.08 | ) | (4.17 | ) | ||
Net operating expenses(1) ($/boe) | (14.58 | ) | (11.94 | ) | ||
Transportation expenses ($/boe) | (2.48 | ) | (2.17 | ) | ||
Operating netback (1) ($/boe) | $ | 8.11 | $ | 6.74 | ||
FINANCIAL | ||||||
Oil and natural gas revenues (2) | $ | 1,257 | $ | 1,270 | ||
Operating income(1) | $ | 340 | $ | 348 | ||
Cash provided by operating activities | $ | 89 | $ | 309 | ||
Per share – basic and diluted | $ | 0.01 | $ | 0.03 | ||
Adjusted funds flow (1) | $ | 190 | $ | 187 | ||
Per share – basic and diluted | $ | 0.02 | $ | 0.02 | ||
Net income (loss) | $ | 82 | $ | (2,611 | ) | |
Per share – basic and diluted | $ | 0.01 | $ | (0.23 | ) | |
Capital expenditures | $ | 78 | $ | 25 | ||
Net working capital (1) | $ | 792 | $ | 188 | ||
Shares outstanding (‘000s) | 11,211 | 11,207 | ||||
Weighted average shares outstanding | ||||||
basic and diluted (‘000s) | 11,211 | 11,207 |
(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 production for the second quarter of 2021 is estimated to be in the range of 600 – 650 boe/d. Average production for 2021 is expected to be in the range of 500 – 550 boe/d. Briko has established a prudent capital expenditure program for 2021 that is expected to focus on maintenance and optimization initiatives.