CALGARY, AB – August 22, 2022 / Tenth Avenue Petroleum Corp. (“TPC” or the “Company”) (TSXV:TPC) is pleased to announce its financial and operating results for the three months ended June 30, 2022. The associated managements’ discussion and analysis (“MD&A”) and unaudited interim statements as at the end of the three months ended June 30, 2022 ca be found at www.sedar.com and www.tenthavenuepetroleum.com
The Company’s key achievements in the second quarter of 2022 included the following:
- Achieved production average of 143 boe/d (94% Oil and Liquids) in second quarter, a 63% increase from 88 boe/d in the first quarter.
- Generated adjusted funds flow of $421,788 in second quarter ($0.01 per share basic and $0.01 per share diluted) compared to $Nil in second quarter of 2021 ($Nil per share basic and diluted).
- Generated free funds flow (see “Capital Management Measures”) of $463,880 during the six-month period ended June 30, 2022.
- Exited the second quarter with a working capital surplus of $1,633,198, net of a small government loan, (see “Capital Management Measures”).
- Successfully closed the Avalon Acquisition on April 12, 2022, with an effective date of March 1, 2022
- Operating netback of $57.64/boe for the second quarter, a 116% increase from $26.65/boe from the first quarter.
- Capital Expenditures totaled $250,368 for the second quarter.
Selected Quarterly Information (v5)
Selected Quarterly Information
|Natural Gas (mcf/d)||52||73|
|Oil and NGL (bbls/d)||134||82|
|Average boe/d (6:1)||143||88|
|Natural gas ($/mcf)||4.36||6.65|
|Oil and NGL ($/bbl)||122.97||95.61|
|Oil equivalent ($/boe)||117.11||91.61|
|Cash provided by operating activities||149,049||(87,442||)|
|Adjusted funds flow (2)||1,687,151||293,619|
|Per share – basic||0.05||0.01|
|Per share – diluted||0.05||0.01|
|Net income (loss)||178,080||(72,706||)|
|Per share – basic||0.01||(0.00||)|
|Per share – diluted||0.01||(0.00||)|
|Net debt (2)||(1,633,198||)||(546,800||)|
- Includes cash and non-cash consideration.
- Capital Management Measure; See “Non-IFRS Financial Measures, Non-IFRS Financial Ratios and Capital Management Measures” Section of the Q1/22 MD&A
Since reorganizing the business on December 16, 2021, management and the board has executed several key objectives, including raising new capital to finance our initial growth strategy, completed a transformative oil weighted acquisition and implemented the waterflood enhancement strategy at Murray Lake under budget and ahead of schedule.
The Company is executing on both its short-term and long-term objectives of delivering discipline and accretive per share growth while displaying the resilience of flexibility of the Company’s business strategy and growing its asset base.
The Company will continue to assess the free cash flow profile given the increase in asset performance paired with commodity prices increases, while balancing our capital program, future land acquisitions and production acquisitions opportunities.
An updated corporate presentation can be found at www.tenthavenuepetroleum.com