CALGARY, AB–(Marketwired – November 03, 2017) –
Toscana Energy Income Corporation (“TEI” or the “Corporation”) (TSX: TEI) announces financial and operating results for the third quarter ended September 30, 2017.
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 for the three and nine month periods ended September 30, 2017. 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.sprott-toscana.com.
Highlights
- Continued to reduce net debt by disposing non-core assets. Non-core asset dispositions were $1 million in the third quarter and $4.0 million YTD. Subsequent to the third quarter, the Corporation entered into a purchase and sale agreement to dispose undeveloped land in Northern Alberta for cash consideration of $1.6 million — See press release dated November 1, 2017.
- Maintained production for both the quarter and YTD periods to 2016 levels despite non-core asset dispositions.
- Drilled a 100% WI oil well in Carmangay area — Completion anticipated in early November, 2017.
- Approximately $9 million available at September 30, 2017 on a $34.2 million credit facility.
- Continued to reduce G&A to below $3.00/boe.
- Hedging strategy allowed the Corporation to mitigate historically low natural gas prices in Q3. Hedging gains totaled $0.7 million during the third quarter.
Three months ended September 30 |
Nine months ended September 30 |
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2017 | 2016 | Change | 2017 | 2016 | Change | |||
Average daily production (boe/d) | 2,197 | 2,056 | 7 | % | 2,222 | 2,308 | (4 | %) |
Petroleum and natural gas revenue, net of royalties ($) | 3,906,220 | 5,325,841 | (27 | %) | 15,015,525 | 15,301,345 | (2 | %) |
Netback ($) | 1,483,978 | 3,174,541 | (53 | %) | 5,410,401 | 9,424,592 | (43 | %) |
Netback per boe ($) | 7.34 | 16.78 | (56 | %) | 8.92 | 14.90 | (40 | %) |
Funds flow from operations ($)(1) | 589,528 | 2,125,201 | (72 | %) | 1,892,084 | 5,718,794 | (67 | %) |
1 Impacted by one-time site remediation and associated costs related to pipeline spill at Clair. |