CALGARY, Alberta, March 22, 2018 (GLOBE NEWSWIRE) — GRANITE OIL CORP. (“Granite” or the “Company”) (TSX:GXO) (OTCQX:GXOCF) is pleased to release its financial results for the year ended December 31, 2017. Granite has filed its audited financial statements for the year ended December 31, 2017 and related Management Discussion & Analysis with the applicable Canadian securities regulatory authorities. Granite’s annual financial materials may be viewed in their entirety on www.sedar.com and on the Company’s website at www.graniteoil.ca.
Financial And Operating Highlights
Year Ended December 31, | ||||
2017 | 2016 | |||
(000s, except per share amounts) | ($) | ($) | ||
FINANCIAL | ||||
Oil and natural gas revenues | 52,667 | 45,508 | ||
Funds from operations (1) | 24,336 | 24,236 | ||
Per share – basic | 0.72 | 0.75 | ||
Per share – diluted (2) | 0.71 | 0.74 | ||
Net loss | (5,508 | ) | (7,277 | ) |
Per share – basic | (0.16 | ) | (0.22 | ) |
Per share – diluted (2) | (0.16 | ) | (0.22 | ) |
Capital expenditures (3) | 18,750 | 21,623 | ||
Net debt (4) | 39,839 | 31,763 | ||
Shareholders’ equity | 200,155 | 214,346 | ||
(000s) | (#) | (#) | ||
SHARE DATA | ||||
At period-end | 34,190 | 33,672 | ||
Weighted average – basic | 33,968 | 32,375 | ||
Weighted average – diluted | 34,437 | 32,675 | ||
OPERATING (5) | ||||
Production | ||||
Natural gas (mcf/d) | 417 | 184 | ||
Crude oil (bbls/d) | 2,598 | 2,835 | ||
Total (boe/d) | 2,668 | 2,866 | ||
Average wellhead prices | ||||
Natural gas ($/mcf) | 2.78 | 2.19 | ||
Crude oil and NGLs ($/bbl) | 55.09 | 43.59 | ||
Combined average ($/boe) (6) | 54.09 | 43.26 | ||
Netbacks | ||||
Operating netback ($/boe) (7) | 29.72 | 27.69 | ||
Reserves | ||||
Proved (mboe) | 14,302 | 12,483 | ||
Proved plus probable | 19,534 | 18,653 | ||
Total net present value – proved plus probable (10% discount before taxes) | 318,159 | 292,193 | ||
Undeveloped Land | ||||
Gross (acres) | 104,748 | 381,554 | ||
Net (acres) | 103,487 | 379,734 | ||
Gross (net) wells drilled | ||||
Oil (#) | 9 (9.0) | 10 (10.0) | ||
Dry and abandoned (#) | 1 (1.0) | – (-) | ||
Total (#) | 10 (10.0) | 10 (10.0) | ||
Average working interest (%) | 100 | 100 |
(1) Funds from operations and funds from operations per share are not recognized measures under International Financial Reporting Standards (“IFRS”). Refer to the commentary in the “Reader Advisories” under “Non-GAAP Measurements” for further discussion.
(2) The Company uses the weighted average common shares (basic) when there is a net loss for the period to calculate net income (loss) per share diluted. The Company uses the weighted average common shares (diluted) to calculate the funds from operations diluted.
(3) Total capital expenditures, excluding acquisitions and excluding non-cash transactions.
(4) Net debt, which is calculated as current liabilities (excluding derivative financial instruments) and bank debt less current assets (excluding derivative financial instruments), is not a recognized measure under IFRS. Please refer to the commentary in the “Reader Advisories” under “Non-GAAP Measurements” for further discussion.
(5) For a description of the boe conversion ratio, refer to the commentary in the “Reader Advisories” under “BOE Presentation”.
(6) Combined average realized prices includes all oil, gas and NGL sales revenue, excluding other income.
(7) Operating netback, which is calculated by deducting royalties, operating expenses and transportation expenses from oil and gas revenue and adjusting for any realized hedging on financial instruments, is not a recognized measure under IFRS. Please refer to the commentary in the “Reader Advisories” under “Non-GAAP Measurements” for further discussion.
2017 Reserves Highlights(1)
Proved Developed Producing (PDP) reserves
- Increased 18% to 7.3 mmboe from 6.2 mmboe (95% oil)
- Replaced production 215%
- F&D costs were $9.00/boe resulting in a PDP recycle ratio of 3.3 times(1)(2);
Total Proved (TP) reserves
- Increased 15% to 14.3 mmboe from 12.5 mmboe (85% oil)
- Replaced production 287%
- F&D costs were $10.28/boe resulting in a TP recycle ratio of 2.9 times(1)(2);
Proved plus Probable (P+P) reserves
- Increased 5% to 19.5 mmboe from 18.7 mmboe (85% oil)
- Replaced production 190%
- F&D costs were $14.08/boe resulting in a 2P recycle ratio of 2.1 times(1)(2);
Reserves Performance Measures(1)(2)
2017 | 2016 | 2015 | ||||
Proved Developed Producing | ||||||
Total Reserves (mboe) | 7,294 | 6,178 | 5,566 | |||
Reserves additions (mboe) | 1,116 | 612 | 216 | |||
F&D ($/boe) | 9.00 | 13.02 | 27.55 | |||
Recycle Ratio | 3.3 | 2.1 | 0.9 | |||
Reserves Replacement | 215% | 158% | 117% | |||
Total Proved | ||||||
Total Reserves (mboe) | 14,302 | 12,483 | 11,166 | |||
Reserves additions (mboe) | 1,819 | 1,316 | 783 | |||
Change in FDC ($000) | 9,917 | (9,883) | (1,561) | |||
F&D ($/boe) | 10.28 | 4.96 | 19.23 | |||
Recycle Ratio | 2.9 | 5.6 | 1.3 | |||
Reserves Replacement | 287% | 225% | 161% | |||
Proved Plus Probable | ||||||
Total Reserves (mboe) | 19,534 | 18,653 | 17,704 | |||
Reserves additions (mboe) | 881 | 949 | 748 | |||
Change in FDC ($000) | 7,303 | (12,403) | (28,779) | |||
F&D ($/boe) | 14.08 | 4.61 | 6.13 | |||
Recycle Ratio | 2.1 | 6.0 | 4.1 | |||
Reserves Replacement | 190% | 190% | 158% |
(1) Recycle ratio is calculated as operating netback divided by F&D costs. The F&D cost includes changes in FDC. Calculation is based on estimated 2017 operating netback of $29.71 per boe, which is calculated as revenue (including realized hedging gains) less royalties and production costs. See “Readers Advisories” for the method of calculating operating netback.
(2) Reserve performance metrics for the years 2015, 2016 and 2017 are calculated using the Company’s audited financial statements for the respective years.