Even Spyglass Had A Good Quarter As A Result Of Oil Prices Spyglass Resources Corp. Announces 2014 Second Quarter Results, Reduces Net Debt and Declares August Dividend
CALGARY, ALBERTA--(Marketwired - Aug 12, 2014) -
All values are in Canadian dollars unless otherwise indicated. Conversion of natural gas volumes to barrels of oil equivalent (boe) are at 6:1.
Spyglass Resources Corp. ("Spyglass", or the "Company") (TSX:SGL)(OTCQX:SGLRF) is pleased to announce it has made progress towards the Company's strategy of enhancing financial flexibility, including streamlining the organization and non-core asset sales to reduce net debt, improve cost efficiencies, increase capital program and further focus operations. Spyglass also provides its unaudited interim financial and operating results for the quarter ended June 30, 2014 and declares the August cash dividend payment of $0.015 per share ($0.18 per share annualized) payable September 15, 2014.
Selected financial and operational information for the second quarter of 2014 is outlined below and should be read in conjunction with Spyglass' interim Consolidated Financial Statements and Management's Discussion and Analysis on www.sedar.com and also available at www.spyglassresources.com.
Second Quarter Summary
Sold or agreements to sell $51 million of non-core assets (prior to normal closing adjustments) lowers net debt at June 30, 2014 to $271 million, incorporating $42 million of assets held for sale with closings expected to occur in the third quarter of 2014. This reduces net debt by $36 million from $307 million at March 31, 2014 and is comprised of $291 million of long-term bank debt offset by a $20 million working capital surplus.
Funds flow from operations for the second quarter of 2014 of $19 million ($0.15 per share) surpassed first quarter funds flow of $16 million.
Production for the second quarter of 2014 averaged 14,474 boe/d, incorporating 700 boe/d downtime at Dixonville, compared to 14,560 boe/d in the first quarter.
Operating netbacks in the quarter improved to $27.31 per boe from $24.10 per boe in the first quarter of 2014 and $20.81 per boe in the second quarter of 2013 reflecting higher commodity prices and operating costs lower than guidance.
Capital expenditures (prior to acquisitions and dispositions) for the second quarter of 2014 were $15 million, with $12 million directed towards drilling, completion and optimization activities.
In mid-April, Spyglass commenced drilling a horizontal Cadomin natural gas well at Noel (1.0 net). As previously announced, the well was completed earlier than anticipated, beginning post frac flow-back at rates of over 1,000 boe/d of natural gas in late June. Completion, equipping and tie-in occurred in July and the well has a current production rate of approximately 950 boe/d. The Company has an extensive drilling inventory at Noel, with over 85 Cadomin horizontal locations identified.