RE: News Just Out...Q1 Record Results...
TriOil Resources Ltd. announces record first quarter 2013 results
Press Release: TriOil Resources Ltd. –
CALGARY , May 21, 2013 /CNW/ - TriOil Resources Ltd. ("TriOil" or the "Company" - TSXV:TOL) is pleased to announce that it has filed its financial statements and related Management's Discussion and Analysis ("MD&A") for the three months ended March 31, 2013 on SEDAR. Selected financial and operational information is outlined below and should be read in conjunction with TriOil's audited financial statements and related MD&A, available for review at www.trioilresources.com and www.sedar.com.
Highlights
- Achieved record average production of 3,472 BOE per day in Q1 2013. This represents strong organic growth of 117 percent over Q1 2012 production of 1,602 BOE per day and a significant 23 percent increase over Q4 2012 production of 2,821 BOE per day.
- Increased April average production to a record 4,000 BOE per day (62 percent oil and NGL's) (based on field estimates), with additional Kaybob wells brought on production during May and additional Lochend wells waiting to be brought on production post break-up. TriOil is on track to deliver a strong Q2 2013 and to meet or exceed its 2013 guidance.
- Increased funds from operations by 149 percent to a record $10.5 million in Q1 2013 from $4.2 million in Q1 2012 and by 19 percent from the $8.8 million generated in Q4 2012.
- Continued to deliver strong per share growth. Q1 2013 cash flow of
.16 per share is up 78 percent from
.09 per share in Q1 2012 and up 14 percent from
.14 per share in Q4 2012.
- Achieved net earnings of $2.5 million (
.04 per share) in Q1 2013 compared to a net loss of
.3 million (
.01 per share) in Q1 2012.
- Generated a strong operating netback of $38.65 per BOE in Q1 2013.
- Decreased operating expenses by 27 percent to $10.81 per BOE in Q1 2013 from $14.91 in Q1 2012 and by 8 percent from $11.73 per BOE in Q4 2012.
- The Company's credit facilities were expanded by $20 million to $90 million during the quarter.
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| Financial and Operating Results |
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Three months ended March 31 , |
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2013 |
2012 |
% Change |
(
00s, except per share numbers) |
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| Financial |
|
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|
| Total petroleum and natural gas sales |
18,064 |
9,587 |
88 |
| Funds from operations (1) |
10,486 |
4,219 |
149 |
|
Per share - diluted |
0.16 |
0.09 |
78 |
| Net income (loss) |
2,513 |
(343) |
(833) |
|
Per share - basic and diluted |
0.04 |
(0.01) |
- |
| Net debt (working capital) (2) |
60,483 |
(15,637) |
- |
| Total assets |
298,414 |
209,515 |
42 |
| Capital expenditures(3) |
47,276 |
32,142 |
47 |
| Weighted average shares outstanding |
|
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| Basic |
63,982 |
45,090 |
42 |
| Diluted |
64,034 |
45,263 |
41 |
| Operating |
|
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| Average daily production |
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Crude oil and NGLs (bbls/d) |
2,040 |
1,114 |
83 |
|
Natural gas (mcf/d) |
8,593 |
2,926 |
194 |
| Total (boe/d) |
3,472 |
1,602 |
117 |
| Average sales prices |
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Crude oil and NGLs ($/bbl) |
83.69 |
88.45 |
(5) |
|
Natural gas ($/mcf) |
3.49 |
2.32 |
50 |
| Total ($/boe) |
57.81 |
65.76 |
(12) |
| Wells drilled - gross (net) |
13(9.1) |
9(5.5) |
- |
| Drilling success rate (%) |
100 |
100 |
- |
| Operating netback ($/boe) |
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Oil and natural gas sales |
57.81 |
65.76 |
(12) |
|
Realized gain (loss) on derivative contracts |
1.70 |
(3.88) |
- |
|
Royalties |
(8.69) |
(10.62) |
(18) |
|
Operating costs |
(10.81) |
(14.91) |
(27) |
|
Transportation |
(1.36) |
(1.38) |
(1) |
| Operating netback |
38.65 |
34.97 |
11 |
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Notes:
| (1) |
Funds from (used in) operations is a non-GAAP measure and is calculated as cash flow from operating activities before the change in non-cash working capital and abandonment expenditures. |
| (2) |
Net debt (working capital) excludes unrealized gains and losses from financial derivative contracts and flow through share liability. |
| (3) |
Capital expenditures include additions to property, plant and equipment and exploration and evaluation assets and property acquisitions and are presented net of proceeds of disposals. |
OPERATIONS UPDATE
TriOil conducted a very successful light oil development drilling program in the first quarter. Field activity was focused at Kaybob where we drilled 8 (5.8 net) wells and brought 3 (2.0 net) wells on production at the end of the quarter, while Lochend operations were limited to drilling 4 (2.7 net) wells with only 1 (1.0 net) well brought on production late in the quarter due to very early March 1 road bans.
Kaybob Dunvegan
TriOil participated in the first modern horizontal multi-stage completion well on the Kaybob Duvegan light oil play in late 2011. To date we have drilled and completed a total of 28 horizontal oil wells on the play and Kaybob has been a major factor in the Company's strong per share reserve, production and cash flow growth over the past 18 months. Results to date from the first 20 Kaybob wells that TriOil drilled and brought on production in 2011 and 2012 are set out below:
| # wells |
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IP15 (% Oil & NGLs) |
|
IP30 (% Oil & NGLs) |
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IP60 (% Oil & NGLs) |
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IP90 (% Oil & NGLs) |
| 20 |
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394 BOE/d (85%) |
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336 BOE/d (82%) |
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274 BOE/d (79%) |
|
241 BOE/d (77%) |
Year to date TriOil drilled 9 (6.7 net) wells at Kaybob, 8 (5.7 net) of which have been completed and brought on production with the remaining 1 (1.0 net) well expected to be on production after breakup. Of the 9 wells drilled and brought on production in 2013, 7 (5.1 net) wells were booked as proved undeveloped locations, 1 (0.6 net) well was assigned probable reserves and 1 (1.0 net) well had no reserve booking in the Company's year end 2012 reserve report.
TriOil is very pleased with the results of our 2013 Kaybob drilling program, the early results of which are set out below:
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Well |
IP15 (% Oil & NGLs) |
IP30 (% Oil & NGLs) |
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4-23 |
344 BOE/d (84%) |
266 BOE/D (88%) |
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4-27 |
409 BOE/d (81%) |
299 BOE/D) (87%) |
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9-22 |
387 BOE/d (92%) |
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4-34 |
346 BOE/d (89%) |
304 BOE/d (89%) |
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12-27 |
448 BOE/d (88%) |
391 BOE/d (88%) |
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5-34 |
493 BOE/d (89%) |
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4-3 |
509 BOE/d (93%) |
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12-34 |
524 BOE/d (87%) |
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Average |
432 BOE/d (88%) |
315 BOE/D (87%) |
Kaybob continues to deliver top tier capital efficiencies with strong netbacks of $53.53 per BOE in Q1 2013, a 16 percent increase from $45.98 per BOE in 2012. The Company's drilling and completion costs have improved to $3.4 million per well in 2013 from $4.1 million for the first few wells on the play.
Capital spending in the first quarter of 2013 was heavily weighted to Kaybob due to the March 1 road bans that curtailed field operations at Lochend. Kaybob drilling activity in H2 2013 will be limited to 5 (3.1 net) wells as our capital program in the second half of the year will be mainly focused at Lochend.
With a de-risked drilling inventory of 44 net wells at 4 wells per section spacing, plus the added potential for enhanced recovery and future downspacing, we expect that our Kaybob Dunvegan asset will continue to deliver production growth for the Company for a number of years.
Lochend Cardium
TriOil has built a significant land position, strong operational presence and multi-year drilling inventory in the Cardium light oil resource play at Lochend. The Company owns 98 (78 net) sections on the play and has a current de-risked drilling inventory of approximately 90 net horizontal wells and a large undeveloped acreage position on the expanding Lochend Cardium trend. TriOil has a 55% working interest and operates a recently expanded 20 mmcf per day gas facility and owns a 22% interest in the recently expanded 7,000 bbl per day oil battery at Lochend.
The Company has drilled and executed slick-water completions on a total of 21 horizontal wells at Lochend since 2011 with strong results, as set out below:
| # wells |
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IP30 (% Oil & NGLs) |
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IP60 (% Oil & NGLs) |
|
IP90 (% Oil & NGLs) |
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| Central/West |
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| 15 |
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302 BOE/d (76%) |
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268 BOE/d (73%) |
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237 BOE/d (70%) |
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| East |
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| 6 |
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180 BOE/d (89%) |
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151 BOE/d (88%) |
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135 BOE/d (84%) |
First quarter 2013 drilling and completion activities were cut short by very early road bans that came into effect March 1, 2013 due to unseasonably mild weather. TriOil was limited to drilling 4 (2.7 net) wells at Lochend with only 1 (1.0 net) well brought on stream late in the quarter. Field conditions are looking very favorable at this time and we expect to be back in the field in June.
TriOil, together with area operators, has invested significant capital on the play over the past 15 months to expand the TriOil operated gas facility to 20 mmcf per day and to construct and expand a 7,000 bbl per day oil battery.
We have an active drilling and completion program planned for the second half of the year at Lochend and expect to drill and complete 10 (5.2 net) horizontal wells prior to year end.
Pouce Coupe Montney
TriOil owns approximately 15.5 net sections in the Pouce Coupe/Gordondale area that are prospective for both Upper and Lower Montney. The Company drilled its first Lower Montney well on the play in late 2012 and executed a newer multi-stage completion technique. Results to date have exceeded our expectations as well as independent engineering forecasts. The new well has produced at a stable rate of approximately 3.8 mmcf per day and 30 bbls per mmcf of NGLs over its initial 4 months of production and achieved an IP120 of 725 BOE per day. To date the well has outperformed year end reserve estimates by approximately 0.5 bcf and is producing at a higher than expected liquids rate of approximately 30 bbls per mmcf.
We plan to monitor performance of our new liquids-rich Lower Montney well together with the significant Lower Montney oil results and drilling activity by a senior producer directly offsetting our Pouce Coupe/Gordondale land block, with a view to adding a Lower Montney horizontal well to the budget in the second half of 2013. TriOil has a substantial drilling inventory of 90 (40 net) horizontal Montney development wells at Pouce Coupe/Gordondale, 73 (30 net) of which are unbooked.
Financial
TriOil posted record financial results for the first quarter of 2013, primarily due to a 117 percent increase in production volumes over Q1 2012 and a 23 percent increase in production volumes over Q4 2012. Funds from operations were $10.5 million or
.16 per share compared to $4.2 million or
.09 per share Q1 2012 and $8.8 million or
.14 per share in Q4 2012.
The Company's operating netback of $38.65 per BOE decreased 4% from $40.35 per BOE in Q4 2012 due to a 12 percent decrease in average sales prices as a result of increased natural gas production from a significant new gas well at Pouce Coupe, partially offset by an 8% decrease in operating costs per BOE to $10.81 per BOE and a 41% decrease in royalties per BOE.
In the first quarter of 2013, the Company spent $32.5 million on drilling, completion and tie-in operations at Lochend and Kaybob, $3.2 million on a production facility expansion project at Lochend and major pipeline infrastructure at Lochend and Kaybob and $10.9 million on a strategic acquisition at Kaybob.
Outlook
TriOil has assembled a strong operating position and multi-year growth platform on 3 proven resource plays that provide predictable and sustainable growth for the Company. Our Lochend Cardium and Kaybob Dunvegan light oil assets continue to drive strong per share production, cash flow and reserve growth with attractive capital efficiencies while our low risk Montney liquids-rich gas asset provides the Company with significant natural gas growth potential and exposure to improving natural gas markets.
TriOil has established a strong commodity hedge position to help stabilize forecast cash flow and to protect our capital program. We currently have 1,700 bbls per day hedged at a fixed average price of WTI Canadian $99.23 per bbl to year end 2013, 2,000 GJ per day hedged at a fixed average price of AECO $3.46 per GJ to year end 2013 and 700 bbl per day hedged at a fixed average price of WTI Canadian $94.95 per bbl for calendar 2014.
After posting record production of 3,472 BOE per day in Q1 2013, TriOil reached a new high in April averaging 4,000 BOE per day (62 percent oil & NGLs) (based on April field estimates) and is on track for a strong second quarter. The Company is very well positioned to meet or exceed its current guidance of 3,900-4,100 annual average and 4,400 exit 2013 production.
Strategic Alternatives Process Update
The previously announced strategic alternatives process is progressing on schedule and as planned. Further updates in respect of the Company's strategic alternative process will be made in due course. There can be no assurances or guarantees that this process will result in an acceptable transaction.
Full article:
https://finance.yahoo.com/news/trioil-resources-ltd-announces-record-021400729.html
PS. Decent company, decent financials and production growth in future regardless if they get sold off or not.....With others moving in sector, why wouldn't this one not get to 3 and beyond one day.
Cheers,
Dave.