First quarter results
News Release Issued: May 31, 2012 12:52 AM EDT
PetroMagdalena announces filing of first quarter 2012 results
TORONTO, May 31, 2012 /CNW/ - PetroMagdalena Energy Corp. (TSXV: PMD) filed on May 30, 2012 its unaudited interim condensed consolidated financial statements and Management's Discussion and Analysis ("MD&A") for the three months ended March 31, 2012. These documents will be posted on the Company's website at www.petromagdalena.com and at www.sedar.com under the Company's SEDAR profile.
Luciano Biondi, the Company's Chief Executive Officer, stated: "We are continuing to build on our success from 2011. In the first quarter of 2012, we have growth in production, revenues and operating netback compared with both the fourth quarter and the first quarter of last year. Continued exploration success led to two new discoveries in the first quarter of 2012 and as we commence the development phase of our 2012 drilling campaign, we remain on track to achieve our 2012 production guidance. We experienced blockades in the Llanos Basin this year, yet we are encouraged with our progress in developing closer working relationships with the community, its leaders and the regional and central government to promote improved relations going forward. We continue to work for sustainable solutions in the area."
Financial and Operating Summary
|
|
First Quarter |
|
|
2012 |
|
2011 |
|
|
|
|
|
| Financial |
|
|
|
|
| Revenue from oil and gas sales |
$ |
31,012 |
$ |
20,837 |
| Gross margin (3) |
|
12,027 |
|
4,987 |
| Net loss (4) |
|
(10,152) |
|
(10,333) |
| Basic and diluted loss per share |
|
(0.07) |
|
(0.08) |
| Total assets at period end |
|
343,559 |
|
387,193 |
| Total debt (5) at period end |
|
57,874 |
|
12,030 |
|
|
|
|
|
| Operational |
|
|
|
|
| Average daily production (boed) (1) |
|
3,847 |
|
2,294 |
| Total sales (boe) (2) |
|
299,614 |
|
256,532 |
| Operating netback ($/boe) (3) |
|
74.66 |
|
52.27 |
|
| (1) |
Company share, gross before deduction of ANH royalties |
| (2) |
Company share, net after deduction of ANH royalties |
| (3) |
See Additional Financial Measures in the MD&A. |
| (4) |
2012 includes $17.5 million of costs for exploratory wells at Santa Cruz, Arrendajo and Cubiro that did not discover proved reserves. |
| (5) |
Includes amounts due within one year and obligation under finance lease. |
First Quarter 2012 Highlights
Production: The Company is maintaining its guidance of an average gross production of 4,300 to 4,700 boed for 2012. The Company's gross share of production for the first quarter of 2012 averaged 3,847 boed, up 6% from the fourth quarter of 2011 and up 68% from the first quarter a year ago. The discoveries at Cernicalo and Azor added approximately 330 boed to the Company's gross share of production in the first quarter of 2012. An 11-day illegal protest in the province of Casanare in March 2012 temporarily disrupted trucking operations in the area and adversely impacted the Company's gross share of production for the first quarter of 2012 by approximately 171 boed.
Revenues: Stronger oil prices and increased production levels grew revenues in the first quarter of 2012 to $31.0 million, up 12% from the fourth quarter of 2011 and up 49% from the first quarter a year ago. An approximately 24,000 bbls increase in net oil inventories from Arrendajo and Cubiro in the first quarter of 2012 to approximately 54,000 bbls will reverse as sales are completed in the second quarter of 2012.
Operating netback: The Company's operating netback increased to $74.66 per boe in the first quarter of 2012, an approximate $13 per boe improvement compared with the fourth quarter of 2011 and $22 per boe higher than the first quarter of 2011. An approximate $3 per boe increase in revenues to $110 per boe, coupled with reductions in production and transportation costs contributed to the Company's fifth consecutive quarter of operating netback improvement.
G&A expenses: G&A of $3.4 million, or approximately $11 per boe sold, in the first quarter of 2012 was in line with G&A in the fourth quarter of 2011 and well below the $4.7 million incurred in the first quarter a year ago. Continued production growth in 2012 is expected to maintain G&A at approximately $10 to $11 per boe sold.
Exploration: Successful discoveries in the first quarter of 2012 at Cernicalo in the Cubiro Block and Azor in the Arrendajo Block are expected to add to the Company's 13.3 MMbbls of 2P oil reserves reported as of December 31, 2011.
Liquidity: The Company received $11.3 million of proceeds in March 2012 from a new three-year term loan with a local Colombian bank to help fund an expansion in the 2012 work program as a result of the new discoveries.
Net Loss: The net loss for the first quarter of 2012 amounted to $10.2 million or
.07 per share compared with a net loss of $10.3 million or
.08 per share in the first quarter last year. The 2012 first quarter net loss includes $17.5 million of costs for exploratory wells at Santa Cruz, Arrendajo and Cubiro that did not discover proved reserves.