CALGARY, ALBERTA--(Marketwire - Aug. 29, 2012) -
THIS NEWS RELEASE IS NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES, TO UNITED STATES NEWS WIRE SERVICES OR TO UNITED STATES PERSONS.
Torquay Oil Corp. (TSX VENTURE:TOC.A) (TSX VENTURE:TOC.B) ("Torquay" or the "Corporation") is pleased to announce that it has filed its unaudited financial statements and related Management's Discussion and Analysis ("MD&A") as at and for the six months ended June 30, 2012. The Corporation's unaudited financial statements and related MD&A are available for review at www.torquayoil.com or www.sedar.com.
Highlights and Corporate Outlook
Year to date revenue was $6,359,895, which is a 25% increase over the same period in 2011. Production volume was up 31% year to date compared to the same period last year. The Corporation's quarterly production was also up 9% compared to Q2 2011. Average Q2 2012 production was reduced by approximately 90 boe/d due to an extended spring break-up at Queensdale.
Year to date netbacks have averaged $48.51 per boe for the first six months of 2012. Average year to date prices have declined $4.60 per boe as compared to the first six months of 2011. Prices remained volatile throughout the second quarter and have recovered substantially in the third quarter of 2012. One-time charges resulting in a net decrease in netbacks of $4.79 per boe year to date are not expected to reduce netbacks in future quarters.
Capital activity was reduced during the second quarter due to seasonal break-up and to maintain the balance sheet during this period of volatile commodity pricing.
Industry activity is moving towards applying the same fracture stimulation techniques that have been successfully used in the Bakken on other formations such as the Midale. The Midale Formation is well suited to this type of stimulation as it typically has low permeability and is sandwiched between two evaporite beds which help contain the fracture stimulation. Torquay has been monitoring successful stimulations in the Midale and is well positioned to apply this step change in technology on its lands at Alameda and Midale.
At Lake Alma, Saskatchewan, the Corporation holds over 57,000 net acres, the majority of which do not expire until March, 2016. Industry activity in North Dakota has become increasingly focused on the Three Forks Formation. The Three Forks is pervasive underneath Torquay's land block and is now productive within 35 km of its land position. The Corporation continues to evaluate the Bakken Formation along with the emerging Three Forks play.
Replacement of the damaged tank farm at the Viewfield battery is well under way. The Corporation expects production to resume by mid September 2012. The financial impact to Torquay is limited to insurance deductibles of approximately $136,000 which includes a $25,000 deductible on equipment replacement and fifteen days of net production.
Selected Financial and Operational Information
Selected financial and operational information is outlined below and should be read in conjunction with Torquay's unaudited condensed interim financial statements as at and for the three and six months ended June 30, 2012.
|
|
Three months ended
June 30 |
|
|
Six months ended
June 30 |
|
(
00's except per share amounts) |
|
2012 |
|
|
2011 |
|
|
2012 |
|
|
2011 |
|
| Petroleum & natural gas revenue |
$ |
2,326 |
|
$ |
2,656 |
|
$ |
6,360 |
|
$ |
5,105 |
|
| Funds flow from operations |
|
566 |
|
|
998 |
|
|
2,824 |
|
|
1,998 |
|
| Funds flow per share (basic and diluted) |
|
0.01 |
|
|
0.03 |
|
|
0.06 |
|
|
0.05 |
|
| Net loss |
|
(1,373 |
) |
|
(328 |
) |
|
(2,613 |
) |
|
(3,290 |
) |
| Net loss per share (basic and diluted) |
|
(0.03 |
) |
|
(0.01 |
) |
|
(0.05 |
) |
|
(0.09 |
) |
| Capital expenditures (net) |
|
1,051 |
|
|
3,177 |
|
|
4,514 |
|
|
19,913 |
|
| Weighted common shares outstanding (1) |
|
48,373 |
|
|
38,491 |
|
|
48,270 |
|
|
36,992 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Production |
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil (bbls/d) |
|
312 |
|
|
275 |
|
|
402 |
|
|
281 |
|
|
NGL's (bbls/d) |
|
25 |
|
|
33 |
|
|
27 |
|
|
41 |
|
|
Natural gas (mcf/d) |
|
125 |
|
|
129 |
|
|
186 |
|
|
168 |
|
|
Total BOE/d |
|
359 |
|
|
330 |
|
|
460 |
|
|
350 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Pricing |
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil ($/bbl) |
$ |
77.29 |
|
$ |
98.19 |
|
$ |
83.26 |
|
$ |
91.13 |
|
|
NGL's ($/bbl) |
|
47.71 |
|
|
48.63 |
|
|
44.57 |
|
|
45.21 |
|
|
Natural gas ($/mcf) |
|
1.67 |
|
|
4.35 |
|
|
1.51 |
|
|
4.38 |
|
|
Average ($/BOE) |
$ |
71.29 |
|
$ |
88.55 |
|
$ |
75.99 |
|
$ |
80.59 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Field netback ($/BOE) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Petroleum & natural gas revenue |
$ |
71.29 |
|
$ |
88.55 |
|
$ |
75.99 |
|
$ |
80.59 |
|
|
Royalties |
|
(13.99 |
) |
|
(11.61 |
) |
|
(12.38 |
) |
|
(10.38 |
) |
|
Operating costs |
|
(24.40 |
) |
|
(17.78 |
) |
|
(15.09 |
) |
|
(14.95 |
) |
|
Netback |
$ |
32.90 |
|
$ |
59.16 |
|
$ |
48.51 |
|
$ |
55.26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Basic per share amounts are calculated by dividing net income or loss by the weighted average number of Class A outstanding during the period. In addition, for the purpose of calculating diluted per share amounts the effect of warrants, options and convertible Class B Shares are anti-dilutive and consequently are not included in the determination of diluted shares outstanding. |
Torquay is a uniquely positioned, oil focused, junior exploration Corporation formed to generate and develop its own prospects, acquire oil-weighted properties and participate with joint venture partners in oil exploration and development in the Western Canadian Sedimentary Basin. The Corporation's Class A Shares and Class B Shares trade on the TSX Venture Exchange under the symbols TOC.A and TOC.B. The Corporation currently has 48,659,448 Class A Shares and 1,260,000 Class B Shares outstanding.
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