Fantasic numbers. Cash flow of 3 cents. It should be noted that current production is 25% higher than 2012 Q3.
Alexander Energy Ltd. Announces 2012 Q3 Financial and Operating Results
CALGARY, ALBERTA--(Marketwire - Nov. 28, 2012) - Alexander Energy Ltd. (TSX VENTURE:ALX), ("Alexander" or the "Company") is pleased to announce its financial and operating results for the three and nine month periods ended September 30, 2012. This press release should be read in conjunction with the Company's September 30, 2012 condensed interim financial statements and MD&A filed on Sedar at www.sedar.com.
- Cash flow for Q3 2012 was $1.56 million, up 161% from Q3 2011 results.
- Oil production increased to 437 bbl/day, up 134% from Q3 2011 results. Gas production was down 34% as the Company shifts focus from gas to oil. The overall net BOE increase in Q3 2012 was 107 BOE/day as compared to Q3 2011. Gas contributed 39% of total production in Q3 2012, representing 11% of revenue and an estimated 10% of cash flow. These economics are driving the Company's shift to oil.
- The Board of Directors has made significant reductions to director's, legal and audit fees.
- With the new initiative to grow production and cash flow we have added four new people to support the engineering, geology, and land functions. In spite of these additions, the budget for 2013 forecasts a significant reduction in overall G&A expenses.
- The successful drilling and completion of the 15-12-56-27W4 well proved that our Detrital oil field extends to the north, and confirmed seismic interpretation. Based on this success the Company is planning to drill two Detrital wells in Q1 2013, at 12-12 and 4- 13-56-27W4.
- The mark to market value of the Company's oil production hedge for 2013 was $657,222 at September 30, 2012. As gas prices continue to improve the Company may hedge 50% of its gas production for 2013.
- Since September 30, 2012, Alexander has spent $800,000 (net) on field maintenance activities. This included the compressor turnaround at the central battery and processing facility, and workover projects on three wells. This resulted in production being down for approximately a week in October. The workover activities resulted in an increase in production of over 100 BOE/day.
- Cash flow for November and December, 2012 is anticipated to average $500,000 per month, and is expected to increase as the 15-12 well comes on stream.
- Alexander's total current net production is approximately 900 BOE per day, 55 percent of which is oil and natural gas liquids.
Financial Summary
|
|
Three months ended September 30 |
|
|
2012 |
|
2011 |
|
% Change |
|
|
|
| Oil and gas revenue |
$ |
3,304,518 |
$ |
2,079,442 |
|
59 |
|
| Cash flow from operations (1) |
|
1,563,100 |
|
597,981 |
|
161 |
|
|
Per share - basic and diluted (1) |
|
0.03 |
|
0.01 |
|
152 |
|
| Net income |
|
123,326 |
|
171,682 |
|
(28 |
) |
|
Per share - basic and diluted |
|
0.00 |
|
0.00 |
|
- |
|
| Net debt (1) |
|
11,643,887 |
|
12,369,063 |
|
(6 |
) |
| Capital expenditures |
$ |
511,000 |
$ |
1,363,000 |
|
(63 |
) |
| Shares outstanding - end of period |
|
62,239,477 |
|
59,963,786 |
|
4 |
|
|
|
|
|
|
|
Nine months ended September 30 |
|
|
2012 |
|
2011 |
|
% Change |
|
|
|
| Oil and gas revenue |
$ |
8,683,113 |
$ |
7,451,193 |
|
17 |
|
| Cash flow from operations (1) |
|
3,302,080 |
|
3,185,377 |
|
4 |
|
|
Per share - basic and diluted (1) |
|
0.05 |
|
0.06 |
|
(5 |
) |
| Net income (loss) |
|
938,367 |
|
(880,550 |
) |
- |
|
|
Per share - basic and diluted |
|
0.02 |
|
(0.02 |
) |
- |
|
| Net debt (1) |
|
11,643,887 |
|
12,369,063 |
|
(6 |
) |
| Capital expenditures |
$ |
2,113,000 |
$ |
7,268,000 |
|
(71 |
) |
| Shares outstanding - end of period |
|
62,239,477 |
|
57,169,721 |
|
9 |
|
|
|
|
|
| Operating summary |
|
|
|
| Three months ended September 30 |
2012 |
2011 |
% Change |
|
| Daily production |
|
|
|
|
|
|
| Oil and NGLs (bbl/d) |
|
437 |
|
187 |
134 |
|
| Natural gas (mcf/d) |
|
1,646 |
|
2,508 |
(34 |
) |
| Oil equivalent (boe/d @ 6:1) |
|
712 |
|
605 |
18 |
|
| Realized commodity prices ($CDN) |
|
|
|
|
|
|
| Oil and NGLs (bbl) |
$ |
72.77 |
$ |
67.73 |
7 |
|
| Natural gas (mcf) |
$ |
2.48 |
$ |
3.95 |
(37 |
) |
| Oil equivalent (boe @ 6:1) |
$ |
50.46 |
$ |
37.34 |
35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Nine months ended September 30 |
2012 |
|
2011 |
% Change |
|
| Daily production |
|
|
|
|
|
|
| Oil and NGLs (bbl/d) |
|
363 |
|
215 |
69 |
|
| Natural gas (mcf/d) |
|
2,082 |
|
2,707 |
(23 |
) |
| Oil equivalent (boe/d @ 6:1) |
|
710 |
|
666 |
7 |
|
| Realized commodity prices ($CDN) |
|
|
|
|
|
|
| Oil and NGLs (bbl) |
$ |
74.20 |
$ |
78.18 |
(5 |
) |
| Natural gas (mcf) |
$ |
2.33 |
$ |
3.87 |
(40 |
) |
| Oil equivalent (boe @ 6:1) |
$ |
44.79 |
$ |
40.96 |
9 |
|
|
|
|
|
| Operating and cash flow netbacks |
|
|
|
| Three months ended September 30 |
2012 |
|
2011 |
|
% Change |
|
|
($ / boe |
) |
($ / boe |
) |
|
|
| Operating netback ($/boe) |
|
|
|
|
|
|
| Revenue |
50.46 |
|
37.34 |
|
35 |
|
| Royalties |
(6.27 |
) |
(4.98 |
) |
26 |
|
| Operating expenses |
(11.87 |
) |
(13.10 |
) |
(9 |
) |
| Operating netback per boe |
32.32 |
|
19.26 |
|
68 |
|
| Realized gain (loss) on financial derivative instruments |
0.64 |
|
(1.57 |
) |
- |
|
| General and administrative expenses |
(7.08 |
) |
(4.96 |
) |
43 |
|
| Interest expense |
(2.00 |
) |
(1.99 |
) |
1 |
|
| Cash flow from operations per boe |
23.87 |
|
10.74 |
|
122 |
|
|
|
|
|
| Nine months ended September 30 |
2012 |
|
2011 |
|
% Change |
|
|
($ / boe |
) |
($ / boe |
) |
|
|
| Operating netback ($/boe) |
|
|
|
|
|
|
| Revenue |
44.79 |
|
40.96 |
|
9 |
|
| Royalties |
(5.33 |
) |
(6.38 |
) |
(16 |
) |
| Operating expenses |
(12.50 |
) |
(13.23 |
) |
(6 |
) |
| Operating netback per boe |
26.95 |
|
21.35 |
|
26 |
|
| Realized gain (loss) on financial derivative instruments |
(0.39 |
) |
2.16 |
|
- |
|
| General and administrative expenses |
(7.35 |
) |
(4.31 |
) |
71 |
|
| Interest expense |
(2.18 |
) |
(1.69 |
) |
29 |
|
| Cash flow from operations per boe |
17.03 |
|
17.51 |
|
(3 |
) |