VIRGINIA HILLS OIL CORP VFGGF

RE: Pinecrest Energy earns $3.71-million in Q

[longrun]

2013-05-13 23:52 ET - News Release

 

Mr. Wade Becker reports

PINECREST ENERGY INC. ANNOUNCES ITS 2013 FIRST QUARTER RESULTS

Pinecrest Energy Inc. has filed on SEDAR its unaudited financial statements, and related management's discussion and analysis (MD&A), for the three-month period ending March 31, 2013. The statements will be available for review on SEDAR.

First quarter 2013 achievements

Pinecrest is pleased to provide the following update on its achievements during the three months ended March 31, 2013:

 

• Achieved record average production of 4,315 barrels of oil equivalent per day (99 per cent light oil), an increase of 28 per cent from 3,358 barrels of oil equivalent per day for the three months ended March 31, 2012; average production for the first quarter 2013 increased by 23 per cent, compared with the fourth quarter of 2012 (3,510 barrels of oil equivalent per day);
• Achieved drilling success of 100 per cent, with a total of 12 (11.3 net) oil wells drilled, compared with nine (8.8 net) oil wells drilled during the quarter ended March 31, 2012;
• Increased funds from operations by 6 per cent to $21.5-million (10 cents per basic and nine cents per diluted shares outstanding), compared with $20.3-million (10 cents per basic and nine cents per diluted shares outstanding) for the quarter ended March 31, 2012; funds from operations increased by 4 per cent, compared with $20.7-million (10 cents per basic and nine cents per diluted weighted average shares outstanding) during the fourth quarter of 2012;
• Continued to generate a top-decile operating netback of $60.60 per barrel of oil equivalent for the quarter ended March 31, 2013; increased production costs consisting of increased emulsion hauling from wells not yet tied in, advanced expenditures on propane and chemical supplies, and a number of non-recurring well workovers resulted in a lower netback, compared with $69.51 per barrel of oil equivalent for the quarter ended March 31, 2012, and compared with $65.71 per barrel of oil equivalent for the fourth quarter of 2012;
• Completed conversion of its third (Loon project No. 1) waterflood project and started injecting water in the latter part of March, 2013;
• Increased bank line to $155-million during the quarter;
• Subsequent to the end of the quarter, the company's credit line has been increased to $165-million.