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PETROAMERICA ANNOUNCES SECOND QUARTER 2013 RESULTS AND SURPASSES 6,000 BOPD PRODUCTION MILESTONE
Calgary, Alberta (August 21, 2013) - Petroamerica Oil Corp. (TSX-V: PTA) ("Petroamerica" or the "Company"), a Canadian oil and gas company operating in Colombia, is pleased to announce the financial and operating results for the three and six months ended June 30, 2013. Copies of the Company’s Management Discussion and Analysis and Financial Statements have been filed with the Canadian Securities Regulatory Authorities and can be viewed or downloaded at the Company’s website at www.petroamericaoilcorp.com or at www.sedar.com. The financial results for all periods presented are in United States dollars unless otherwise indicated.
Quarterly highlights include:
Generated net income of $11.2 million ($0.02 per share basic), funds flow from operations of $24.2 million ($0.04 per share basic) and positive cash flow from operations of $21.3 million ($0.04 per share basic), resulting in cash on hand at June 30 of over $47 million (current cash on hand: $55 million);
Realized a Brent referenced sales price of over $99 per barrel ("/bbl") and an operating netback of approximately $71/bbl;
Achieved quarter-over-quarter production growth with total Company average production for the second quarter of 5,046 barrels of oil per day ("bopd"), compared to 4,375 bopd in the first quarter. The Company achieved a production milestone of 6,000 bopd (total Company WI) on August 12, 2013;
Commissioning of the Las Maracas Field permanent production facility according to plan;
Participated in the drilling of three wells - Las Maracas-8, Las Maracas-9 and Curiara-1 - resulting in two oil producers and one oil discovery;
Initiated two wells - Las Maracas-9 which has since been completed as an oil producer and the La Casona-2 exploration well which was sidetracked and is still drilling.
The following table presents the highlights of Petroamerica’s financial and operating results for the three and six months ended June 30, 2013 and 2012.
(in $000 US except share, per share or unless otherwise noted) Q2 2013 Q1 2013 6 mos 2013 Q2 2012 Oil revenue – net of royalties 46,105 $ 45,667 $ 91,772 $ 4,647 $ Funds flow from operations 24,164 $ 22,477 $ 47,413 $ (707) $ Funds flow per share- basic 0.04 $ 0.04 $ 0.08 $ (0.00) $ Funds flow per share- diluted 0.04 $ 0.04 $ 0.08 $ (0.00) $ Income (loss) for period 11,171 $ 14,112 $ 25,284 $ (419) $ Total comprehensive income (loss) 11,389 $ 14,885 $ 26,274 $ (932) $ Income (loss) per share - basic 0.02 $ 0.02 $ 0.04 $ (0.00) $ Income (loss) per share - diluted 0.02 $ 0.02 $ 0.04 $ (0.00) $ Total assets 185,259 $ 165,734 $ 185,259 $ 122,674 $ Total cash 47,352 $ 53,594 $ 47,352 $ 32,296 $ Notes payable 31,482 $ 32,336 $ 31,482 $ 31,601 $ Shareholders’ equity 110,937 $ 99,306 $ 110,937 $ 82,595 $ Exploration costs - $ 326 $ (326) $ 57 $ Capital expenditures 25,130 $ 12,900 $ 38,030 $ 3,797 $ Common shares outstanding 580,798,260 580,721,594 580,798,260 578,331,594 Weighted average shares outstanding Basic 580,782,473 579,909,594 580,357,760 578,331,594 Diluted 600,776,919 606,798,610 606,397,533 578,331,594
(in $000 US except share, per share or unless otherwise noted) Q2 2013 Q1 2013 6 mos 2013 Q2 2012 Average production - bopd 5,046 4,375 4,746 613 Selling price $/bbl 99.25 $ 109.37 $ 104.02 $ 107.02 $ Royalty $/bbl 7.86 $ 9.07 $ 8.43 $ 8.56 $ Average transportation costs $/bbl 15.97 $ 17.89 $ 16.92 $ 10.50 $ Average production cost $/bbl 4.83 $ 2.90 $ 3.94 $ 22.64 $ Operating netback $/bbl 70.59 $ 79.51 $ 74.73 $ 65.32 $ Funds flow netback$/bbl 52.62 $ 57.08 $ 55.19 $ (12.67) $ Share trading High 0.36 $ 0.40 $ 0.40 $ 0.17 $ Low 0.21 $ 0.28 $ 0.21 $ 0.12 $ Close 0.26 $ 0.36 $ 0.26 $ 0.13 $ Trading volume 46,649,300 60,176,800 106,826,100 36,075,300
Second Quarter Financial Summary
For the three months ended June 30, 2013, the Company reported $46.1 million in oil revenue, net of royalties, from the sale of 506,394 barrels of oil. The realized sales price was $99.25/bbl generating an operating netback of $70.59/bbl.
For the second quarter of 2013, the Company’s net income was $11.2 million ($0.02 per share diluted). The Company’s capital expenditures for the second quarter were $25.1 million, all invested in Colombia, and primarily for facilities construction, development drilling on the Las Maracas Field, and exploration drilling at Curiara-1 and La Casona-2. These capital expenditures were funded from available cash on hand.
At the end of the second quarter, the Company’s cash position was $47.4 million, and the Company holds Canadian $35 million of debt in Senior Notes payable on April 19, 2015.
Operations Update
Total Company production for the month of July averaged 5,653 bopd (Company working interest);
With the addition of production from the Las Maracas-11 well, on August 12, 2013, the Company’s production exceeded 6,000 bopd;
The Las Maracas-10 well reached its target depth on August 6, and tested, under natural flow conditions, light oil (29.8° API) from a 16-foot perforated interval in the main Gacheta sand. The total duration of the test was 6 hours and the average oil rate through a 40/64 inch restricted choke was approximately 1,000 bopd with a wellhead pressure of 300 psi;
The Tuscany 109 rig was skidded and has commenced drilling the Las Maracas-12 development well;
Las Maracas-14 (Las Maracas Sur-1) is scheduled to be drilled following Las Maracas- 12;
On the El Eden Block, the La Casona-2 well was sidetracked on July 5 for operational reasons. The La Casona-2ST well is currently drilling through the Mirador formation and is showing encouraging preliminary results. The well is expected to reach its target depth in late August;
After completing La Casona-2ST, the Tuscany 119 rig will mobilize to drill the La Guira-1 well on the Los Ocarros Block, following which it is expected to return to the El Eden Block to drill the exploration well Rumi-1;
The long-term test production facility at La Casona is nearing completion and production from La Casona-1 is expected to commence before the end of September 2013;
The Curiara-1 well on the El Porton block is expected to be put on long-term test early in the first quarter of 2014 for a six month period, following which further testing of the discovery, including continued long-term test production and possible appraisal drilling, may ensue.
Activity Schedule
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A summary of the expected drilling and testing activity, for the remainder of 2013 and the early part of 2014, is provided below: Prospect/Well
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Activity Type
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Block
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Working Interest
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Timing/Status
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La Casona-2 ST
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Appraisal
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El Eden
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40%
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Drilling
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Las Maracas-12
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Development
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Los Ocarros
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50%
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Drilling
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Las Maracas-14 (Sur-1)
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Appraisal
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Los Ocarros
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50%
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Q3 2013
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La Guira-1
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Exploration
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Los Ocarros
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50%
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Q3 2013
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La Casona-1
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Long-Term Test
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El Eden
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40%
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Q3 2013
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Las Maracas-15
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Appraisal
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Los Ocarros
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50%
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Q4 2013
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Rumi-1
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Exploration
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El Eden
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40%
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Q4 2013
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Crypto-1
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Exploration
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El Porton
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100%
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Q4 2013/Q1 2014
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Curiara-1
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Long-Term Test
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El Porton
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25%
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Q1 2014
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Malavar-1
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Exploration
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Llanos-10
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50%
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Q1 2014
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