Outlook
TriOil continues to deliver strong drill-bit growth from its three core assets, with corporate production effectively doubled over the past one-year period. The company produced a record 4,147 barrels of oil equivalent per day in the second quarter of 2013, compared with 2,091 barrels of oil equivalent per day in the second quarter of 2012. Second quarter 2013 production was also up a significant 19 per cent from 3,472 barrels of oil equivalent per day in the first quarter of 2013, despite an early and protracted spring breakup and wet weather delays through July.
Per-share performance continues to improve, with production per share climbing 65 per cent from the second quarter of 2012 and funds from operations per share increasing 62 per cent to 21 cents, compared with 13 cents per share in the second quarter of 2012.
The company's assets continue to provide strong netbacks and improving efficiencies, with operating netback climbing 7 per cent from the first quarter of 2013 to $41.53 per barrel of oil equivalent and operating costs decreasing 13 per cent to $11.58 per barrel of oil equivalent from $13.35 per barrel of oil equivalent in the second quarter of 2012.
TriOil has maintained a solid financial position, with net debt of $56-million at June 30, 2013 (1.1 times second quarter 2013 annualized funds from operations), and current credit facilities of $90-million. Year-to-date capital expenditures are $56.4-million, and TriOil's 2013 total capital expenditures are still forecast at $93-million. TriOil remains on track to meet its corporate production guidance of 3,900 to 4,100 barrels of oil equivalent per day in average annual production, with a 2013 exit target of 4,400 barrels of oil equivalent per day.
With a multiyear horizontal development drilling inventory of 178 net wells on three proven plays at Lochend, Kaybob and Pouce Coupe, strong corporate netbacks, improving efficiencies, and a solid balance sheet, TriOil is well positioned to deliver strong per-share production, reserve and cash flow growth for the next several years.