CALGARY, Alberta, April 29, 2019 (GLOBE NEWSWIRE) -- International Frontier Resources Corporation (“IFR” or the “Company”) (TSX-V: IFR) (OTCQB: IFRTF) reported today its financial and operating results for the three months and year ended December 31, 2018. Selected financial and operational information is set out below and should be read in conjunction with IFR’s December 31, 2018 audited annual financial statements and the related management’s discussion and analysis (“MD&A”). In addition, the Company today announces the filing of its Annual Information Form (“AIF”) for the year ended December 31, 2018, which contains the Company’s reserves and other oil and natural gas information, as required under National Instrument 51-101 Standards of Disclosure of Oil and Gas Activities. The AIF, financial statements and MD&A are available for review at www.sedar.com and on the Company’s website at www.internationalfrontier.com. All dollar figures are in Canadian dollars.
Highlights
IFR achieved several strategic objectives in 2018. With an increased focus on Mexico’s Energy Sector, IFR successfully executed on its strategy to be a first-mover. Through its joint venture company Tonalli Energia S.A.P.I de C.V. (“Tonalli”), which was formed in partnership with Mexican petrochemical leader Grupo IDESA S.A.P.I. de C.V. (IDESA), IFR built a solid foundation from which to emerge as an energy leader in Mexico.
IFR’s achievements in 2018 include:
- In May 2018, Tonalli successfully and safely reached total depth at its first evaluation well, TEC-10, on its onshore Tecolutla Block. The TEC-10 directional evaluation well was drilled to the target depth of 2453m (Total Vertical Depth TVD, 2490 Measured Depth).
- In August 2018, Tonalli announced the results of the extended testing operation of the TEC-10 well.
- In September 2018, Tonalli commenced trucking of oil produced at its Tecolutla block for sale to PEMEX.
- In September 2018, the Company entered into a share option agreement (the “Option Agreement”) with its joint venture partner, IDESA, pursuant to which IFR’s wholly-owned Mexican subsidiary, Petro Frontera, S.A.P.I. de C.V. (“Frontera”) was granted the option (the “Option”) to purchase all of the outstanding shares in the joint venture company, Tonalli held by IDESA. Through Frontera, IFR holds 50% of the outstanding Tonalli shares, with IDESA holding the remaining 50%.
- In October 2018, Tonalli secured the necessary approvals for its first conventional horizontal (“TEC-11”) well at Tecolutla.
- In November 2018, Tonalli spudded the first conventional horizontal well, TEC-11, at its onshore Tecolutla block.
- In December 2018, Tonalli reached total depth at its first conventional horizontal well, TEC-11, on its onshore Tecolutla block. The TEC-11 field development horizontal well was drilled to a depth of 3283 meters (m) Measured Depth (MD) And landed horizontally in the Cretaceous aged El Abra formation limestone.
Financial Highlights ‐ Fourth Quarter 2018 and Year ended December 31, 2018
- The Company reported a consolidated net loss of $6,324,000 ($0.04 loss per share) for the three months ended December 31, 2018 compared to a net loss of $2,514,925 ($0.02 per share) for the same period in 2017.
- In Q4 2018, the Company had positive cash flow from continuing operations of $433,265 which excluded a $5,569,785 non-cash impairment charge.
- The impairment charge at December 31, 2018 of $5,569,785 represents non cash impairment costs associated with the Company’s significant discovery licenses in the NWT
- The loss from operations in the period included $295,905 in general and administrative costs and $63,000 incurred during the period in respect to the Company’s Mexico project.
- The Company recorded a consolidated net loss for the year ended December 31, 2018 of $8,861,450 ($0.06 per share) compared to a net loss of $3,382,755 ($0.03 per share) at December 31, 2017.
- In 2018, the Company had a net loss from operations of $1,710,655 including the impairment charge of $5,569,785 and a loss attributed to the Company’s investment in its Mexican joint venture, Tonalli, of $962,305.
- During the year, the Company spent $4,626,355 for its 50% share to fund the Company’s joint venture in Mexico.
- Working capital at December 31, 2017 was $5,483,330, including $426,630 of cash and cash equivalents.
Financial Results
| | Three months ended, | | Twelve months ended, |
| | December 31, | | December 31, |
| | 2018 | | 2017 | | 2018 | | 2017 |
| Net loss and comprehensive loss | | | | | | | |
| Net Loss | $ | (6,324,000 | ) | | $ | (2,514,925 | ) | | $ | (8,861,450 | ) | | $ | (3,382,755 | ) |
| | | | | | | | |
| Shares outstanding | | 152,072,385 | | | | 144,395,885 | | | | 152,072,385 | | | | 144,395,885 | |
| Basic and fully diluted weighted averages shares | | 146,166,154 | | | | 118,259,892 | | | | 146,166,154 | | | | 118,259,892 | |
| | | | | | | | |
| Loss per share | | | | | | | |
| Net loss per share | $ | (0.04 | ) | | $ | (0.02 | ) | | $ | (0.06 | ) | | $ | (0.03 | ) |
| | | | | | | | | | | | | | | | |
Subsequent to year-end 2018 IFR announced:
The Company also announced that, further to its news release dated April 2, 2019, IFR closed the first tranche of its previously announced non-brokered private placement of common shares on April 22, 2019, subject to final acceptance from the TSX Venture Exchange. IFR issued 11,064,500 common shares at a price of CDN$0.095 per share, for gross proceeds of CDN$1,051,128. The net proceeds from the private placement will be used to finance the Company's continuing capital program, for further advances on IFR’s Tecolutla project and for general working capital purposes. The common shares issued pursuant to the offering are subject to a hold period that expires on August 23, 2019. Finders’ fees of CDN$1,995 were paid to arm’s length parties acting in connection with this tranche of the offering.
About International Frontier Resources
International Frontier Resources Corporation (IFR) is a Canadian publicly traded company with a demonstrated track record of advancing oil and gas projects. Through its Mexican subsidiary, Petro Frontera S.A.P.I de CV (Frontera) and strategic joint ventures, it is advancing the development of petroleum and natural gas assets in Mexico. The Company also has projects in Canada and the United States, including the Northwest Territories, Alberta and Montana.
The Company’s shares are listed on the TSX Venture, trading under the symbol IFR and on the OTCQB under the symbol IFRTF. For additional information please visit www.internationalfrontier.com.
For further information
Forward Looking Statements
This press release contains forward‐looking statements and forward‐looking information (collectively "forward‐looking information") within the meaning of applicable securities laws relating to the Company's plans, strategy, business model, focus, objectives and other aspects of IFR's anticipated future operations and financial, operating and drilling and development plans and results, including, expected future production, production mix, reserves, drilling inventory, net debt, cash flow, operating netbacks, decline rate and decline profile, product mix, capital expenditure program, capital efficiencies, commodity prices, tax pools and targeted growth. In addition, and without limiting the generality of the foregoing, this press release contains forward‐looking information regarding: anticipated cost savings and operational efficiencies; anticipated capital cost estimations; the focus and allocation of IFR's 2018 capital budget; anticipated production rates, available free cash flow, management's view of the characteristics and quality of the opportunities available to the Company; and other matters ancillary or incidental to the foregoing.
Forward‐looking information typically uses words such as "anticipate", "believe", "project", "target", "guidance", "expect", "goal", "plan”, "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future. The forward‐looking information is based on certain key expectations and assumptions made by IFR's management, including expectations concerning prevailing commodity prices, exchange rates, interest rates, applicable royalty rates and tax laws; capital efficiencies; decline rates; future production rates and estimates of operating costs; performance of existing and future wells; reserve and resource volumes; anticipated timing and results of capital expenditures; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; the timing, location and extent of future drilling operations; the state of the economy and the exploration and production business; results of operations; performance; business prospects and opportunities; the availability and cost of financing, labour and services; the impact of increasing competition; ability to market oil and natural gas successfully and IFR's ability to access capital.
Statements relating to "reserves" are also deemed to be forward looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and that the reserves can be profitably produced in the future.
Although the Company believes that the expectations and assumptions on which such forward‐looking information is based are reasonable, undue reliance should not be placed on the forward‐looking information because IFR can give no assurance that they will prove to be correct. Since forward‐looking information addresses future events and conditions, by its very nature they involve inherent risks and uncertainties. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, the forward‐looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward‐looking information will transpire or occur, or if any of them do so, what benefits that the Company will derive there from. Management has included the above summary of assumptions and risks related to forward‐looking information provided in this press release in order to provide security holders with a more complete perspective on IFR’s future operations and such information may not be appropriate for other purposes.
Readers are cautioned that the foregoing lists of factors are not exhaustive. Additional information on these and other factors that could affect IFR's operations or financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).
These forward‐looking statements are made as of the date of this press release and IFR disclaims any intent or obligation to update publicly any forward‐looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
“Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility or accuracy of this release.” The Company seeks Safe Harbor.
