Kelt Exploration Ltd. ("Kelt" or the "Company") (TSX:KEL) has released its
financial and operating results for the three months ended March 31, 2014. The
Company's financial results are summarized as follows:
----------------------------------------------------------------------------
(CA$ thousands, except as otherwise
indicated) Q1 2014 Q4 2013 Q1 2013
----------------------------------------------------------------------------
Revenue, before royalties and financial
instruments 47,793 18,543 3,865
----------------------------------------------------------------------------
Funds from operations(1) 26,084 9,396 2,179
----------------------------------------------------------------------------
Basic ($/ common share)(1) 0.24 0.09 0.09
----------------------------------------------------------------------------
Diluted ($/ common share)(1) 0.23 0.09 0.09
----------------------------------------------------------------------------
Profit (loss) 4,851 (1,838) (140)
----------------------------------------------------------------------------
Basic ($/ common share) 0.04 (0.02) (0.01)
----------------------------------------------------------------------------
Diluted ($/ common share) 0.04 (0.02) (0.01)
----------------------------------------------------------------------------
Total capital expenditures, net of
dispositions(2) 40,933 231,329 40,210
----------------------------------------------------------------------------
Total assets 666,257 485,201 141,834
----------------------------------------------------------------------------
Bank debt - - -
----------------------------------------------------------------------------
Working capital surplus (deficiency) 123,150 20,500 (24,471)
----------------------------------------------------------------------------
Shareholders' equity 539,410 392,872 98,138
----------------------------------------------------------------------------
Weighted average common shares outstanding
(000's)
----------------------------------------------------------------------------
Basic 110,991 99,244 25,359
----------------------------------------------------------------------------
Diluted 112,788 100,242 25,359
----------------------------------------------------------------------------
(1) Refer to advisory regarding non-GAAP measures.
(2) Total capital expenditures incurred during the first quarter of 2013
include approximately $22.9 million of expenditures incurred prior to
completion of the Arrangement on February 26, 2013.
FINANCIAL STATEMENTS
Kelt's unaudited condensed interim financial statements and related notes for
the quarter ended March 31, 2014 will be available to the public on SEDAR at
www.sedar.com and will also be posted on the Company's website at
www.keltexploration.com on May 13, 2014.
Kelt's operating results for the three months ended March 31, 2014 are
summarized as follows:
----------------------------------------------------------------------------
Q1 2014 Q4 2013 Q1 2013
----------------------------------------------------------------------------
Average daily production
----------------------------------------------------------------------------
Oil (bbls/d) 2,428 809 158
----------------------------------------------------------------------------
NGLs (bbls/d) 654 487 82
----------------------------------------------------------------------------
Gas (mcf/d) 42,367 26,660 6,456
----------------------------------------------------------------------------
Combined (BOE/d)(2) 10,143 5,739 1,316
----------------------------------------------------------------------------
Production per million common shares
(BOE/d)(1) 91 58 52
----------------------------------------------------------------------------
Average realized prices, after financial
instruments
----------------------------------------------------------------------------
Oil ($/bbl) 89.62 81.35 87.84
----------------------------------------------------------------------------
NGLs ($/bbl) 69.36 57.00 70.96
----------------------------------------------------------------------------
Gas ($/mcf) 6.00 3.97 3.60
----------------------------------------------------------------------------
Operating netbacks(1) ($/BOE)
----------------------------------------------------------------------------
Oil and gas revenue 52.36 35.12 32.64
----------------------------------------------------------------------------
Realized loss on financial instruments (1.37) (0.38) -
----------------------------------------------------------------------------
Average realized price, after financial
instruments 50.99 34.74 32.64
----------------------------------------------------------------------------
Royalties (6.52) (4.71) (4.36)
----------------------------------------------------------------------------
Production and transportation expense (15.07) (11.36) (9.00)
----------------------------------------------------------------------------
Operating netback(1) 29.40 18.67 19.28
----------------------------------------------------------------------------
Undeveloped land
----------------------------------------------------------------------------
Gross acres 346,120 299,142 134,238
----------------------------------------------------------------------------
Net acres 227,284 184,082 72,166
----------------------------------------------------------------------------
(1) Refer to advisory regarding non-GAAP measures.
(2) Average daily production reported in the table above for the first
quarter of 2013 is calculated over the 90 day period ended March 31, 2013.
Production for the 33 day period following commencement of active operations
on February 27, 2013, averaged 3,588 BOE per day.
MESSAGE TO SHAREHOLDERS
The Company is pleased to report its first quarter interim results to
shareholders for the three months ended March 31, 2014.
Kelt was incorporated on October 11, 2012 for the purpose of participating in a
Plan of Arrangement between ExxonMobil Canada Ltd., ExxonMobil Celtic ULC and
Celtic Exploration Ltd. and Kelt (the "Arrangement"). The Arrangement was
completed on February 26, 2013, at which time Kelt commenced active operations.
Kelt achieved record production levels in the first quarter of 2014. Average
production for the three months ended March 31, 2014 was 10,143 BOE per day, up
77% from average production of 5,739 BOE per day during the fourth quarter of
2013. Daily average production in the first quarter of 2014 was 183% higher than
the average production of 3,588 BOE per day for the 33-day period ended March
31, 2013. On a production per share basis, the first quarter of 2014 was up 75%
compared to the first quarter of 2013.
For the three months ended March 31, 2014, revenue was $47.8 million, funds from
operations was $26.1 million ($0.23 per share, diluted) and profit was $4.9
million ($0.04 per share, diluted). At March 31, 2014, Kelt did not have any
outstanding bank debt on its $100.0 million demand loan facility. The working
capital surplus position, including cash and cash equivalents, at the end of the
first quarter was $123.2 million.
On March 25, 2014, the Company completed an equity financing issuing 9.8 million
common shares at a price of $11.60 per share and 2.6 million common shares on a
"CDE flow-through" basis at a price of $12.75 per share, resulting in aggregate
gross proceeds of $147.0 million. Certain insiders participated in the equity
financing acquiring 1.1 million common shares for an aggregate subscription
price of $14.1 million. As at May 12, 2014, the Company has 122.5 million common
shares issued and outstanding. Directors and officers of Kelt own (including
shares that they exercise control or direction over) 24.4 million common shares
or 19.9% of the total shares outstanding.
During the three months ended March 31, 2014, Kelt drilled seven gross (5.9 net)
oil and gas wells, with a 100% success rate, and one service well. The Company
drilled two gross (0.9 net) horizontal wells at Inga/Fireweed, British Columbia.
These wells were targeting condensate-rich natural gas in the Triassic Doig
formation. The Company drilled two gross (2.0 net) wells at Karr, Alberta
targeting the Triassic Montney oil formation. In addition, Kelt drilled a 100%
working interest water injection well at Karr, which will reduce production
expenses by eliminating water trucking costs. At Pouce Coupe, Alberta, the
Company drilled three gross (3.0 net) wells in the Triassic Montney formation.
Two wells that were drilled in the natural gas leg have now been completed and
the third well drilled in the oil leg is expected to be completed in the second
quarter of 2014.
During the remainder of 2014 Kelt is well positioned financially and expects
that it will have sufficient financial flexibility to carry out its operations
during the year and to pursue new opportunities as they arise. Management is
excited about the Company's prospects and looks forward to updating shareholders
with second quarter results in August 2014.
2014 GUIDANCE
Kelt remains optimistic about its future prospects. The Company is opportunity
driven and is confident that it can grow its production base by building on its
current inventory of development projects and by adding new exploration
prospects. Kelt will endeavor to maintain a high quality product stream that on
a historical basis receives a superior price with reasonably low production
costs. In addition, the Company will focus its exploration efforts in areas of
multi-zone hydrocarbon potential, primarily in west central Alberta and
northeastern British Columbia.
Kelt's Board of Directors has approved a 2014 capital expenditure budget of
$250.0 million, net of dispositions. In aggregate, the Company expects to spend
$198.0 million on drilling and completing wells, $34.5 million on facilities,
equipment and pipelines, and $30.0 million on land and seismic. Proceeds from
dispositions, net of acquisitions, are expected to be $12.5 million.
Kelt expects production in 2014 to average approximately 11,000 BOE per day.
Production is expected to be weighted 24% oil, 6% NGLs, and 70% gas; however,
operating income in 2014 is expected to be derived 47% from oil production, 10%
from NGLs production, and 43% from gas production.
The Company's average commodity price assumptions for 2014 are US$92.00
(previously US$90.00) per barrel for WTI oil, US$4.60 (previously US$4.65) per
MMBTU for NYMEX natural gas, $4.55 (previously $4.50) per GJ for AECO natural
gas and a US/Canadian dollar exchange rate of US$0.9174 (previously US$0.9200).
These prices compare to average calendar 2013 prices of US$97.98 per barrel for
WTI oil, US$3.68 per MMBTU for NYMEX natural gas, $2.97 per GJ for AECO natural
gas and a US/Canadian dollar exchange rate of US$0.971. Funds from operations
for 2014 is forecasted to be approximately $103.0 million (previously $102.0
million) or $0.85 per common share, diluted.
Kelt estimates that the Company's bank indebtedness, net of working capital,
will be approximately $3.0 million (previously $3.9 million) at December 31,
2014. On May 6, 2014, the Company established a new $100.0 million committed
term credit facility with a syndicate of financial institutions. Additional
information is available under the heading of Subsequent events.
Changes in forecasted commodity prices and variances in production estimates can
have a significant impact on estimated funds from operations and profit. Please
refer to the cautionary statement on forward-looking statements and information
set out below.
The information set out herein under the heading "2014 Guidance" is "financial
outlook" within the meaning of applicable securities laws. The purpose of this
financial outlook is to provide readers with disclosure regarding Kelt's
reasonable expectations as to the anticipated results of its proposed business
activities for 2014. Readers are cautioned that this financial outlook may not
be appropriate for other purposes.
ADVISORY REGARDING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements and forward-looking
information within the meaning of applicable securities laws. The use of any of
the words "expect", "anticipate", "continue", "estimate", "objective",
"ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and
similar expressions are intended to identify forward-looking information or
statements. In particular, this press release contains forward-looking
statements concerning the Company's expected future financial position and
operating results.
Although Kelt believes that the expectations and assumptions on which the
forward-looking statements are based are reasonable, undue reliance should not
be placed on the forward-looking statements because Kelt cannot give any
assurance that they will prove to be correct. Since forward-looking statements
address future events and conditions, by their very nature they involve inherent
risks and uncertainties. Actual results could differ materially from those
currently anticipated due to a number of factors and risks. These include, but
are not limited to, the risks associated with the oil and gas industry in
general (e.g., operational risks in development, exploration and production;
delays or changes in plans with respect to exploration or development projects
or capital expenditures; the uncertainty of reserve estimates; the uncertainty
of estimates and projections relating to production, costs and expenses; failure
to obtain necessary regulatory approvals for planned operations; health, safety
and environmental risks; uncertainties resulting from potential delays or
changes in plans with respect to exploration or development projects or capital
expenditures; volatility of commodity prices, currency exchange rate
fluctuations; imprecision of reserve estimates; and competition from other
explorers) as well as general economic conditions, stock market volatility; and
the ability to access sufficient capital. We caution that the foregoing list of
risks and uncertainties is not exhaustive.
In addition, the reader is cautioned that historical results are not necessarily
indicative of future performance. The forward-looking statements contained
herein are made as of the date hereof and the Company does not intend, and does
not assume any obligation, to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise unless
expressly required by applicable securities laws.
Certain information set out herein may be considered as "financial outlook"
within the meaning of applicable securities laws. The purpose of this financial
outlook is to provide readers with disclosure regarding Kelt's reasonable
expectations as to the anticipated results of its proposed business activities
for the periods indicated. Readers are cautioned that the financial outlook may
not be appropriate for other purposes.
NON-GAAP MEASURES
This document contains certain financial measures, as described below, which do
not have standardized meanings prescribed by GAAP. As these measures are
commonly used in the oil and gas industry, the Company believes that their
inclusion is useful to investors. The reader is cautioned that these amounts may
not be directly comparable to measures for other companies where similar
terminology is used.
"Operating income" is calculated by deducting royalties, production expenses and
transportation expenses from oil and gas revenue, after realized gains or losses
on financial instruments. The Company refers to operating income expressed per
unit of production as an "Operating netback". "Funds from operations" is
calculated by adding back settlement of decommissioning obligations and change
in non-cash operating working capital to cash provided by operating activities.
Funds from operations per common share is calculated on a consistent basis with
profit (loss) per common share, using basic and diluted weighted average common
shares as determined in accordance with GAAP. Funds from operations and
operating income or netbacks are used by Kelt as key measures of performance and
are not intended to represent operating profits nor should they be viewed as an
alternative to cash provided by operating activities, profit or other measures
of financial performance calculated in accordance with GAAP.
"Production per common share" is calculated by dividing total production by the
basic weighted average number of common shares outstanding, as determined in
accordance with GAAP.
MEASUREMENTS AND ABBREVIATIONS
All dollar amounts are referenced in thousands of Canadian dollars, except when
noted otherwise. Where amounts are expressed on a barrel of oil equivalent
("BOE") basis, natural gas volumes have been converted to oil equivalence at six
thousand cubic feet per barrel and sulphur volumes have been converted to oil
equivalence at 0.6 long tons per barrel. The term BOE may be misleading,
particularly if used in isolation. A BOE conversion ratio of six thousand cubic
feet per barrel is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value equivalency at the
wellhead. References to oil in this discussion include crude oil and field
condensate. References to natural gas liquids ("NGLs") include, pentane, butane,
propane, and ethane. References to gas in this discussion include natural gas
and sulphur.
bbls barrels
mcf thousand cubic feet
MMBTU million British Thermal Units
AECO-C Alberta Energy Company "C" Meter Station of the Nova Pipeline
System
WTI West Texas Intermediate
NYMEX New York Mercantile Exchange
FOR FURTHER INFORMATION PLEASE CONTACT:
Kelt Exploration Ltd.
David J. Wilson
President and Chief Executive Officer
(403) 201-5340
Kelt Exploration Ltd.
Sadiq H. Lalani
Vice President, Finance and Chief Financial Officer
(403) 215-5310
www.keltexploration.com
Americas Petrogas Inc. (TSXV:BOE)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Americas Petrogas Inc. (TSXV:BOE)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024
