Border Petroleum Announces Financial Results
28 Febrero 2012 - 5:25PM
Marketwired Canada
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED
STATES.
Border Petroleum Corp. ("Border" or the "Corporation") (TSX VENTURE:BOR) is
pleased to report its financial results for the third quarter ended December 31,
2011. The unaudited financial statements and Management's Discussion & Analysis
("MD&A") have been filed on SEDAR (www.sedar.com).
During its third quarter, the Corporation continued execution of its business
plan to build its reserves and production base through the oil focused
development of its interests in the Red Earth and Leduc areas of Alberta.
HIGHLIGHTS
-- On November 30, 2011, the Corporation closed a bought deal financing
(the "Offering") with a syndicate of Underwriters for the issuance of
81,000,000 common shares of the Corporation at a price of $0.21 per
common share and 24,000,000 flow-through shares of the Corporation at a
price of $0.25 per flow-through share for aggregate gross proceeds of
$23,010,000. The Underwriters were paid a cash commission and were
granted broker warrants entitling the Underwriters to purchase 2,100,000
common shares of the Corporation equaling 2% of the number of common
shares and flow-through shares sold under the Offering at an exercise
price of $0.21 per share for a period of 12 months from the closing of
the Offering.
-- On November 30, 2011, Indian Oil & Gas Canada ("IOGC"), with the
approval of the Loon River Cree Nation (the "Nation"), issued an IOGC
permit (the "Permit") covering 29 sections (18,560 acres) of the
Nation's Lands in the Red Earth area of northeastern Alberta, including
rights in the Slave Point formation.
-- On December 14, 2011, the Underwriters exercised the full Over-Allotment
Option that they were granted pursuant to the Offering, and purchased an
additional 12,150,000 common shares of the Corporation at a price of
$0.21 per common share for additional gross proceeds of up to
$2,551,500. The Underwriters received a cash commission, as well as
broker warrants entitling the Underwriters to purchase 243,000 common
shares at an exercise price of $0.21 per share for a period of 12 months
from the closing of the Over-Allotment Option.
SUBSEQUENT EVENTS
On February 23, 2012, the Corporation commenced drilling operations on its
initial Slave Point horizontal well in the Red Earth area of northwestern
Alberta under a permit covering 18,560 acres of the Nation's Lands.
FINANCIAL SUMMARY
Certain selected financial and operational information for the quarter ended
December 31, 2011 is set out below and should be read in conjunction with the
Corporation's unaudited December 31, 2011 and audited March 31, 2011 financial
statements and related MD&A. The following table provides a summary of key
financial results.
THREE MONTHS ENDED
Financial DECEMBER 31
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2011 2010
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Petroleum and natural gas revenues 1,501,452 $ 180,247
Funds flow from operations (208,845) (104,489)
per share- basic and diluted (0.00) (0.00)
Net (loss) (859,410) (125,453)
per share- basic and diluted (0.01) (0.01)
Capital expenditures 4,639,592 1,157,740
Weighted average shares outstanding
basic and diluted 105,911,056 19,554,032
Operating
Production
Oil and liquids (bbls/d) 131 26
Natural gas (mcf/d) 1,435 27
Oil equivalent (boe/d) 371 31
Sales price per unit
Oil and liquids ($/bbl) 87.74 70.75
Natural gas ($/mcf) 3.34 4.08
Oil equivalent ($/boe) 44.04 63.87
NINE MONTHS ENDED
Financial DECEMBER 31
-----------------------------------
2011 2010
-----------------------------------
Petroleum and natural gas revenues $ 2 ,617,043 $ 581,559
Funds flow from operations (1,007,471) (378,563)
per share- basic and diluted (0.01) (0.02)
Net (loss) (2,077,892) (584,326)
per share- basic and diluted (0.02) (0.02)
Capital expenditures 25,715,353 2,671,543
Weighted average shares outstanding
basic and diluted 105,911,056 19,554,032
Operating
Production
Oil and liquids (bbls/d) 81 29
Natural gas (mcf/d) 792 34
Oil equivalent (boe/d) 213 35
Sales price per unit
Oil and liquids ($/bbl) 83.51 68.01
Natural gas ($/mcf) 3.51 4.16
Oil equivalent ($/boe) 44.75 60.93
OUTLOOK
On November 30, 2011, Border achieved two major objectives in its continuing
efforts to grow the Corporation. Firstly, the Corporation closed a $25.5 million
bought deal financing through a syndicate of Underwriters led by Canaccord
Genuity Corp. and including Macquarie Capital Markets Canada Ltd., National Bank
Financial Inc., Dundee Securities Ltd., Haywood Securities Inc. and Fraser
Mackenzie Limited. Secondly, the Corporation secured the Permit.
These achievements allowed Border to commence the next phase of its development
at Red Earth with operations commencing on Border's first Slave Point horizontal
well on February 23, 2012. Border also anticipates commencing the drilling of a
second well in March 2012, which has now been licensed. Subject to weather and
the availability of services, the Corporation plans to have both wells completed
and on test in March 2012. For the balance of the year, Border plans to drill
and fracture stimulate additional Slave Point horizontal wells at Red Earth.
Forward-Looking Statements
The forward-looking statements contained in this document are based on certain
key expectations and assumptions made by Border, including with respect to,
expectations and assumptions concerning timing of receipt of required regulatory
approvals. Although Border 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 Border can give
no 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 failure to obtain
necessary regulatory approvals, 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, and
health, safety and environmental risks), commodity price and exchange rate
fluctuations and uncertainties resulting from potential delays or changes in
plans with respect to exploration or development projects or capital
expenditures.
The forward-looking statements contained in this document are made as of the
date hereof and Border undertakes no obligation to update publicly or revise any
forward-looking statements or information, whether as a result of new
information, future events or otherwise, unless so required by applicable
securities laws.
BOE
BOEs may be misleading, particularly if used in isolation. A BOE conversion
ratio of 6 Mcf:1 bbl is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.
Border Petroleum (TSXV:BOR)
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