Traverse Energy Announces 2011 Third Quarter Results
22 Noviembre 2011 - 3:09PM
Marketwired
Traverse Energy Ltd. ("Traverse" or "the Company") (TSX
VENTURE:TVL) presents financial and operating results for the nine
months ended September 30, 2011. Unless otherwise stated, the
volume conversion of natural gas to barrel of oil equivalent (BOE)
is presented on the basis of 6 thousand cubic feet of natural gas
being equal to 1 barrel of oil. This conversion ratio is based upon
an energy equivalent conversion method primarily applicable at the
burner tip and does not represent value equivalence at the
wellhead. BOE figures may be misleading, particularly if used in
isolation.
HIGHLIGHTS Three months ended Nine months ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
(unaudited) 2011 2010 2011 2010
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Financial ($ thousands, except
per share amounts)
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Petroleum and natural gas
revenue 1,105 346 2,991 983
Funds flow from operations (i) 600 86 1,463 159
Per share - basic and diluted 0.02 0.00 0.04 0.00
Cash flow from operations 599 (15) 1,544 243
(including changes in working
capital)
Per share - basic and diluted 0.02 0.00 0.04 0.01
Net loss (1,079) (478) (1,238) (826)
Per share - basic and diluted (0.03) (0.02) (0.04) (0.03)
Capital expenditures, net of
dispositions 2,836 1,314 7,129 4,401
Total assets 17,096 12,191 17,096 12,191
Working capital 2,078 3,045 2,078 3,045
Common shares
Outstanding (millions) 38.5 29.4 38.5 29.4
Weighted average (millions) 38.5 29.4 35.2 26.5
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Operations (units as noted)
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Average production
Natural gas (mcf/day) 452 419 418 352
Oil and NGL (bbls/day) 126 33 112 31
Total (BOE/day) 202 103 181 90
Average sales price
Natural gas ($/mcf) 3.99 3.55 4.00 3.98
Oil and NGL ($/bbl) 80.76 67.93 83.21 70.89
Netback per BOE ($/BOE)
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Petroleum and natural gas
revenue 59.52 36.41 60.45 40.15
Royalties 3.09 2.30 3.43 1.75
Operating 16.85 12.98 13.81 12.81
Transportation 1.70 1.94 1.82 1.53
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Operating netback 37.88 19.19 41.39 24.06
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(i) Management uses funds flow from operations (before changes in non-cash
working capital and decommissioning expenditures) to analyze operating
performance. Funds flow from operations does not have any standardized
meaning prescribed by IFRS and therefore may not be comparable with the
calculation of similar measures for other entities.
Operations review
All of the Company's oil and gas properties are located in
Alberta. The Company is focusing on its' existing medium and light
oil properties located in central and southern Alberta. At
September 30, 2011 undeveloped land holdings totalled 159,100 gross
(155,700 net) acres with an average working interest of 97.8%.
During the third quarter Traverse completed the drilling of 2
gross (2 net) wells on the Company's Turin Property. Both wells
were cased for potential oil production from several zones. These
wells are currently being evaluated for production and potential
tie in to Traverse's existing facilities. These facilities may have
to be expanded to handle increased oil and water production. The
Company's existing wells in the Turin area produce medium quality
oil, minor associated sour natural gas and water. Other activities
at Turin included the testing and conversion of an existing well
for water injection and an application to the ERCB for approval to
dispose of water in the converted well. The natural gas production
capabilities were expanded by the addition of a larger chemical
sweetening unit to treat the associated sour gas produced with the
oil. This expansion is designed to handle all future drilling in
the Turin area. Traverse's land holdings in the area total 7,600
gross (7,200 net) acres. The majority of recently acquired land in
the area is exploratory and will require further evaluation.
Seismic surveys (2D and 3D) are planned to assist in the
exploration and development of the area. The seismic will be shot
during frozen ground conditions, likely during the first quarter of
2012. Several exploratory wells are expected to be scheduled
following the acquisition and interpretation of the additional
seismic data.
In the Alliance area, Traverse drilled one horizontal well (0.93
net) targeting Viking oil in June. A 1,075 meter horizontal leg was
drilled, completed and tied-in. The well was placed on production
in early August with initial rates of 50 BOE/d (90% oil). The well
continues to produce at a rate of approximately 45 BOE/d (75% oil).
An application has been submitted to the ERCB to allow for an
additional well to be drilled on the 320 acre spacing unit.
At Carbon Traverse recently placed a 100% working interest
vertical Pekisko oil well on production. This well is producing at
low oil rates with associated natural gas. The well confirms the
existence of oil within the Pekisko zone which appears to be
uneconomic in vertical wells. Production rates and recoverable
reserves from Pekisko horizontal wells are projected to be much
more economic. Other operators have been drilling horizontal
Pekisko wells in nearby areas. Traverse recently spudded its' first
horizontal well targeting Pekisko oil. This well is projected to
drill a 1,000 meter horizontal section in the Pekisko formation and
is the first horizontal in the area to be drilled by Traverse.
Traverse's land holdings in the Carbon area total 9,500 acres at a
100% working interest.
In the Brazeau area of West Central Alberta, an industry partner
commenced production in September from three horizontal wells in
which the Company has a gross overriding royalty interest.
Traverse's royalty is 5 to 10 percent on oil, dependent on
production rates, and 10 percent on natural gas and liquids in 10
sections (6,400 acres). The operator has recently drilled one
additional well and has licensed several more wells on the Traverse
lands. Initial results appear to be encouraging.
Forward-looking information
This press release contains forward-looking information.
Forward-looking information is based upon the opinions,
expectations and estimates of management as at the date the
information is provided and, in some cases, information received
from or disseminated by third parties. In particular, the Company's
statements with respect to a planned facility expansion at Turin,
seismic activities for 2012, scheduled follow-up drilling in the
Turin area, production rates and recoverable reserves from Pekisko
horizontal wells being projected to be much more economic,
projected horizontal drilling in the Carbon area, volatility in
commodity markets impacting realized prices in 2011, increasing
royalty rates on existing production, the range of operating costs,
and intentions for funding capital expenditures during the
remainder of 2011 are forward-looking information. This
forward-looking information is subject to a variety of substantial
known and unknown risks and uncertainties and other factors that
could cause actual events or outcomes to differ materially from
those anticipated or implied by such forward-looking information.
The Company's Annual Information Form filed with securities
regulatory authorities (accessible through the SEDAR website
www.sedar.com) describes the risks, material assumptions and other
factors that could influence actual results and which are
incorporated herein by reference.
The forward-looking information contained in this press release
is made as of the date hereof and the Company undertakes no
obligation to update publicly or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, unless so required by applicable securities laws.
Further details on the Company including the 2011 third quarter
unaudited financial statements, the related management's discussion
and analysis and Annual Information Form are available on the
Company's website and SEDAR.
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 for the adequacy or
accuracy of the content of this release.
Contacts: Traverse Energy Ltd. Laurie Smith President and
CEOwww.traverseenergy.com
Traverse Energy (TSXV:TVL)
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