Mr. Dallas Duce reports
3MV ENERGY ANNOUNCES SECOND QUARTER 2014 RESULTS
3MV Energy Corp. has released its financial and operating results
for the three- and six-month periods ended June 30, 2014. 3MV's
unaudited financial statements, and related management's discussion and
analysis for the three- and six-month periods ended June 30, 2014, have
been filed and are available on SEDAR and on the company's website.
FINANCIAL AND OPERATING HIGHLIGHTS
Three months ended June 30, Six months ended June 30,
2014 2013 2014 2013
Average daily production
Crude oil and NGL (bbl/d) 65.9 94.5 66.2 82.4
Natural gas (Mcf/d) 63.9 126.7 62.5 109.1
Total (boe/d) 76.6 115.6 76.6 100.6
Average sales prices
Crude oil and NGL ($/bbl) $ 101.30 $ 86.06 $ 97.41 $ 83.91
Natural gas ($/Mcf) 4.68 3.26 5.02 3.14
Operating netbacks ($/boe)
Average realized sales price 91.12 73.91 88.26 72.14
Royalty expense 4.90 3.78 4.99 5.08
Operating and transportation
expense 37.96 27.37 42.57 32.33
Operating netback (1) 48.26 42.76 40.69 34.72
($000s, except per-share numbers)
Petroleum and natural gas
revenues, before royalties 635 778 1,224 1,313
Funds generated by operations (2) (62) 11 (77) (219)
Per share -- basic and diluted 0.00 0.00 0.00 0.00
Net earnings (loss) (4,360) (394) (4,440) (1,574)
Per share -- basic and diluted (3) (0.09) (0.01) (0.09) (0.03)
Net debt (working capital) (4) (3,206) (4,380) (3,206) (4,380)
Total assets 15,958 20,064 15,958 20,064
(1) Operating netbacks (calculated on a per-unit basis as oil, gas and
natural gas liquids revenues, less royalties, transportation and
operating costs) are not recognized measures under international
financial reporting standards.
(2) Funds generated by operations are not prescribed IFRS or generally
accepted accounting principles measures, and are calculated as oil,
gas and natural gas liquids revenues, less royalties, operating costs,
general and administrative expenses, interest expense, and current
income taxes on a per-unit basis multiplied by the total number of
barrels produced in the period. This is not a recognized measure
under IFRS.
(3) Net earnings (loss) per share are calculated using weighted average
shares outstanding.
(4) Net debt (working capital) is an industry term, is calculated as
current assets less current liabilities and is not a recognized
measure under IFRS.
Outlook
The company intends to focus its drilling and production efforts on its
Fiske light oil discovery for 2014. As stated, in early 2013, the
corporation acquired a significant position of land in the area, which
has solidified its asset base, and creates potential for further growth
and expansion through the drill bit. Subsequent to the end of the
period, the corporation announced an asset disposition in the Dodsland
area in the amount of $4.35-million. The corporation plans to uses the
funds from the divesture to reduce its debt and trade payables, and
improve its financial position. Following the divesture, the corporation
also announced that it entered into a joint venture with an
arm's-length party to develop 3MV Energy's Fiske properties. According
to the terms of the joint venture agreement, the JV partner has agreed
to invest $5-million on the property in order to earn a 50-per-cent working
interest in the Fiske lands and related assets currently held by 3MV
Energy. The joint venture will allow the corporation to increase cash
flows with minimal capital outlay until earning has been achieved by
the JV partner. It also allows 3MV Energy to derisk the Fiske play
with less corporate exposure, and provides the corporation with access
to an experienced technical team which will aid in exploiting the
assets.
We seek Safe Harbor.
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