Mr. Dallas Duce reports
3MV ENERGY ANNOUNCES THIRD QUARTER 2014 RESULTS
3MV Energy Corp. has released its financial and operating results for the three- and nine-month periods ended Sept. 30, 2014. 3MV's unaudited financial statements and related management's discussion and analysis for the three- and nine-month periods ended Sept. 30, 2014, have been filed and are available on the SEDAR website and on the company's website. 3MV's financial and operating highlights are found in the attached table.
OPERATING AND FINANCIAL HIGHLIGHTS
Three months Three months Nine months Nine months
ended ended ended ended
Sept. 30, 2014 Sept. 30, 2013 Sept. 30, 2014 Sept. 30, 2013
Average daily production
Crude oil and NGL (bbl/d) 76.2 103.6 69.6 89.5
Natural gas (Mcf/d) 47.9 140.2 57.6 119.6
Total (boe/d) 84.2 127.0 79.2 109.5
Average sales prices
Crude oil and NGL ($/bbl) $92.88 $98.37 $95.74 $89.55
Natural gas ($/Mcf) 3.94 2.38 4.72 2.84
Operating netbacks ($/boe)
Average realized sales price 86.31 82.90 87.56 76.35
Royalty expense 3.23 4.75 4.36 4.95
Operating and transportation expense 36.80 24.66 40.50 29.33
Operating netback 46.27 53.49 42.69 42.06
($000s, except per-share numbers)
Petroleum and natural gas revenues,
before royalties $669 $968 $1,893 $2,282
Funds generated by operations 18 283 (59) 64
Per share -- basic and diluted 0.00 0.00 (0.00) 0.00
Net earnings (loss) (351) (324) (4,791) (1,898)
Per share -- basic and diluted (0.01) (0.01) (0.09) (0.04)
Outlook
During the period, the corporation completed an asset disposition in the Kerrobert, Dodsland and Forgan areas in the amount of $4.35-million before customary closing adjustments. Following the divesture, the corporation 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 agreed to invest $5-million on the property to earn a 50-per-cent working interest in the Fiske lands and related assets held by 3MV Energy. Subsequent to the end of third quarter 2014, the JV partner completed its earning requirements and continued capital spending at Fiske. 3MV Energy used a portion of the funds from the previously mentioned divesture to reduce its outstanding trade payables and to participate in joint venture drilling at Fiske.
The corporation also closed a secured $10-million debt facility in November, 2014, and drew upon the first tranche ($6-million) of the facility. The funds from the first draw have been allocated to participate in the second phase of the joint venture drilling. By the end of fiscal 2014, the corporation targets to have 16 gross (eight net) wells drilled at Fiske under the joint venture partnership.
We seek Safe Harbor.
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