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Enter Symbol
or Name
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CA



Dundee Energy Ltd
Symbol DEN
Shares Issued 188,204,184
Close 2014-10-30 C$ 0.195
Market Cap C$ 36,699,816
Recent Sedar Documents

Dundee Energy loses $300,000 in Q3

2014-10-30 18:32 ET - News Release

Mr. Jaffar Khan reports

DUNDEE ENERGY LIMITED ANNOUNCES THIRD QUARTER 2014 FINANCIAL RESULTS

Dundee Energy Ltd. has released its financial results for the three and nine months ended Sept. 30, 2014. The corporation's unaudited condensed interim consolidated financial statements, along with the related management's discussion and analysis, have been filed on SEDAR and may be viewed under the corporation's profile on SEDAR or the corporation's website.

  • Net loss attributable to owners of the parent during the three months ended Sept. 30, 2014, was $300,000, compared with a net loss attributable to owners of the parent of $1.5-million incurred during the same period of the prior year.
  • Production volumes during the third quarter of 2014 averaged 11,746,000 cubic feet per day of natural gas and 535 barrels per day of oil and liquids, compared with production volumes of 12,022,000 cubic feet per day of natural gas and 608 barrels per day of oil and liquids during the third quarter of the prior year.
  • Revenues (before royalty interests) earned from oil and natural gas sales during the third quarter of 2014 were $10.1-million, a decrease from the $11-million of revenues earned during the third quarter of the prior year. The decrease in revenues resulted primarily from reduced production volumes and lower prices for oil and liquids, partially offset by improved natural gas prices.
  • Field netbacks during the third quarter of 2014, before realized amounts related to risk management contracts, were $1.53 per thousand cubic feet (three months ended Sept. 30, 2013 -- $1.32 per thousand cubic feet) from natural gas and $50.22 per barrel (three months ended Sept. 30, 2013 -- $57.94 per barrel) from oil and liquids.
  • Capital expenditures during the third quarter of 2014 were $2.5-million.
  • Cash and available credit under the corporation's credit facilities totalled $6.7-million at Sept. 30, 2014.

Southern Ontario assets

During the third quarter of 2014, daily production volumes decreased to 2,493 barrels of oil equivalent per day, compared with an average of 2,612 barrels of oil equivalent per day in the same period of 2013.

                          AVERAGE DAILY VOLUME
                                                 Three months ended Sept. 30,
                                                            2014        2013

Natural gas (mcf/d)                                       11,746      12,022
Oil (bbl/d)                                                  527         596
Liquids (bbl/d)                                                8          12
Total (boe/d)                                              2,493       2,612

On a period-over-period basis, average daily natural gas production decreased by approximately 2 per cent, while production of oil and liquids decreased by 12 per cent, reflecting the natural decline rate in the corporation's oil and natural gas properties. The reduction in production volumes was partially mitigated by the acquisition of the remaining 15-per-cent working interest in certain offshore gas properties in Southern Ontario completed in August, 2014.

                FIELD-LEVEL CASH FLOWS AND FIELD NETBACKS                                   
                             (in thousands)                                                              
For the three
months ended
Sept. 30,                        2014                         2013

                      Natural  Oil and             Natural  Oil and
                          gas  liquids    Total        gas  liquids    Total

Total sales         $   5,102  $ 5,012  $10,114  $   4,875  $ 6,140  $11,015
Royalties                (773)    (767)  (1,540)      (736)    (939)  (1,675)
Production
expenditures           (2,669)  (1,774)  (4,443)    (2,672)  (1,964)  (4,636)
                        1,660    2,471    4,131      1,467    3,237    4,704
Realized risk
management (loss)
gain                        -     (126)    (126)       196     (371)    (175)
Field-level cash
flows               $   1,660  $ 2,345  $ 4,005  $   1,663  $ 2,866  $ 4,529


For the three
months ended
Sept. 30,                        2014                         2013

                      Natural  Oil and             Natural  Oil and
                          gas  liquids    Total        gas  liquids    Total
                         /mcf  $  /bbl     /boe       /mcf  $  /bbl     /boe

Total sales         $    4.72  $101.83  $ 44.10  $    4.41  $109.90  $ 45.86
Royalties               (0.72)  (15.58)   (6.71)     (0.67)  (16.81)   (6.97)
Production
expenditures            (2.47)  (36.03)  (19.37)     (2.42)  (35.15)  (19.30)
                         1.53    50.22    18.02       1.32    57.94    19.59
Realized risk
management (loss)
gain                        -    (2.56)   (0.55)      0.18    (6.64)   (0.73)
Field netbacks      $    1.53  $ 47.66  $ 17.47  $    1.50  $ 51.30  $ 18.86

Capital expenditures and the 2014 work program

During the three months ended Sept. 30, 2014, the corporation expended $2.5-million on capital expenditures.

Approximately $800,000 of capital expenditures was incurred offshore, including $700,000 on four exploratory new horizon tests and $100,000 in upgrading offshore facilities. Initial results from two of the four exploratory tests were positive and may lead to additional testing and a subsequent horizontal drilling program.

Capital expenditures on onshore properties were $700,000 during the nine months ended Sept. 30, 2014, including $500,000 in drilling costs. During the three months ended Sept. 30, 2014, the corporation drilled one vertical development well and one re-entry horizontal sidetrack well. While initial results are encouraging, the re-entry horizontal well came back into production late in the quarter at 42 barrels per day and has subsequently settled in at 18 barrels per day. The corporation is still testing the vertical development well to evaluate its economic viability. In addition to these drilling activities, the corporation expended $100,000 in final costs associated with two workovers commenced in late 2013, and $100,000 on efficiency and equipment upgrades to onshore facilities.

During the nine months ended Sept. 30, 2014, the corporation incurred costs of $1-million on two exploration wells on certain undeveloped land. The vertical exploration well requires further testing and analyses to determine flow rates and its economic viability. The second exploration well, in which the corporation is a non-operating 50-per-cent-working-interest partner, has shown good test results to date. The corporation and the operator of this well are currently working on a plan to tie in this well, in order to bring it into production in the fourth quarter of 2014.

Castor underground gas storage project

During the third quarter, Escal UGS SL relinquished the exploitation concession associated with the Castor development project in Spain. The relinquishment was formally accepted by the Spanish authorities by royal decree-law on Oct. 4, 2014.

We seek Safe Harbor.

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