Mr. Hugh Ross reports
NOVUS ENERGY INC. ANNOUNCES THIRD QUARTER 2013 RESULTS
Novus Energy Inc. has filed its unaudited condensed
interim financial statements, and management's discussion and analysis
(MD&A) as at and for the three and nine months ended Sept. 30,
2013. These may be accessed through the SEDAR website under the company's profile and at the company's website.
Financial highlights
Production revenue for the three months ended Sept. 30, 2013, increased 68 per cent to $32.43-million from $19.35 million recorded in the
comparative period of 2012. For the nine months ended Sept. 30,
2013, production revenue increased 53 per cent to $83.37-million from $54.63-million recorded in the comparative period of 2012.
Funds flow from operations for the three months ended Sept. 30, 2013, increased 79 per cent to $19.40-million from $10.84-million recorded in the
comparative period of 2012. For the nine months ended Sept. 30,
2013, funds flow from operations increased 61 per cent to $48.40-million from
$30.08-million recorded in the comparative period of 2012.
Net income for the three months ended Sept. 30, 2013, increased 332 per cent
to $7.43-million from $1.72-million recorded in the comparative period
of 2012. For the nine months ended Sept. 30, 2013, net income
increased 188 per cent to $16.30-million from $5.65-million recorded in the
comparative period of 2012.
Net capital expenditures for the three months ended Sept. 30, 2013, were $25.76-million versus $22.95-million recorded in the comparative
period of 2012. For the nine months ended Sept. 30, 2013, net
capital expenditures were $50.45-million versus $58.16-million recorded
in the comparative period of 2012.
As at Sept. 30, 2013, the company had net debt (excluding the fair
value of commodity contracts) of $81.28-million.
As at Sept. 30, 2013, the company's net-debt-to-annualized-third-quarter-2013-funds-flow ratio was 1.0 time.
Subsequent to quarter-end, the company's revolving operating demand loan
facility was expanded from $95-million to $105-million.
As at Sept. 30, 2013, the company had estimated tax pools of $270.81-million.
Operating netbacks for the three months ended Sept. 30, 2013, increased 35 per cent to $61.90 per barrel of oil equivalent from $45.87 per barrel of oil equivalent recorded in the comparative
period of 2012. For the nine months ended Sept. 30, 2013,
operating netbacks increased 19 per cent to $55.17 per boe from $46.40 per boe recorded
in the comparative period of 2012.
A summary of financial results for the three- and nine-month periods
ended Sept. 30, 2013, along with the comparative periods, are
outlined in the associated table.
FINANCIAL HIGHLIGHTS
(in thousands of dollars except per-share amounts)
Three months ended Nine months ended
Sept. 30, Sept. 30,
2013 2012 2013 2012
Revenue $32,433 $19,351 $83,367 $54,630
Funds flow from operations 19,399 10,839 48,397 30,082
Per share -- basic 0.10 0.06 0.26 0.16
Per share -- diluted 0.10 0.06 0.25 0.16
Net income 7,431 1,720 16,304 5,654
Per share -- basic 0.04 0.01 0.09 0.03
Per share -- diluted 0.04 0.01 0.08 0.03
Capital expenditures, net 25,757 22,950 50,446 58,160
Net debt (excluding the fair value
of financial instruments) 81,281 61,195 81,281 61,195
Operational highlights
Average daily production for the three months ended Sept. 30, 2013, increased 28 per cent to 4,051 barrels of oil equivalent per day (83 per cent oil and liquids) from 3,154 boepd (77 per cent
oil and liquids) recorded in the comparative period of 2012. For the
nine months ended Sept. 30, 2013, average daily production increased
32 per cent to 3,863 boepd (82 per cent oil and liquids) from 2,929 boepd (77 per cent oil and liquids) recorded in the comparative period of 2012.
Average daily oil and liquids production for the three months ended
Sept. 30, 2013, increased 38 per cent to 3,372 barrels per day from 2,439 bpd
recorded in the comparative period of 2012. For the nine months ended
Sept. 30, 2013, average daily oil and liquids production increased
40 per cent to 3,163 bpd from 2,266 bpd recorded in the comparative
period of 2012.
The company's operating costs for the three months ended Sept. 30,
2013, increased 7 per cent to $10.66 per boe from $9.95 per boe recorded in the
comparative period of 2012. For the nine months ended Sept. 30,
2013, the company's operating costs decreased 1 per cent to $10.38 per boe from
$10.49 per boe recorded in the comparative period of 2012.
During the third quarter of 2013, Novus drilled 31 wells (31.0 net), all
of which were Viking horizontal oil wells in the Greater Dodsland
Area. Thirty-three wells (33.0 net) were completed. For the first
nine months of 2013, Novus drilled 56 wells (56.0 net), all of which
were Viking horizontal oil wells in the Greater Dodsland Area.
Fifty-three wells (53.0 net) were completed.
A summary of operational results for the three- and nine-month periods
ended Sept. 30, 2013, along with the comparative periods, are
outlined in the associated table.
OPERATIONAL HIGHLIGHTS
Three months ended Nine months ended
Sept. 30, Sept. 30,
2013 2012 2013 2012
Production
Oil and liquids (bbl/d) 3,372 2,439 3,163 2,266
Gas (mcf/d) 4,075 4,287 4,198 3,980
Oil equivalent (boe/d) 4,051 3,154 3,863 2,929
Sales price per unit
Oil and liquids ($/bbl) $101.17 $81.75 $92.00 $83.89
Gas ($/mcf) 2.79 2.55 3.42 2.34
Oil equivalent ($/boe) 87.01 66.70 79.06 68.06
Novus's condensed interim financial statements as at and for the three
and nine months ended Sept. 30, 2013, and associated MD&A can be
found on the company's website and under the company's profile on SEDAR.
Operational update
During the third quarter of 2013, Novus drilled 31 wells (31.0 net), all
of which were Viking horizontal oil wells in the Greater Dodsland
Area. Thirty-three wells (33.0 net) were completed. For the first
nine months of 2013, Novus drilled a total of 56 wells (56.0 net), all
of which were Viking horizontal oil wells in the Greater Dodsland
Area. Fifty-three wells (53.0 net) were completed. A total of 21 more
wells are planned to be drilled, and 19 wells are scheduled to be
completed during the fourth quarter.
The company continues to reduce its well costs. Third-quarter 2013
on-stream costs were less than $810,000 per well.
Value optimization process
On Sept. 3, 2013, Novus entered into an arrangement agreement with Yanchang Petroleum International Ltd.
and Yanchang International
(Canada) Ltd., pursuant to which Yanchang
Petroleum International agreed to purchase, through Yanchang Canada,
all of the issued and outstanding common shares of Novus at a price of
$1.18 per common share pursuant to a plan of arrangement under the Business Corporations Act (Alberta).
The arrangement was approved by the shareholders of Novus at the annual
and special meeting held on Nov. 15, 2013. The arrangement also
received approval from the Court of Queen's Bench of Alberta on the
same date. All requisite approvals from governmental entities in the
People's Republic of China have also been obtained.
Completion of the arrangement remains subject to certain approvals set
forth in the arrangement agreement, including approval of a simple
majority of votes cast by shareholders of Yanchang Petroleum
International at a meeting that will be called to, among other things,
consider the arrangement, which is expected to be held in December,
2013. In addition, the arrangement is conditional upon Yanchang
Petroleum International finalizing financing arrangements.
We seek Safe Harbor.
© 2024 Canjex Publishing Ltd. All rights reserved.