Mr. Robert Lamond reports
TUSCANY REPORTS SIGNIFICANT FINANCIAL AND OPERATING IMPROVEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 2014
Tuscany Energy Ltd. has released the results of a very successful nine months ended Sept. 30, 2014. Highlights of the period were:
- Revenues increased to $12.9-million from $6.8-million reported for the
prior year. Cash flow increased to $6.2-million from $2.1-million in
2013, and net earnings increased to $836,000 from a loss of $961,000.
- Production averaged 696 barrels of oil equivalent per day from the 402 boed reported in the prior
year.
- In July, the company successfully placed a common and flow-through share
issue to raise approximately $3-million.
- Tuscany drilled five successful Dina oil wells with the proceeds, all of
which were placed on stream during the quarter and four of which had
initial production rates exceeding 100 barrels per day.
- The company upgraded its water-handling facilities by deepening a well
at Evesham and drilling a new water disposal well at Macklin, which also
resulted in a significant Dina oil discovery and enlargement of the
Macklin pool.
- As a result of these activities, the company increased its production at
the end of the quarter to average 748 boed for the month of September
and 950 boed for October.
Subsequent to the period-end, Tuscany closed an additional flow-through share offering, issuing 2.7 million shares at a price of 44 cents per share, for total consideration of $1.2-million. At Nov. 27, the company has 48.8 million shares outstanding.
The share issue has allowed the company to commence its fourth quarter planned three-well drilling program. The initial well at Macklin North has been drilled, and is currently being completed and tied in. Drilling operations have commenced on the second Macklin North well.
CORPORATE SUMMARY
($ thousands, unless otherwise indicated)
Three months ended Nine months ended
Sept. 30, Sept. 30,
2014 2013 2014 2013
Financial
Oil and gas revenue $ 3,934 $ 3,842 $ 12,922 $ 6,780
Cash flow from operations (1) 1,862 1,477 6,152 2,098
Per share, diluted (1) 0.04 0.05 0.15 0.07
Net earnings (loss) for the period 616 (84) 836 (961)
Per share, diluted 0.01 0.00 0.02 (0.03)
Capital expenditures, net of
dispositions 4,547 2,669 7,941 3,917
Net (debt) (1) (6,555) (8,139) (6,555) (8,139)
Total assets 38,324 37,023 38,324 37,023
Operations
Production
Oil (barrels per day) 502 457 553 329
Gas (thousand cubic feet per day) 909 937 858 438
Boed (6,000 cubic feet equals one bbl) 654 613 696 402
Product prices
Oil ($/bbl) $ 78.23 $ 86.39 $ 78.46 $ 72.26
Gas ($/thousand cubic feet) $ 3.84 $ 2.44 $ 4.60 $ 2.43
(1) See non-GAAP (generally accepted accounting principles) measures in MD&A
(management's discussion and analysis) for the nine months ended Sept. 30,
2014.
Tuscany has filed its interim financial statements, and management's discussion and analysis for the nine months ended Sept. 30, 2014.
We seek Safe Harbor.
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