CALGARY, Aug. 19, 2014 /CNW/ - Petroamerica Oil Corp. (TSX-V: PTA) ("Petroamerica" or the "Company"), a Canadian oil and gas company operating in Colombia, is pleased to
announce the financial and operating results for the three and six
months ended June 30, 2014, provide an update on the Suroco Energy Inc.
("Suroco") acquisition, operations and new business developments.
Copies of the Company's Management Discussion and Analysis and Financial
Statements have been filed with the Canadian Securities Regulatory
Authorities and can be viewed or downloaded at the Company's website at
www.petroamericaoilcorp.com or at www.sedar.com. The financial results for all periods presented are in United States
dollars unless otherwise indicated.
Quarterly highlights include:
-
Generated revenue of over $47.8 million, after royalties, leading to
positive funds flow from operation of $18.2 million ($0.03 per share)
with an operating netback of approximately $59 per barrel;
-
Achieved average daily production of 6,513 barrels of oil equivalent per
day ("boepd");
-
Closed the quarter with over $101 million in cash and short term
investments, an increase of 52% from the close of 2013.
Other highlights:
-
Closed the strategic corporate acquisition of Suroco in mid July 2014,
thereby adding significant new acreage, reserves and production in the
Putumayo basin of Colombia.
-
Received 5.9 million barrels of proved plus probable reserves from a
mid-year update by external reserves auditors GLJ, representing an 87%
increase from the 2013 year-end allocation. These reserves have a net
present value (before tax, discounted at 10%) of approximately $186.8
million.
-
Signed a farmout agreement with Parex Resources Inc. ("Parex") for the exploration block LLA-10 where Parex will pay up to $2.5
million for civil works and 89% of the exploration well to earn a 44.5%
working interest.
-
Successfully bid for the Putumayo exploration block, PUT-31, in the 2014
Colombia Bid Round in a consortium with Gran Tierra Energy Inc ("Gran Tierra"). Petroamerica will hold a 35% working interest in this block.
-
The Company continues to maintain a strong balance sheet with current
cash balance of approximately $63 million after accounting for the
Suroco acquisition costs.
-
Petroamerica will participate in the drilling of up to six exploration
wells in the second half of 2014; two targeting high impact low-side
fault closures in the Llanos, two conventional Llanos foreland fault
traps, and two N-Sand prospects in the Putumayo Basin.
-
The Company will partner in approximately 8 development wells in the
Quinde and Cohembi fields in the latter part of 2014 and the early part
of 2015.
Financial and Operating Results
The following table presents the highlights of Petroamerica's financial
and operating results.
(in $000 US except share, per share or
unless otherwise noted)
|
|
Q2 2014
|
|
Q1 2014
|
|
6 mos 2014
|
|
Q2 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil revenue - net of royalties
|
|
$
|
47,825
|
|
$
|
51,702
|
|
$
|
99,527
|
|
$
|
46,104
|
Funds flow from operations
|
|
$
|
18,222
|
|
$
|
26,627
|
|
$
|
44,849
|
|
$
|
24,166
|
Funds flow per share- basic
|
|
$
|
0.03
|
|
$
|
0.04
|
|
$
|
0.08
|
|
$
|
0.04
|
Funds flow per share- diluted
|
|
$
|
0.03
|
|
$
|
0.04
|
|
$
|
0.07
|
|
$
|
$ 0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income for period
|
|
$
|
6,431
|
|
$
|
17,612
|
|
$
|
24,043
|
|
$
|
11,172
|
Total comprehensive income (loss)
|
|
$
|
8,562
|
|
$
|
13,430
|
|
$
|
21,992
|
|
$
|
11,389
|
Income per share - basic
|
|
$
|
0.01
|
|
$
|
0.03
|
|
$
|
0.04
|
|
$
|
0.02
|
Income per share - diluted
|
|
$
|
0.01
|
|
$
|
0.03
|
|
$
|
0.04
|
|
$
|
0.02
|
Total assets
|
|
$
|
232,336
|
|
$
|
229,012
|
|
$
|
232,336
|
|
$
|
185,259
|
Total cash and short-term investments
|
|
$
|
101,325
|
|
$
|
103,484
|
|
$
|
101,325
|
|
$
|
47,352
|
Notes payable
|
|
$
|
31,981
|
|
$
|
30,638
|
|
$
|
31,981
|
|
$
|
31,482
|
Shareholders' equity
|
|
$
|
160,248
|
|
$
|
150,547
|
|
$
|
160,248
|
|
$
|
110,937
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration costs
|
|
$
|
263
|
|
$
|
91
|
|
$
|
354
|
|
$
|
-
|
Capital expenditures
|
|
$
|
6,257
|
|
$
|
11,316
|
|
$
|
17,573
|
|
$
|
25,130
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding
|
|
|
601,061,593
|
|
|
595,148,260
|
|
|
601,061,593
|
|
|
580,798,260
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
596,278,700
|
|
|
593,538,038
|
|
|
594,915,940
|
|
|
580,782,473
|
Diluted
|
|
|
615,692,294
|
|
|
614,623,454
|
|
|
614,329,534
|
|
|
600,776,919
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
(in $000 US except share, per share or
unless otherwise noted)
|
|
|
Q2 2014
|
|
|
Q1 2014
|
|
|
6 mos 2014
|
|
|
Q2 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average production - bopd
|
|
|
6,513
|
|
|
6,478
|
|
|
6,497
|
|
|
5,046
|
Selling price $/bbl
|
|
$
|
105.10
|
|
$
|
105.76
|
|
$
|
105.43
|
|
$
|
99.25
|
Royalty $/bbl
|
|
$
|
(23.96)
|
|
$
|
(19.71)
|
|
$
|
(21.81)
|
|
$
|
(7.86)
|
Average transportation costs $/bbl
|
|
$
|
(17.26)
|
|
$
|
(18.88)
|
|
$
|
(18.07)
|
|
$
|
(15.97)
|
Average production cost $/bbl
|
|
$
|
(5.00)
|
|
$
|
(3.40)
|
|
$
|
(4.19)
|
|
$
|
(4.83)
|
Operating netback $/bbl
|
|
$
|
58.88
|
|
$
|
63.77
|
|
$
|
61.36
|
|
$
|
70.59
|
Funds flow netback$/bbl
|
|
$
|
30.75
|
|
$
|
45.67
|
|
$
|
38.14
|
|
|
52.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share trading
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
$
|
0.38
|
|
$
|
0.38
|
|
$
|
0.38
|
|
$
|
0.36
|
Low
|
|
$
|
0.28
|
|
$
|
0.28
|
|
$
|
0.28
|
|
$
|
0.21
|
Close
|
|
$
|
0.37
|
|
$
|
0.30
|
|
$
|
0.37
|
|
$
|
0.26
|
Trading volume
|
|
|
86,907,900
|
|
|
61,197,100
|
|
|
148,105,000
|
|
|
46,649,300
|
Second Quarter Financial Summary
For the three months ended June 30, 2014, the Company reported $47.8
million in revenue, net of royalties, from the sale of 589 thousand
barrels of oil equivalent ("boe"). The realized sales price was $105.10 per boe generating an
operating netback of approximately $59 per barrel.
For the second quarter of 2014, the Company's net income was $6.4
million ($0.01 per share diluted), a result of strong production levels
through the quarter and continued strong oil prices, offset by foreign
exchange losses incurred due to the strengthening of the Canadian
dollar and additional income tax charges due to reduced overall
exploration costs expensed compared to the prior period. The Company's
capital expenditures for the second quarter were $6.3 million, all
invested in Colombia. These capital expenditures were funded from
available cash-on-hand. As at June 30, 2014, the Company held 17 Mbbls
of oil in inventory.
Suroco Acquisition
On July 15, 2014 the Company announced that it had closed the previously
announced plan of arrangement under the provisions of the Business Corporations Act (Alberta) between the Company, Suroco and the shareholders of Suroco
(the "Arrangement").
Under the Arrangement, holders of common shares of Suroco ("Suroco Shares") were able to elect to receive one of the following for each Suroco
Share held:
(i)
|
|
2.2161 common shares ("Petroamerica Shares") of the Company;
|
(ii)
|
|
1.6401 Petroamerica Shares and a cash payment of C$0.2079; or
|
(iii)
|
|
C$0.80 in cash.
|
Immediately on completion of the Arrangement, trading in Suroco Shares
ceased and Petroamerica paid approximately $16 million dollars and
issued 253,795,411 Petroamerica Shares to former holders of Suroco
Shares. The Company currently has approximately 858 million basic
shares outstanding, and, when all warrants and options are considered,
over 1.1 billion shares on a fully diluted basis.
This strategic acquisition provides added scale and diversity to the
Petroamerica portfolio, material exposure to an exciting new play in
the Putumayo basin, and a production and reserves base that complements
Petroamerica's with the ability to add significant future growth.
The Company is currently working towards merging the two sets of
operations and anticipates issuing to the market place revised
production guidance and capital spending profiles by mid September,
2014.
2014 Suroco Mid-Year Reserve Update
Petroamerica is further pleased to announce the results of the
independent reserves report effective June 30, 2014 and dated August 8,
2014 for Suroco (which became a wholly-owned subsidiary of Petroamerica
upon closing of the Arrangement). Suroco's reserves were evaluated by
GLJ Petroleum Consultants of Calgary, Alberta ("GLJ") in compliance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities and in accordance with the COGE (Canadian Oil and Gas Evaluation)
Handbook (the "GLJ Report").
2014 Mid-Year Reserve Update Highlights
-
Total proved reserves of approximately 3.1 million barrels of oil
(Suroco company share before royalty), with a net present value (before
tax and discounted at 10%) of approximately $93.1 million.
-
Total proved plus probable reserves of approximately 5.9 million barrels
of oil (Suroco company share before royalty), with a net present value
(before tax and discounted at 10%) of approximately $186.8 million.
-
Total proved, probable and possible reserves of approximately 10.0
million barrels of oil (company share before royalty), with a net
present value (before tax and discounted at 10%) of $277.0 million.
-
Booked reserves increased as follows:
-
Suroco company gross proved reserves grew by 48% from year-end 2013
after accounting for first-half 2014 production;
-
Suroco company gross proved plus probable reserves grew by 87% from
year-end 2013 after accounting for first-half 2014 production;
-
Suroco company gross proved plus probable plus possible reserves grew by
134% from year-end 2013 after accounting for first-half 2014
production.
-
The majority of the booking increases are attributed to successful
exploration and development drilling and production activity in the
Quinde field of Suroriente and recognition of undeveloped reserve
potential in that area.
-
Suroco's proved plus probable reserve life index increases from 4.0
years to 5.4 years.
The following table summarizes Suroco's oil and gas reserves as at
December 31, 2013 and June 30, 2014.
Reserves Summary (in Mboe) |
|
|
|
Reserves Category | Dec. 31, 2013 | June 30, 2014 | Percentage Change |
Total Proved
|
2,067
|
3,057
|
48%
|
Total Proved plus Probable
|
3,136
|
5,852
|
87%
|
Total Proved plus Probable plus Possible
|
4,258
|
9,966
|
134%
|
Note: Company working interest reserves, before royalty.
|
The following table presents a summary of the Company's net present
values of future cash flows as of December 31, 2013 and June 30, 2014.
Reserves Net Present Value Summary (in millions) |
|
|
|
|
|
| December 31, 2013 | June 30, 2014 |
Reserves Category | Pre Tax | After Tax | Pre Tax | After Tax |
Total Proved
|
$64.9
|
$50.2
|
$93.1
|
$69.5
|
Total Proved plus Probable
|
$89.1
|
$66.4
|
$186.8
|
$133.5
|
Total Proved plus Probable plus Possible
|
$115.5
|
$83.8
|
$277.0
|
$194.2
|
Note: Net present values discounted at 10%.
|
The price forecast used in the variable dollar economics is available on
the GLJ website at www.gljpc.com.
Reserve Advisory
Possible reserves are those additional reserves that are less certain to
be discovered than probable reserves. There is a 10% probability that
the quantities actually recovered will equal or exceed the sum of
proved plus probable plus possible reserves.
Business Development Activity
Increased LLA-10 Working Interest and Farmout: Petroamerica increased its private equity share in the Llanos-10 block
from 50% to 89% at no additional cost by assuming Canacol Energy Ltd.'s
39% working interest. The Company subsequently farmed out half of its
working interest (44.5%) to Parex. Pursuant to the terms of the farmout
agreement, Parex will pay up to $2.5 million for civil Works and 89% of
the dry-hole cost of one exploration well to earn 44.5% working
interest and operatorship, subject to the regulatory approval of the
Colombian National Hydrocarbons Agency ("ANH").
Colombia 2014 Bid Round Award: Petroamerica, as part of a bid consortium (including Gran Tierra 65%
working interest and Operator, and Petroamerica 35% working interest),
was the successful bidder in the 2014 Colombia Bid Round for the PUT-31
Block in the Putumayo basin. This block is interpreted to lie in the
sweet spot of the N-Sand play fairway in the Putumayo, and its award is
subject to final confirmation by the ANH.
Operations Update
Company Production: Daily production for the second quarter averaged 6,513 boepd exiting the
quarter with daily production of 6,013 boepd. June production averaged
6,465 boepd (Company working interest) compared to average production
of 6,579 boepd for the previous month.
Las Maracas Field (Non-operated, Los Ocarros Block, 50% Working
Interest): The Las Maracas-15 infill well was drilled targeting the Mirador,
Gacheta and Une reservoirs. The well encountered unswept oil pay in all
three reservoirs and was completed as a Mirador producer with an
average oil rate of around 1,650 bopd. The Las Maracas-16 water
disposal well was also drilled and completed and is currently being
used to inject produced water. The water treatment and injection plant
capacity is being expanded to 75,000 barrels of water per day and is
scheduled for completion by the end of October, 2014.
La Casona Field (Non-operated, El Eden Block, 40% Working Interest): The gas compression plant is currently being expanded to handle 4.5
million cubic feet per day of gas and is expected to be completed
before the end of August. Once commissioned this will enable the La
Casona-2 well to be placed on production from the Mirador.
Curiara-1 Long-term Test (Non-operated, El Porton Block, 25% Working
Interest): The Curiara-1 well has been on extended well test since early April,
2014, and has produced more than 43,000 barrels of light 42 degree API
oil and 245 million cubic feet of gas from the Mirador. The well has
performed better than expected and is currently producing at rates of
more than 500 bopd.
Suroriente Block (Non-operated, 15.8% Working Interest): The recently drilled Quinde-7 well was placed on production with an
electro-submersible pump and after seeing initial rates of 4,400 bopd
the well is now producing at a rate of more than 3,500 bopd. However,
what was considered to be a temporary stoppage in production at the
Cohembi and Pinuna fields has turned into a longer than expected
shut-in. More specifically, the production in these fields has been off
line since July 13, 2014 due to a local community blockade. The
operator and other operators in the surrounding area are working
closely with both the local and national governments and local
communities to resolve this situation.
2014 Drilling Program Update
Following the acquisition of Suroco, and including wells already
scheduled by Petroamerica, a number of high impact exploration
prospects will be drilled in the near-term. A summary of exploration,
appraisal and development drilling expected for the remainder of 2014
is outlined in the following table:
Prospect/Well | Activity Type | Block | Working Interest | Timing/Status |
Garza Roja-1
|
Exploration
|
LLA-10
|
44.5%
|
Q4 2014
|
Zampoña-1
|
Exploration
|
Los Ocarros
|
50%
|
Q4 2014
|
Crypto-1
|
Exploration
|
El Porton
|
50%
|
Q4 2014
|
Langur-1
|
Exploration
|
LLA-19
|
50%
|
Q3/Q4 2014
|
Trampa Mixta-1
|
Exploration
|
Alea 1848A
|
50%
|
Q4 2014/Q1 2015
|
Cohembi North-1
|
Exploration
|
Suroriente
|
15.8%
|
Q4 2014/Q1 2015
|
Quinde - 4 wells
|
Development
|
Suroriente
|
15.8%
|
Q3/Q4 2014
|
Cohembi - 4 wells
|
Development
|
Suroriente
|
15.8%
|
Q4 2014/Q1 2015
|
Petroamerica will participate in the drilling of up to six exploration
wells in the second half of 2014; two targeting high impact low-side
fault closures in the Llanos (Langur-1 and Garza Roja-1), two
conventional Llanos foreland fault traps (Crypto-1 and Zampona-1), and
two N-Sand prospects in the Putumayo Basin (Cohembi North-1 and Trampa
Mixta-1). Additionally, the Company will partner in approximately 8
development wells in the Quinde and Cohembi fields in the latter part
of 2014 and the early part of 2015.
Outlook
The new Petroamerica, since the acquisition of Suroco, holds interests
in twelve exploration and production contracts in the Llanos and
Putumayo Basins of Colombia, covering more than one million gross (over
500 thousand net) acres focused on high netback light and medium oil.
This portfolio includes a substantial inventory of exploration
prospects and leads that will be pursued to support future production
and reserves growth for the Company. Furthermore, the new Company will
also have significant exposure to the prolific N-Sand play in the
Putumayo Basin in addition to the current production operations,
discoveries and exploration opportunities in the Llanos basin,
enhancing the overall portfolio and diversifying the company's asset
base.
The Company is currently merging the two sets of operations and
anticipates releasing a revised production guidance and a combined
capital spending program by mid-September, 2014. However, based on
preliminary numbers, the Company expects to be able to fully fund
internally its operations for the year through the combination of free
cash flow and cash-on-hand.
The Company continues to pursue select new business opportunities that
will enhance the existing portfolio and provide additional future
growth in its two core areas.
|
|
|
|
PETROAMERICA OIL CORP. |
|
Condensed Consolidated Interim Statements of Financial Position |
(Unaudited)
|
|
|
|
|
|
|
|
|
As at
|
|
|
As at
|
|
|
|
June 30,
|
|
|
December 31,
|
|
(thousands of United States dollars)
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
68,441
|
|
$
|
63,737
|
|
|
Short-term investments
|
|
32,884
|
|
|
2,894
|
|
|
Trade and other receivables
|
|
26,198
|
|
|
42,754
|
|
|
Prepayments and deposits
|
|
1,646
|
|
|
508
|
|
|
Crude oil inventory
|
|
1,292
|
|
|
348
|
|
|
|
130,461
|
|
|
110,241
|
|
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
|
Restricted cash
|
|
5,659
|
|
|
5,170
|
|
|
Property, plant and equipment
|
|
69,270
|
|
|
72,889
|
|
|
Exploration and evaluation assets
|
|
26,946
|
|
|
24,871
|
|
|
|
101,875
|
|
|
102,930
|
|
Total assets |
$
|
232,336
| |
$
|
213,171
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
Current equity tax
|
$
|
202
|
|
$
|
377
|
|
|
Current income tax
|
|
9,436
|
|
|
19,546
|
|
|
Accounts payable and accrued liabilities
|
|
15,273
|
|
|
15,400
|
|
|
Notes payable
|
|
31,981
|
|
|
-
|
|
|
|
56,892
|
|
|
35,323
|
|
|
|
|
|
|
|
|
|
Non-Current liabilities |
|
|
|
|
|
|
|
Stock appreciation rights liability
|
|
3,984
|
|
|
2,085
|
|
|
Notes payable
|
|
-
|
|
|
31,587
|
|
|
Deferred tax liability
|
|
4,705
|
|
|
2,818
|
|
|
Decommissioning liabilities
|
|
6,507
|
|
|
5,260
|
|
Total liabilities |
|
72,088
| |
|
77,073
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
|
|
|
|
|
Share capital
|
|
141,326
|
|
|
138,936
|
|
|
Contributed surplus
|
|
23,847
|
|
|
24,079
|
|
|
Translation reserve
|
|
(3,223)
|
|
|
(1,172)
|
|
|
Deficit
|
|
(1,702)
|
|
|
(25,745)
|
|
|
|
160,248
|
|
|
136,098
|
|
Total liabilities and shareholders' equity |
$
|
232,336
| |
$
|
213,171
|
|
|
|
|
|
|
|
|
PETROAMERICA OIL CORP.
Condensed Consolidated Interim Statements of Net Income and
Comprehensive Income
(Unaudited)
|
|
|
|
|
|
|
Three months ended June 30
|
|
Six months ended June 30
|
(thousands of United States dollars, except per share amounts)
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil revenue - net of royalties
|
$
|
47,825
|
$
|
46,104
|
$
|
99,527
|
$
|
91,772
|
|
|
47,825
|
|
46,104
|
|
99,527
|
|
91,772
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
|
|
(2,948)
|
|
(2,444)
|
|
(4,992)
|
|
(3,755)
|
|
Transportation
|
|
(10,172)
|
|
(8,090)
|
|
(21,513)
|
|
(16,179)
|
|
Purchased oil
|
|
-
|
|
(2,624)
|
|
(1,625)
|
|
(2,624)
|
|
Exploration and evaluation
|
|
(263)
|
|
-
|
|
(354)
|
|
(325)
|
|
Depletion and depreciation
|
|
(9,417)
|
|
(7,186)
|
|
(18,950)
|
|
(14,357)
|
|
General and administration
|
|
(3,738)
|
|
(2,168)
|
|
(6,473)
|
|
(4,571)
|
|
Transaction costs
|
|
(1,229)
|
|
-
|
|
(1,229)
|
|
-
|
|
Share-based payments
|
|
(1,793)
|
|
(233)
|
|
(1,992)
|
|
(485)
|
|
|
|
|
|
|
|
|
|
|
|
(29,560)
|
|
(22,745)
|
|
(57,128)
|
|
(42,296)
|
|
Finance and other
|
|
(1,209)
|
|
(1,226)
|
|
(2,501)
|
|
(2,498)
|
|
Foreign exchange gain (loss)
|
|
(3,849)
|
|
485
|
|
1,843
|
|
(74)
|
|
|
(5,058)
|
|
(741)
|
|
(658)
|
|
(2,572)
|
Income before income taxes | |
13,207
| |
22,618
|
|
41,741
| |
46,904
|
Current income tax expense
|
|
(9,296)
|
|
(5,365)
|
|
(15,810)
|
|
(13,890)
|
Deferred tax recovery (expense)
|
|
2,520
|
|
(6,081)
|
|
(1,888)
|
|
(7,730)
|
Net income for the year | |
6,431
| |
11,172
|
|
24,043
| |
25,284
|
|
|
|
|
|
|
|
|
|
Other comprehensive (loss) income |
|
|
|
|
|
|
|
|
Items that will be reclassified subsequently to income or (loss): |
|
|
|
|
|
|
|
|
Reserve on translation of foreign operations
| |
2,131
| |
217
|
|
(2,051)
| |
990
|
Total comprehensive income | $
|
8,562
|
$
|
11,389
|
$
|
21,992
| $
|
26,274
|
Basic income per share |
$
|
0.01
|
$
|
0.02
|
$
|
0.04
|
$
|
0.04
|
Diluted income per share | $
|
0.01
|
$
|
0.02
|
$
|
0.04
| $
|
0.04
|
|
|
|
|
|
|
|
|
|
Weighted average number of basic |
|
|
|
|
|
|
|
|
common shares outstanding | |
596,278,700
| |
580,782,473
|
|
594,915,940
| |
580,357,760
|
Weighted average number of diluted |
|
|
|
|
|
|
|
|
common shares outstanding | |
615,692,294
| |
600,776,919
|
|
614,329,534
| |
606,397,533
|
PETROAMERICA OIL CORP.
Condensed Consolidated Interim Statements of Changes in Equity
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
(thousands of United States dollars)
|
|
Share Capital
|
|
Contributed
surplus
|
|
Translation
reserve
|
|
Retained
earnings (Deficit)
|
|
Total equity
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2014 | $
|
138,936
|
$
|
24,079
|
$
|
(1,172)
|
$
|
(25,745)
|
$
|
136,098
|
| |
|
|
|
|
|
|
|
|
|
Net income for the year
|
|
-
|
|
-
|
|
-
|
|
24,043
|
|
24,043
|
Other comprehensive loss
| |
-
|
|
-
|
|
(2,051)
|
|
-
|
|
(2,051)
|
Total comprehensive income (loss) |
|
-
|
|
-
| | (2,051) | | 24,043 | | 21,992 |
Warrants exercised
| |
2,333
|
|
(346)
|
|
-
|
|
-
|
|
1,987
|
Stock options exercised
| |
57
|
|
(22)
|
|
-
|
|
-
|
|
35
|
Share-based payments
|
|
-
|
|
136
|
|
-
|
|
-
|
|
136
|
Balance at June 30, 2014 | $ | 141,326 | $ | 23,847 | $ | (3,223) | $ | (1,702) | $ | 160,248 |
| | | | | | | | | | |
| |
|
|
|
|
|
|
|
|
|
(thousands of United States dollars)
|
|
Share Capital
|
|
Contributed
surplus
|
|
Translation
reserve
|
|
Retained
earnings (Deficit)
|
|
Total equity
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2013 |
$
|
136,417
|
$
|
23,630
|
$
|
3,348
|
$
|
(79,622)
|
$
|
83,773
|
| |
|
|
|
|
|
|
|
|
|
Net income for the year
|
|
-
|
|
-
|
|
-
|
|
25,284
|
|
25,284
|
Other comprehensive loss
| |
-
|
|
-
|
|
990
|
|
-
|
|
990
|
| |
|
|
|
|
|
|
|
|
|
Total comprehensive income |
|
-
|
|
-
| | 990 | | 25,284 | | 26,274 |
|
| | | | | | | | | |
Warrants exercised
| |
423
|
|
(64)
|
|
-
|
|
-
|
|
359
|
Stock options exercised
| |
72
|
|
(27)
|
|
-
|
|
-
|
|
45
|
Share-based payments
|
|
-
|
|
485
|
|
-
|
|
-
|
|
485
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2013 | $ | 136,912 | $ | 24,024 | $ | 4,338 | $ | (54,338) | $ | 110,936 |
PETROAMERICA OIL CORP.
Condensed Consolidated Interim Statements of Cash Flows
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30
|
|
Six months ended June 30
|
(thousands of United States dollars)
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
Operating activities |
|
|
|
|
|
|
|
|
Net income for the year
|
$
|
6,431
|
$
|
11,172
|
$
|
24,043
|
$
|
25,284
|
Items not involving cash:
|
|
|
|
|
|
|
|
|
|
Share-based payments
|
|
1,793
|
|
233
|
|
1,992
|
|
485
|
|
Depletion and depreciation
|
|
9,417
|
|
7,186
|
|
18,950
|
|
14,357
|
|
Unrealized foreign exchange gain
|
|
2,807
|
|
(800)
|
|
(2,601)
|
|
(1,023)
|
|
Deferred tax (recovery) expense
|
|
(2,520)
|
|
6,118
|
|
1,888
|
|
7,766
|
|
Accretion and amortization
|
|
294
|
|
257
|
|
577
|
|
545
|
|
|
18,222
|
|
24,166
|
|
44,849
|
|
47,414
|
|
Net changes in non-cash working capital
|
|
(16,341)
|
|
(2,862)
|
|
4,229
|
|
10,045
|
Cash provided by operating activities |
|
1,881
|
|
21,304
|
|
49,078
|
|
57,459
|
|
|
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
|
|
Short-term investments
|
|
(30,099)
|
|
-
|
|
(29,990)
|
|
-
|
Exploration and evaluation expenditures
|
|
(717)
|
|
(14,555)
|
|
(2,075)
|
|
(15,783)
|
Property, plant and equipment expenditures
|
|
(4,394)
|
|
(12,999)
|
|
(14,331)
|
|
(21,502)
|
Cash used in investing activities |
|
(35,210)
|
|
(27,554)
|
|
(46,396)
|
|
(37,285)
|
|
|
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
|
|
Stock options exercised
|
|
35
|
|
7
|
|
35
|
|
45
|
Warrants exercised
|
|
1,036
|
|
1
|
|
1,987
|
|
359
|
Cash provided by financing activities |
|
1,071
|
|
8
|
|
2,022
|
|
404
|
|
|
|
|
|
|
|
|
|
(Decrease) Increase in cash and cash equivalents during the period |
|
(32,258)
|
|
(6,242)
|
|
4,704
|
|
20,578
|
Cash and cash equivalents, beginning of year |
100,699
|
|
53,594
|
|
63,737
|
|
26,774
|
Cash and cash equivalents, end of year |
$
|
68,441
|
$
|
47,352
|
$
|
68,441
|
$
|
47,352
|
Definitions of Reserve Categories:
"Proved" reserves are those reserves that can be estimated with a high
degree of certainty to be recoverable. It is likely that the actual
quantities recovered will exceed the estimated proved reserves.
"Probable" reserves are those additional reserves that are less certain
to be recovered than proved reserves. It is equally likely that the
actual remaining quantities recovered will be greater than or less than
the sum of the estimated proved plus probable reserves.
"Possible' reserves are those additional reserves that are less certain
to be recovered than probable reserves. It is unlikely that the actual
remaining quantities recovered will exceed the sum of the estimated
proved plus probable plus possible reserves.
Forward Looking Statements:
This news release includes information that constitutes "forward-looking
information" or "forward-looking statements". Statements relating to
"reserves" or "resources" are deemed to be forward looking statements,
as they involve the implied assessment, based on certain estimates and
assumptions, that the resources and reserves described can be
profitably produced in the future. More particularly, this news release
contains statements concerning expectations regarding regulatory and
partner approvals on the Company's development plan, drilling and
operational opportunities and the timing associated therewith, test
results and the timing thereof, anticipated reserve life of the
combined Company's assets, potential future acquisitions and other
statements, expectactions beliefs, goals, objectives, assumptions and
information about possible future conditions, results of operations or
performance, the use of available cash on hand in addition to the
potential exploration and development opportunities and expectations
regarding regulatory approval and the overall strategic direction of
the Company. The forward-looking statements contained in this
document, including expectations and assumptions concerning the
obtaining of the necessary regulatory approvals, including ANH
approval, and the assumptions, opinions and views of the Company or
cited from third party sources, are solely opinions and forecasts which
are uncertain and subject to risks.
A multitude of factors can cause actual events to differ significantly
from any anticipated developments and although the Company believes
that the expectations represented by such forward-looking statements
are reasonable, undue reliance should not be placed on the
forward-looking statements because there can be no assurance that such
expectations will be realized. Material risk factors include, but are
not limited to: the inability to obtain regulatory approval, including
ANH approval, for the transfer of participating interests and/or
operatorship for the Company's properties, the risks of the oil and gas
industry in general, such as operational risks in exploring for,
developing and producing crude oil and natural gas, market demand and
unpredictable shortages of equipment and/or labour, changes or
fluctuations in production levels, the size of oil and natural gas
reserves or resources; incorrect assessments of the value of
acquisitions and exploration and development programs; geological,
technical, drilling, production and processing problems; potential
delays or changes in plans with respect to exploration or development
projects or capital expenditures; fluctuations in oil and gas prices,
foreign currency exchange rates and interest rates, and reliance on
industry partners.
Data obtained from the initial testing results at the referenced wells,
which may include barrels of oil produced and levels of water-cut,
should be considered to be preliminary until a further and detailed
analysis or interpretation has been done on such data. The test results
disclosed in this press release are not necessarily indicative of
long-term performance or of ultimate recovery. The reader is cautioned
not to unduly rely on such results as such results may not be
indicative of future performance of the well or of expected production
results for the Company in the future.
Readers should also note that even if the drilling program as proposed
by the Company is successful, there are many factors that could result
in production levels being less than anticipated or targeted, including
without limitation, greater than anticipated declines in existing
production due to poor reservoir performance, mechanical failures or
inability to access production facilities, among other factors.
Neither the Company nor any of its subsidiaries nor any of its officers,
directors or employees guarantees that the assumptions underlying such
forward-looking statements are free from errors nor does any of the
foregoing accept any responsibility for the future accuracy of the
opinions expressed in this document or the actual occurrence of the
forecasted developments.
The forward-looking statements contained in this document are made as of
the date hereof and the Company undertakes no obligation to update
publicly or revise any forward-looking statements or information,
whether as a result of new information, future events or otherwise,
unless so required by applicable securities laws.
Use of "boe"
'boe' may be misleading if used in isolation. Throughout this press
release the calculation of barrels of oil equivalent ("boe") is at a
conversion rate of 6,000 cubic feet ("cf") of natural gas for one
barrel of oil and is based on an energy conversion method at the burner
tip and does not represent a value equivalence at the wellhead.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE Petroamerica Oil Corp.
<p> Nelson Navarrete<br/> President and CEO<br/> <br/> Colin Wagner<br/> CFO </p> <p> Ralph Gillcrist<br/> COO and Executive Vice President Exploration & Business Development </p> <p> Tel Bogota, Colombia: +57-1-744-0644<br/> Tel Calgary, Canada: +1-403-237-8300<br/> Email: <a href="mailto:investorrelations@pta-oil.com">investorrelations@pta-oil.com</a> </p> <p> Web Page: <a href="http://www.PetroamericaOilCorp.com">www.PetroamericaOilCorp.com</a> </p>