Calgary, Alberta–(Newsfile Corp. – August 2, 2022) –( ) (“New Stratus” or the “Corporation“) is pleased to announce its financial and operating results for the three months and year ended March 31, 2022, our first quarter incorporating the acquisition of 100% of the shares of Repsol Ecuador S.A., which was completed on January 14, 2022. Subsequent to the year end, Repsol Ecuador S.A. completed a corporate name change to Petrolia Ecuador S.A.
Selected financial and operational information is outlined below and should be read in conjunction with the audited financial statements and the related management’s discussion and analysis (“MD&A“) for the year ended March 31, 2022. These filings are available on SEDAR at www.sedar.com and the Corporation’s web page (www.newstratusenergy.com). The financial statements and MD&A, as well as the financial and operating highlights outlined below, are presented in Canadian dollars.
(in Canadian dollars, expect per share information)
|Three months ended
March 31, 2022
March 31, 2022
|Per share – basic||$0.18||$0.17|
|– fully diluted||$0.15||$0.14|
|Per share – basic||$0.13||$0.13|
|– fully diluted||$0.11||$0.10|
|Cash & Cash Equivalents||$15,474,166-||$15,474,166|
|Average Daily Production|
|Heavy Crude Oil (bopd)||5,305||5,305|
|Consumption Oil (bopd)||732||732|
|Carry forward recovery||$17.08||$17.08|
(1) Non-GAAP measure. Refer to “Non-GAAP and Other Financial Measures” within press release.
(2) Includes in-the-money dilutive instruments as at March 31, 2022 which include 9,390,000 stock options with a weighted average exercise price of $0.21 and 37,099,304 warrants with a weighted average exercise price of $0.32.
Petrotech Engineering Ltd. assessed the Corporation’s reserves in its report dated effective March 31, 2022 (the “Petrotech Report“) which was prepared in accordance with the standards of the Canadian Oil and Gas Evaluation Handbook (the “COGE Handbook“) and National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities and is based on forecast prices and costs as at March 31, 2022. Additional information regarding reserves data and other oil and gas information is included in the Corporation’s Statement of Reserves Data and Other Oil and Gas Information for the year ended March 31, 2022, available on SEDAR at www.sedar.com.
All of the Corporation’s reserves are located in onshore Ecuador. On January 14, 2022, the Corporation acquired an indirect 35% working interest in Block 16 and Block 67 in Ecuador (the “Blocks“) pursuant to Service Operating Contracts held by Repsol Ecuador S.A. (now, Petrolia Ecuador S.A.). The Service Operating Contracts expire on December 31, 2022. The Corporation is negotiating with the Government of Ecuador to extend the Corporation’s rights to the Blocks through a production sharing contract.
The following tables are a summary of the Corporation’s reserves, as evaluated by Petrotech effective March 31, 2022. It should not be assumed that the estimates of future net revenue presented in the table below represent the fair market value of the reserves. The estimates of future net revenues are presented in United States dollars. There is no assurance that the forecast prices and cost assumptions will be attained, and variances could be material. The recovery and reserve estimates of our crude oil reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual reserves may be greater or less than the estimates provided herein. Reserves information may not add due to rounding.
|Total proved developed producing||1,155.0|
|Total proved plus probable||1,164.7|
|Total proved plus probable plus possible||1,174.5|
(1) Reserves have been presented on a gross basis which are the Corporation’s total working interest share before the deduction of any royalties and without including any royalty interests of the Corporation.
Net Present Value of Future Net Revenue
|Before Income Tax
Discounted at 10%
|Total proved developed producing||18,585|
|Total proved plus probable||18,839|
|Total proved plus probable plus possible||19,097.2|
Jose Francisco Arata
Chairman & Chief Executive Officer
President & Director
Chief Financial Officer
[email protected] – (416) 363-4900
Certain information set forth in this news release constitutes “forward-looking statements”, and “forward-looking information” under applicable securities legislation (collectively, “forward-looking statements“). All statements other than statements of historical fact are forward-looking statements. Forward-looking statements may be identified by the use of conditional or future tenses or by the use of words such as “will”, “expects”, “intends”, “may”, “should”, “estimates”, “anticipates”, “believes”, “projects”, “plans”, and similar expressions, including variations thereof and negative forms. Forward-looking statements in this press release include the extension of the term of the Blocks and entering into a production sharing contract with the Government of Ecuador in respect of the Blocks instead of the Service Operating Contracts; and are based on the Corporation’s current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Forward-looking statements are not guarantees of future performance and undue reliance should not be placed on them.
In respect of the forward-looking statements contained herein, the Corporation has provided them in reliance on certain assumptions that it believes are reasonable at this time, some or all of which may prove to be incorrect. Accordingly, readers should not place undue reliance on the forward-looking statements contained herein. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. New Stratus undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securities laws. Actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits may be derived therefrom.
Non-GAAP and Other Financial Measures
This news release contains the financial terms “Operating EBITDA”, “Operating Netback” and “Netback” that do not have a standardized definition under International Financial Reporting Standards (“IFRS“). These financial measures, together with measures prepared in accordance with IFRS, provide useful information to investors and shareholders, as management uses them to evaluate the operating performance of the Corporation. The Corporation’s determination of these non-IFRS measures may differ from other reporting issuers, and therefore are unlikely to be comparable to similar measures presented by other companies. Further, these non-IFRS measures should not be considered in isolation or as a substitute for measures of performance or cash flows prepared in accordance with IFRS.
EBITDA is a commonly used measure that adjusts net income (loss) as reported under IFRS to exclude the effects of income taxes, finance income and expenses, and depletion, depreciation and amortization expense. Operating EBITDA represents the operating results of the Company’s primary business, excluding the following items: restructuring, severance and other costs, certain non-cash items (such as impairments, foreign exchange, costs under terminated pipeline contracts and share-based compensation) and gains or losses arising from the disposal of capital assets. In addition, other unusual or non-recurring items are excluded from operating EBITDA, as they are not indicative of the underlying core operating performance of the Company.
Operating EBITDA represents the results of the Corporation’s primary business, excluding the items noted above. Other unusual or non-recurring items are excluded from operating EBITDA, as they are not indicative of the underlying core operating performance of the Corporation.
A reconciliation of net income (loss) to operating EBITDA is as follows:
|(in Canadian dollars)||Three Months Ended
March 31, 2022
March 31, 2022
|Earnings (loss) before income taxes||$21,100,830||$17,822,321|
|Interest expense (income)||$(167,436)||$(167,621)|
|Foreign Exchange gain||$(44,987)||$(65,879)|
|Gain on acquisition||$(18,010,552)||$(18,010,552)|
|Discount rate gain||$(95,553)||$(95,553)|
|Depletion and depreciation||$7,750,320||$7,750,320|
Netback is calculated as net revenue less royalties, production costs and transportation costs, divided by cumulative production volume for the period. Netback is used by the Corporation to better analyze the financial performance and to assess its overall corporate platform as it relates to production volumes.
|bopd||barrels of oil per day|
|Mbbl||one thousand barrels|
|US$M||thousands of United States dollars|
Neither 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.
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION BY ANY UNITED STATES NEWS DISTRIBUTION SERVICE
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/132536
Retransmission – Endeavour Silver Announces Q2 2022 Financial Results; Raises 2022 Production Guidance
VANCOUVER, British Columbia, Aug. 09, 2022 (GLOBE NEWSWIRE) — This news release has been amended to reflect the correct estimate for the Company’s…
Kuya Silver Announces Closing of $3.2 Million Private Placement Including Full Exercise of Agents’ Option
Vancouver, British Columbia–(Newsfile Corp. – August 9, 2022) – Kuya Silver Corporation (CSE: KUYA) (OTCQB: KUYAF) (FSE: 6MR1) (the "Company" or "Kuya…
Great Atlantic Drilling Intersects 6.74% Copper, 34.5 G/T Silver and .6 G/T Gold over .4 Meters as well Nickel and Cobalt also Anomalous Mascarene Property New Brunswick
VANCOUVER, BC / ACCESSWIRE / August 9, 2022 / GREAT ATLANTIC RESOURCES CORP. (TSXV.GR) (the "Company" or "Great Atlantic") is pleased to announce it has…
Trillium Gold Identifies Historic Drill Core from 21 Holes at Confederation Belt for Gold Sampling and Analysis
Liberty Gold Reports Excellent Results from Sonic Drilling in the Historic Heap Leach Pad, Goldstrike Oxide Gold Deposit, Utah
Contact Gold Returns 1.66 G/T Oxide Gold Over 28.96 Metres at Green Springs Gold Project, Cortez Trend, Nevada
Pasofino Gold Announces a Non-Brokered Private Placement of up to US$5 Million
Alpha Lithium Conditionally Approved to Upgrade Listing to Senior Canadian Stock Exchange
Max Resource Reports Initial IP Drill Targets, CESAR Project in NE Colombia
UEX Corporation Announces Receipt of Acquisition Proposal and Postponement of Securityholders’ Meeting
Marvel’s Power One – Receives First Set of Comments Back From TSX.V for Listing of Power One
Silver Wolf Announces Assays From Ongoing Surface Sampling Program at Its Ana Maria Property Including 1,536 G/T Silver, and 33% Lead
Osino Reports Increased Mineral Resource at Higher Grade at Twin Hills Gold Project, Namibia
Companies20 hours ago
Mandalay Resources Provides Target Release Date for Second Quarter 2022 Financial Results and Conference Call
Financing News20 hours ago
Hudbay Announces Second Quarter 2022 Results
Energy & Critical Metals23 hours ago
Commodities and the Future of #BatteryMetals
Precious Metals21 hours ago
Bad News, Gold Bugs! Jim Cramer Thinks It’s “The Perfect Time” To Buy #Gold
Precious Metals20 hours ago
Yamana Gold Inc. (AUY) is primed for evolution with the beta value of 1.32
Economics20 hours ago
Global Food Prices Plummet by Most Since 2008
Lithium20 hours ago
7 #Lithium #stocks to Buy With Big Upside $LAC $SLI $ALB $SQM $PPL $LTHM $SGML
Precious Metals23 hours ago
Equinox Gold Corp. (EQX) Looks Set To Grow At A Great Clip In 2022