Petrominerales Reports Third Quarter Financial Results Highlighted By Funds Flow From Operations of $151.9 Million
Press Release: Petrominerales Ltd. – Mon, Nov 5, 2012 2:10 AM EST
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CALGARY, ALBERTA--(Marketwire - Nov. 5, 2012) - Petrominerales ( PMG.TO)(BVC:PMGC) announces our 2012 third quarter financial results highlighted by funds flow from operations of US$151.9 million or US$1.69 per share on sales volumes of produced oil averaging 26,946 barrels per day. During the quarter, our operating netback averaged US$62.89 per barrel. We further reduced our August 2013 convertible bond obligation to US$201.7 million through the repurchase and cancellation of US$69.4 million of bonds during the quarter.
Our financial position remains very strong. We generated $37.3 million of positive free cash flow in the third quarter. In addition to generating free cash flow, we have $33.8 million of cash on hand and a completely undrawn credit facility. This financial strength provides us the flexibility to buy back bonds at a discount, and common shares at extremely compelling prices. Our 2012 per share results are positively impacted by our share repurchases in 2012. To date we have repurchased and cancelled 15 percent of our outstanding common shares (14.9 million shares) of which 2.3 million shares were repurchased in the third quarter at an average price of CDN$8.86. We plan to execute a capital program in 2013 that is more balanced between development and exploration drilling. Our immediate focus is on adding production and reserves while expanding our prospect inventory, and executing high-impact exploration drilling programs.
We are expecting near-term production additions from the following activities:
Placing our Maya-1 well on production in mid-November; Drilling a side-track to our Macapay well targeting additional oil pay and adding additional production by mid-November; Drilling a high-impact prospect on our Guatiquia Block, Mapanare-1, that is targeting up to 15 million barrels of undiscovered petroleum initially-in-place ("UPIIP") by December 31st; Drilling our first horizontal development well on our Casimena Block, Mantis-HZ1, and placing on production in mid-November; and Drilling a side-track to our Gaita-1 exploration well to confirm the southern extension of our Yenac oil field potentially adding production and reserves, while expanding on our development drilling inventory by December 31. FINANCIAL & OPERATING HIGHLIGHTS
The following table provides a summary of Petrominerales' financial and operating results for the third quarter ended September 30, 2012 and 2011. Consolidated financial statements with Management's Discussion and Analysis ("MD&A") are now available on the Company's website at www.petrominerales.com and will also be available on the SEDAR website at www.sedar.com.
| Financial Highlights | | ($US millions, except where noted) | | | | | | | | | Three months ended
September 30, | | Nine months ended
September 30, | | | | 2012 | 2011 | % change | | 2012 | 2011 | % change | | | Oil sales | 251.4 | 363.0 | (31 | ) | 874.2 | 1,090.7 | (20 | ) | | Funds flow from operations(1) | 151.9 | 196.4 | (23 | ) | 525.4 | 572.9 | (8 | ) | | | Per share | - basic ($) | 1.69 | 1.93 | (12 | ) | 5.49 | 5.56 | (1 | ) | | | | - diluted ($) | 1.68 | 1.88 | (11 | ) | 5.41 | 4.68 | 16 | | | Adjusted net income(1) | 36.9 | 58.8 | (37 | ) | 155.5 | 248.5 | (37 | ) | | | Per share | - basic ($) | 0.41 | 0.58 | (29 | ) | 1.63 | 2.41 | (32 | ) | | | | - diluted ($) | 0.41 | 0.55 | (25 | ) | 1.48 | 2.22 | (33 | ) | | Dividends declared | 11.2 | 12.2 | (8 | ) | 34.7 | 39.3 | (12 | ) | | Expenditures on PP&E and E&E(2) | 114.6 | 210.4 | (46 | ) | 483.6 | 534.7 | (10 | ) | | | | | | | | | | | | | | | | As at, | September 30, 2012 | | June 30, 2012 | December 31, 2011 | September 30, 2011 | | Cash | 33.8 | | 160.6 | 295.4 | 275.4 | | Net working capital surplus (deficit)(1) | (26.5 | ) | 24.9 | 73.8 | 134.0 | | 2016 convertible debentures puttable August 2013 (3) | 201.7 | | 271.1 | 550.0 | 550.0 | | 2017 convertible debentures | 400.0 | | 400.0 | - | - | | Total assets | 2,199.1 | | 2,244.4 | 2,226.5 | 2,111.9 | | Common shares (000s) | 88,020 | | 89,778 | 99,375 | 100,650 | | Common shares and in-the-money dilutives (000s)(4) | 90,476 | | 92,531 | 103,223 | 105,051 | | | | | | | | Operating Highlights | | | | | | | | | | | | | Three months ended September 30, | | Nine months ended September 30, | | | | 2012 | 2011 | % change | | 2012 | 2011 | % change | | | Production (bopd) | | | | | | | | | | | Deep Llanos | 18,101 | 26,576 | (32 | ) | 20,868 | 28,879 | (28 | ) | | | Central Llanos | 3,687 | 4,612 | (20 | ) | 4,337 | 4,528 | (4 | ) | | | Neiva | 3,187 | 4,017 | (21 | ) | 3,453 | 4,025 | (14 | ) | | | Orito | 1,359 | 1,919 | (29 | ) | 1,802 | 1,966 | (8 | ) | | | Heavy oil | - | - | - | | 23 | - | - | | | Total production | 26,334 | 37,124 | (29 | ) | 30,483 | 39,398 | (23 | ) | | Sales volumes | 26,946 | 39,923 | (33 | ) | 30,619 | 39,606 | (23 | ) | | | | | | | | | | | | Operating netback ($/bbl)(1) | | | | | | | | | | | WTI benchmark price | 92.22 | 89.54 | 3 | | 96.74 | 95.47 | 1 | | | | Brent benchmark price | 109.61 | 113.38 | (3 | ) | 112.18 | 111.88 | - | | | | Discount to Brent | 8.20 | 14.54 | (44 | ) | 7.98 | 11.01 | (28 | ) | | | Sales price | 101.41 | 98.84 | 3 | | 104.20 | 100.87 | 3 | | | | Transportation expenses | 6.09 | 11.08 | (45 | ) | 6.82 | 10.42 | (35 | ) | | | Realized crude oil price | 95.32 | 87.76 | 9 | | 97.38 | 90.45 | 8 | | | | Royalties | 14.04 | 10.73 | 31 | | 12.03 | 11.67 | 3 | | | | Production expenses | 18.39 | 15.92 | 16 | | 15.94 | 12.15 | 31 | | | Operating netback (1) | 62.89 | 61.11 | 3 | | 69.42 | 66.63 | 4 | | | (1) | Non-IFRS measure. See "Non-IFRS Measures" section. | | (2) | PP&E consists of property, plant and equipment assets and E&E consists of exploration and evaluation assets from the consolidated statement of cash flow. | | (3) | Consists of the principal portion of the convertible debentures due in 2016 and 2017. The 2016 convertible debenture holders have a one-time put option right of prepayment of the debentures on August 25, 2013 of the sum of common shares, deferred common shares, incentive shares, and potential shares issuable on conversion of in-the-money stock options and convertible debentures outstanding as at the period-end date. | | (4) | Consists of the sum of common shares, deferred common shares, incentive shares, and potential shares issuable on conversion of in-the-money stock options and convertible debentures outstanding as at the period-end. | HIGHLIGHTS AND SIGNIFICANT TRANSACTIONS DURING THE THIRD QUARTER
(Comparisons are third quarter 2012 compared to the third quarter of 2011 unless otherwise noted)
Funds flow from operations was US$151.9 million or US$1.69 per basic share, representing 23 and 12 percent decreases over 2011 primarily due to lower sales volumes. We generated positive free cash flow of US$37.3 million in the quarter after deducting capital expenditures of US$114.6 million from funds flow from operations. Our 2012 per share results are positively impacted by our share repurchases in 2012. To date we have repurchased and cancelled 15 percent of our outstanding common shares (14.9 million shares), of which 2.3 million shares were repurchased in the third quarter at an average price of CDN$8.86. We made one new oil discovery in Colombia on the Corcel Block, Mambo. In October, we made our first oil discovery in Peru at Sheshea. Our operating netbacks averaged US$62.89 per barrel in the third quarter, a three percent increase over the third quarter of 2011, primarily due to transportation savings achieved from our ownership in the OCENSA pipeline, offset by higher royalties due to our Yatay field exceeding the high-price participation threshold. During the quarter, we reduced our August 2013 convertible debt obligation to US$201.7 million by repurchasing an additional US$69.4 million of convertible debentures. OPERATIONAL REVIEW
| | October
2012 | Third Quarter
2012 | Second Quarter
2012 | Q2 to Q3
Change | | | Deep Llanos | 17,266 | 18,101 | 20,936 | (2,835 | ) | | Central Llanos | 4,064 | 3,687 | 4,914 | (1,227 | ) | | Neiva | 2,919 | 3,187 | 3,428 | (241 | ) | | Orito | 1,691 | 1,359 | 1,827 | (468 | ) | | Heavy oil | - | - | 8 | (8 | ) | | Total production | 25,940 | 26,334 | 31,113 | (4,779 | ) | Third quarter production averaged 26,334 barrels of oil per day ("bopd"), 4,779 bopd or 15 percent lower than the second quarter of 2012. Our Deep Llanos production decreased 2,835 bopd or 14 percent mainly due to wells being temporarily offline (2,055 bopd), including our Yatay-1 well that was affected for eight days, and natural declines net of production additions from our Mambo and Guala discoveries. Our Central Llanos production decreased 1,227 bopd or 25 percent primarily due to the shut-in of our Yenac and Mantis oil fields for nine days in August (784 bopd) as a result of community blockades and the remainder from natural declines. We did not drill any wells at Orito or Neiva in the third quarter, as a result, Neiva production decreased seven percent and Orito production decreased 26 percent. Orito was also affected by certain wells being offline in the quarter due to facilities disruptions (170 bopd) and awaiting workovers (310 bopd). The operator has a workover rig in the field performing well services, and the lost production in the third quarter was brought back on-line in October. We plan to recommence our Neiva drilling programs in the first half of 2013 and our Orito drilling program early in 2013.
Production averaged 25,940 bopd during October, two percent or 394 bopd lower than the third quarter average primarily due to natural declines offset by wells that were offline in the third quarter being brought back on production in October.
Deep Llanos Basin (Corcel, Guatiquia and South Block 31), Colombia
During the quarter we drilled two wells, Mambo-1 and Guarana-1, and in October we drilled a third well, Maya-1. Mambo-1 was drilled to a total measured depth of 11,875 feet on August 23rd. Well logs indicate 13 feet of potential net oil pay in the Lower Sand 1 formation. After completing the well in the Lower Sand 1, we installed an electric submersible pump ("ESP") and placed the well on production on September 12th at an oil rate of 839 bopd of 23 degree API oil, at a 73 percent water-cut. The well averaged 765 bopd during the remainder of the month. Following Mambo, we commenced drilling a side-track to our Macapay well, targeting up to 15 feet of additional oil pay. The original Macapay well has produced 660,000 barrels of 29 degree API oil from 25 feet of net oil pay in the Lower Sand 1 formation. We expect to have production results from this well in mid-November. Following Macapay, we plan to release the drilling rig and execute our exploration program with one drilling rig starting in 2013.
We drilled our Guarana-1 well to a total measured depth of 13,902 feet on August 2nd. We tested two intervals in the well, the first tested water and the second test recovered trace amounts of 11 degree API oil. Following Guarana, we drilled our Maya-1 well to a total measured depth of 13,565 feet on October 14th. Well logs indicate 32 feet of potential net oil pay in the Guadalupe and Lower Sand formations. We have initiated a testing program and expect to have results in mid-November.
Following Maya, we began drilling operations on our Mapanare-1 prospect on the Guatiquia Block on November 5th. This prospect is immediately southwest of our Yatay and Candelilla discoveries targeting up to 15 million barrels of UPIIP. With success, there could be follow-up development locations and similar prospectivity on the southern part of the Corcel Block.
Foothills Blocks (Block 25, 31, 59 and 15), Deep Llanos Basin, Colombia
In October, we completed our test program of the initial high-pressure, high-temperature gas zone on our Bromelia-1 well. The interval produced water and non-commercial amounts of gas, and we believe the zone we encountered while drilling contained gas dissolved in water.
We are currently conducting field surveys and expect to begin acquisition of a 256 square kilometre 3D seismic acquisition program on the northeastern portion of Block 25. Based on our current analysis, we have identified a number of prospects, including some Corcel-type prospects on the northeastern portion of the block that our upcoming 3D seismic program will delineate. We expect to recommence drilling prospects on this block in the second half of 2013.
We are currently evaluating and interpreting two large 3D seismic programs acquired earlier in the year from this area. On Block 31, we acquired 239 square kilometres of 3D over a large overthrust trend that was previously identified on existing 2D seismic data. On Block 59, we completed the acquisition of a large, 379 square kilometre 3D seismic program. We are encouraged by the prospectivity observed and expect to start drilling prospects on this acreage starting in the second half of 2013.
Central Llanos Basin (Casimena, Castor, Casanare Este, Mapache Blocks), Colombia
In the third quarter, we drilled a water disposal well on the Casimena Block, Mantis-SWD. In October, we began drilling our first Casimena horizontal well in our Yenac/Mantis area, Mantis-HZ1. We expect to have this well on production in mid-November. The horizontal wells in this field are targeting the Lower Mirador formation that has been encountered in all of our Yenac and Mantis vertical wells; however, only one well has been placed on production in that formation. This well has produced over 288,000 barrels of 14 degree API oil since it was placed on production in March 2011.
Following Mantis-HZ1, we plan to drill a side-track to our previously drilled exploration well, Gaita-1. Gaita-1 was drilled outside of our existing seismic control, but on trend with the Yenac Pool. Our interpretation of recently acquired 2D seismic demonstrates that Gaita was drilled on the down-thrown side of the fault. We are drilling this side-track to target the structurally high-side of the fault, where we expect to encounter the probable extension of the Yenac Pool. If successful, the Gaita side-track could add two additional development locations, a Yenac-7 location targeting the Upper Mirador reservoir and a second Yenac horizontal well, HZ2, targeting the Lower Mirador formation.
We have also identified additional locations that could extend the size of the field. The first well, Mantis Norte, will be drilled in the first quarter of 2013. If successful, this well could add an additional four development locations to the field.
Llanos Basin Heavy Oil Blocks (Rio Ariari, Chiguiro Oeste, Chiguiro Este), Colombia
In the third quarter, we drilled two wells Mielero-1 and Dara-1, and in October a third well, Pichilingo-1. The Mielero and Pichilingo wells were drilled to target prospects identified from 2D seismic in the central part of the Rio Ariari Block. We have identified on average 10 feet of potential net oil pay in each well.
We are planning to drill two additional exploration prospects with the objective of testing new play concepts and defining new, high-potential resource on the block. In addition, we are initiating an 80 kilometre 2D seismic program on the eastern portion of the Block. Once completed, we plan to drill up to an additional four stratigraphic wells in this region. We are also mobilizing a rig to our Tatama horizontal well-site to conduct a long-term production test. We expect this test to begin early in 2013.
Orito (Putumayo Basin) and Neiva (Upper Magdalena Basin), Colombia
We did not drill any wells on our Orito or Neiva fields during the third quarter, as the field operator Ecopetrol is in the process of updating environmental permits on both blocks. We expect to recommence our Orito development drilling program at the beginning of 2013, targeting down-hole locations from existing well pads. At Neiva, we expect to recommence development drilling from existing locations in the first half of 2013.
Block 126, Peru
During the quarter we drilled our second exploration well, Sheshea-1X, on Block 126. Sheshea-1X commenced drilling on July 19, 2012 and was drilled to a total measured depth of 8,925 feet on September 9, 2012.
We conducted four tests in three different formations. In the Chonta formation, we produced an average of 1,430 bopd, with no water recovered. In the Agua Caliente formation, we produced 80 bopd with a 97 percent water cut. The two tests conducted in the Copacabana formation recovered water.
In the Chonta formation, we tested a ten foot perforated interval with an ESP for a total of 37.5 hours through temporary well-test equipment. A total of 2,235 barrels of 53 API gravity oil was produced at an average rate of 1,430 bopd, with no water recovered during the test. Solution gas was present, but in quantities too small to measure. Drawdowns at the end of the test were 50 percent. Additional drilling, testing and 3D seismic will be required to help evaluate this encouraging discovery.
The Chonta sand is currently interpreted as a shoreface sand with good lateral extent and continuity that was deposited on a pre-existing high. Internally calculated potential resource volumes suggest a potential of 14 million barrels of discovered petroleum initially-in-place ("DPIIP"), based on minimal closure, to 140 million barrels of DPIIP based on maximum closure to interpreted spill point.
Prior to the Chonta test, we completed two tests in the Copacabana formation that recovered water. A third test was conducted over an eight-foot interval in the upper Agua Caliente formation. The test was conducted with an ESP through temporary well test equipment. Only formation water was recovered in the first 20 hours. After that point, traces of oil were observed, growing gradually to a three percent cut of 42 API oil by the end of the 46.8 hour flow period. The total fluid rate was 2,703 barrels per day. Drawdowns at the end of the test were four percent.
The Agua Caliente results are encouraging. We believe we tested a transition zone in a down-dip position with a potential accumulation up-dip of the well. Based on our interpretation of 2D seismic data, we could gain up to 25 feet of additional elevation and potential net oil pay. Internal calculations suggest that up to 25 million barrels DPIIP is possible for the Aqua Caliente formation. Again, additional drilling, testing and 3D seismic will be required to evaluate this discovery.
Our current plan is to incorporate these two encouraging test results into our geological and seismic mapping. We are planning a 3D seismic survey over the Sheshea structure to assist in the evaluation of the test results and to select possible appraisal drilling locations. Regulatory approval of the 3D seismic could take up to 18 months, and concurrently, we will initiate the regulatory process for possible commercialization.
Blocks 114 and 131, Peru
Petrominerales holds a 30 percent working interest in blocks 114 and 131. On Block 131, the operator has identified two drillable prospects, one of which is estimated to commence drilling during the second quarter of 2013. On Block 114, the acquisition of 260 kilometres of 2D seismic resumed in June 2012 and is now complete. Subject to technical and economic evaluations and regulatory environmental approval, the operator is planning to drill one exploration well no later than the second quarter of 2014.
Block 161 and 141, Peru
Block 161, situated in east central Peru, is 1.2 million acres in size. Petrominerales holds a 100 percent working interest in the block. Terms of reference to complete the Environmental Impact Assessment's ("EIA") Public Consultation Plan are in the final stages of the Peruvian Ministry of Energy and Mines approval. Upon completion and approval of the EIA, the planned 353 kilometre 2D seismic program will commence, likely in the second half of 2013.
Block 141, situated in southern Peru, is 1.3 million acres in size, of which Petrominerales has a 100 percent working interest. In July 2012, we received approval to commence our Public Consultation Plan, a key step in the completion of the EIA. Our commitment to complete a 300 kilometre 2D seismic program is currently scheduled to begin in early 2014, pending the completion and approval of the EIA.
OUTLOOK
Our financial position remains very strong. We generated $37.3 million of positive free cash flow in the third quarter. In addition to generating free cash flow, we have $33.8 million of cash on hand plus a completely undrawn credit facility. This financial strength provides us the flexibility to buy back bonds at a discount, and common shares at extremely compelling prices. We plan to execute a capital program in 2013 that is more balanced between development and exploration drilling. Our immediate focus is on adding production and reserves while expanding our prospect inventory, and executing high-impact exploration drilling programs.
We are expecting near-term production additions from the following activities:
Placing our Maya-1 well on production by mid-November; Drilling a side-track to our Macapay well targeting additional oil pay and adding additional production by mid-November; Drilling a high-impact prospect on our Guatiquia Block, Mapanare-1, that is targeting up to 15 million barrels of UPIIP by December 31st; Drilling our first horizontal development well on our Casimena Block, Mantis-HZ1, and placing on production by mid-November; and Drilling a side-track to our Gaita-1 exploration well to confirm the southern extension of our Yenac oil field and potentially adding production and reserves while expanding on our development drilling inventory by December 31. To expand our prospect inventory, we have acquired over 600 square kilometres of new 3D seismic in 2012 that is currently being interpreted. In addition, we will soon be in the field acquiring a 256 square kilometre 3D seismic program on Block 25, providing more data over our Canatua prospect and additional leads. We expect these 3D seismic acquisitions to add significantly to our prospect inventory and to provide new drilling opportunities for our 2013 program.
We look forward to updating our shareholders on our progress throughout the remainder of 2012 and into 2013.
IN MEMORIAM
We are sad to note the passing of one of the original directors of Petrominerales, Jerald Lindsay Oaks, on September 28, 2012. Jerald was also one of the original founders and directors of Petrobank Energy and Resources Ltd., and was a key player in the strategic growth of Petrominerales. We will miss his leadership, encouraging words, and his wise, reasoned counsel.
CONFERENCE CALL AND WEBCAST
Management of Petrominerales will be holding a conference call and webcast for investors, financial analysts, media and any interested persons on Monday, November 5, 2012 at 8:00 a.m. (Mountain Time) (10:00 a.m. Eastern Time) to discuss our 2012 third quarter financial and operating results.
| The investor conference call details are as follows: | | Live call dial-in number(s): 416-695-6617 / 800-446-4472 | | Live audio webcast link: events.digitalmedia.telus.com | | Replay dial-in numbers: 905-694-9451 / 800-408-3053 | | Replay Pass code: 3686459 | Petrominerales Ltd. is an international oil and gas company operating in Latin America since 2002. Today, Petrominerales is one of the most active exploration companies and one of the largest oil producers in Colombia. Our high quality land base and multi-year inventory of exploration opportunities provides long-term growth potential for years to come.
Non-IFRS Measures. This press release contains financial terms that are not considered measures under International Financial Reporting Standards ("IFRS"), such as funds flow from operations, adjusted net income, funds flow per share, adjusted net income per share, working capital and operating netback. These measures are commonly utilized in the oil and gas industry and are considered informative for management and shareholders. We evaluate our performance and that of our business segments based on funds flow from operations and adjusted net income. Funds flow from operations is a non-IFRS term that represents cash generated from operating activities before changes in non-cash working capital. Adjusted net income is determined by adding back any losses or deducting any gains on the derivative liabilities and effects of the buyback of the convertible debentures (accelerated accretion and gain on settlement). Management considers funds flow from operations, funds flow per share, adjusted net income and adjusted net income per share important as they help evaluate performance and demonstrate the Company's ability to generate sufficient cash to fund future growth opportunities and repay debt. Working capital includes current assets less current liabilities and is used to evaluate the Company's short-term financial leverage. Net (debt) surplus includes current assets less current liabilities and the principal amount of out-of-the-money convertible debentures (i.e. when they are out of the money and not repayable in common shares at maturity) and is used to evaluate the Company's financial leverage. Operating netback is determined by dividing oil revenue less royalties, transportation and production expenses by sales volume of produced oil. Management considers operating netback important as it is a measure of profitability per barrel sold and reflects the quality of production. Funds flow from operations, funds flow per share, adjusted net income, adjusted net income per share, working capital, net (debt) surplus and operating netbacks may not be comparable to those reported by other companies nor should they be viewed as an alternative to cash flow from operations, net income or other measures of financial performance calculated in accordance with IFRS.
Forward-Looking Statements and Cautionary Language. Certain information provided in this press release constitutes forward-looking statements. Specifically, this press release contains forward-looking statements relating to the Company's future exploration and development activities and the timing for bringing wells on production. The forward-looking statements are based on certain key expectations and assumptions, including expectations and assumptions concerning the availability of capital, the success of future drilling and development activities, the performance of existing wells, the testing and performance of new wells, prevailing commodity prices and economic conditions, the availability of labour and services, the ability to transport and market our production, timing of completion of infrastructure and transportation projects, weather and access to drilling locations. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. You can find a discussion of those risks and uncertainties in our Canadian securities filings. Such factors include, but are not limited to: general economic, market and business conditions; fluctuations in oil prices; the test results and performance of exploration and development drilling, recompletions and related activities; timing and rig availability; availability of transportation and offloading capacity, outcome of exploration contract negotiations; fluctuation in foreign currency exchange rates; the uncertainty of reserve estimates; changes in environmental and other regulations; risks associated with oil and gas operations; and other factors, many of which are beyond the control of the Company. There is no representation by Petrominerales that actual results achieved during the forecast period will be the same in whole or in part as those forecast; and there is no representation by Petrominerales that the test results of any new exploration well or development well is necessarily indicative of long-term performance or ultimate recovery. Except as may be required by applicable securities laws, Petrominerales assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
Undiscovered Petroleum Initially-In-Place ("UPIIP"). UPIIP, equivalent to undiscovered resources, are those quantities of petroleum that are estimated, on a given date, to be contained in accumulations yet to be discovered. The recoverable portion of UPIIP is referred to as prospective resources, the remainder as unrecoverable. Undiscovered resources carry discovery risk. There is no certainty that any portion of these resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources. A recovery project cannot be defined for this volume of UPIIP at this time.
Discovered Petroleum Initially-In-Place ("DPIIP"). DPIIP, equivalent to "discovered resources", is that quantity of oil that is estimated, as of a given date, to be contained in known accumulations prior to production. The recoverable portion of DPIIP includes production, reserves, and contingent resources; the remainder is unrecoverable. A recovery project cannot be defined for these volumes of DPIIP at this time. There is no certainty that it will be commercially viable to produce any portion of the resources.
Contact:
Petrominerales Ltd.
Corey C. Ruttan
President and Chief Executive Officer
403.705.8850 or 011.571.629.2701
ir@petrominerales.com
Petrominerales Ltd.
Jack F. Scott
Chief Operating Officer
403.705.8850 or 011.571.629.2701
ir@petrominerales.com
Petrominerales Ltd.
Kelly D. Sledz
Chief Financial Officer
403.705.8850 or 011.571.629.2701
ir@petrominerales.com
www.petrominerales.com |
