Petroamerica announces the financial and operating results for the three months ended March 31, 2013
Press Release: Petroamerica Oil Corp. – 5 hours ago
finance.yahoo.com
CALGARY , May 22, 2013 /CNW/ - Petroamerica Oil Corp. ( PTA.V) ("Petroamerica" or the "Company"), a junior oil and gas company operating in Colombia , is pleased to announce the financial and operating results for the three months ended March 31, 2013 . Copies of the Company's Management Discussion and Analysis ("MD&A") 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.
Effective January 1, 2013 , the Company changed its presentation currency from the Canadian Dollar to the United States dollar to better reflect the Company's business activities and to improve investors' ability to compare the Company's financial results with other publicly traded businesses in the oil and gas industry. The financial results for all periods presented are in United States dollars unless otherwise indicated.
Quarterly highlights include:
- Generated net income of $14.1 million and positive funds flow from operations of $22.5 million ;
- Realized a Brent referenced sales price of $109.37 per barrel ("/bbl") and an operating netback of approximately $79 /bbl compared to $71 /bbl for the fourth quarter of 2012;
- Continued production growth at the Las Maracas Field, resulting in total Company average production of 4,375 barrels of oil per day ("bopd") for the quarter, an increase of 35% over the fourth quarter 2012 average daily production;
- Completed the drilling of four wells - Las Maracas-7, Las Maracas-13, Balay-4 and the Altillo Oeste-1exploration well, resulting in two oil producers, one water disposal well and one exploration dry hole;
- Initiated three wells - Las Maracas-8 and 9 which have since been completed as oil producers and the Curiara-1 exploration well which has been cased and is currently testing;
- Completed a comprehensive testing of the La Casona-1 well on the El Eden Block resulting in 1,700 bopd from the Une Formation.
The following table presents the highlights of Petroamerica's financial and operating results for the three months ended March 31, 2013 and 2012.
| Three Months Ended March 31 | | (in $000 US except share, per share or unless otherwise noted) |
| 2013 |
|
| 2012 |
|
|
|
|
|
| | Oil revenue - net of royalties | $ | 45,667 |
| $ | 1,564 | | Funds flow from operations | $ | 22,477 |
| $ | (1,803) | | Funds flow per share- basic |
| 0.04 |
|
| (0.00) | | Funds flow per share- diluted |
| 0.04 |
|
| (0.00) |
|
|
|
|
|
| | Income (loss) for period | $ | 14,112 |
| $ | (3,656) | | Total comprehensive income (loss) | $ | 14,885 |
| $ | (2,987) | | Income (loss) per share - basic | $ | 0.02 |
| $ | (0.01) | | Income (loss) per share - diluted | $ | 0.02 |
| $ | (0.01) | | Total assets | $ | 165,734 |
| $ | 91,831 | | Total cash | $ | 53,594 |
| $ | 10,619 | | Notes payable | $ | 32,336 |
| $ | - | | Shareholders' equity | $ | 99,306 |
| $ | 81,979 |
|
|
|
|
|
| | Exploration costs | $ | 326 |
| $ | 2,203 | | Capital expenditures | $ | 12,900 |
| $ | 5,538 |
|
|
|
|
|
|
| Three Months Ended March 31 | | (in $000 US except share, per share or unless otherwise noted) |
| 2013 |
|
| 2012 |
|
|
|
|
|
| | Common shares outstanding |
| 580,721,594 |
|
| 578,331,594 | | Weighted average shares outstanding |
|
|
|
|
| | Basic |
| 579,909,594 |
|
| 578,331,594 | | Diluted |
| 606,798,610 |
|
| 578,331,594 |
|
|
|
|
|
|
|
|
|
|
|
| | Average daily production - bbls |
| 4,375 |
|
| 236 | | Selling price $/bbl | $ | 109.37 |
| $ | 119.95 | | Royalty $/bbl | $ | 9.07 |
| $ | 9.60 | | Average transportation costs $/bbl | $ | 17.89 |
| $ | 8.38 | | Average production cost $/bbl | $ | 2.90 |
| $ | 18.54 | | Operating netback $/bbl | $ | 79.51 |
| $ | 83.43 | | Funds flow netback$/bbl | $ | 57.08 |
| $ | (84.82) |
|
|
|
|
|
| | Share trading |
|
|
|
|
| | High | $ | 0.40 |
| $ | 0.20 | | Low | $ | 0.28 |
| $ | 0.10 | | Close | $ | 0.36 |
| $ | 0.16 | | Trading volume |
| 60,176,800 |
|
| 103,510,900 |
First Quarter Financial Summary
For the three months ended March 31, 2013 , the Company reported $45.7 million in oil revenue, net of royalties, from the sale of 452,074 barrels of oil. The realized sales price was $109.37 /bbl generating an operating netback of approximately $79 /bbl.
For the first quarter of 2013, the Company's net income was $14.1 million ( $0.02 per share diluted), due to the increased production from the Las Maracas Field, strong oil prices, and the sales of built up inventory balances of 91,171 barrels of oil on hand at December 31, 2012 . The Company's capital expenditures for the first quarter were $12.9 million , all invested in Colombia , and were primarily for facility construction and appraisal and development drilling on the Maracas Field. These capital expenditures were funded from available cash on hand.
Operations Update
- Total Company production for the month of April averaged 4,575 bopd (Company working interest);
- On the Los Ocarros block, the Las Maracas-8 well is currently producing approximately 1,200 bopd from the Mirador Formation and the Las Maracas-9 well is producing approximately 1,000 bopd from the Gacheta Formation;
- Production facilities at the Las Maracas field are more than 99% complete and are expected to be commissioned and operational towards the end of May 2013 . Production levels for this field for the month of May to date have averaged approximately 9,500 bopd (gross);
- On the El Eden Block , the Tuscany 119 rig is currently being mobilised to drill the La Casona-2 appraisal well which is located approximately 700 meters to the northeast of the discovery well. This well will further evaluate the Une, Gacheta and Mirador (untested in the La Casona-1 well) reservoirs. Production from this discovery is expected to begin sometime in the third quarter of 2013 once gas compression facilities have been installed;
- The Rumi-1 exploration well on the El Eden Block will be drilled after the La Casona-2 well;
- The Curiara-1 well on the El Porton block (25% Company working interest) has reached its target depth, has been cased and is currently undergoing testing.
Exploration and Appraisal Drilling in 2013
A summary of exploration and appraisal drilling expected to take place over the near term is provided below:
| Prospect/Well | Well Type | Block | Working
Interest | Timing/Status | | Curiara-1 | Exploration | El Porton | 25% | Testing | | La Casona-2 | Appraisal | El Eden | 40% | Q2 2013 Spud | | Las Maracas-10 | Development | Los Ocarros | 50% | Q2 2013 Spud | | Rumi-1 | Exploration | El Eden | 40% | Q2 2013 Spud | | La Guira-1 | Exploration | Los Ocarros | 50% | Q3 2013 Spud | | Malavar-1 | Exploration | Llanos-10 | 50% | Q4 2013 Spud |
Outlook
Given the Company's current working capital position, strong oil prices projected for 2013 and the expected completion of the Las Maracas production facilities by the end of the second quarter of 2013, the Company expects to fully finance all of its current development and exploration activities for the fiscal year from a combination of funds on hand and through current and future cash flows and does not anticipate needing any further outside funding for the current year. However, in the event of exploration success, the Company may be required to obtain additional financing to support appraisal and development activities.
The Company plans on drilling at least one appraisal well on the El Eden Block , which is scheduled to occur sometime in the second quarter of 2013, as well as procuring equipment to put the La Casona-1 well on long term test. This equipment should be in place sometime early in the third quarter of 2013, and the testing program should commence shortly thereafter.
When the production facilities at Las Maracas are complete, the joint venture should be able to begin to produce the field at its optimum level. These facilities, which have been designed to handle up to 15,000 barrels of oil and 25,000 barrels of water per day are expected to be completed by the end of May, 2013. Further to this, with the proposed development drilling program for 2013, the overall production from this field is expected to increase, which would further enhance the revenues and cash flows that the Company will experience.
The Company is actively managing its exploration and development portfolio as well as reviewing current and future business opportunities within the oil and gas sector in Colombia with a view to ensuring that the Company is able to maintain and expand its asset base over the mid to long term. These opportunities could involve farm-ins, asset purchase or other forms of business combinations, and will be assessed on their merits as they arise. The Company is also actively investigating available options that would enable it to become an operator in Colombia .
PETROAMERICA OIL CORP.
Consolidated Statements of Financial Position
(Expressed in United States dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| As at
March 31,
2013 |
|
| As at
December 31,
2012 |
|
| As at
January 1,
2012 | | Assets |
|
|
|
|
|
|
|
|
|
| | Current assets |
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
| $ | 53,593,789 |
| $ | $ 26,774,414 |
| $ | 18,972,335 |
| Trade and other receivables |
|
|
| 24,110,289 |
|
| 23,312,242 |
| $ | 7,121,566 |
| Prepayments and deposits |
|
|
| 603,038 |
|
| 98,054 |
| $ | 410,859 |
| Crude oil inventory |
|
|
| 914,625 |
|
| 3,679,953 |
| $ | 554,119 |
|
|
|
| 79,221,741 |
|
| 53,864,663 |
|
| 27,058,879 | | Non-current assets |
|
|
|
|
|
|
|
|
|
|
| Restricted cash |
|
|
| 4,221,701 |
|
| 3,895,640 |
|
| 7,793,713 |
| Property, plant and equipment |
|
|
| 37,247,733 |
|
| 35,299,488 |
|
| 14,633,193 |
| Exploration and evaluation assets |
|
|
| 39,711,969 |
|
| 36,336,044 |
|
| 43,816,208 |
| Deferred tax asset |
|
|
| 5,330,966 |
|
| 6,979,717 |
|
| - |
|
|
|
| 86,512,369 |
|
| 82,510,889 |
|
| 66,243,114 |
|
|
|
|
|
|
|
|
|
|
| | Total assets |
|
| $ | 165,734,110 |
| $ | 136,375,552 |
| $ | 93,301,993 | | Liabilities |
|
|
|
|
|
|
|
|
|
| | Current liabilities |
|
|
|
|
|
|
|
|
|
|
| Current equity tax |
|
| $ | 361,810 |
| $ | 436,255 |
| $ | 397,944 |
| Current income tax |
|
|
| 8,525,274 |
|
| 781,833 |
| $ | - |
| Accounts payable and accrued liabilities |
|
|
| 23,238,732 |
|
| 17,179,319 |
| $ | 4,932,830 |
|
|
|
| 32,125,816 |
|
| 18,397,407 |
|
| 5,330,774 | | Non-Current liabilities |
|
|
|
|
|
|
|
|
|
|
| Deferred tax liability |
|
|
| - |
|
| - |
|
| 2,558,377 |
| Decommissioning liabilities |
|
|
| 1,616,797 |
|
| 1,057,926 |
|
| 173,061 |
| Notes payable |
|
|
| 32,335,800 |
|
| 32,772,378 |
|
| - |
| Equity tax |
|
|
| 350,059 |
|
| 374,016 |
|
| 657,072 | | Total liabilities |
|
|
| 66,428,472 |
|
| 52,601,727 |
|
| 8,719,284 |
|
|
|
|
|
|
|
|
|
|
| | Shareholders' equity |
|
|
|
|
|
|
|
|
|
|
| Share capital |
|
|
| 136,899,079 |
|
| 136,417,181 |
|
| 136,336,156 |
| Contributed surplus |
|
|
| 23,795,630 |
|
| 23,630,314 |
|
| 20,611,065 |
| Translation reserve |
|
|
| 4,120,026 |
|
| 3,347,728 |
|
| 2,500,283 |
| Deficit |
|
|
| (65,509,097) |
|
| (79,621,398) |
|
| (74,864,795) |
|
|
|
| 99,305,638 |
|
| 83,773,825 |
|
| 84,582,709 |
|
|
|
|
|
|
|
|
|
|
| | Total liabilities and shareholders' equity |
|
| $ | 165,734,110 |
| $ | 136,375,552 |
| $ | 93,301,993 |
PETROAMERICA OIL CORP.
Consolidated Statements of Loss and Comprehensive Loss
(Expressed in United States dollars)
|
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|
|
|
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|
|
|
| Three months ended March 31 |
|
|
| 2013 |
|
| 2012 | | Revenue |
|
|
|
|
|
|
| Oil revenue - net of royalties |
| $ | 45,666,778 |
| $ | 1,564,113 |
|
|
| 45,666,778 |
|
| 1,564,113 |
|
|
|
|
|
|
| | Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating |
|
| (9,399,940) |
|
| (376,870) |
| Exploration and evaluation |
|
| (325,509) |
|
| (2,203,404) |
| Depletion and depreciation |
|
| (7,170,843) |
|
| (726,257) |
| General and administration |
|
| (2,402,491) |
|
| (2,137,448) |
| Share-based payments |
|
| (251,746) |
|
| (384,176) |
|
|
|
|
|
|
|
|
|
| (19,550,529) |
|
| (5,828,155) |
|
|
|
|
|
|
|
| Finance and other |
|
| (1,271,458) |
|
| 125,436 |
| Foreign exchange (loss) gain |
|
| (558,465) |
|
| 482,397 |
|
|
|
|
|
|
|
|
|
| (1,829,923) |
|
| 607,833 |
|
|
|
|
|
|
| | Income (loss) before income taxes |
|
| 24,286,326 |
|
| (3,656,209) |
|
|
|
|
|
|
| | Current income tax expense |
|
| 8,525,274 |
|
| - | | Deferred tax expense |
|
| 1,648,751 |
|
| - |
|
|
|
|
|
|
| | Net income (loss) for the period |
|
| 14,112,301 |
|
| (3,656,209) |
|
|
|
|
|
|
| | Other comprehensive income |
|
|
|
|
|
| | Items that will not be reclassified subsequently to income or (loss): |
|
|
|
|
|
| Reserve on translation of foreign operations |
|
|
|
|
|
|
| and net investments in foreign operations |
|
| 772,298 |
|
| 668,746 |
|
|
|
|
|
|
| | Other comprehensive income |
|
| 772,298 |
|
| 668,746 |
|
|
|
|
|
|
| | Total comprehensive income (loss) |
| $ | 14,884,599 |
| $ | (2,987,463) |
|
|
|
|
|
|
| | Basic income (loss) per share |
| $ | 0.02 |
| $ | (0.01) | | Diluted income (loss) per share |
| $ | 0.02 |
| $ | (0.01) |
|
|
|
|
|
|
| | Weighted average number of basic |
|
|
|
|
|
|
| common shares outstanding |
|
| 579,909,594 |
|
| 578,331,594 | | Weighted average number of diluted |
|
|
|
|
|
|
| common shares outstanding |
|
| 606,798,610 |
|
| 578,331,594 |
PETROAMERICA OIL CORP.
Consolidated Statements of Changes in Equity
(Expressed in United States dollars)
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|
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|
|
|
|
| Share Capital |
|
| Contributed
surplus |
|
| Translation
reserve |
|
| Retained
earnings (deficit) |
|
| Total equity |
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
| | Balance at January 1, 2013 |
| $ | 136,417,181 |
| $ | 23,630,314 |
| $ | 3,347,728 |
| $ | (79,621,398) |
| $ | 83,773,825 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | Net income for the period |
|
| - |
|
| - |
|
| - |
|
| 14,112,301 |
|
| $ 14,112,301 | | Other comprehensive income |
|
| - |
|
| - |
|
| 772,298 |
|
| - |
|
| 772,298 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | Total comprehensive income |
|
| - |
|
| - |
|
| 772,298 |
|
| 14,112,301 |
|
| 14,884,599 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | Warrants exercised |
|
| 420,666 |
|
| (63,231) |
|
| - |
|
| - |
|
| 357,435 | | Stock options exercised |
|
| 61,232 |
|
| (23,199) |
|
| - |
|
| - |
|
| 38,033 | | Share-based payments |
|
| - |
|
| 251,746 |
|
| - |
|
| - |
|
| 251,746 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | Balance at March 31, 2013 |
| $ | 136,899,079 |
| $ | 23,795,630 |
| $ | 4,120,026 |
| $ | (65,509,097) |
| $ | 99,305,638 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Share Capital |
|
| Contributed
surplus |
|
| Translation
reserve |
|
| Deficit |
|
| Total equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | Balance at January 1, 2012 |
| $ | 136,336,156 |
| $ | 20,611,065 |
| $ | 2,500,283 |
| $ | (74,864,795) |
| $ | 84,582,709 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | Net loss for the period |
|
| - |
|
| - |
|
| - |
|
| (3,656,209) |
|
| (3,656,209) | | Other comprehensive income |
|
| - |
|
| - |
|
| 668,746 |
|
| - |
|
| 668,746 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | Total comprehensive loss |
|
| - |
|
| - |
|
| 668,746 |
|
| (3,656,209) |
|
| (2,987,463) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | Share-based payments |
|
| - |
|
| 384,176 |
|
| - |
|
| - |
|
| 384,176 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | Balance at March 31, 2012 |
| $ | 136,336,156 |
| $ | 20,995,241 |
| $ | 3,169,029 |
| $ | (78,521,004) |
| $ | 81,979,422 |
PETROAMERICA OIL CORP.
Consolidated Statements of Cash Flows
(Expressed in United States dollars)
|
|
|
|
| Three months ended March 31 |
|
| 2013 |
| 2012 |
|
|
|
|
| | Operating activities |
|
|
|
| | Net income (loss) for the period |
| $ 14,112,301 |
| $ (3,656,209) | | Items not involving cash: |
|
|
|
|
| Share-based payments |
| 251,746 |
| 384,176 |
| Depletion and depreciation |
| 7,170,843 |
| 726,257 |
| Unrealized foreign exchange loss |
| (995,250) |
| 725,909 |
| Deferred tax expense |
| 1,648,751 |
| - |
| Accretion and amortization |
| 288,441 |
| 16,694 | | Net changes in non-cash working capital balances: |
|
|
|
|
| Changes in trade and other receivables |
| (798,047) |
| (2,605,898) |
| Changes in prepayments and deposits |
| (504,984) |
| (120,841) |
| Changes in crude oil inventory |
| 2,765,328 |
| 280,339 |
| Changes in accounts payable, accrued liabilities and equity tax |
| 3,700,990 |
| (1,155,120) |
| Changes in current income tax payable |
| 7,743,441 |
| - |
|
|
|
|
| | Cash provided (used in) operating activities |
| 35,383,560 |
| (5,404,693) |
|
|
|
|
| | Investing activities |
|
|
|
| | Exploration and evaluation expenditures |
| (1,228,482) |
| $ (1,894,026) | | Property, plant and equipment expenditures |
| (8,503,468) |
| $ (1,118,888) | | Interest received |
| - |
| 63,805 | | Cash used in investing activities |
| (9,731,950) |
| (2,949,109) |
|
|
|
|
| | Financing activities |
|
|
|
| | Stock options exercised |
| 38,033 |
| - | | Warrants exercised |
| 357,435 |
| - | | Cash provided by financing activities |
| 395,468 |
| - |
|
|
|
|
| | Effect of foreign currency exchange rate changes on cash and cash equivalents |
| 772,297 |
| - |
|
|
|
|
| Increase (decrease) in cash and cash equivalents during the period
|
| 26,819,375 |
| (8,353,802) | | | | | | | | | Cash and cash equivalents, beginning of period |
| 26,774,414 |
| 18,972,335 |
|
|
|
|
|
|
|
|
|
| | Cash and cash equivalents, end of period |
| $ 53,593,789 |
| $ 10,618,533 |
Forward Looking Statements:
This news release includes information that constitutes "forward-looking information" or "forward-looking statements". 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, the use of proceeds of the financing and of available cash on hand in addition to the potential exploration and development opportunities and expectations regarding regulatory approval and the 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; 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.
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.
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.
Contact:
Nelson Navarrete
President and CEO
Colin Wagner
CFO
Ralph Gillcrist
COO and Executive Vice President Exploration & Business Development
Tel Bogota, Colombia: +57-1-744-0644
Tel Calgary, Canada: +1-403-237-8300
Email: investorrelations@pta-oil.com
Web Page: www.PetroamericaOilCorp.com
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