Copies of the Company’s
In the following discussion, the three months ended
Q1 2023 SUMMARY
During Q1 2023, the Company:
- Reported net cash provided by operating activities of
$0.9 million and funds flow provided by operating activities of$0.1 million as compared to Q1 2022 when the Company reported$ 0.03 million of net cash used in operating activities and$0.05 million of funds flow provided by operating activities; - Earned
$7.1 million of oil and natural gas sales revenue on total average daily sales volumes of 1,566 BOE per day, higher than$5.5 million of oil and natural gas sales revenue earned on total average daily sales volumes of 1,425 BOE per day in Q1 2022. In Q1 2023 higher oil sales volumes from PPCO Concession, acquired in Q3 2022, and higher sales volumes from the TDF Concession. - Received an average of
$4.33 per mcf for natural gas and$64.42 per bbl for oil compared to$2.84 per mcf for natural gas and$62.49 per bbl for oil received in Q1 2022; - Reported an operating netback of
$8.52 per BOE 1, down from$13.39 per BOE in Q1 2022; - Obtained
$1.9 million of working capital and overdraft loans and repaid$0.2 million of working capital loans; - Reported a loss before taxes of
$2.4 million and a net loss of$1.9 million as compared to Q1 2022 when the Company reported a loss before taxes of$1.7 million and a net loss of$1.6 million ; - Reported a working capital deficit2 of
$4.6 million .
SUBSEQUENT EVENTS
Subsequent to
- Obtained and repaid
$2.9 million and$0.2 million , respectively, of working capital and overdraft loans.
OPERATIONAL UPDATE
Tierra del Fuego Concession ("TDF" or "TDF Concessions")
The Company, along with its joint venture partners, expects to complete the remaining 15% of the oil pipeline from the Cruz del Sur oil storage facility to the Rio Cullen marine terminal operated by
During Q1 2023, San Martin oil production averaged 541 (net 186) bbls of oil per day. During Q1 2023, an electric submersible pump was installed at the SMx-1002 well to stabilize production and the SM.a-1003 well was converted to a disposal well to capture formation water from the San Martin field.
During Q1 2023, natural gas sales from the Las Violetas concession averaged 8,130 (net 2,824) mcf per day and oil production averaged 320 (net 111) bbls of oil per day.
Mendoza Concessions ("Mendoza Concessions")
During Q1 2023, the UTE carried out workovers on two injector wells and one oil well in the Chañares Herrados concession (the "CH Concession"). Oil production from the CH Concession for Q1 2023 averaged 1,145 (net 572) bbls of oil per day.
During Q1 2023, the UTE carried out a workover on an oil well in the Puesto Pozo Cercado Oriental concession (the "PPCO Concession"). Oil production from the PPCO Concession for Q1 2023 averaged 208 (net 104) bbls of oil per day.
Cerro de Los Leones Evaluation Permit ("CLL" or “CLL Permit”)
In
OUTLOOK
The Company’s capital spending on developed and producing assets for fiscal 2023 is budgeted at
Additionally, the Company plans to spend
SUMMARY OF FINANCIAL INFORMATION (1)
(expressed in $, except shares outstanding) | 2023 | 2022 | ||
Current assets | 8,920,370 | 9,852,182 | ||
Current liabilities | (13,549,136 | ) | (11,125,229 | ) |
Working capital (2) | (4,628,766 | ) | (1,273,047 | ) |
Exploration and evaluation assets | 14,118,694 | 14,115,555 | ||
Property and equipment | 43,033,863 | 43,963,610 | ||
Total assets | 66,278,879 | 68,183,547 | ||
Non-current financial liabilities (2) | 14,007,474 | 16,055,005 | ||
Share capital | 56,456,328 | 56,456,328 | ||
Total common shares outstanding | 72,903,038 | 72,903,038 | ||
(expressed in $, except shares outstanding) | Three months ended | |||
2023 | 2022 | |||
Oil and natural gas sales revenue | 7,100,558 | 5,487,831 | ||
Loss before taxes | (2,393,195 | ) | (1,734,952 | ) |
Net loss | (1,861,570 | ) | (1,642,099 | ) |
Net loss per share (3) | (0.03 | ) | (0.02 | ) |
Net cash provided (used) by operating activities | 923,774 | (32,234 | ) | |
Net cash per share – operating activities (2)(3) | 0.01 | (0.00 | ) | |
Funds flow provided by operating activities | 135,443 | 46,685 | ||
Funds flow per share – operating activities (2)(3) | 0.00 | 0.00 | ||
Weighted average number of shares – basic and diluted | 72,903,038 | 72,903,038 | ||
(1) We adhere to International Financial Reporting Standards (“IFRS”), however the Company also employs certain non-IFRS measures to analyze financial performance, financial position, and cash flow, including "operating netback". Additionally, other financial measures are also used to analyze performance. These non-IFRS and other financial measures do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures provided by other issuers. The non-IFRS and other financial measures should not be considered to be more meaningful than financial measures which are determined in accordance with IFRS, such as net income (loss), oil and natural gas sales revenue and net cash provided by (used in) operating activities, as indicators of our performance.
(2) “Working capital” is a capital management measure. “Non-current financial liabilities” is a supplemental financial measure. "Net cash per share – operating activities" is a supplemental financial measure. "Funds flow per share – operating activities" is a supplemental financial measure. See "Non-IFRS and Other Financial Measures".
(3) All per share figures are the same for the basic and diluted weighted average number of shares outstanding in the periods. The effect of options is anti-dilutive in loss periods. Per share amounts may not add due to rounding.
Sales Volumes
Three months ended | ||
2023 | 2022 | |
Total sales volumes (BOE) | 140,935 | 128,280 |
Light oil bbls per day | 995 | 804 |
NGL bbls per day | 15 | 6 |
Natural gas mcf per day | 3,337 | 3,693 |
Total BOE per day | 1,566 | 1,425 |
Operating Netback (1)
Three months ended | ||||||||||
2023 | 2022 | |||||||||
Per BOE | Per BOE | |||||||||
Oil and natural gas sales revenue ($) | 7,100,558 | 50.38 | 5,487,831 | 42.78 | ||||||
Export tax ($) | (138,196) | (0.98) | (135,975) | (1.06) | ||||||
Royalties and turnover tax ($) | (1,108,697) | (7.87) | (850,199) | (6.63) | ||||||
Operating costs ($) | (4,652,387) | (33.01) | (2,783,790) | (21.70) | ||||||
Operating netback (1) ($) | 1,201,278 | 8.52 | 1,717,867 | 13.39 |
(1) "Operating netback" is a non-IFRS measure. “Operating netback per BOE” is a non-IFRS ratio. See "Non-IFRS and Other Financial Measures".
About Crown Point
Advisory
Non-IFRS and Other Financial Measures: Throughout this press release and in other materials disclosed by the Company, we employ certain measures to analyze financial performance, financial position, and cash flow. These non-IFRS and other financial measures do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures provided by other issuers. The non-IFRS and other financial measures should not be considered to be more meaningful than financial measures which are determined in accordance with IFRS, such as net income (loss), oil and natural gas sales revenue and net cash provided by (used in) operating activities as indicators of our performance.
"Funds flow per share – operating activities" is a supplemental financial measure. Funds flow per share – operating activities is comprised of funds flow provided (used) by operating activities divided by the basic and diluted weighted average number of common shares outstanding for the period. See “Summary of Financial Information”.
"Net cash per share – operating activities" is a supplemental financial measure. Net cash per share – operating activities is comprised of net cash provided (used) by operating activities divided by the basic and diluted weighted average number of common shares outstanding for the period. See “Summary of Financial Information”.
"Non-current financial liabilities" is a supplemental financial measure. Non-current financial liabilities is comprised of the non-current portions of trade and other payables, taxes payable, notes payable and lease liabilities as presented in the Company’s consolidated statements of financial position. See “Summary of Financial Information”.
"Operating Netback" is a non-IFRS measure. Operating netback is comprised of oil and natural gas sales revenue less export tax, royalties and turnover tax and operating costs. Management believes this measure is a useful supplemental measure of the Company’s profitability relative to commodity prices. See “Operating Netback” for a reconciliation of operating netback to oil and natural gas sales revenue, being our nearest measure prescribed by IFRS.
"Operating netback per BOE" is a non-IFRS ratio. Operating netback per BOE is comprised of operating netback divided by total BOE sales volumes in the period. Management believes this measure is a useful supplemental measure of the Company’s profitability relative to commodity prices. In addition, management believes that operating netback per BOE is a key industry performance measure of operational efficiency and provide investors with information that is also commonly presented by other crude oil and natural gas producers. Operating netback is a non-IFRS measure. See "Operating Netback" for the calculation of operating netback per BOE.
"Working capital" is a capital management measure. Working capital is comprised of current assets less current liabilities. Management believes that working capital is a useful measure to assess the Company's capital position and its ability to execute its existing exploration commitments and its share of any development programs. See “Summary of Financial Information” for a reconciliation of working capital to current assets and current liabilities, being our nearest measures prescribed by IFRS.
Abbreviations and BOE Presentation: "API" means
Initial Production Rates: Any references herein to initial production rates are useful in confirming the presence of hydrocarbons, however, such rates are not determinative of the rates at which such wells will continue production and decline thereafter. Additionally, such rates may also include recovered "load oil" fluids used in well completion stimulation. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for the Company. Initial production rates may be estimated based on third party estimates or limited data available at the time. In all cases herein, initial production rates are not necessarily indicative of long-term performance of the relevant well or fields or of ultimate recovery of hydrocarbons.
Forward-looking Information: This document contains forward-looking information. This information relates to future events and the Company’s future performance. All information and statements contained herein that are not clearly historical in nature constitute forward-looking information. Such information represents the Company’s internal projections, estimates, expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. This information involves known or unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. In addition, this document may contain forward-looking information attributed to third party industry sources. Crown Point believes that the expectations reflected in this forward-looking information are reasonable; however, undue reliance should not be placed on this forward-looking information, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. This press release contains forward-looking information concerning, among other things, the following: under "Operational Update", the Company's plans for future operations on its TDF Concessions, Mendoza Concessions and CLL Permit and the anticipated benefits to be derived therefrom and timing thereof; under "Outlook", our estimated capital expenditure budget for fiscal 2023, and the capital expenditures that we intend to make in our TDF Concessions, Mendoza Concessions and CLL Permit; under "About Crown Point", all elements of the Company’s business strategy and focus. In addition, note that information relating to reserves and resources is deemed to be forward-looking information, as it involves the implied assessment, based on certain estimates and assumptions that the reserves and resources described can be economically produced in the future. The reader is cautioned that such information, although considered reasonable by the Company, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided in this document as a result of numerous known and unknown risks and uncertainties and other factors. A number of risks and other factors could cause actual results to differ materially from those expressed in the forward-looking information contained in this document including, but not limited to, the following: that the Company experiences delays building the pipeline to the Rio Cullen marine terminal or is unable to complete the pipeline; that the Company is unable to truck oil to the
Neither
1 Non-IFRS financial ratio. See "Non-IFRS and Other Financial Measures".
2 Capital management measure. See "Non-IFRS and Other Financial Measures".
For inquiries please contact:Gabriel Obrador President & CEO Ph: (403) 232-1150 Crown Point Energy Inc. gobrador@crownpointenergy.com Marisa Tormakh Vice-President, Finance & CFO Ph: (403) 232-1150Crown Point Energy Inc. mtormakh@crownpointenergy.com
Source:
2023 GlobeNewswire, Inc., source