Calvalley announces results for the third quarter ended September 30, 2012
CALGARY, Nov. 6, 2012 /CNW/ - Calvalley Petroleum Inc., (TSX: CVI.A)
-- The Company's working interest share of production volumes
before royalties and taxes of 2,378 barrels per day in the
third quarter of 2012 was 10 per cent higher than 2,156 barrels
per day for the third quarter of 2011. Average gross production
volumes for the month of October are estimated to be
approximately 5,500 barrels per day, a 16 per cent increase
over average third quarter 2012 gross production volumes and
current gross crude oil production capability is in the 5,800 -
6,200 barrels per day range which amounts to a working interest
share of 2,900 - 3,100 barrels per day to the Company.
-- During the quarter, two appraisal wells were drilled offsetting
the discovery well Ras Nowmah 2, drilled in 2010. The Ras
Nowmah 4 well was completed in early October and is currently
on production test. The well is currently producing between 300
and 500 barrels per day of crude oil with limited drawdown. The
Company plans to continue restricting production at this well
pending the installation of facilities which will allow
production volumes to be optimized. The Ras Nowmah 5 well has
recently been completed and is currently undergoing its initial
production test. The well was brought on production on October
30, 2012 and is currently producing between 400 and 600 barrels
per day of crude oil with limited drawdown. The Company is
currently developing the required production and transportation
facilities which will allow the Ras Nowmah field production to
be optimized. It is anticipated that the current crude oil
production rates from Ras Nowmah can be increased when
facilities are installed in 2013.
-- Earnings of $0.05 per share ($4.2 million) in the third quarter
of 2012 were down from the $0.10 per share ($9.4 million) in
the third quarter of 2011 due to timing of product shipments.
For the nine month period ended September 30, 2012, earnings
increased to $0.21 per share ($19.6 million) up 81 per cent
from the $0.11 per share ($10.9 million) for the nine month
period in 2011. Earnings during the quarter reflect the lower
level of export shipments in the quarter, with production
levels contributing to higher crude oil inventories which
increased by almost 30,000 barrels during the quarter.
-- Funds flow from operations ("Cash Flow") for the three months
ended September 30, 2012 of $0.06 per share ($5.9 million) is
lower than the $0.12 per share ($11.6 million) for the same
period of 2011 due to the impact of crude oil export sales and
changes in inventory levels. For the nine months ended
September 30, 2012, Cash Flow was $0.27 per share ($25.2
million), an increase of 66 per cent from $0.16 per share
($15.2 million) in the prior year period.
-- Capital expenditures in the current quarter of $2.1 million are
similar to spending of $1.8 million in the comparable quarter
of 2011 including the net cost for drilling two wells at Ras
Nowmah. Year to date capital expenditures of $4.9 million are
lower than the $12.8 million in the prior period which included
expenditures on the truck off loading facilities at Block 51.
The Company is currently drilling a water injection well at
Hiswah and will then move the rig to the plateau to drill other
-- Calvalley has a healthy balance sheet with approximately $95
million in working capital at September 30, 2012 up from $68
million at September 30, 2011. The working capital balance
increases to over $98 million with inventory of crude oil
valued at current market value rather than cost. As the Company
expands its production base in Yemen, cash flow from operating
activities will continue to support increased investment
Significant financial information is included in the table below and is
discussed further in the Company's Management Discussion and Analysis.
Three months ended Nine months ended
(in thousands of US September 30((1)) September 30((1))
dollars except per share
amounts) 2012 2011 2012 2011
Revenue (Gross) 17,511 29,453 69,187 43,865
Revenue from crude oil 10,979 18,331 43,372 21,189
sales (net of royalties)
EBITDA((2)) 6,850 13,299 29,169 17,553
Operating income((2)) 5,646 11,653 24,577 15,149
Comprehensive income 4,518 9,405 19,645 10,866
Per share 0.05 0.10 0.21 0.11
Capital expenditures 2,100 1,759 4,861 12,838
Funds flow from
operations((2)) 5,880 11,581 25,192 15,194
Per share 0.06 0.12 0.27 0.16
Cash flow from (used in) 10,819 (3,041) 27,089 1,645
((1) ) On January 1, 2011, the Company adopted International Financial
Reporting Standards ("IFRS") for financial
reporting purposes, using a transition date of January 1, 2010.
The financial statements for the three and nine
months ended September 30, 2012, including required comparative
information, have been prepared in
accordance with International Financial Reporting Standards.
Unless otherwise noted, 2011 comparative information has been
prepared in accordance with IFRS. The
adoption of IFRS has not had an impact on the Company's
operations, cash flows or strategic decisions. The
most significant area of impact was the adoption of the IFRS
upstream accounting principles.
((2) ) See "Non-IFRS Measures" disclosure in Q3 2012 Interim MD&A filed
FILING OF REPORTS ON SEDAR
Calvalley's Management's Discussion and Analysis and Unaudited Condensed
Consolidated Financial Statements for the three and nine months ended
September 30, 2012 can be found for viewing by electronic means on The System
for Electronic Document Analysis and Retrieval at www.sedar.com. They can also
be found on the Company's website at www.calvalleypetroleum.com.
Calvalley is listed on the Toronto Stock Exchange, trading under the symbol
THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY
FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This press release may contain forward-looking statements including, without
limitation, financial and business prospects and financial outlooks, and such
statements may be forward-looking statements which reflect management's
expectations regarding future plans and intentions, growth, results of
operations, performance and business prospects and opportunities. Words such
as "may", "will", "should", "could", "anticipate", "believe", "expect",
"intend", "plan", "potential", "continue", and similar expressions have been
used to identify these forward-looking statements. These statements reflect
management's current beliefs and are based on information currently available
to management. Forward-looking statements involve significant risk and
uncertainties. A number of factors could cause actual results to differ
materially from the results discussed in the forward-looking statements
including, but not limited to, delays and interruptions in operations and
drilling activities for undetermined periods, availability of equipment and
services required for production operations, operating conditions affecting
the ability to produce and/ or deliver crude oil production and complete
project activities, changes in general economic and market conditions and
other risk factors. Although the forward-looking statements contained herein
are based upon what management believes to be reasonable assumptions,
management cannot assure that actual results will be consistent with these
forward-looking statements. Investors should not place undue reliance on
forward-looking statements. These forward-looking statements are made as of
the date hereof.
Edmund Shimoon, Chairman & CEO Gerry Elms, CFO+1 (403) 297-0490
SOURCE: Calvalley Petroleum Inc.
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-0- Nov/06/2012 12:00 GMT
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