Longview Announces Third Quarter 2012 Results

 Stable Production and Funds from Operations Sustains Dividends  CALGARY, Nov. 8, 2012 /CNW/ - Longview Oil Corp. ("Longview" or the  "Corporation") is pleased to announce the financial and operating results for  the quarter ended September 30, 2012.                                                   Three months ended                                 September 30, 2012   September 30, 2011                                                                          Financial ($000, except as                           otherwise indicated)                                                     Sales including realized                             hedging                         $           33,396   $           37,109    per share( (1))               $             0.71   $             0.79    per boe                       $            60.37   $            66.44  Funds from operations           $           14,360   $           17,255    per share( (1))               $             0.31   $             0.37    per boe                       $            25.96   $            30.89  Net income and comprehensive                         income                          $            1,473   $            7,148    per share( (1))               $             0.03   $             0.15  Dividends declared              $            7,026   $            7,013    per share( (2))               $             0.15   $             0.15  Expenditures on property, plant                      and equipment                   $            8,822   $           21,589  Working capital deficit ((3))   $            5,784   $           13,914  Bank indebtedness               $          115,299   $           84,692  Shares outstanding at end of                         period (000)                                46,837               46,750  Basic weighted average shares                        (000)                                       46,831               46,745  Operating                                                                Daily Production                                                           Crude oil and NGLs (bbls/d)                4,489                4,554    Natural gas (mcf/d)                        9,144                9,103    Total boe/d @ 6:1                          6,013                6,071  Average prices (including                            hedging)                                                                   Crude oil and NGLs ($/bbl)    $            75.73   $            80.76    Natural gas ($/mcf)           $             2.52   $             3.91         (1)  Based on basic weighted average shares outstanding.  (2)  Based on shares outstanding at each dividend record date.    (3)  Working capital deficit includes trade and other receivables,      prepaid expenses and deposits, trade and other accrued liabilities      and due to parent.    Stable Production and Funds from Operations Sustains Dividends     --  Funds from operations for the third quarter of 2012 was $14.4         million or $0.31 per share, an increase of 32% as compared to         the second quarter of 2012 and a decrease of 17% as compared to         the third quarter of 2011. Although funds from operations has         improved due to an increase in realized commodity prices during         this current quarter, commodity prices have generally decreased         during 2012 as compared to the prior year thereby reducing         funds from operations.     --  Crude oil prices have been lower during much of 2012 due to         weakened WTI pricing and wide differentials between WTI and         Canadian realized pricing. Natural gas prices have also         decreased during this year due to decreased demand caused by         the mild 2011/2012 winter and increasing U.S. domestic natural         gas production.     --  Production for the third quarter of 2012 averaged 6,013 boe/d         (74% crude oil and liquids), a 2% increase from the 5,881 boe/d         realized during the immediate prior quarter and comparable to         the third quarter of 2011. Production for the third quarter was         challenged by prolonged spring break-up conditions which caused         road bans and lease access restrictions, delaying drilling         operations, reactivations and scheduled tie-ins into the third         quarter.  Production is approximately 6,300 boe/d at present         with additional wells awaiting completion.     --  Operating expense for the third quarter of 2012 was $20.44/boe,         an 11% increase from $18.47/boe realized in the same period of         the prior year. Operating expense per boe for 2012 has been         impacted by lower daily production levels, costs associated         with the clean-up of salt water spills resulting from injection         pipeline failures at Sunset, and additional costs for         maintenance associated with specific facilities and pipelines.     --  Capital expenditures for the three months ended September 30,         2012 amounted to $8.8 million. Capital expenditures were         delayed during the third quarter of 2012 from prolonged spring         break-up conditions causing road bans and lease access         restrictions. During the third quarter of 2012 we completed and         brought on-stream production from 3.0 net oil wells (6 gross)         primarily in Saskatchewan that were drilled in prior quarters         and will contribute to offset declines. Our current drilling         program resumed in September with the drilling of 4 net oil         wells (4 gross) in Southeast Saskatchewan and 1 net oil well (1         gross) in Alberta at an 80% success rate. For the nine months         ended September 30, 2012, we have drilled a total of 16.6 net         oil wells (24 gross) at an 88% success rate with overall         results that are in-line with expectations.     --  As at September 30, 2012, Longview's bank debt was $115.3         million on a credit facility of $200 million (58% drawn)         resulting in an unutilized capacity of $84.7 million. Our         strategy of maintaining a conservative financial structure has         positioned Longview to execute a capital program that provides         growth potential while paying a stable dividend to         shareholders.     --  Longview currently pays a monthly dividend of $0.05 per share         and has declared and paid $7.0 million of dividends for the         third quarter of 2012.  Commodity Hedging Program     --  Longview's hedging program for calendar 2012 includes crude oil         hedges of 1,000 bbls/d at $97.10/bbl and 1,000 bbls/d at a         floor price of $90.00/bbl. We plan on adding additional hedges         for 2013 should the market present suitable opportunities.     --  Additional details on our hedging program are available at our         website at         www.longviewoil.com.  Looking Forward     --  Our 2012 capital program has focused on lower cost wells that         are anticipated to have higher return economics, including         additional drilling in Southeast Saskatchewan where lower cost         horizontal wells are being targeted within our extensive land         base. Longview has a large inventory of drilling prospects but         will defer spending on higher cost areas and infrastructure         until commodity prices and differentials have improved.     --  We continue to execute our capital program, focusing on         operational and cost efficiencies to increase returns and         produce stable cash flows while maintaining a conservative         financial structure. Longview continues to high grade its         inventory of drilling locations and invest in opportunities         that we believe provide strong economics during low commodity         price cycles.     --  The following table summarizes the operational guidance for         Longview for the year ending December 31, 2012:                                                       Average Production                     6,200 boe/d              % oil & liquids                            76%                 Royalty rate                       19% to 20%            Operating expenses            $19.00/boe to $20.00/boe           Capital expenditures                    $46 million                                                --  We are currently working on our 2013 operating and capital         budget. The Corporation intends to continue executing a         balanced approach to capital expenditures by focusing on low         risk oil targets while maintaining a balance between total         capital, dividends and cash flows. We are also actively         pursuing acquisitions that are consistent with that strategy.  About Longview     --  Longview was incorporated on March 4, 2010 and completed its         initial public offering (the "Offering") on April 14, 2011 at a         price of $10 per common share issuing 17,250,000 shares and         raising gross proceeds of $172.5 million (including full         exercise of the over-allotment option on April 28, 2011).     --  Concurrent with the closing of the Offering, Longview purchased         certain oil-weighted assets from Advantage Oil & Gas Ltd.         ("Advantage") for total consideration of $546.9 million,         comprised of 29,450,000 common shares of Longview and $252.4         million in cash (the "Acquisition"). The Acquisition had an         effective date of January 1, 2011 and a closing date of April         14, 2011.     --  On May 22, 2012, Advantage sold 8,300,000 Longview common         shares owned by Advantage to a syndicate of underwriters.         Longview did not receive any proceeds or incur any costs         related to the sale of the common shares. Advantage owns         21,150,010 common shares of Longview, representing an interest         of approximately 45.2% in Longview.  Interim Financial Statements and MD&A     --  Longview's unaudited interim financial statements for the three         and nine months ended September 30, 2012 together with the         notes thereto, and Management's Discussion and Analysis for the         three and nine months ended September 30, 2012 have been         prepared in accordance with International Financial Reporting         Standards ("IFRS") and posted on our website at         www.longviewoil.com         and filed under our profile on SEDAR at         www.sedar.com.  Forward-Looking Statements  Certain information regarding Longview set forth in this press release  contains forward-looking statements, which are based on the Corporation's  current internal expectations, estimates, projections, assumptions and  beliefs. These statements relate to future events or Longview's future  performance. All statements other than statements of historical fact may be  forward-looking statements. The use of any of the words "anticipate",  "continue", "estimate", "expect", "may", "will", "project", "should",  "believe" and similar expressions are intended to identify forward looking  statements. These statements are only predictions and actual events or results  may differ materially. Although Longview believes that the expectations  reflected in the forward-looking statements are reasonable, it cannot  guarantee future results, levels of activity, performance or achievement since  such expectations are inherently subject to significant business, economic,  competitive, political and social uncertainties and contingencies. Many  factors could cause Longview's actual results to differ materially from those  expressed or implied in any forward-looking statements made by, or on behalf  of, Longview.  In particular, forward-looking statements included in this press release  include, but are not limited to, Longview's dividend policy; Longview's  hedging program for 2012; anticipated effect of operating costs on Q3 2012;  focus of the Corporation's 2012 capital program and the anticipated effect on  returns, cash flows and financial structure; Longview's plans to high grade  its inventory of drilling locations and to invest in opportunities that it  believes provides strong economics; and anticipated average production,  percentage of production attributable to oil and liquids, exit production  rate, royalty rate, operating expenses and capital expenditures for 2012.  These forward-looking statements are subject to numerous risks and  uncertainties, certain of which are beyond the Corporation's control,  including, but not limited to, the impact of general economic, market and  business conditions; industry conditions; stock market volatility, including  volatility of commodity prices and currency fluctuations; unexpected drilling  results; imprecision of reserve estimates; changes or fluctuations in  production levels; environmental risks; incorrect assessments of the value of  acquisitions and exploration and development programs; competition from other  producers; the lack of availability of qualified personnel or management;  changes in income tax laws or changes in tax laws and incentive programs  relating to the oil and gas industry; liabilities inherent in crude oil and  natural gas operations; hazards such as fire, explosion, blowouts, cratering,  and spills, each of which could result in substantial damage to wells,  production facilities, other property and the environment or in personal  injury; ability to access sufficient capital from internal and external  sources; and the other risks considered under "Risk Factors" in Longview's  annual information form dated March 22, 2012, which is available on  www.sedar.com and www.longviewoil.com.  With respect to forward-looking statements contained in this press release,  Longview has made assumptions regarding, among other things: current commodity  prices and royalty regimes; availability of skilled labour; timing and amount  of capital expenditures; future exchange rates; the price of oil and natural  gas; the impact of increasing competition; conditions in general economic and  financial markets; availability of drilling and related equipment; effects of  regulation by governmental agencies; royalty rates; future operating costs;  that the Corporation will have sufficient cash flow, debt or equity sources or  other financial resources required to fund its capital and operating  expenditures and requirements as needed; availability of funds for the payment  of dividends and Longview's capital program; that the Corporation's conduct  and results of operations will be consistent with its expectations; that the  Corporation will have the ability to develop the Corporation's oil and gas  properties in the manner currently contemplated; and the estimates of the  Corporation's production volumes and the assumptions related thereto  (including commodity prices and development costs) are accurate in all  material respects.  Management has included the above summary of assumptions and risks related to  forward-looking information provided in this press release in order to provide  shareholders with a more complete perspective on Longview's future operations  and such information may not be appropriate for other purposes. Longview's  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 that the Corporation will derive there from. Readers are  cautioned that the foregoing lists of factors are not exhaustive. These  forward-looking statements are made as of the date of this press release and  the Corporation disclaims any intent or obligation to update publicly any  forward-looking statements, whether as a result of new information, future  events or results or otherwise, other than as required by applicable  securities laws.  "boes" may be misleading, particularly if used in isolation. A boe conversion  ratio of six thousand cubic feet of natural gas to one barrel of oil  equivalent (6 Mcf: 1 bbl) is based on an energy equivalency conversion method  primarily applicable at the burner tip and does not represent a value  equivalency at the wellhead. Given that the value ratio based on the current  price of crude oil as compared to natural gas is significantly different from  the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be  misleading as an indication of value.    Investor Relations Toll free: 1-855-813-0313  LONGVIEW OIL CORP. 700, 400 -3rd Avenue SW Calgary, Alberta T2P 4H2 Phone:  (403) 718-8000 Fax: (403) 718-8300 Web Site:www.longviewoil.com  E-mail:ir@longviewoil.com  SOURCE: Longview Oil Corp.  To view this news release in HTML formatting, please use the following URL:  http://www.newswire.ca/en/releases/archive/November2012/08/c6499.html  CO: Longview Oil Corp. ST: Alberta NI: OIL ERN DIV   -0- Nov/08/2012 23:21 GMT    
Press spacebar to pause and continue. Press esc to stop.