Diaz Announces Year End Results
April 23 2012 - 9:00AM
Marketwired Canada
Diaz Resources Ltd. (TSX VENTURE:DZR) announces that is has filed its 2011 MD&A
and Financial Statements on SEDAR.
Diaz Resources reported that Q4 2011 was its best quarter in terms of revenue
and average product price for the past two years, largely as the result of an
increase in heavy oil production. Diaz's revenue for this quarter comprised of
80% oil production, compared with 49% oil production for the fourth quarter of
2010.
Financial
For the year ended December 31, 2011, revenue decreased to $5.6 million compared
with $6.5 million for the prior year period. Cash flow from operations for the
year decreased to $77,000 or nil per share compared with cashflow of $1.7
million or $0.02 per share for the prior year.
Diaz reported a loss for the year of $17.0 million or $0.19 per share versus a
loss of $4.0 million or $0.05 per share in the prior year. The majority of this
loss related to the write down of the carrying value of Diaz's Canadian and
United States natural gas properties.
Capital expenditures for 2011 totalled $5.3 million compared with $4.4 million
in the prior year. Capital expenditures for the year were financed primarily
from working capital, disposition of non-core properties ($2.1 million) and the
proceeds from an $8.0 million private placement financing.
Diaz exited the year with net current debt of $1.7 million compared with $6.4
million at the beginning of the year. The Company's bank line was undrawn at
December 31, 2011.
Production
The Company's total production for 2011 decreased 19% to average 408 BOEd
compared with the prior year average of 505 BOEd. Oil production increased 11%
to average 142 bopd for the year. In Q4 2011, production increased to 431 BOEd,
including 225 bopd.
2012 Business Focus
Diaz expects oil prices to hold above USD $95 per barrel in 2012, as world
demand for oil continues to be strong. This should result in a realized heavy
oil price of CDN $70 per barrel for the year, which would support continued
development of the Company's successful heavy oil projects at Macklin,
Saskatchewan, and Lloydminster, Alberta.
Summary of Operations
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Three Months Ended Years Ended
($ Thousands, unless indicated) December 31 December 31
2011 2010 2011 2010
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Financial
Revenue (net of royalty
expense) $ 1,874 $ 1,576 $ 5,621 $ 6,508
Cash flow from (used in)
operations(i) (39) 560 77 1,684
per share, diluted 0.00 0.01 0.00 0.02
Loss for the period (14,466) (726) (17,230) (3,974)
per share, diluted (0.16) (0.01) (0.19) (0.05)
Capital additions 1,693 757 5,334 4,357
Dispositions 357 - 2,134 396
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Net capital additions 1,336 757 3,200 3,961
Net current debt (1,733) (6,402) (1,733) (6,402)
Convertible debentures(ii) (12,319) (6,682) (12,319) (6,682)
Total assets 19,146 34,029 19,146 34,029
Total shares outstanding at
period end (millions) 89.34 90.88 89.34 90.88
Operations
Production
Gas (MMcfd) 1.2 1.9 1.6 2.3
Oil (Bopd) 225 146 142 128
BOEd (6 Mcf = 1 Bbl) 431 466 408 505
Product Prices
Gas ($/Mcf) $ 3.57 $ 4.85 $ 4.12 $ 4.80
Heavy oil ($/bbl) $ 76.35 $ 56.97 $ 70.23 $ 59.59
$ BOE $ 50.64 $ 39.02 $ 41.13 $ 37.17
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Reserves (proved plus probable,
future costs and prices)
Gas (Bcf) 2.8 13.3
Oil (MBbl) 741.1 1,059.0
BOE (Millions) 1.2 3.3
Net present value of future net
revenue, before tax discounted
at 10% (iii) $ 15.9 $ 38.0
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Undeveloped land holdings (net
acres)
Canada 51,103 53,583
United States 281 494
Total net acreage 51,384 54,077
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(i) Non-GAAP measure. Please see the reconciliation of "cash flow from
operations" to "cash flow from operating activities" found in the MD&A
for the year ended December 31, 2010.
(ii) Convertible debentures have a face value of $7.1 million with maturity
on March 27, 2014, and a face value of $8.0 million with a maturity of
March 31, 2016. See Note 10, "Convertible Debentures", in the notes to
the financial statements for the year ended December 31, 2011.
(iii) Net present value of future net revenue may not represent fair market
value of reserves.
Further information regarding financial and operating results may be obtained at
www.sedar.com, where the Company's MD&A and financial statements have been
filed.
Diaz is an oil and gas exploration and production company based in Calgary,
Alberta. Diaz's current focus is on oil development and exploration in Alberta
and Saskatchewan.
ADVISORY: Certain information in this news release, including drilling plans and
projected drilling, completion and equipping costs, and production rates from
the Lloydminster and Macklin fields may constitute forward-looking statements
under applicable securities laws and necessarily involve risks including,
without limitation, risks associated with oil and gas exploration, development,
exploitation, production, marketing and transportation, loss of markets,
volatility of commodity prices, currency fluctuations, environmental risks,
competition from other producers, inability to retain drilling rigs and other
services, capital expenditure costs, including drilling, completion and
facilities costs, delays resulting from or inability to obtain required
regulatory approvals and ability to access sufficient capital from internal and
external sources. As a consequence, actual results may differ materially from
those anticipated in the forward-looking statements. Readers are cautioned that
the foregoing list of factors is not exhaustive.
Where amounts are expressed on a barrel of oil equivalent (boe) basis, natural
gas volumes have been converted to barrels of oil at six thousand cubic feet
(mcf) per barrel (bbl). Boe figures may be misleading, particularly if used in
isolation. A boe conversion of six thousand cubic feet per barrel is based on an
energy equivalency conversion method primarily applicable at the burner tip and
does not represent a value equivalency at the wellhead. References to oil in
this discussion include crude oil and natural gas liquids (NGLs).
The forward looking statements contained in this press release are made as of
the date hereof and Diaz undertakes no obligations 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.
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