CALGARY, Nov. 25, 2014 /CNW/ - Ikkuma Resources
Corp. ("Ikkuma" or the "Corporation") (TSXV: IKM) is pleased
to report its financial and operating results for the three and
nine months ended September 30, 2014.
Ikkuma's interim condensed financial statements and related
management's discussion and analysis for three months and nine
months ended September 30, 2014 have
been filed and are available on the SEDAR website at www.sedar.com
and may also be obtained on Ikkuma's website at
www.ikkumarescorp.com.
Highlights
- Completed the Lynx/Palliser/Minnow and Ojay/Copton/Findley
Foothills acquisition on July 31,
2014 for a cost of $108.3
million, net of adjustments, adding approximately 5900 boe/d
of natural gas production.
- Upon completion of the acquisition the Corporation received the
$130 million of escrowed proceeds of
the June 27, 2014 subscription
receipts financing. Each subscription receipt holder received
one common share on August 12, 2014
as the Corporation filed a final prospectus qualifying the common
shares underlying the subscription receipts. Net proceeds
after the 5.5% underwriter fee and other issue costs was
$122.1 million.
- Completed a second acquisition of natural gas assets located in
the Copton and Narraway areas of the Alberta foothills on August 6, 2014. The gross cost of this
acquisition was $2.4 million
($2.4 million net of adjustments).
This acquisition added approximately 120 boe/d of production on
closing.
- Completed an eight for one rights offering that was agreed to
in the May 6, 2014 Reorganization and
Investment Agreement. The Corporation issued 344,315 common
shares for proceeds of $0.258
million.
- Achieved a third quarter operating netback of $3.3 million
- Achieved third quarter funds flow from operations of
$1.5 million ($0.02/share) and earnings of $1.5 million ($0.02/share) for the third quarter.
- Added 18 sections of crown land in the Foothills during the
third quarter at an average price of $110/acre.
- On November 4, 2014 Ikkuma closed
the acquisition of certain petroleum and natural gas assets located
in several areas of the Canadian Foothills for $23.2 million ($21.8
million net of interim adjustments) that was announced in
August 2014. The Corporation's credit facilities were
increased today by $20 million, to
$75 million, due to the
acquisition.
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Three months
ended
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Nine months
ended
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September
30,
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September
30,
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2014
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2013
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2014
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2013
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(unaudited)
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(unaudited)
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Operations
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Average daily
production
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Natural gas
(mcf/d)(1)
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22,453
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75
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7,734
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72
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Light Oil
(bbls/d)
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39
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50
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40
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68
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NGL's
(bbl/d)
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9
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1
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6
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1
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Total equivalent
(boe/d)
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3,790
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64
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1,335
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81
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Average product
prices
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Natural gas
($/mcf)
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$
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3.96
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$
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7
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$
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3.98
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$
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2.83
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Light Oil
($/bbl)
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$
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81.76
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$
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90.23
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$
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84.61
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$
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80.80
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NGL
($/bbl)
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$
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82.51
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$
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51.37
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$
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75.07
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$
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53.05
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Total equivalent
($/boe)
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$
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24.55
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$
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74.37
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$
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25.98
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$
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71.00
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Royalties
($/boe)
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$
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5.76
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$
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13.38
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$
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5.95
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$
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14.19
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Operating and
transportation
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costs
($/boe)
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$
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9.35
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$
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30.77
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$
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10.46
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$
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32.59
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Operating
netback(1)($/boe)
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$
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9.44
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$
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30.22
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$
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9.57
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$
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24.22
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Financial
($000)
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Oil and gas sales
(1)
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$
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8,560
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$
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434
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$
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9,463
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$
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1,568
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Funds flow from
operations(2)
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$
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1,520
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$
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(75)
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$
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(365)
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$
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(207)
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Per share – basic and
diluted
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$
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0.02
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$
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0.02
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$
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0.01
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$
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0.07
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Income
(loss)
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$
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1,499
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$
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2,068
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$
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(5,225)
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$
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215
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Per share – basic
& diluted
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$
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0.02
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$
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0.72
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$
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(0.19)
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$
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0.07
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Capital expenditures
incl. acquisitions
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$
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115,959
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$
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298
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$
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116,500
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$
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521
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Net debt (working
capital)(2)
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$
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(21,591)
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$
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837
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$
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(21,591)
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$
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837
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Shares outstanding
(000)(3)
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80,159
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2,878
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80,159
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2,878
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Weighted average
shares outstanding
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Basic
(000)(3)
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62,885
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2,878
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27,023
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2,878
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Diluted
(000)(3)
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65,357
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2,878
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28,972
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2,878
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(1)
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Natural gas
volumes were reduced within the quarter due to third party
maintenance of gas distribution and processing
infrastructure.
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(2)
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Certain
financial measures referred to in this press release, such as
"funds flow", "funds flow per boe", "funds flow per share",
"operating netback" , and "Net debt" do not have standardized
meanings prescribed by Canadian generally accepted accounting
principles ("GAAP"). Management believes that in addition to net
income, funds flow from operations and netback are useful
supplemental measures as they provide an indication of the results
generated by the Corporation's principal business activities before
the consideration of how those activities are financed or how the
results are taxed. Investors are cautioned, however, that these
measures should not be construed as alternatives to net income
determined in accordance with IFRS, as an indication of Ikkuma's
performance. These financial measures do not have a
standardized meaning prescribed by IFRS and are, therefore,
unlikely to be comparable to similar measures presented by other
issuers. "Funds flow" is calculated based on cash flows from
operating activities before changes in non-cash working capital,
transaction costs from acquisitions and decommissioning
expenditures incurred. "Operating netback" is calculated by
deducting royalties, production expenses and transportation
expenses from oil and gas revenue. "Funds flow from operations per
share" is calculated using weighted average number of shares
outstanding consistent with the net income (loss) per share
calculation. "Net debt" represents bank debt and accounts payable
and accrued liabilities less accounts receivable and prepaid
expenses and deposits.
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(3)
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On September 17,
2014, the shareholders of the Corporation approved a change of the
Corporation's name to "Ikkuma Resources Corp." from Panterra
Resource Corp. In addition, the Shareholders approved a 10 for 1
share consolidation. The number of shares, warrants and options
outstanding have been adjusted on a retroactive
basis.
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About Ikkuma
Ikkuma is a junior public oil and gas company listed on the TSX
Venture Exchange under the symbol "IKM" (as of Monday, September 22, 2014), with conventional
and unconventional assets in Western
Canada. The technical team has worked together for over a
decade in the Foothills Region of Western
Canada, through two successful, publicly traded companies.
The unique skills and repeat success at exploiting a complex,
potentially prolific play type are fundamental ingredients for a
successful growth-oriented company in Western Canada. Corporation information can be
found at: www.ikkumarescorp.com.
Forward-Looking Statements and Information and Cautionary
Statements
This press release contains forward‑looking statements and
forward‑looking information within the meaning of applicable
securities laws. The use of any of the words "expect",
"anticipate", "continue", "estimate", "objective", "ongoing",
"may", "will", "project", "should", "believe", "plans", "intends"
and similar expressions are intended to identify forward‑looking
statements or information. Although Ikkuma believes that the
expectations and assumptions on which the forward‑looking
statements and information are based are reasonable, undue reliance
should not be placed on the forward‑looking statements and
information because Ikkuma cannot give any assurance that they will
prove to be correct. Since forward‑looking statements and
information address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Actual
results could differ materially from those currently anticipated
due to a number of factors and risk. These include but are
not limited to the risks associated with the oil and gas industry
in general (e.g., operational risks in development, exploration and
production; delays or changes in plans with respect to exploration
or development projects or capital expenditures; the uncertainty of
reserve estimates; the uncertainty of estimates and projections
relating to production, costs and expenses; failure to obtain
necessary regulatory approvals for planned operations; health,
safety and environmental risks; uncertainties resulting from
potential delays or changes in plans with respect to exploration or
development projects or capital expenditures; volatility of
commodity prices, currency exchange rate fluctuations; imprecision
of reserve estimates; and competition from other explorers) as well
as general economic conditions, stock market volatility, and the
ability to access sufficient capital. We caution that the
foregoing list of risks and uncertainties is not
exhaustive.
In addition, the reader is cautioned that historical results
are not necessarily indicative of future performance. The
forward-looking statements and information contained in this press
release are made as of the date hereof and Ikkuma undertakes no
obligation to update publicly or revise any forward‑looking
statement or information, whether as a result of new information,
future events or otherwise, unless so required by applicable
securities laws.
Certain information set out herein may be considered as
"financial outlook" within the meaning of applicable securities
laws. The purpose of this financial outlook is to provide
readers with disclosure regarding Ikkuma's reasonable expectations
as to the anticipated results of its proposed business activities
for the periods indicated. Readers are cautioned that the
financial outlook may not be appropriate for other
purposes.
Oil and Gas Advisory
In this press release, the abbreviation BOE means a barrel of
oil equivalent derived by converting gas to oil in the ratio of 6
Mcf of gas to 1 bbl of oil (6 Mcf:1 bbl). BOEs may be
misleading, particularly if used in isolation. A BOE
conversion ratio of 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 Mcf:1 bbl, utilizing a conversion ratio on a 6 Mcf
of gas to 1 bbl of oil basis may be misleading as an indication of
value.
NEITHER 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 Ikkuma Resources Corp.