PetroMagdalena Announces Filing of Third Quarter 2011 Results
November 29 2011 - 9:20PM
PR Newswire (Canada)
TORONTO, Nov. 29, 2011 /CNW/ - PetroMagdalena Energy Corp. has
filed today its interim condensed consolidated financial statements
for the three and nine months ended September 30, 2011, together
with its Management's Discussion and Analysis ("MD&A") for the
corresponding period. These documents will be posted on the
Company's website at www.petromagdalena.com and at www.sedar.com.
Luciano Biondi, the Company's Chief Executive Officer, stated: "we
are very encouraged by the continuing operational and financial
improvements evidenced in our third quarter results. As we carry
our exploration and development program into the fourth quarter, we
are setting the stage to exit 2011 on a significantly more solid
foundation upon which we can continue to build our production and
reserve growth in 2012. Our preliminary investment programs for
2012 stay the course we have established this past year, leveraging
our successes in our core oil assets and creating value in our
other properties through our strategic partnerships." Financial and
Operating Summary A summary of the financial and operating results
for the three and nine months ended September 30, 2011 is as
follows: (000s, except per Three months ended Nine months ended
share and September 30, September 30, operational data) 2011 2010
2011 2010 Financial Revenue from oil $ 21,258 $ 13,124 $ 58,449 $
34,315 and gas sales Gross margin (3) 4,569 306 13,227 2,040 Net
loss (14,030) (7,153) (37,044) (12,960) Basic and diluted (0.10)
(0.07) (0.27) (0.12) loss per share Total assets at 368,450 370,736
368,450 370,736 period end Total debt at 41,634 32,349 41,634
32,349 period end Operational Average daily 2,708 2,561 2,469 2,378
production (boed) (1) Total sales (boe) 235,078 211,895 692,516
602,373 (2) Operating netback 55.11 41.29 53.62 39.49 ($/boe) (3)
(1) Company share, gross before deduction of royalties. (2) Company
share, net after deduction of royalties. (3) See Additional
Financial Measuresin the MD&A. Third Quarter Highlights --
Reserves: Three new discoveries in the third quarter of 2011 were
the key driver behind a 5.0 MMbbls, or 86%, increase in 2P oil
reserves at Cubiro as per the September 30, 2011 Petrotech report
compared with December 31, 2010 report. -- Production: The Company
remains on track to meet its production guidance for 2011. Fuelled
by the discoveries at Cubiro, the Company's gross share of
production for the month of September averaged 3,248 barrels
oil-equivalent per day ("boed"), up 37% from the December 2010
monthly average rate of 2,374 boed. -- Revenues: The shift in
Cubiro's deliveries to Guaduas to take advantage of Vasconia
pricing for light-medium oil combined with production growth
increased revenues in the third quarter to $21.3 million, or 62%
higher than the same period a year ago. -- Operating netback: The
Company reported its third consecutive quarter of improving its
operating netback, which averaged $55.11 per boe in the third
quarter of 2011. -- G&A expenses: The cost savings initiatives
implemented in the first quarter of 2011 have resulted in two
consecutive quarters of reduced G&A expenses. Combined with the
Company's production growth, G&A per boe decreased by 42% to
approximately $13 per boe sold in the third quarter of 2011
compared with the same period a year ago. -- Liquidity: The Company
has taken steps to strengthen its balance sheet in 2011. Cash at
September 30, 2011 stood at $12.3 million and the working capital
deficit has been reduced by $44 million since December 31, 2010. --
Value creation: The Company continues to take action to develop its
portfolio and to reduce its risk through joint venture
relationships. During the third quarter the Company announced a
strategic partnership with YPF S.A. to farm-out a portion of its
interests in Carbonera and Catguas and to explore further business
opportunities with respect to several of its other properties.
Subsequent to September 30, 2011, the Company also announced a
farm-out arrangement with respect to its Santa Cruz exploration
property and a farm-in to give the Company a control position in
the Arrendajo exploration property. All of these farm-out/ farm-in
arrangements are subject to ANH approval. The net loss for the
third quarter of 2011 includes a $15.2 million non-cash write-off
under successful efforts accounting of costs associated with the
Paramito-1 exploration well drilled at the Carbonera block in 2009.
After completing its evaluation of test results to-date, the
Company has decided not to proceed with this well. Management will
hold a conference call on Wednesday, November 30, 2011 at 9:00 a.m.
(Eastern Time) to discuss the third quarter results. Analysts and
interested investors are invited to participate as follows: Toronto
& International: (647) 427-7450 North America: (888) 231-8191
Conference ID: 32146371 A playback of this conference call will be
available by dialling 416-849-0833 or 1-855-859-2056 (toll free)
with the above conference ID number until December 14, 2011.
PetroMagdalena is a Canadian-based oil and gas exploration and
production company, with working interests in 19 properties in five
basins in Colombia. Further information can be obtained by visiting
our website at www.petromagdalena.com. All monetary amounts in U.S.
dollars unless otherwise stated. This news release contains certain
"forward-looking statements" and "forward-looking information"
under applicable Canadian securities laws concerning the business,
operations and financial performance and condition of
PetroMagdalena. Forward-looking statements and forward-looking
information include, but are not limited to, statements with
respect to estimated production and reserve life of the various oil
and gas projects of PetroMagdalena; the estimation of oil and gas
reserves; the realization of oil and gas reserve estimates; the
timing and amount of estimated future production; costs of
production; success of exploration activities; and currency
exchange rate fluctuations. Except for statements of historical
fact relating to the company, certain information contained herein
constitutes forward-looking statements. Forward-looking statements
are frequently characterized by words such as "plan," "expect,"
"project," "intend," "believe," "anticipate", "estimate" and other
similar words, or statements that certain events or conditions
��may" or "will" occur. Forward-looking statements are based on the
opinions and estimates of management at the date the statements are
made, and are based on a number of assumptions and subject to a
variety of risks and uncertainties and other factors that could
cause actual events or results to differ materially from those
projected in the forward-looking statements. Many of these
assumptions are based on factors and events that are not within the
control of PetroMagdalena and there is no assurance they will prove
to be correct. Factors that could cause actual results to vary
materially from results anticipated by such forward-looking
statements include changes in market conditions, risks relating to
international operations, fluctuating oil and gas prices and
currency exchange rates, changes in project parameters, the
possibility of project cost overruns or unanticipated costs and
expenses, labour disputes and other risks of the oil and gas
industry, failure of plant, equipment or processes to operate as
anticipated. Although PetroMagdalena has attempted to identify
important factors that could cause actual actions, events or
results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be anticipated, estimated or
intended. There can be no assurance that forward-looking statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
PetroMagdalena undertakes no obligation to update forward-looking
statements if circumstances or management's estimates or opinions
should change except as required by applicable securities laws. The
reader is cautioned not to place undue reliance on forward-looking
statements. Statements concerning oil and gas reserve estimates may
also be deemed to constitute forward-looking statements to the
extent they involve estimates of the oil and gas that will be
encountered if the property is developed. Boe 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. Estimated values of future net
revenue disclosed do not represent fair market 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 news release.
PetroMagdalena Energy Corp. CONTACT: Michael
DaviesChief Financial Officer(416) 360-7915Miranda SmithInvestor
Relations Representative(647) 428-7422
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