Triton Energy Corp. Announces First Quarter 2010 Financial and Operational Results
May 27 2010 - 7:23PM
Marketwired Canada
Triton Energy Corp. ("Triton" or the "Corporation") (TSX VENTURE:TEZ) announces
financial and operational results for three months ended March 31, 2010. These
reports are available for review at www.sedar.com and on the Corporation's
website at www.tritonenergy.ca.
Q1 2010 Highlights
-- First quarter 2010 production averaged 1,326 boepd compared to 909 boepd
in the first quarter of 2009 representing a 46% increase.
-- Funds from operations was $1.45 million ($0.01 per share basic and
diluted) in the first quarter of 2010 compared to $0.71 million ($0.02
per share basic and diluted) in the first quarter of 2009 representing
an increase of 104%.
-- Ellerslie exploration discovery, extension of Ellerslie channel and
undeveloped land acquisition.
-- Acquisition in core area of reserves, including approximately 1,100
boepd of production and undeveloped acreage at the end of February 2010
for gross consideration of $45 million.
-- Raised net $32.5 million through equity financings during the first
quarter of 2010.
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Three months ended March 31, 2010 2009
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Financial ($000's except for per share
amounts) (unaudited) (unaudited)
Petroleum and natural gas sales 4,297 2,557
Funds from operations 1,456 713
Per share basic & diluted 0.01 0.02
Net loss 955 702
Per share basic & diluted (0.01) (0.02)
Working capital deficiency (excluding bank
debt) 664 239
Current Bank Debt (credit facilities $28
million) 15,388 -
Capital expenditures 4,817 4,226
Acquisitions 44,753 -
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Operating
Production
Crude oil (bbls per day) 107 49
NGLs (bbls per day) 99 14
Natural gas (mcf per day) 6,722 5,076
BOE per day (6:1) 1,326 909
Average realized price
Crude oil $ 77.45 $ 30.84
NGLs $ 55.22 $ 36.62
Natural gas $ 5.06 $ 5.20
Netback per boe (6:1)
Petroleum and natural gas sales $ 36.01 $ 31.24
Royalties $ (5.28) $ (6.69)
Operating expenses $ (9.95) $ (9.79)
Transportation expenses $ (1.78) $ (1.79)
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Operating netback $ 19.00 $ 12.97
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Operational Summary
In the first quarter of 2010, Triton made significant steps in its exploration
and development program with a liquids rich natural gas discovery in its Ricinus
core area. Triton deepened a suspended well at Strachan 6-30 -37-8W5 ("6-30
well") by 55 meters and discovered a six meter Ellerslie channel sand at 3,120
meters. This significant discovery not only extended the Ferrier Ellerslie F
pool located 6 miles to the north east, it also confirmed Triton's exploration
concepts. To capitalize on this success, Triton also acquired 15 sections of
land directly on trend with this discovery and now holds 20 net sections on the
trend with a large inventory of drilling locations identified.
Outlook
During the second quarter of 2010, Triton has been very successful with a second
Ellerslie liquids rich natural gas discovery. In April 2010, Triton deepened a
100% owned Strachan 14-29-37-8W5 well ("14-29 well") and encountered a
twenty-three meter thick Ellerslie sand that directly correlates to Triton's 3D
seismic. Gas in place per section is estimated at 2 BCF per net meter with 11
meters of net pay and 35 bbls of liquids per MMcf of gas sales.
Additionally, on May 10, 2010, Triton spud a 3,500 meter exploration well at
Ricinus 15-10-36-9W5 ("15-10 well"), which is located 10 miles to the south of
the successful 14-29 well. This well is also targeting the Ellerslie formation
and is to be drilled to approximately 3,500 meters. Currently, Triton has over
25 additional drilling locations on the identified Ellerslie trend. In addition,
Triton is commencing a ten section 3D seismic program on its Strachan lands over
the next few months.
Triton is also planning a Glauconite horizontal test well at its Crystal core
area for the second quarter. The well, located at 3-33-45-3W5 ("3-33 well"),
will be drilled to a depth of approximately 3,400 meters.
Additionally, in the Corporation's Belly River light oil pool, Triton is
developing horizontal and infill drilling plans to increase the current low
recoverability factor of 5%. The pool contains an estimated 170 million barrels
of light oil in place and increased recoverability would be significant in both
reserves and production additions. Triton has approximately 50% working interest
in this Belly River light oil pool.
Triton has averaged approximately 2,425 boe per day for the last two weeks,
since May 12, 2010. Second quarter production will be affected by the May 25,
2010 Keyera Strachan gas plant turnaround, which will defer 700 boe/d of
production for three weeks.
Triton's credit facilities have now been increased to $28 million and details
regarding the facilities can be found in the Corporation's March 31, 2010
unaudited interim financial statements.
Additionally, Triton is in the process of making an application to list its
Common Shares on the Toronto Stock Exchange ("TSX") and is expected to graduate
to the TSX during the third quarter of 2010. Triton is also proposing a 10 to 1
share consolidation and a name change to "Waldron Energy Corporation" (symbol:
WDN) at its Annual General and Special Meeting. The consolidation and name
change will be implemented shortly after shareholder approval at the June 8,
2010 Annual General and Special Meeting.
Annual General and Special Meeting
Triton's Annual General and Special Meeting will be held June 8, 2010 at 3:30pm
(Calgary time) in room Glen 204, at the Telus Convention Center in Calgary,
Alberta.
Currently, Triton has 286,204,777 common shares, 71,825,600 common share
purchase warrants and 20,850,000 options outstanding. Post consolidation, it is
anticipated that Triton will have 28,620,478 common shares, 7,182,560 common
share purchase warrants and 2,085,000 options outstanding.
Triton is a Calgary, Alberta based corporation engaged in the exploration,
development and production of petroleum and natural gas. The Corporation's
common shares are listed on the TSX Venture Exchange under the trading symbol
"TEZ".
Forward Looking and Cautionary Statements
This news release contains forward-looking statements relating to the
Corporation's plans and other aspects of the Corporation's anticipated future
operations, strategies, financial and operating results and business
opportunities. These forward-looking statements may include opinions,
assumptions, estimates, management's assessment of value, reserves, future plans
and operations.
Forward-looking statements typically use words such as "will," "anticipate,"
"believe," "estimate," "expect," "intent," "may," "project," "should," "plan,,"
"intend," and similar expressions suggesting future outcomes, and statements
that actions, events or conditions "may," "would," "could," or "will" be taken
or occur in the future. Specifically, this press release contains
forward-looking statements relating to the number and location of drilling
locations; current production rates; application for listing to the Toronto
Stock Exchange; share consolidation; proposed name change; shareholder meeting
dates and other matters; whether or not shareholder approval is received;
whether or not geological zones are prospective; results and confirmation of
exploration concepts; timing of operations and seismic; number of drilling
locations; and estimated gas in place. In addition, statements regarding
reserves are deemed to be forward-looking statements, as they involve estimates
and assumptions as to the expectation that the reserves can be economically
exploited in the future. The forward-looking statements are based on various
assumptions including expectations regarding the success of current or future
drill wells; the outlook for petroleum and natural gas prices; estimated amounts
and timing of capital expenditures; estimates of future production; assumptions
concerning the timing of regulatory approvals; the state of the economy and the
exploration and production business; results of operations; performance;
business prospects and opportunities; future exchange and interest rates; the
Corporation's ability to obtain equipment in a timely manner to carry out
development activities; and the ability of the Corporation to access capital.
While the Corporation considers these assumptions to be reasonable based on
information currently available to it, they may prove to be incorrect.
Forward-looking statements are subject to a wide range of assumptions, known and
unknown risks and uncertainties and other factors that contribute to the
possibility that the predicted outcome will not occur, including, without
limitation: risks associated with oil and gas exploration, development,
exploitation, production, marketing and transportation; loss of markets;
volatility of commodities prices; currency fluctuations; imprecision of reserves
estimates; environmental risks; competition from other producers; inability to
retain drilling rigs and other services; incorrect assessment of the value of
acquisitions; failure to realize the anticipated benefits of acquisitions;
general economic conditions; delays resulting from or inability to obtain
required regulatory approvals and to satisfy various closing conditions; and
ability to access sufficient capital from internal and external sources. Readers
are cautioned that the foregoing list of factors is not exhaustive.
Although Triton believes that the expectations represented by such
forward-looking statements are reasonable, there can be no assurance that such
expectations will be realized. As a consequence, actual results may differ
materially from those anticipated in the forward-looking statements and you
should not rely unduly on forward-looking statements. The forward-looking
statements contained in this news release are made as of the date of this news
release. Except as required by applicable law, Triton does not undertake any
obligation to publicly update or revise any forward-looking statements.
Note Regarding BOEs
The term barrel of oil equivalent ("boe") may be misleading, particularly if
used in isolation. A conversion ratio for gas of 6 mcf:1 boe is based on an
energy equivalency conversion method primarily applicable at the burner tip and
does not represent a value equivalency at the wellhead.
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