Bowood Energy Inc. Reports 2011 First Quarter Results
June 24 2011 - 9:35AM
Marketwired Canada
THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO U.S. PERSONS.
Bowood Energy Inc. (TSX VENTURE:BWD) ("Bowood" or the "Company") is pleased to
announce its financial and operational results for the three months ended March
31, 2011 and an operational update on current activity.
The Company will file its unaudited Financial Statements and related Management
Discussion and Analysis ("MD & A") for the three months ended March 31, 2011
with the Canadian securities regulatory authorities on SEDAR. An electronic copy
of these materials will be available under Bowood's issuer profile on SEDAR at
www.sedar.com and on the Company's website at www.bowoodenergy.ca.
FINANCIAL AND OPERATING HIGHLIGHTS
Certain selected financial and operational information for the three months
ended March 31, 2011 is set out below and should be read in conjunction with
Bowood's Financial Statements and MD & A. In Q1 2011, the Company successfully
transitioned to International Financial Reporting Standards (IFRS). As such, all
figures from January 1, 2011 onwards incorporate IFRS and comparative
information for 2010 has been restated in accordance with IFRS.
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Financial Highlights Three Months Ended March 31
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(all amounts in Cdn $ except common share
data) 2011 2010
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Petroleum and natural gas revenue 1,586,564 1,634,996
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Per share - basic 0.006 0.009
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- diluted 0.005 0.009
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Funds flow from operations 314,314 561,624
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Per share - basic 0.001 0.003
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- diluted 0.001 0.003
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Net income (loss) (663,824) 569,595
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Per share - basic (0.002) 0.001
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- diluted (0.002) 0.001
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Capital expenditures 1,564,134 546,340
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Net (cash) debt (4,428,561) (1,183,409)
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Shareholders' equity 48,537,098 25,263,481
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Total assets 57,307,136 36,278,046
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Common share data:
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Basic 274,933,373 186,233,373
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Diluted 290,253,373 200,095,373
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Operating Highlights Three Months Ended March 31
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(6:1 boe conversion) 2011 2010
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Average daily production
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Natural gas (mcf/d) 2,290 3,419
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Liquids (Oil & NGLs) (bbls/d) 109 19
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Oil equivalent (boe/d) 490 589
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Average sales price (including fixed commodity
contracts):
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Natural gas ($/mcf) 3.96 5.39
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Liquids (Oil & NGLs) ($/bbl) 78.92 67.97
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Oil equivalent ($/boe) 35.97 33.48
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Operating cost ($/boe) 12.32 11.06
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Operating netback ($/boe) (including fixed
commodity contracts) 19.29 20.68
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Wells drilled - gross (net):
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Gas 0 (0.00) 1 (0.20)
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Oil 0 (0.00) 1 (0.60)
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Suspended - -
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D & A - -
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Total 0 (0.00) 2 (0.80)
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Bowood has improved its balance sheet on a quarter over quarter basis. At the
end of Q1, 2011 Bowood had $4.4 MM in net cash and an additional $8.0 MM in an
undrawn credit facility through the Canadian Western Bank. This improvement in
its balance sheet provides the Company with the financial ability to continue to
advance its position in the Alberta Bakken fairway.
ALBERTA BAKKEN FOCUS
Although Bowood's comparative production is lower than during Q1 2010, the
Company has successfully increased its oil weighting resulting in higher
operating netbacks, and comparable oil and gas revenues on a quarter by quarter
basis.
Bowood continues to focus the majority of its capital expenditures on its
strategic position in the Alberta Bakken fairway. The majority of the $1.56 MM
of capital expenditures in Q1 2011 was focused on land, seismic and drilling
activity in the play. Company net acreage at March 31, 2011 in the Alberta
Bakken fairway was 102,000 acres.
The completion and evaluation of the Spring Coulee 3-36-3-23 W4 horizontal well
is underway. Due to the exploratory nature of the well, multiple phases of
fracture stimulation are being undertaken to better optimize job placement and
fluid selection. This phased operation also necessitates specialized equipment
and operational delays are not unusual in sourcing all of the required
components to finish the completion.
The second test well for the Company in the Alberta Bakken fairway has now been
licensed and is expected to begin drilling in July, 2011.
OPERATIONAL UPDATE
A new oil pool discovery well at Armada commenced production in Q1 2011 but has
been shut in subsequent to the end of the first quarter as it has now completed
its initial four month production period. During this period the Armada well was
producing at 170 boe/d (60 boe/d net), however it is shut in awaiting the ERCB
approval of Good Production Practice ("GPP"). The approval of this application
for the pool will allow the well to resume production at unrestricted rates. The
Company's estimated June production to date is approximately 425 boe/d, which
reflects the shut in of the Armada well awaiting GPP approval. The Company is
planning to drill two additional wells at Armada targeting new oil pools,
however drilling has been delayed due to extremely wet spring weather. A rig has
been contracted and the wells will spud as soon as lease conditions permit.
About Bowood Energy Inc.
With operations based in Calgary, Alberta, Bowood Energy Inc. is a TSX-V Tier 2
corporation. Through its wholly owned subsidiary, Bowood Energy Ltd., the
Company is engaged in the acquisition, exploration, development, and production
of oil and gas resources. Current projects are in the Province of Alberta.
Reader Advisories
Forward-Looking Statements: Certain information in this press release is
forward-looking within the meaning of Canadian securities laws as it relates to
anticipated financial performance, events or strategies. All statements other
than statements of historical fact contained in this news release are
forward-looking statements. Readers can identify many of these statements by
looking for words such as will, anticipate, believe, plan, intend, target, and
expect or similar words that suggest future outcomes. Although management
believes that the expectations represented in such forward-looking statements
are reasonable, there can be no assurance that such expectations will prove to
be correct.
Forward-looking information in this press release includes, among other things,
information relating to: (i) expectations regarding the Company's production
results in its Bakken properties; (ii) expectations regarding Energy Resources
Conservation Board approvals for the Company's Amarda well; (iii) expectations
regarding the Company's production rates, including production rates of the
Amarda well; (iv) expectations regarding the completion and evaluation of the
Company's Spring Coulee well; and (v) expectations regarding the spudding and
drilling of new wells, including the timing of such activities.
The forward-looking statements included in this press release involve
substantial known and unknown risks, uncertainties and assumptions, certain of
which are beyond the Company's control. Such risks, uncertainties and
assumptions include, without limitation, those associated with oil and gas
exploration, development, exploitation, production, marketing, processing and
transportation, loss of markets, volatility of commodity prices, currency
fluctuations, imprecision of reserve estimates, environmental risks, competition
from other producers, inability to retain drilling rigs and other services,
delays resulting from or inability to obtain required regulatory approvals and
ability to access sufficient capital from internal and external sources, the
impact of general economic conditions in Canada, the United States and overseas,
industry conditions, changes in laws and regulations (including the adoption of
new environmental laws and regulations) and changes in how they are interpreted
and enforced, increased competition, the lack of availability of qualified
personnel or management, fluctuations in foreign exchange or interest rates,
stock market volatility and market valuations of companies with respect to
announced transactions and the final valuations thereof, and obtaining required
approvals of regulatory authorities. The Company's actual results, performance
or achievements could differ materially from those expressed in, or implied by,
these forward-looking statements and, accordingly, no assurances 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 Company will
derive there from. Readers are cautioned that the foregoing list of factors is
not exhaustive. Additional information on these and other factors that could
affect the Company's operations and financial results are included in reports,
including the Company's annual information form for the financial year ended
December 31, 2010, on file with Canadian securities regulatory authorities and
may be accessed through the SEDAR website (www.sedar.com). All subsequent
forward-looking statements, whether written or oral, attributable to the Company
or persons acting on its behalf are expressly qualified in their entirety by
these cautionary statements. Furthermore, the forward-looking statements
contained in this news release are made as at the date of this news release and
the Company does not undertake any obligation to update publicly or to revise
any of the included forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required by applicable
securities laws.
BOE may be misleading, particularly if used in isolation. A BOE conversion 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.
Bowood Energy Inc. was recognized as a TSX Venture 50(R) company in 2011. TSX
Venture 50 is a trade-mark of TSX Inc. and is used under license.
For more information on Bowood Energy Inc. (TSX VENTURE:BWD) and to see the
updated corporate presentation please visit our website at:
http://www.bowoodenergy.ca or see contact information.
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