Greenfields Petroleum Corporation Announces Financial Results for the Three and Nine Months Ended September 30, 2012
November 29 2012 - 5:05PM
Marketwired Canada
NOT FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS
RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS
Greenfields Petroleum Corporation (the "Corporation" or "Greenfields") (TSX
VENTURE:GNF) (TSX VENTURE:GNF.DB), an independent exploration and production
company with producing assets in Azerbaijan, announces its financial results for
the third quarter of 2012.
Third quarter 2012 operating and financial highlights
-- The Corporation's entitlement sales volumes from production for its net
interest in the Bahar ERDPSA averaged 456 bbl/d and 4,215 mcf/d or 1,159
boe/d in the quarter and 411 bbl/d and 3,998 mcf/d or 1,077 boe/d year-
to-date.
-- Through its interest in Bahar Energy, the Corporation realized average
oil prices of $103.51 per barrel for the quarter and $104.08 per barrel
year-to-date. Realized gas prices have remained constant during 2012 at
the contract price of $3.96 per thousand cubic feet.
Operating highlights and plans
-- During the third quarter, ongoing operations focused on production
optimization and preparation for drilling and workover activity.
-- Well maintenance and recompletion activities continued during the
quarter using the Soviet-era rigs contracted from SOCAR. Eight wells
were recompleted into new zones providing an estimated 200 bopd gross
(approximately 67 bopd net) increase in production.
-- To accommodate rig operations on existing platforms, significant
modifications were made to Gum Deniz Platform 2 and Bahar Platform 196.
Similar work is currently underway to prepare Gum Deniz Platform 208 for
drilling expected to commence in the first quarter 2013. Rehabilitation
work on Bahar Platform 168 will commence in late fourth quarter 2012 in
preparation for workovers planned in 2013.
-- The PSG-1 rig, initially contracted as a workover rig, is now undergoing
the final modifications necessary to convert it for drilling. Based on
latest inspection by ModuSpec, the rig should be ready to spud the first
well on Gum Deniz Platform 2 by the end of December. The well, the GD-
715, will target multiple stacked pays in an under-developed area near
the heart of the field. The Operator, BEOC, is presently tendering for
an additional rig for drilling from Gum Deniz Platform 208 during 2013.
-- The PSG-2 rig began recompletion work November 25, 2012 on the B-196
well on Platform 196 in the Bahar field. Recompletion work will continue
in the Bahar gas field with workovers planned on Platforms 196 and 168
throughout 2013.
-- The Gum Deniz 601 well was spudded on August 20, 2012 from a Gum Island
location to test for oil in a northern extension of the Gum Deniz field.
The test of the lower KaS reservoir revealed it to be tight. The PK
reservoir was then perforated and found to be wet. Further evaluation
will follow once the rig has been moved. Other locations that can be
reached from the Island are being reviewed.
-- The Bahar-2 3D program commenced in June 2011, with 87% of the survey
acquired by the end of the third quarter 2012. The survey is expected to
be completed before year end, after which processing and interpretation
will follow. If the interpretation confirms an attractive exploration
prospect in the Bahar-2 exploration area, Bahar Energy will develop an
appropriate drilling strategy to evaluate the prospect.
Selected Information
The selected information below is from the Greenfields' Management Discussion &
Analysis. The Corporation's complete financial statements as of and for the
three and nine months ended September 30, 2012 and 2011, with the notes thereto
and the related Management's Discussion & Analysis can be found either on
Greenfields' website at www.Greenfields-Petroleum.com or on SEDAR at
www.sedar.com. All amounts below are in thousands of US dollars unless otherwise
noted.
(US$000's,except as noted)
Three months ended Nine months ended
September 30 September 30
--------------------------------------------
2012 2011 2012 2011
Financial
----------------------------------------------------------------------------
Revenues 6,956 6,322 19,279 20,682
Net loss (482) (461) (8,341) (1,995)
Per share, basic and diluted $(0.03) $(0.03) $(0.54) $(0.13)
Operating (1)
----------------------------------------------------------------------------
Oil and condensate (bbl/d) 456 388 411 410
Natural gas (mcf/d) 4,215 4,000 3,998 4,069
Barrel oil equivalent (boe/d) 1,159 1,055 1,077 1,088
Average Oil Price
Oil price ($/bbl) $103.51 $103.93 $104.08 $103.18
Net realization price ($/bbl) $101.63 $100.14 $102.06 $99.31
Brent oil price ($/bbl) $109.61 $113.24 $112.17 $111.88
Natural gas price ($/mcf) $3.96 $3.96 $3.96 $3.96
Capital Items
----------------------------------------------------------------------------
Cash and cash equivalents 22,594 28,615
Total Assets 101,364 63,094
Working capital (2 ) 23,206 41,040
Convertible debt and shareholders' equity 56,814 49,914
-------------------------------------------
(1) Daily volumes represent the Corporation's share of the Contractor
Parties entitlement volumes sold net of 5% compensatory petroleum and
the government's share of profit petroleum.
(2) Working capital, presented here, is current assets net of current
liabilities (excluding warrants liability).
About Greenfields Petroleum Corporation
Greenfields is a junior oil and natural gas company focused on the development
and production of proven oil and gas reserves principally in the Republic of
Azerbaijan. The Corporation plans to expand its oil and gas assets through
further farm-ins, and acquisitions of Production Sharing Agreements from foreign
governments containing previously discovered but under-developed international
oil and gas fields, also known as "greenfields". More information about the
Corporation may be obtained on the Greenfields website at
www.greenfields-petroleum.com.
Forward Looking Statements
The information and statements in this news release contains certain
forward-looking information. This forward-looking information relates to future
events or Greenfields' future performance. In particular, this document contains
forward-looking information and statements regarding Greenfields' future
operations and projects. All statements other than statements of historical fact
may be forward-looking information. This forward-looking information is subject
to certain risks and uncertainties and may be based on assumptions that could
cause actual results to differ materially from those anticipated or implied in
the forward-looking information. The outcome and timing of the proposed
Offering, as well as the Corporation's actual results, performance or
achievement could differ materially from those expressed in, or implied by, such
forward-looking information and, accordingly, no assurances can be given that
any of the events anticipated by the forward-looking information will transpire
or occur or, if any of them do, what benefits that the Corporation will derive
from them. Should one or more of these risks or uncertainties materialize, or
should assumptions underlying the forward-looking information prove incorrect,
actual results, performance or achievements could vary materially from those
expressed or implied by the forward-looking information. Accordingly,
prospective investors should not place undue reliance on these forward-looking
statements. The Corporation's forward-looking information is expressly qualified
in its entirety by this cautionary statement. These forward-looking statements
are made as of the date of this press release and, except as required by law,
the Corporation undertakes no obligation to publicly update or revise any
forward-looking information.
This news release does not constitute an offer to sell or the solicitation of an
offer to buy any securities of Greenfields in the United States. The Debentures
described in this news release (and any common shares of Greenfields issued upon
the conversion, redemption or maturity of the Debentures) have not been and will
not be registered under the United States Securities Act of 1933, as amended, or
the securities laws of any state and may not be offered, sold or delivered in
the United States absent an exemption from registration.
FOR FURTHER INFORMATION PLEASE CONTACT:
Greenfields Petroleum Corporation
John W. Harkins
Chief Executive Officer
(832) 234-0800
Greenfields Petroleum Corporation
A. Wayne Curzadd
Chief Financial Officer
(832) 234-0800
Greenfields Petroleum Corporation
Robin Cook
CHF Senior Account Manager
(416) 868-1079 x 228
info@greenfieldspetroleum.com
www.greenfields-petroleum.com
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