Razor Energy Corp. (“Razor” or the “Company”) (TSXV: RZE) announces
its fourth quarter and year end 2021 financial and operating
results. Selected financial, operational and reserves information
is outlined below and should be read in conjunction with Razor’s
audited consolidated financial statements, management’s discussion
and analysis and annual information form (“AIF”) for the year ended
December 31, 2021 which are available on SEDAR at www.sedar.com and
the Company’s website www.razor-energy.com.
RECENT HIGHLIGHTS
-
Financing: On March
9, 2022, the Company closed a senior debt financing for US$11.0
million (CAD $14.1 million) which provides the remaining funds to
complete the Co-produced Geothermal Power Project (“Geothermal
Project”) in Swan Hills, Alberta.
- Rights
Offering: On March 31, 2022,
the Company announced a rights offering to eligible holders of its
common shares to purchase flow though shares. The Company
anticipates raising $5 million and intends to use the proceeds to
fund certain eligible expenses yet to be incurred for the
Geothermal Project, and eligible expenses on various early stage
power projects including additional geothermal initiatives. The
rights offering is expected to close on May 9, 2022.
FOURTH QUARTER AND YEAR END 2021
HIGHLIGHTS
- Cash
Flow: During the fourth quarter of 2021,
achieved $13.5 million of cash flow from operating activities.
- Net
Income: Generated $19.2 million of net
income in Q4 2021.
-
Production: Averaged 4,359 boe/d
in Q4 2021 which represents a 22% increase from Q3 2021.
- Swan Hills
Acquisition: Strategic consolidation in
Q3 2021 of Razor’s working interest in Swan Hills Unit No.1 to
49.7%, adding long life low-risk light oil reserves, production and
cash flow underpinned by industry-leading annual base decline rate
of 10%.
- Geothermal
Project: Commenced project execution on
the Geothermal Project with estimated completion within the third
quarter of 2022. The Geothermal Project will be capable of
generating up to 21 MW of grid connected power, of which up to 30%
will be sustainable clean power generation.
- ESG and
Sustainability: Deposited approximately
2,500 tonnes of hydrocarbon impacted soils into Razor’s treatment
facility in Virginia Hills, which employs bioremediation to treat
hydrocarbon-impacted soils. This first batch of soil is expected to
be remediated by Q2 2022.
- Decommissioning Liabilities
Reduction: Settled $3.6 million of
decommissioning obligations in 2021, which includes $1.9 million
related to government grants received for well site rehabilitation
through Alberta’s Site Rehabilitation Program (“SRP”).
NEAR AND MEDIUM-TERM
OBJECTIVES
- Safely execute our production
enhancement program and Geothermal Project.
- Reduce net debt through continued
optimization of capital spending and increased efficiencies to
reduce operating and general and administrative costs.
- Actively identify and consider
business combinations with other oil and gas producers as well as
service companies.
- Further analyze ancillary
opportunities including power generating projects, oil blending and
vertical services integration.
2022 OUTLOOK
Razor
Razor continues to look forward and plan for the
future while remaining focused on its long-term sustainability. The
Company has an extensive opportunity set of high-quality wells
requiring reactivation, many of which have payout metrics which
exceed the Company’s economic thresholds. Razor will continue the
production enhancement activity throughout 2022. Most activities
involve repairs and maintenance work which will be expensed for
accounting purposes and operating netbacks will be reduced during
this timeframe. In aggregate, the annual base decline of these
wells is anticipated to be consistent with the
Company’s current corporate rate of approximately
12%.
The Company continues to focus on cost control
on its operated properties. In addition to the planned production
enhancement program, Razor will take a cautious and case-by-case
approach to capital spending in 2022, focusing on low risk, low
investment opportunities to increase field efficiencies and
corporate netbacks.
The significant improvement in oil prices thus
far in 2022 combined with a strong price outlook in the medium
term, provides Razor with improved cash flow from operations and
the Company anticipates reducing its net debt throughout 2022.
Razor has high reservoir quality, low decline,
isolate carbonate Swan Hills reef light oil pools that contain
large original oil in place with over 60 years of production
history. Razor believes these reefs are ideally suited for carbon
capture, utilization and storage (“CCUS”) and enhanced oil recovery
(“EOR”) purposes1, in addition to geothermal power production and
conventional open-hole horizontal development drilling
upside.
Razor recognizes multiple deep value streams in
its assets and is actively engaged in liberating them for the
benefit of shareholders.
________________________1 These programs have
been successfully demonstrated by the previous operator’s South
Swan Hills Unit CO2 EOR Injection Pilot which ran from 2008 to 2010
in addition to CO2 injection programs carried out in the Swan Hills
Unit No. 1 and Judy Creek oil pools from 2004 to 2010.
FutEra
In May 2021, FutEra Power Corp. (“FutEra”), a
subsidiary of Razor entered the project execution stage of its
Geothermal Project. On March 9, 2022, FutEra Power announced that
it is fully financed and in final construction of its 21 MW
Geothermal Project, of which up to 30% will be sustainable clean
power generation. FutEra has successfully partnered with provincial
and federal government agencies to invigorate the emerging
geothermal industry. To date, Razor has received $13.0 million in
government grants to support this power generation project. The
total construction and commissioning budget for the Project is
$37.0 million.
Legacy oil and gas fields face economic
challenges with lower production levels and high fixed costs.
However, these fields also have practical advantages when
considering existing infrastructure, pipelines, wells, and
operational footprints. To meet the objectives of creating lower
carbon electricity and leveraging oil and gas operations, FutEra
and Razor have successfully designed a geothermal/natural gas
hybrid power plant in an operational oil and gas facility. Razor
and FutEra continue to demonstrate the synergies and cooperation
needed to define a type of transition energy and sets the standard
of how traditional oil and gas companies can evolve into ‘energy
and technology’ companies necessary for the future of the Alberta
energy complex.
FutEra’s next phase of the Geothermal Project
will be the design and implementation of a CCUS solution, with the
objective to create a net negative carbon emitting power generation
facility.
With Razor’s strategic acquisition of additional
working interest in the Swan Hills area in the third quarter of
2021, FutEra has identified the potential for additional geothermal
and/or natural gas power generation projects in Swan Hills Unit
No.1. The volume and temperature of the produced fluids processed
through two of the Unit’s main facilities are highly analogous to
FutEra’s current Geothermal Project.
FutEra has identified and is in the process of
reviewing and capturing additional projects including solar, wind,
and other low carbon technologies. In addition, FutEra is in
discussions with an industry resource partner to evaluate its
renewable energy options and to develop a long term environmental,
social and governance plan.
OPERATIONAL UPDATEProduction
volumes for the fourth quarter of 2021 averaged 4,359 boe/d, an
increase of 22% from production volumes in the same period of 2020
and represents a 22% production increase from Q3 2021. Highlights
of the causes for the differences in production volumes between Q4
2021 and Q4 2020 are as follows:
- Swan Hills –
production volumes increased 52% from the same period of 2020.
Production in Q4 2021 was positively impacted by increased
production as a result of the working interest acquisition of Swan
Hills Unit No.1 in August 2021. In addition, the Company’s
production enhancement program in Q4 2021 resulted in an additional
124 boe/d in production volumes, slightly offset by various third
party, temporary infrastructure issues.The Company is continuing
with its reactivation program in 2022, which will increase
production in Swan Hills. In addition, the operator of Swan Hills
Unit No.1 completed various production enhancement activities in Q3
and Q4 2021 and the Company anticipates production enhancement
activities to continue in 2022.
- Kaybob –
production volumes decreased 13% from the same period in 2020 due
to operated wells going down, offset partially by an increase in
non-operated production. The Company’s production enhancement
program in Q1 2022 is focused in the Kaybob area.
- South District –
production volumes decreased 22% from the same period in 2020
primarily due natural declines, non-operated infrastructure issues
and a non-operated field being shut in due to operator insolvency.
Production from this particular non-operated field was restarted
late in Q4 2021 under a new operator. Production declines were
somewhat offset by a production enhancement program during Q4
2021.
Razor’s operating expenses on a corporate level
in Q4 2021 were at a historical high, with an increase as compared
to Q3 2021 primarily due a full quarter of increased working
interest ownership in Swan Hills Unit No.1 along with higher
electricity costs and facility repairs.
However, operating costs on a $/boe basis
decreased in Q4 2021 due to higher production levels, offset by
higher workover activity.
The primary factors affecting operating costs on
a $/boe basis are production levels, workover activity, and
electricity pricing. Inherent within the Company’s hydrocarbon
operations is a prominent fixed cost element, or those costs that
are not related to production levels. On a relative basis these
costs are higher with lower production. In Q4 2021, Razor’s
production was higher than recent historical averages due to the
factors described above. Razor’s reactivation program continued
during Q4 2021 and will extend into 2022, with the majority of the
costs being expensed. Furthermore, the electricity market has seen
a continual rise in prices, which has recently stabilized.
CAPITAL PROGRAMDuring the
fourth quarter of 2021, Razor invested $8.5 million on its
Geothermal Project and executed a major repair of one of its group
pipelines at a cost of $1.6 million. The Company also capitalized
an additional $0.4 million of turnaround costs that were executed
on operated and non-operated turnarounds. As of December 31,
2021, Razor has received $13.0 million in government grants since
inception in to support its Geothermal Project.
SELECT HIGHLIGHTSThe following
tables summarizes key financial and operating highlights associated
with the Company’s financial performance.
|
Three Months Ended Dec 31, |
Twelve Months Ended Dec 31, |
|
($000's, except for per share amounts and production) |
2021 |
|
2020 |
|
2021 |
|
2020 |
|
Production |
|
|
|
|
|
Light Oil (bbl/d) |
2,774 |
|
2,023 |
|
2,250 |
|
2,176 |
|
Gas (mcf/d) 1 |
5,023 |
|
5,165 |
|
4,209 |
|
4,695 |
|
NGL (boe/d) |
747 |
|
701 |
|
572 |
|
824 |
|
Total (boe/d) |
4,359 |
|
3,585 |
|
3,524 |
|
3,783 |
|
Sales volumes |
|
|
|
|
|
Light Oil (bbl/d) |
2,693 |
|
2,024 |
|
2,231 |
|
2,179 |
|
Gas (mcf/d)1 |
4,481 |
|
4,461 |
|
3,772 |
|
3,767 |
|
NGL (bbl/d) |
747 |
|
701 |
|
572 |
|
824 |
|
Total (boe/d) |
4,187 |
|
3,469 |
|
3,432 |
|
3,631 |
|
Oil inventory volumes (bbls) |
15,200 |
|
8,203 |
|
15,200 |
|
8,203 |
|
Revenue |
|
|
|
|
|
Oil and NGLs sales |
25,157 |
|
11,011 |
|
72,265 |
|
42,728 |
|
Natural gas sales |
2,052 |
|
1,048 |
|
5,231 |
|
3,126 |
|
Blending and processing income |
623 |
|
1,456 |
|
3,222 |
|
5,416 |
|
Other revenue |
95 |
|
761 |
|
895 |
|
1,677 |
|
Total revenue |
27,927 |
|
14,276 |
|
81,613 |
|
52,947 |
|
Cash flows from operating activities |
13,606 |
|
356 |
|
8,152 |
|
4,193 |
|
Funds flow 2 |
1,657 |
|
(126 |
) |
902 |
|
3,798 |
|
Adjusted funds flow 2 |
2,557 |
|
(120 |
) |
3,409 |
|
4,138 |
|
Net income (loss) |
18,318 |
|
(6,048 |
) |
16,808 |
|
(46,197 |
) |
Per share - basic and diluted |
0.80 |
|
(0.29 |
) |
0.78 |
|
(2.19 |
) |
Weighted average number of shares outstanding (basic and
diluted) |
22,757 |
|
21,064 |
|
21,491 |
|
21,064 |
|
Netback ($/boe) |
|
|
|
|
|
Oil and gas sales 3 |
67.85 |
|
36.56 |
|
60.26 |
|
33.12 |
|
Royalties |
(14.82 |
) |
(4.44 |
) |
(10.21 |
) |
(3.19 |
) |
Adjusted operating expenses 2 3 |
(36.90 |
) |
(28.21 |
) |
(38.08 |
) |
(26.07 |
) |
Production enhancement expenses 2 |
(5.78 |
) |
(2.23 |
) |
(5.57 |
) |
(1.70 |
) |
Transportation and treating |
(1.57 |
) |
(2.93 |
) |
(2.11 |
) |
(2.16 |
) |
Operating netback 2 |
8.78 |
|
(1.25 |
) |
4.29 |
|
- |
|
1) Natural gas production includes internally
consumed natural gas primarily used in power generation.2) Refer to
"Non-IFRS and other financial measures".3) Excludes production
enhancement expenses incurred in the period.
|
December 31, |
|
December 31, |
|
($000's, except for share amounts) |
2021 |
|
2020 |
|
Total assets |
237,855 |
|
163,709 |
|
Cash |
2,841 |
|
1,098 |
|
Long-term debt (principal) |
73,192 |
|
50,878 |
|
Minimum lease obligation |
1,947 |
|
3,469 |
|
Net debt 1 |
99,020 |
|
72,789 |
|
Number of shares outstanding |
23,314,466 |
|
21,064,466 |
|
1) Refer to "Non-IFRS and other
financial measures.”
2021 YEAR-END RESERVES
For 2021, the net present value of before tax
cash flows discounted at 10% ("NPV10") for each reserve category
disclosed below includes all abandonment, decommissioning and
reclamation costs, and inactive well costs totaling $63.3
million.
Summary of Gross Oil and Gas Reserves at December
311 |
|
Reserves Volumes(Mboe) |
NPV Before Income TaxDiscounted at 10%
(M$)1,2 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
Proved |
|
|
|
|
|
|
|
|
Developed Producing |
9,768 |
|
7,416 |
|
89,144 |
|
26,553 |
|
Developed Non-Producing |
4,704 |
|
4,468 |
|
67,995 |
|
49,199 |
|
Undeveloped |
1,721 |
|
1,641 |
|
36,293 |
|
19,756 |
|
Total Proved |
16,193 |
|
13,525 |
|
193,413 |
|
95,508 |
|
Total Probable |
4,892 |
|
3,793 |
|
60,273 |
|
37,709 |
|
Total Proved plus Probable |
21,085 |
|
17,319 |
|
253,686 |
|
133,216 |
|
1) The table summarizes the data contained
in an independent report of Razor’s gross reserves, as evaluated by
Sproule, qualified reserves evaluators, dated February 17, 2022.
The figures have been prepared in accordance with the standards
contained in the COGEH and the reserve definitions contained in
National Instrument 51-101-Standards of Disclosure for Oil and Gas
Activities. Gross reserves means the total working interest
(operating and non-operating) share of remaining recoverable
reserves owned by Razor before deductions of royalties payable to
others and without including any royalty interests owned by Razor.
Additional reserve information is included in the AIF.2) NPV
10 is net present value of before tax cash flows discounted at
10%.
About Razor
Razor is a publicly traded junior oil and gas
development and production company headquartered in Calgary,
Alberta, concentrated on acquiring, and subsequently enhancing, and
producing oil and gas from properties primarily in Alberta. The
Company is led by experienced management and a strong, committed
Board of Directors, with a long-term vision of growth focused on
efficiency and cost control in all areas of the business. Razor
currently trades on TSX Venture Exchange under the ticker
“RZE.V”.www.razor-energy.com
About FutEra
FutEra leverages Alberta’s resource industry
innovation and experience to create transitional power and
sustainable infrastructure solutions to commercial markets and
communities, both in Canada and globally. Currently, it is
developing a 21 MW co-produced geothermal and natural gas hybrid
power project in Swan Hills,
Alberta.www.futerapower.com
About Blade
Blade Energy Services is a subsidiary of Razor.
Operating in west central Alberta, Blade’s primary services include
fluid hauling, road maintenance, earth works including well site
reclamation and other oilfield
services.www.blade-es.com
For additional information please
contact:
Doug BaileyPresident and Chief Executive Officer |
Kevin BraunChief Financial Officer |
|
|
Razor Energy Corp.800, 500-5th Ave SW Calgary Alberta T2P
3L5Telephone: 403-262-0242 |
|
|
|
READER
ADVISORIES
FORWARD-LOOKING STATEMENTS:
This press release may contain certain statements that may be
deemed to be forward-looking statements. Such statements relate to
possible future events, including, but not limited to, the
Company’s objectives, including the Company’s capital program and
other activities, including the Geothermal Project and its
construction and commissioning budget; opportunities such as power
generation, oil blending and services integration; restarting
wells; future rates of production, expectations regarding commodity
prices, cash flow from operating activities, working capital and
net debt; possible business combination transactions; and future
projects including solar, wind and other low carbon technologies.
All statements other than statements of historical fact may be
forward-looking statements. Forward-looking statements are often,
but not always, identified by the use of words such as
“anticipate”, “believe”, "expect", “plan”, “estimate”, “potential”,
“will”, “should”, “continue”, “may”, “objective” and similar
expressions. The forward-looking statements are based on certain
key expectations and assumptions made by the Company, including but
not limited to expectations and assumptions concerning the
availability of capital, current legislation, receipt of required
regulatory approvals, the timely performance by third-parties of
contractual obligation, the success of future drilling and
development activities, the performance of existing wells, the
performance of new wells, the Company’s growth strategy, general
economic conditions, availability of required equipment and
services prevailing commodity prices, price volatility, price
differentials and the actual prices received for the Company's
products. Although the Company believes that the expectations and
assumptions on which the forward-looking statements are based are
reasonable, undue reliance should not be placed on the
forward-looking statements because the Company can give no
assurance that they will prove to be correct. Since forward-looking
statements 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 risks. These include, but are not
limited to, risks associated with the oil and gas industry and
geothermal electricity projects 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; variability in geothermal resources; as the
uncertainty of reserve estimates; the uncertainty of estimates and
projections relating to production, costs and expenses, and health,
safety and environmental risks), electricity and commodity price
and exchange rate fluctuations, changes in legislation affecting
the oil and gas and geothermal industries and uncertainties
resulting from potential delays or changes in plans with respect to
exploration or development projects or capital expenditures. In
addition, the Company cautions that COVID-19 may continue to have a
material adverse effect on global economic activity and worldwide
demand for certain commodities, including crude oil, natural gas
and NGL, and may continue to result in volatility and disruption to
global supply chains, operations, mobility of people and the
financial markets, which could continue to affect commodity prices,
interest rates, credit ratings, credit risk, inflation, business,
financial conditions, results of operations and other factors
relevant to the Company. The duration of the current commodity
price volatility is uncertain. Please refer to the risk factors
identified in the annual information form and management discussion
and analysis of the Company which are available on SEDAR at
www.sedar.com. The forward-looking statements contained in this
press release are made as of the date hereof and the Company
undertakes no obligation to update publicly or revise any
forward-looking statements or information, whether as a result of
new information, future events or otherwise, unless so required by
applicable securities laws.
This press release contains future-oriented
financial information and financial outlook information
(collectively, "FOFI") about Razor's prospective results of
operations, sales volumes, including sale of inventory volumes,
production and production efficiency, balance sheet, capital
spending, cost and net debt reductions, operating efficiencies,
investment infrastructure and components thereof, all of which are
subject to the same assumptions, risk factors, limitations, and
qualifications as a set forth in the above paragraph. FOFI
contained in this document was approved by management as of the
date of this document and was provided for the purpose of providing
further information about Razor's future business operations. Razor
disclaims any intention or obligation to update or revise any FOFI
contained in this document, whether as a result of new information,
future events or otherwise, unless required pursuant to applicable
law. Readers are cautioned that the FOFI contained in this document
should not be used for purposes other than for which it is
disclosed herein.
NON-IFRS AND OTHER FINANCIAL
MEASURES: This press release contains certain specified
measure consisting of non-IFRS measures and non-IFRS financial
ratios. Since these specified financial measures may not have a
standardized meaning, they must be clearly defined and, where
required, reconciled with their nearest IFRS measure. Accordingly,
they may not be comparable to similar measures used by other
companies
Operating netback Operating
netback is a measure that represents sales net of royalties and
operating expenses. Management believes that operating netback is a
useful supplemental measure to analyze operating performance and
provide an indication of the results generated by the Company’s
principal business activities prior to the consideration of other
income and expenses.
|
Three Months Ended Dec 31, |
|
Three Months Ended Dec 31, |
|
($000’s) |
2021 |
|
2020 |
|
2021 |
|
2020 |
|
Oil and gas sales1 |
27,209 |
|
12,059 |
|
77,496 |
|
45,854 |
|
Royalties |
(5,942 |
) |
(1,463 |
) |
(13,134 |
) |
(4,413 |
) |
Operating expenses |
(17,171 |
) |
(10,040 |
) |
(56,192 |
) |
(38,452 |
) |
Transportation and treating |
(629 |
) |
(967 |
) |
(2,720 |
) |
(2,990 |
) |
Operating netback |
3,467 |
|
(411 |
) |
5,450 |
|
(1 |
) |
|
|
|
|
|
|
|
|
|
Funds FlowManagement utilizes
funds flow as a useful measure of Razor’s ability to generate cash
not subject to short-term movements in non-cash operating working
capital. As shown below, funds flow is calculated as cash flow from
operating activities excluding change in non-cash working
capital.
Adjusted funds flowManagement
utilizes adjusted funds flow as a key measure to assess the ability
of the Company to generate the funds necessary for financing
activities, operating activities, and capital expenditures. As
shown below, adjusted funds flow is calculated as funds flow
excluding purchasing of commodity contracts, and decommissioning
expenditures since Razor believes the timing of collection, payment
or incurrence of these items involves a high degree of discretion
and variability. Expenditures on decommissioning obligations vary
from period to period depending on the maturity of the Company’s
operating areas and availability of adjusted funds flow and are
viewed as part of the Company’s capital budgeting process.
The following table reconciles cash flow from
operating activities, funds flow and adjusted funds flow:
|
Three Months Ended Dec 31, |
|
Three Months Ended Dec 31, |
|
($000's) |
2021 |
|
2020 |
|
2021 |
|
2020 |
|
Cash flow from (used in) operating activities |
13,604 |
|
356 |
|
8,150 |
|
4,193 |
|
Changes in non-cash working capital |
11,949 |
|
482 |
|
7,250 |
|
395 |
|
Funds flow |
1,655 |
|
(126 |
) |
900 |
|
3,798 |
|
Decommissioning costs incurred |
(694 |
) |
(6 |
) |
(1,734 |
) |
(340 |
) |
Purchasing of commodity contracts |
(206 |
) |
- |
|
(773 |
) |
- |
|
Adjusted funds flow |
2,555 |
|
(120 |
) |
3,407 |
|
4,138 |
|
|
|
|
|
|
|
|
|
|
Adjusted operating
expensesAdjusted operating expenses are regular field or
general operating costs that occur throughout the year and do not
include production enhancement expenses. Management believes that
removing the expenses related to production enhancements from total
operating expenses is a useful supplemental measure to analyze
regular operating expenses.
Production enhancement
expensesProduction enhancement expenses are expenses made
by the Company to increase production volumes which are not regular
field or general operating costs that occur throughout a year.
Management believes that separating the expenses related to
production enhancements is a useful supplemental measure to analyze
the cost of bringing wells back on production and the related
increases in production volumes.
The following table reconciles operating
expenses, adjusted operating expenses and production enhancement
expenses:
|
Three Months Ended Dec 31, |
|
Three Months Ended Dec 31, |
|
($000's) |
2021 |
|
2020 |
|
2021 |
|
2020 |
|
Adjusted Operating Expenses |
14,798 |
|
9,304 |
|
48,975 |
|
36,100 |
|
Production Enhancement Expenses |
2,316 |
|
736 |
|
7,160 |
|
2,352 |
|
Operating Costs |
17,114 |
|
10,040 |
|
56,135 |
|
38,452 |
|
|
|
|
|
|
|
|
|
|
Net debtNet debt is calculated
as the sum of the long-term debt (includes AIMCo Term Loan, Amended
Arena Term Loan and Promissory Notes) and lease obligations, less
working capital (or plus working capital deficiency), with working
capital excluding mark-to-market risk management contracts. Razor
believes that net debt is a useful supplemental measure of the
total amount of current and long-term debt of the Company.
Reconciliation of net debt |
December 31, |
|
December 31, |
|
($000's) |
2021 |
|
2020 |
|
Long term debt |
(64,047 |
) |
(113 |
) |
Long term lease obligation |
(435 |
) |
(389 |
) |
|
(64,482 |
) |
(502 |
) |
Less: Working capital |
|
|
Current assets |
22,108 |
|
9,454 |
|
Exclude commodity contracts |
573 |
|
- |
|
Current liabilities |
(57,219 |
) |
(81,737 |
) |
|
(34,538 |
) |
(72,283 |
) |
Net debt |
99,020 |
|
72,785 |
) |
|
|
|
|
|
NON-IFRS AND FINANCIAL
RATIOS:
Operating expenses per
BOEOperating expenses per boe is consists of adjusted
operating expenses per boe and production enhancement expenses per
boe. Operating expense per boe is a useful supplemental measure to
calculate the efficiency of its operating expenses on a per unit of
production basis.
|
Three Months Ended Dec 31, |
|
Year Ended Dec 31, |
|
($/boe)1 |
2021 |
|
2020 |
|
2021 |
|
2020 |
|
Adjusted Operating Expenses |
(36.90 |
) |
(28.21 |
) |
(38.08 |
) |
(26.07 |
) |
Production Enhancement Expenses |
(5.78 |
) |
(2.23 |
) |
(5.57 |
) |
(1.70 |
) |
Operating Expenses |
(42.68 |
) |
(30.44 |
) |
(43.65 |
) |
(27.77 |
) |
1) $/boe amounts are calculated using production volumes. |
|
|
|
|
|
|
|
|
|
|
Operating Netback per
boeOperating netback per boe is used to calculate the
results of Razor’s operating efficiency of its petroleum and
natural gas assets on a per unit of production basis. Net operating
expense per boe is a useful supplemental measure to analyze
operating performance and provide an indication of the results
generated by the Company’s principal business activities prior to
the consideration of other income and expenses.
|
Three Months Ended Dec 31, |
|
Year Ended Dec 31, |
|
($/boe) |
2021 |
|
2020 |
|
2021 |
|
2020 |
|
Oil and gas sales1 |
67.85 |
|
36.56 |
|
60.26 |
|
33.12 |
|
Royalties |
(14.82 |
) |
(4.44 |
) |
(10.21 |
) |
(3.19 |
) |
Adjusted operating expenses |
(36.90 |
) |
(28.21 |
) |
(38.08 |
) |
(26.07 |
) |
Production enhancement expenses |
(5.78 |
) |
(2.23 |
) |
(5.57 |
) |
(1.70 |
) |
Transportation and treating |
(1.57 |
) |
(2.93 |
) |
(2.11 |
) |
(2.16 |
) |
Operating netback per boe |
8.78 |
|
(1.25 |
) |
4.29 |
|
- |
|
1) Natural gas production includes internally consumed natural gas
primarily used in power generation. |
|
|
|
ADVISORY PRODUCTION
INFORMATION: Unless otherwise indicated herein, all
production information presented herein is presented on a gross
basis, which is the Company's working interest prior to deduction
of royalties and without including any royalty interests.
BARRELS OF OIL EQUIVALENT:The
term "boe" or barrels of oil equivalent may be misleading,
particularly if used in isolation. A boe conversion ratio of six
thousand cubic feet of natural gas to one barrel of oil equivalent
(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. Additionally, 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 6:1; utilizing a conversion ratio of 6:1 may be misleading as an
indication of value.
Neither the
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.
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