Wrangler West 2010 Capex Adds New Production
August 18 2010 - 7:05PM
PR Newswire (Canada)
CALGARY, Aug. 18 /CNW/ -- CALGARY, Aug. 18 /CNW/ - Wrangler West
Energy Corp. ("Wrangler West" or the "Company") (TSX-V "WX")
announces today's filing on www.sedar.com of the Company's
unaudited Financial Statements and related Management's Discussion
and Analysis ("MD&A") for the three and six months ended June
30, 2010 with comparative data for the three and six months ended
June 30, 2009 and the year ended December 31, 2009. Highlights
Three months ended Jun 30 Six months ended Jun 30 % % 2010 2009
Change 2010 2009 Change
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OPERATIONAL HIGHLIGHTS Production Crude oil and NGL (bbls/d) 297
285 4 299 294 (2) Natural gas (mcf/d) 3,337 4,992 (33) 3,657 5,335
(31) Total (boe/d) 853 1,117 (24) 909 1,183 (23)
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Prices Crude oil and NGL ($/bbl) 68.96 59.17 17 71.59 49.61 44
Natural gas ($/mcf) 4.18 3.92 7 5.02 4.96 1
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Per boe ($) Petroleum and natural gas revenue 40.36 32.61 24 43.76
34.68 26 Royalties (8.86) (2.81) 215 (8.03) (4.26) 88 Operating
expenses (15.77) (15.67) 1 (14.56) (15.00) (3)
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Field netback 15.73 14.13 11 21.17 15.41 37 General and
administrative (3.51) (2.72) 29 (3.31) (2.80) 18 Interest (0.78)
(1.23) (37) (0.96) (1.09) (12)
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Funds flow from operations 11.44 10.18 12 16.90 11.53 47 Depletion,
depreciation, and accretion (25.72) (22.05) 17 (24.18) (24.32) (1)
Stock-based compensation (0.99) (0.41) 141 (0.88) (0.55) 60 Future
income tax 3.11 2.36 32 1.42 3.10 (54)
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Net loss (12.17) (9.93) 23 (6.74) (10.25) (34)
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FINANCIAL HIGHLIGHTS ($ thousand) Petroleum and natural gas revenue
3,133 3,315 (5) 7,199 7,425 (3) Royalties (688) (286) 141 (1,321)
(912) 45 Operating expenses (1,224) (1,593) (23) (2,395) (3,212)
(25) General and administrative (273) (277) (1) (545) (599) (9)
Interest (61) (125) (52) (158) (234) (32)
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Funds flow from operations 888 1,034 (14) 2,780 2,468 13 Depletion,
depreciation, and accretion (1,997) (2,241) (11) (3,977) (5,208)
(24) Stock-based compensation (77) (42) 84 (145) (118) 23 Future
income tax 241 240 1 234 664 (65)
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Net loss (945) (1,009) (6) (1,108) (2,195) (50)
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Outstanding shares (thousand, except where indicated) Weighted
average - basic 6,441 6,391 1 6,439 6,391 1 Weighted average -
diluted 7,189 7,003 3 7,188 7,003 3
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Funds flow from operations - basic ($/share) 0.14 0.16 (13) 0.43
0.39 10 Funds flow from operations - diluted ($/share) 0.12 0.15
(20) 0.39 0.35 11 Earnings (loss) - basic ($/share) (0.15) (0.16)
(6) (0.17) (0.34) (50) Earnings (loss) - diluted ($/share) (0.15)
(0.16) (6) (0.17) (0.34) (50)
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Total assets ($ thousand) 35,145 41,870 (16)
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Wrangler West converts petroleum and natural gas reserves and
volumes to a common unit of measure on a basis of six thousand
cubic feet ("mcf") of natural gas equals one barrel ("bbl") of oil.
Disclosure using barrels of oil equivalent ("boe") may be
misleading, particularly if used in isolation. The basis for the
boe conversion ratio of 6 mcf equals one bbl is an energy
equivalency conversion method, primarily applicable at the burner
tip. This conversion rate does not represent a value equivalency at
the wellhead. The Company calculates boe per day based on total
production for the period divided by the number of days during the
period. Wrangler West presents operating and financial results for
2010 second quarter. Wrangler West is a Canadian junior oil and
natural gas exploration company focused on generating shareholder
value by exploring for, developing and producing natural gas and
crude oil from properties located in the Province of Alberta. 2010
Six Month Highlights - $7.2 million in revenue - $2.8 million in
funds flow from operations - $2.8 million in capital expenditures -
$3.5 million asset disposition - secured new $12 million credit
facility Production 2010 First Half For the six months ended June
30, 2010, Wrangler West produced 909 barrels of oil equivalent
("boe") per day, lower by 23 percent compared to the same period
one year ago. Production volumes were lower immediately following
the disposition of our Craigmyle non-operated natural gas property
which was producing 153 boe per day. Since the sale, we have
increased production month by month which reflects our recent
exploration success. The 2010 second quarter was operationally
difficult for several reasons. Primarily, wet weather caused an
unusually long spring break-up which limited our ability to
accomplish planned field activities until after the end of 2010
second quarter. Other factors included unforeseen pipeline and
facility interruptions and surface access negotiations. These
constraints delayed the tie-in of new production volumes and
postponed some of our seismic exploration activities. Capital
Expenditures Wrangler West's 2010 capital expenditures program
remains at $6 million. In 2010 first half, we invested $2.8
million. Exploration activities resulted in the drilling of six
wells year to date: three natural gas wells, two oil wells and one
dry hole. We completed the cased wells early in July and recently
tied-in two wells. At the time of this report, we have one cased
and completed natural gas well awaiting tie-in. Current production
is 1,100 boe per day. Industry Conditions Crude oil prices continue
to be very stable. Oil exploration remains extremely competitive
and requires deep pockets especially if there is the potential of a
resource play. We continue to build our opportunities and increase
our inventory of drillable prospects. We are encouraged by the
success of our drilling efforts this year. Wrangler West is a
natural gas-weighted producer and this summer's natural gas prices
continue to present a challenge. We look forward to the fall and
winter heating season and expect some firming in natural gas
markets as 2010 progresses. Daily natural gas injection into
storage is below the five year average, while storage volumes still
remain above the five year average. As withdrawals from storage
increase, we expect natural gas prices should recover. Outlook for
2010 Weak natural gas prices reduced cash flow and Wrangler West
managed capital spending accordingly. We continue to believe in the
future of natural gas. We have a proven exploration approach to
limit our risk and provide an economic platform that justifies
continuing investment. We are pushing hard to get back on track
because we believe the future looks promising. Additional
Information Additional shareholder and public information relating
to Wrangler West Energy Corp. is filed on SEDAR and accessible at
www.sedar.com. This includes, among other documents, annual and
interim reports to shareholders and the Statement of Reserves Data
and Other Oil and Gas Information Form NI 51-101 F1, F2 and F3
effective December 31, 2009. Alternatively, to obtain copies of
published corporate information, contact Crista L. Ferguson,
Controller, at Wrangler West Energy Corp. 1950, 444 Fifth Avenue
SW, Calgary, Alberta, Canada T2P 2T8 (telephone +1 403 290 6800) or
(e-mail info@wranglerwest.ca). Corporate Profile Wrangler West is a
Canadian junior oil and natural gas producer which explores for and
develops crude oil and natural gas production assets in the
Province of Alberta. Since inception, our mandate has been to use
the drill bit to add shareholder value. Disciplined management of
our operations and production portfolio creates sufficient funds
flow to support ongoing operations. Wrangler West will continue to
reinvest funds flow from operations and other available capital to
protect and add future value. Wrangler West trades on the TSX
Venture Exchange under the symbol "WX". The TSX Venture Exchange
has not reviewed this news release and does not accept
responsibility for its adequacy or accuracy. Wrangler West Energy
Corp., Steven F. Johnson, President and Chief Executive Officer,
Steve@wranglerwest.ca, telephone: (403) 290-6800
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