CALGARY, Nov. 17, 2011 /CNW/ - Wrangler West Energy Corp.
("Wrangler West" or the "Company") announces today's filing on
SEDAR (www.sedar.com) of the Company's unaudited Financial
Statements and related Management's Discussion and Analysis
("MD&A") for the three and nine months ended September 30, 2011
with comparative data for the three and nine months ended September
30, 2010 and the year ended December 31, 2010. Effective January 1,
2011, Wrangler West has prepared interim financial statements and
comparative information according to International Financial
Reporting Standards. Previously, the Company prepared financial
statements according to Canadian generally accepted accounting
principles. All documents may be viewed at www.sedar.com. Three
months ended Sep 30 Nine months ended Sep30 2011 2010 % Change 2011
2010 % Change OPERATIONAL HIGHLIGHTS Production Crude oil and NGL
146 254 (43) 210 284 (26) (bbls/d) Natural gas (mcf/d) 4,058 4,120
(2) 4,354 3,813 14 Total (boe/d) 822 941 (13) 936 920 2 Prices
Crude oil and NGL 86.48 67.29 29 85.61 70.29 22 ($/bbl) Natural gas
($/mcf) 3.85 3.85 - 3.92 4.59 (15) Per boe($) Petroleum and 34.34
35.01 (2) 37.44 40.74 (8) natural gas revenue Royalties (7.34)
(5.17) 42 (6.50) (7.05) (8) Operating expenses (11.02) (12.31) (10)
(13.70) (13.78) (1) Field netback 15.98 17.53 (9) 17.24 19.91 (13)
General and (4.88) (2.94) 66 (3.96) (3.23) 23 administrative
Interest (0.21) (0.69) (70) (0.56) (0.87) (36) Current income tax -
0.17 (100) - 0.06 (100) benefit Funds flow from 10.89 14.07 (23)
12.72 15.87 (20) operations Share-based payments (1.08) (0.95) 14
(0.32) (0.88) (64) Depletion and (15.21) (17.59) (14) (14.82)
(16.24) (9) depreciation Impairment of property, plant and -
(10.64) (100) - (3.67) (100) equipment Gain (loss) on sale 1.43
(0.02) (7,250) (3.65) (0.09) 3,956 of assets Accretion (0.17)
(0.22) (23) (0.20) (0.23) (13) Deferred income tax 1.10 3.73 (71)
1.60 0.76 111 benefit Net loss (3.04) (11.62) (74) (4.67) (4.48) 4
FINANCIAL HIGHLIGHTS ($ thousand) Petroleum and 2,596 3,029 (14)
9,562 10,228 (7) natural gas revenue Royalties (555) (447) 24
(1,660) (1,768) (6) Operating expenses (833) (1,065) (22) (3,500)
(3,459) 1 General and (369) (254) 45 (1,011) (813) 24
administrative Interest (16) (59) (73) (143) (218) (34) Current
income tax - 15 (100) - 15 (100) benefit Funds flow from 823 1,219
(32) 3,248 3,985 (18) operations Share-based payments (82) (82) -
(82) (222) (63) Depletion and (1,150) (1,522) (24) (3,784) (4,076)
(7) depreciation Impairment of property, plant and - (921) (100) -
(921) (100) equipment Gain (loss) on sale 108 (2) (5,500) (932)
(23) 3,952 of assets Accretion (13) (19) (32) (50) (57) (12)
Deferred income tax 83 323 (74) 409 191 114 benefit Net loss (231)
(1,004) (77) (1,191) (1,123) 6 Funds flow from operations - basic
0.13 0.19 (32) 0.50 0.62 (19) ($/share) Funds flow from operations
- diluted 0.13 0.18 (28) 0.50 0.60 (17) ($/share) Net loss - basic
and (0.04) (0.16) (75) (0.18) (0.17) 6 diluted ($/share) Total
assets ($ 27,322 33,303 (18) thousand) 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
Energy Corp. ("Wrangler West" or the "Company") presents operating
and financial results for 2011 third quarter and first nine
months. 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. 2011 Nine Month
Highlights -- $9.6 million of revenue -- $3.2 million of funds flow
from operations -- $3.2 million in capital expenditures Review of
2011 Nine Months For the nine months ended September 30, 2011,
Wrangler West produced 936 barrels of oil equivalent ("boe") per
day, an increase of two percent compared to the same period one
year ago. To date in 2011, field netbacks were lower by 13
percent as the price Wrangler West received for natural gas
declined 15 percent compared to the same period in 2010. For
the nine months ended September 30, 2011, crude oil prices were 22
percent higher, compared to the same period one year ago.
Operating costs for the three months ended September 30, 2011, were
$11.02 per boe, reflecting the sale of the Grand Forks oil pool at
the end of the second quarter. Capital Expenditures During the nine
months ended September 30, 2011, Wrangler West's total capital
expenditures were $3.2 million with the focus of our exploration
activities being oil-prone prospects. We have been active at
crown land sales and continue to expand Wrangler West's land
inventory. In 2011, the Company has drilled two oil wells and
one natural gas well. Credit Facility Subsequent to the 2011 third
quarter, Wrangler West amended its credit facility arrangement and
now has in place a credit agreement totaling $13.4 million, of
which $8.4 million is a revolving operating demand loan and $5.0
million is a non-revolving demand loan dedicated to acquisitions
and development. At September 30, 2011, Wrangler West had
drawn $1.7 million on the credit facility. Changing Business
Environment Over the last several years, there has been a change in
the business environment for conventional junior oil and natural
gas producers. The shift from conventional exploration to
resource play development is consuming most of the capital
available to this sector because exploration in tight reservoirs
requires massive investment. Junior conventional exploration
companies do not have the critical mass to participate in these
capital-intensive resource plays. From the historical peak of
approximately 20,000 wells drilled annually, the current forecast
is for approximately 12,500 wells in 2012. Almost 70 percent
of the forecasted well count will involve horizontal drilling which
will likely result in a record number of meters drilled. Most
resource-play wells require complex completion programs to achieve
production. The rates of return on this invested capital are
evolving but, generally, require the support of higher commodity
prices. We are seeing a significant supply of conventional oil and
natural gas assets coming to market. Junior producers interested in
pursuing these opportunities will require access to capital to
transact. As natural gas prices improve, conventional
exploration has lucrative potential but it remains critical to
manage through the current and prolonged uncertain business
environment. Outlook During 2011, Wrangler West's natural gas price
has averaged $3.92 per mcf and, in the 2011 third quarter,
experienced a modest decrease from the price received during the
2011 second quarter. These weak prices persist even as the
winter heating season begins and in spite of the early colder
weather cycling through North America's eastern seaboard.
Supply continues to overrun current demand. The opinion of
industry pundits and price forecasters remains bearish for this
continent's natural gas production. For the near term,
production of natural gas without a significant liquids component,
or "dry" gas, remains a difficult business in terms of attracting
capital and garnering investment. Like most junior oil and
natural gas explorers, Wrangler West believes in the ultimate value
of natural gas. To manage responsibly through this pervasively weak
natural gas market, Wrangler West has limited exploration efforts
for natural gas with the objective of replacing the natural gas
reserves we produce and focusing new exploration activities toward
crude oil. We have been active at land sales and continue to
build a range of opportunities. The oil side of conventional
exploration remains extremely competitive as the entire industry is
focused on adding oil production. In the 2011 third quarter, we
cased three newly-drilled wells. We are currently tying-in a
natural gas well which we expect to commence production during
December 2011. Testing and completing of the remaining two
wells continues. We plan to underspend the approved 2011
capital budget of $8.0 million and expect to allocate future
capital to following up any successful exploration efforts heading
into 2012. WRANGLER WEST ENERGY CORP. STATEMENTS OF
FINANCIALPOSITION (Stated in thousands of dollars) (Unaudited)
September30, December 31, 2011 2010 Assets Current assets Accounts
receivable $ 851 $ 1,406 Income tax receivable - 74 Prepaid
expenses 150 144 1,001 1,624 Property, plant and equipment (note 6)
26,321 33,335 $ 27,322 $ 34,959 Liabilities and shareholders'
equity Current liabilities Bank indebtedness (note 9) $ 1,726 $
6,354 Accounts payable and accrued liabilities 2,156 3,260 3,882
9,614 Decommissioning obligations (note 11) 2,247 2,705 Deferred
income tax 2,994 3,403 9,123 15,722 Shareholders' equity Share
capital (note 7) 12,402 12,402 Contributed surplus 4,691 4,538
Retained earnings 1,106 2,297 18,199 19,237 $ 27,322 $ 34,959
WRANGLER WEST ENERGY CORP. STATEMENTS OF OPERATIONS AND
COMPREHENSIVELOSS (Stated in thousands of dollars, except per share
amounts) (Unaudited) Three monthsended Nine monthsended September
30 September 30 2011 2010 2011 2010 Revenue Petroleum and natural
gas $ 9,562 $ 10,228 sales $ 2,596 $ 3,029 Royalties (555) (447)
(1,660) (1,768) 2,041 2,582 7,902 8,460 Expenses Operating 833
1,065 3,500 3,459 General and 1,011 813 administrative 369 254
Share-based payments 82 222 (note 10) 82 82 Depletion and 3,784
4,076 depreciation 1,150 1,522 Impairment of property, - 921 plant
and equipment - 921 (Gain) loss on sale of 932 23 assets (108) 2
Results from operating (1,407) (1,054) activities (285) (1,264)
Finance Interest and accretion 193 275 (note 4) 29 78 Loss before
income tax (314) (1,342) (1,600) (1,329) Current income tax benefit
- (15) - (15) Deferred income tax benefit (83) (323) (409) (191)
Net loss and comprehensive $ (1,191) $ (1,123) loss $ (231) $
(1,004) Net loss per share (note 8) Basic and diluted $ (0.04) $
(0.16) $ (0.18) $ (0.17) WRANGLER WEST ENERGY CORP.
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (Stated in thousands
of dollars and shares) (Unaudited) Number of Total common Share
Contributed Retained shareholders' shares capital surplus earnings
equity Balance at January 1, 2011 6,466 $ 12,402 $ 4,538 $ 2,297 $
19,237 Share-based payments - - 153 - 153 Net loss - - - (1,191)
(1,191) Balance at September 30, 2011 6,466 $ 12,402 $ 4,691 $
1,106 $ 18,199 Balance at January 1, 2010 6,416 $ 12,194 $ 4,313 $
3,527 $ 20,034 Options exercised 25 112 (55) - 57 Share-based
payments - - 321 - 321 Net loss - - - (1,123) (1,123) Balance at
September 30, 2010 6,441 $ 12,306 $ 4,579 $ 2,404 $ 19,289 WRANGLER
WEST ENERGY CORP. STATEMENTS OF CASH FLOWS (Stated in thousands of
dollars) (Unaudited) Ninemonthsended September 30 2011 2010 Cash
provided by (used in): Operating Net loss $ (1,191) $ (1,123) Items
not involving cash: Depletion and depreciation 3,784 4,076
Impairment of property, plant and equipment - 921 Accretion 50 57
Share-based payments 82 222 Loss on sale of assets 932 23 Deferred
income tax benefit (409) (191) 3,248 3,985 Change in non-cash
operating working capital (note 5) 111 406 3,359 4,391 Financing
Decrease in bank indebtedness, original credit facility - (8,897)
Increase (decrease) in bank indebtedness, new credit facility
(4,628) 6,189 Issuance of common shares - 56 (4,628) (2,652)
Investing Property, plant and equipment expenditures (3,203)
(4,545) Proceeds on sale of assets (note 6) 5,064 3,509 Change in
non-cash investing working capital (note 5) (592) (703) 1,269
(1,739) Cash and cash equivalents, beginning and end of $ period -
$ - Supplementary cash flow information Interest paid (157) (247)
Income tax refund 74 472 Reader Advisory This news release contains
forward-looking statements ("FLS") about potential new crude oil
and natural gas drilling, tie-ins, production operations, sources
and use of capital, asset purchases or dispositions and expected
future operations. Although Wrangler West believes the expectations
reflected in these FLS are reasonable, undue reliance should not be
placed on them because the Company can give no assurance the FLS
will prove to be correct. Since FLS address future events and
conditions, by their very nature they involve inherent risks and
uncertainties. A more detailed discussion of FLS is provided in
Wrangler West's Management's Discussion and Analysis for the three
and nine months ended September 30, 2011 which is filed on SEDAR
(www.sedar.com). The FLS contained in this news release are
made as of the date hereof and Wrangler West undertakes no
obligation to update publicly or revise any FLS or information,
whether as a result of new information, future events or otherwise,
unless so required by applicable securities laws. Corporate Profile
Wrangler West is a Canadian junior crude oil and natural gas
producer which explores for and develops crude oil and natural gas
production assets in the Province of Alberta. Since inception, the
Company's mandate has been to use the drill bit to add shareholder
value. Disciplined management of operations and the production
portfolio creates sufficient funds flow to support ongoing
operations. Wrangler West intends to continue to reinvest funds
flow from operations and other available capital to protect current
and add future value. Wrangler West trades on the TSX Venture
Exchange under the symbol "WX". Additional Information Wrangler
West files additional shareholder and public information on SEDAR
accessible at www.sedar.com. This includes the Statement of
Reserves Data and Other Oil and Gas Information Form NI 51-101 F1,
F2 and F3 effective December 31, 2010. Alternatively, to
obtain copies of published corporate information, contact Crista L.
Ferguson, Chief Financial Officer, 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). The TSX
Venture Exchange has not reviewed, and does not accept
responsibility for, the adequacy or accuracy of this news release.
Wrangler West Energy Corp. CONTACT: Wrangler West
Energy Corp.Steven F. JohnsonPresident and Chief Executive
Officerinfo@wranglerwest.catelephone: (403) 290-6800
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