CALGARY, May 22, 2013 /CNW/ - Wrangler West Energy Corp.
("Wrangler West" or the "Company") (TSX-V
"WX") announces filing on SEDAR of the Company's unaudited
Financial Statements and related Management's Discussion and
Analysis ("MD&A") and the 2013 First Interim Report to
Shareholders for the three months ended March 31, 2013 with comparative data for the
three months ended March 31, 2012.
All documents may be viewed at www.sedar.com.
2013 First Quarter
- Revenue $2.0 million
- Funds flow from operations $0.3
million
- Completed significant repairs and maintenance project at
Riviere
Review of 2013 First Quarter
During 2013 first quarter, Wrangler West
produced 750 barrels of oil equivalent ("boe") per day, an eight
percent decrease compared to the same period one year ago.
The Company's current production base is 85 percent natural
gas.
Compared to the same period one year ago,
Wrangler West's 2013 first quarter netback rose slightly (two
percent). Crude oil and NGL prices received during 2013 first
quarter were approximately six percent lower while natural gas
prices increased approximately 50 percent from the comparative
period. The pricing power from natural gas was offset by 2013
first quarter expenses for repairs and maintenance required at
Riviere. Total operating costs for the period were up 13
percent from one year ago but decreased six percent from the 2012
fourth quarter. For 2013, Wrangler West will undertake
measures to reduce operating costs and continue to improve
efficiencies.
Most of Wrangler West's assets are based in the
Riviere core area. During 2013 first quarter, the Riviere
waterflood program, initiated in 2012, continued to demonstrate
positive response from the Wabamun A oil pool.
Business Environment
Entering the spring shoulder season, production
of natural gas continues to look positive. A lengthy and cold
winter during 2012-2013, combined with increased demand from
electrical generation, has set the stage for a modest recovery in
natural gas price. During May 2013,
the NYMEX natural gas price remains above $4.00 per mcf. Currently, it is possible to
forward-sell summer natural gas at $3.45 per mcf and the winter strip price
available is $3.86 per mcf.
While these prices are not expected to cause a dry natural gas
drilling boom, they are expected to deliver an improved monthly
bottom line for most producers when compared to results from one
year ago.
Crude oil prices have strengthened recently with
oil differentials narrowing from their historically wider spread as
rail movement of crude oil provides an alternative access to a
wider range of markets.
However, attracting capital remains a challenge
for junior oil and natural gas companies. Although
strengthening commodity prices improve financial results, access to
new capital will be an important element of oil and gas industry
budgets for the remainder of 2013.
Outlook
Wrangler West remains cautiously optimistic as
the spring shoulder season approaches. Maintenance and
repairs required to extract the full potential of existing assets
were well underway by 2012 year-end and completed in 2013 first
quarter. With sustained stronger natural gas prices, the
Company may have the opportunity to pursue the value of
independently evaluated proved undeveloped reserves reported on the
effective date of December 31,
2012. Wrangler West continues to assess any potential
merger and acquisition opportunities that may arise to fulfill the
corporate mandate of maximizing shareholder value.
WRANGLER WEST ENERGY CORP.
STATEMENTS OF FINANCIAL POSITION
(Stated in thousands of dollars)
(Unaudited) |
|
|
|
|
|
|
|
|
March 31, 2013 |
|
|
December 31, 2012 |
Assets |
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Accounts receivable |
$ |
677 |
|
$ |
1,079 |
|
Prepaid expenses |
|
192 |
|
|
132 |
|
|
869 |
|
|
1,211 |
|
|
|
|
|
|
Property, plant and equipment (note
4) |
|
23,475 |
|
|
24,132 |
|
$ |
24,344 |
|
$ |
25,343 |
|
|
|
|
|
|
Liabilities and shareholders'
equity |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Bank indebtedness (note 5) |
$ |
5,248 |
|
$ |
4,734 |
|
Accounts payable and accrued liabilities |
|
1,255 |
|
|
2,073 |
|
|
6,503 |
|
|
6,807 |
|
|
|
|
|
|
Decommissioning obligations |
|
3,070 |
|
|
3,068 |
|
|
|
|
|
|
Deferred income tax |
|
1,336 |
|
|
1,509 |
|
|
10,909 |
|
|
11,384 |
|
|
|
|
|
|
Shareholders' equity |
|
|
|
|
|
|
Common shares (note 6) |
|
12,402 |
|
|
12,402 |
|
Contributed surplus |
|
4,924 |
|
|
4,909 |
|
Retained deficit |
|
(3,891) |
|
|
(3,352) |
|
|
13,435 |
|
|
13,959 |
Going concern (note 2 and 5) |
|
|
|
|
|
|
$ |
24,344 |
|
$ |
25,343 |
WRANGLER WEST ENERGY CORP.
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Stated in thousands of dollars, except per share amounts)
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Three months ended |
|
|
|
March 31, 2013 |
|
|
March 31, 2012 |
Revenue |
|
|
|
|
|
|
|
Petroleum and natural gas sales |
|
$ |
2,016 |
|
$ |
1,932 |
|
Royalties |
|
|
(294) |
|
|
(306) |
|
|
|
1,722 |
|
|
1,626 |
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
Operating |
|
|
1,180 |
|
|
1,041 |
|
General and administrative |
|
|
269 |
|
|
277 |
|
Share-based payments |
|
|
8 |
|
|
25 |
|
Depletion and depreciation |
|
|
994 |
|
|
1,212 |
|
Gain on sale of assets |
|
|
(23) |
|
|
- |
Results from operating activities |
|
|
(706) |
|
|
(929) |
|
|
|
|
|
|
|
Finance expenses (note 8) |
|
|
60 |
|
|
48 |
|
|
|
|
|
|
|
Other income |
|
|
(54) |
|
|
- |
|
|
|
|
|
|
|
Loss before income tax |
|
|
(712) |
|
|
(977) |
|
|
|
|
|
|
|
Deferred income tax benefit |
|
|
(173) |
|
|
(235) |
|
|
|
|
|
|
|
Net loss and comprehensive loss |
|
$ |
(539) |
|
$ |
(742) |
|
|
|
|
|
|
|
Net loss per share (note 7) |
|
|
|
|
|
|
|
Basic and diluted |
|
$ |
(0.08) |
|
$ |
(0.11) |
WRANGLER WEST ENERGY CORP.
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(Stated in thousands of dollars and shares)
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
common
shares |
|
|
Common
shares |
|
|
Contributed
surplus |
|
|
Retained
earnings
(deficit) |
|
|
Total
shareholders'
equity |
Balance at January 1, 2013 |
6,466 |
|
$ |
12,402 |
|
$ |
4,909 |
|
$ |
(3,352) |
|
$ |
13,959 |
|
Share-based payments |
- |
|
|
- |
|
|
15 |
|
|
- |
|
|
15 |
|
Net loss |
- |
|
|
- |
|
|
- |
|
|
(539) |
|
|
(539) |
Balance at March 31, 2013 |
6,466 |
|
$ |
12,402 |
|
$ |
4,924 |
|
$ |
(3,891) |
|
$ |
13,435 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2012 |
6,466 |
|
$ |
12,402 |
|
$ |
4,740 |
|
$ |
493 |
|
$ |
17,635 |
|
Share-based payments |
- |
|
|
- |
|
|
47 |
|
|
- |
|
|
47 |
|
Net loss |
- |
|
|
- |
|
|
- |
|
|
(742) |
|
|
(742) |
Balance at March 31, 2012 |
6,466 |
|
$ |
12,402 |
|
$ |
4,787 |
|
$ |
(249) |
|
$ |
16,940 |
WRANGLER WEST ENERGY CORP.
STATEMENTS OF CASH FLOWS
(Stated in thousands of dollars)
(Unaudited) |
|
|
|
|
|
|
|
|
Three months ended
March 31, 2013 |
|
|
Three months ended
March 31, 2012 |
Cash provided by (used in): |
|
|
|
|
|
|
|
|
|
|
|
Operating |
|
|
|
|
|
|
Net loss |
$ |
(539) |
|
$ |
(742) |
|
Items not involving cash: |
|
|
|
|
|
|
|
Depletion and depreciation |
|
994 |
|
|
1,212 |
|
|
Accretion |
|
15 |
|
|
15 |
|
|
Share-based payments |
|
8 |
|
|
25 |
|
|
Gain on sale of assets |
|
(23) |
|
|
- |
|
|
Deferred income tax benefit |
|
(173) |
|
|
(235) |
|
|
282 |
|
|
275 |
|
Change in non-cash operating |
|
|
|
|
|
|
|
working capital (note 9) |
|
332 |
|
|
227 |
|
|
614 |
|
|
502 |
|
|
|
|
|
|
Financing |
|
|
|
|
|
|
Increase in bank indebtedness |
|
514 |
|
|
918 |
|
|
|
|
|
|
Investing |
|
|
|
|
|
|
Property, plant and equipment
expenditures |
|
(420) |
|
|
(514) |
|
Proceeds on sale of assets |
|
100 |
|
|
- |
|
Change in non-cash investing |
|
|
|
|
|
|
|
working capital (note 9) |
|
(808) |
|
|
(906) |
|
|
(1,128) |
|
|
(1,420) |
|
|
|
|
|
|
Cash and cash equivalents, |
|
|
|
|
|
|
beginning and end of the period |
$ |
- |
|
$ |
- |
|
|
|
|
|
|
Supplementary cash flow
information |
|
|
|
|
|
|
Interest paid |
|
(46) |
|
|
(42) |
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,
2012. 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).
Reader Advisory
This news release may contain forward-looking statements ("FLS")
related to 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 FLS are
reasonable, undue reliance should not be placed on FLS because the
Company can give no assurance they will prove correct. FLS address
future events and conditions and, by their very nature, involve
inherent risks and uncertainties. A more detailed discussion of FLS
is provided in Wrangler West's Management's Discussion and Analysis
for the year ended December 31, 2012
which is filed on SEDAR (www.sedar.com). The FLS contained in
this news release are made as of the date hereof. Unless so
required by applicable securities laws, 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.
Corporate Profile
Wrangler West is a Canadian junior crude oil and natural gas
producer which explores for and develops natural gas and crude oil
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 reinvest funds flow from operations and
other available capital to protect current, and add future,
value. Wrangler West common shares trade on the TSX Venture
Exchange under the symbol "WX".
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
SOURCE Wrangler West Energy Corp.