CALGARY, Aug. 23, 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 Second Interim Report to
Shareholders for the three and six months ended June 30, 2013 with comparative data for the three
and six months ended June 30, 2012.
All documents may be viewed at www.sedar.com.
Review of 2013 First Half
During the first six months of 2013, Wrangler West produced 661
barrels of oil equivalent ("boe") per day, a 15 percent decrease
compared to the same period one year ago. The decrease was
due to expected natural production declines in the Company's
corporate petroleum and natural gas reserves base. Currently,
Wrangler West is 80 percent weighted to natural gas. During
2013 first half, the Company received an average natural gas price
of $3.59 per Mcf. As natural
gas prices softened following 2013 second quarter, the Company
suspended all capital expenditures and reduced costs where possible
to maximize free cash flow to reduce its working capital
deficiency.
Industry Conditions
At the time of this report, AECO natural gas price is
$2.25 per Mcf. Alberta storage of this product is reaching
capacity. Until the shoulder season passes and the heating
season begins to draw down storage, the Company expects natural gas
prices could remain in their current range.
Crude oil price continues at near record highs. Oil
differentials have returned to a more normal market range as the
pressure on certain sales points has been reduced. Movement
of crude oil by rail has opened up some additional markets and, as
a result, producers are receiving higher prices for this
commodity.
Worldwide economic uncertainty continues to result in volatility
in commodity markets. Access to equity markets remains constrained
for public junior oil and natural gas companies. When the
heating season begins in late October, any improvement in natural
gas price could provide the potential for new financings for junior
exploration and production companies.
Corporate Overview
Improved natural gas markets would stabilize the Company's
business environment. Wrangler West's objective is to prudently
manage the corporate asset base during current weak natural gas
prices. In the meantime, strong crude oil prices are
encouraging. The waterflood project at the Riviere oil property is
showing ongoing pressure response following repairs conducted on
the water source well late in the 2013 first quarter.
Riviere's Wabamun A oil pool is a significant asset with multiple
infill opportunities that will require future capital to capture
its full potential. Under the Company's current liquidity
constraints, management expects to remain in a holding pattern
regarding near-term capital expenditures.
WRANGLER WEST ENERGY CORP. |
|
|
STATEMENTS OF FINANCIAL
POSITION |
|
|
(Stated in thousands of dollars) |
|
|
(Unaudited) |
|
|
|
|
|
|
June 30, 2013 |
|
December 31, 2012 |
Assets |
|
|
|
|
Current assets |
|
|
|
|
|
Accounts receivable |
$ |
538 |
$ |
1,079 |
|
Prepaid expenses |
|
169 |
|
132 |
|
|
707 |
|
1,211 |
|
|
|
|
|
Property, plant and equipment (note 4) |
|
22,583 |
|
24,132 |
|
$ |
23,290 |
$ |
25,343 |
|
|
|
|
|
Liabilities and shareholders' equity |
|
|
|
|
Current liabilities |
|
|
|
|
|
Bank indebtedness (note 5) |
$ |
4,767 |
$ |
4,734 |
|
Accounts payable and accrued
liabilities |
|
1,359 |
|
2,073 |
|
|
6,126 |
|
6,807 |
|
|
|
|
|
Decommissioning obligations (note 6) |
|
2,963 |
|
3,068 |
|
|
|
|
|
Deferred income tax |
|
1,183 |
|
1,509 |
|
|
10,272 |
|
11,384 |
|
|
|
|
|
Shareholders' equity |
|
|
|
|
|
Common shares (note 7) |
|
12,402 |
|
12,402 |
|
Contributed surplus |
|
4,940 |
|
4,909 |
|
Retained deficit |
|
(4,324) |
|
(3,352) |
|
|
13,018 |
|
13,959 |
Going concern (note 2 and 5) |
|
|
|
|
|
$ |
23,290 |
$ |
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 |
Six months ended |
|
June 30 |
June 30 |
|
2013 |
2012 |
2013 |
2012 |
Revenue |
|
|
|
|
|
Petroleum and natural gas sales |
$ |
1,853 |
$ |
1,550 |
$ |
3,869 |
$ |
3,482 |
|
Royalties |
|
(317) |
|
2 |
|
(612) |
|
(305) |
|
|
1,536 |
|
1,552 |
|
3,257 |
|
3,177 |
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
Operating |
|
884 |
|
811 |
|
2,064 |
|
1,851 |
|
General and administrative |
|
367 |
|
235 |
|
636 |
|
512 |
|
Share-based payments |
|
16 |
|
26 |
|
24 |
|
51 |
|
Depletion and depreciation |
|
785 |
|
1,084 |
|
1,778 |
|
2,296 |
|
Gain on sale of assets |
|
(1) |
|
- |
|
(24) |
|
- |
Results from operating activities |
|
(515) |
|
(604) |
|
(1,221) |
|
(1,533) |
|
|
|
|
|
|
|
|
|
Finance expenses (note 9) |
|
71 |
|
50 |
|
131 |
|
98 |
|
|
|
|
|
|
|
|
|
Other income |
|
- |
|
(118) |
|
(54) |
|
(118) |
|
|
|
|
|
|
|
|
|
Loss before income tax |
|
(586) |
|
(536) |
|
(1,298) |
|
(1,513) |
|
|
|
|
|
|
|
|
|
Deferred income tax benefit |
|
(153) |
|
(127) |
|
(326) |
|
(362) |
|
|
|
|
|
|
|
|
|
Net loss and comprehensive loss |
$ |
(433) |
$ |
(409) |
$ |
(972) |
$ |
(1,151) |
|
|
|
|
|
|
|
|
|
Net loss per share (note 8) |
|
|
|
|
|
|
|
|
|
Basic and diluted |
$ |
(0.07) |
$ |
(0.06) |
$ |
(0.15) |
$ |
(0.18) |
|
|
|
|
|
|
|
|
|
|
WRANGLER WEST ENERGY CORP. |
|
|
|
STATEMENT OF CHANGES IN
SHAREHOLDERS' EQUITY |
|
|
(Stated in thousands
of dollars and shares) |
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Number of |
|
|
Retained |
Total |
|
common |
Common |
Contributed |
earnings |
shareholders' |
|
shares |
shares |
surplus |
(deficit) |
equity |
Balance at January 1, 2013 |
6,466 |
$ |
12,402 |
$ |
4,909 |
$ |
(3,352) |
$ |
13,959 |
|
Share-based payments |
- |
|
- |
|
31 |
|
- |
|
31 |
|
Net loss |
- |
|
- |
|
- |
|
(972) |
|
(972) |
Balance at June 30, 2013 |
6,466 |
$ |
12,402 |
$ |
4,940 |
$ |
(4,324) |
$ |
13,018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2012 |
6,466 |
$ |
12,402 |
$ |
4,740 |
$ |
493 |
$ |
17,635 |
|
Share-based payments |
- |
|
- |
|
95 |
|
- |
|
95 |
|
Net loss |
- |
|
- |
|
- |
|
(1,151) |
|
(1,151) |
Balance at June 30, 2012 |
6,466 |
$ |
12,402 |
$ |
4,835 |
$ |
(658) |
$ |
16,579 |
WRANGLER WEST ENERGY CORP. |
|
|
|
STATEMENTS OF CASH FLOWS |
|
|
|
|
(Stated in thousands of dollars) |
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
Three months ended |
Six months ended |
|
June 30 |
June 30 |
|
2013 |
2012 |
2013 |
2012 |
Cash provided by (used in): |
|
|
|
|
|
|
|
|
|
Operating |
|
|
|
|
|
Net loss |
$ |
(433) |
$ |
(409) |
$ |
(972) |
$ |
(1,151) |
|
Items not involving cash: |
|
|
|
|
|
|
|
|
|
|
Depletion and depreciation |
|
785 |
|
1,084 |
|
1,778 |
|
2,296 |
|
|
Accretion |
|
23 |
|
11 |
|
39 |
|
26 |
|
|
Share-based payments |
|
16 |
|
26 |
|
24 |
|
51 |
|
|
Gain on sale of assets |
|
(1) |
|
- |
|
(24) |
|
- |
|
|
Deferred income tax benefit |
|
(153) |
|
(127) |
|
(326) |
|
(362) |
|
|
237 |
|
585 |
|
519 |
|
860 |
|
Change in non-cash operating |
|
|
|
|
|
|
|
|
|
|
working capital (note 10) |
|
383 |
|
(545) |
|
716 |
|
(318) |
|
|
620 |
|
40 |
|
1,235 |
|
542 |
|
|
|
|
|
|
|
|
|
Financing |
|
|
|
|
|
|
|
|
|
Increase (decrease) in bank
indebtedness |
|
(481) |
|
103 |
|
34 |
|
1,021 |
|
|
|
|
|
|
|
|
|
Investing |
|
|
|
|
|
|
|
|
|
Property, plant and equipment
expenditures |
|
(23) |
|
(481) |
|
(443) |
|
(995) |
|
Proceeds on sale of assets |
|
1 |
|
- |
|
101 |
|
- |
|
Change in non-cash investing |
|
|
|
|
|
|
|
|
|
|
working capital (note 10) |
|
(117) |
|
338 |
|
(927) |
|
(568) |
|
|
(139) |
|
(143) |
|
(1,269) |
|
(1,563) |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, |
|
|
|
|
|
|
|
|
|
beginning and end of period |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
|
|
|
|
|
|
|
|
|
Supplementary cash flow
information |
|
|
|
|
|
|
|
|
|
Interest paid |
|
(47) |
|
(38) |
|
(108) |
|
(68) |
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., 2300, 444 Fifth Avenue SW, Calgary, Alberta, Canada T2P 2T8
(telephone +1 403 290 6800 or e-mail info@wranglerwest.ca).
Reader Advisory
The second interim report unaudited condensed interim financial
statements have been prepared by, and are the responsibility of,
Wrangler West's management. The Company's independent auditor has
not performed a review of these financial statements in accordance
with standards established by the Canadian Institute of Chartered
Accountants for a review of interim financial statements.
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 period ended June 30, 2013
and 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.