CALGARY, ALBERTA -- (Marketwired) -- 11/28/14 -- Tuscany Energy Ltd. (TSX VENTURE: TUS) -
Tuscany is pleased to report on a very successful nine months ended September 30, 2014. Highlights of the period were:
-- Revenues increased to $12.9 million from $6.8 million reported for the
prior year. Cash flow increased to $6.2 million from $2.1 million in
2013 and net earnings increased to $836,000 from a loss of $961,000.
-- Production averaged 696 BOEd from the 402 BOEd reported in the prior
year.
-- In July, the Company successfully placed a common and flow through share
issue to raise approximately $3 million.
-- Tuscany drilled five successful Dina oil wells with the proceeds, all of
which were placed on stream during the quarter and four of which had
initial production rates exceeding 100 barrels per day.
-- The Company upgraded its water handling facilities by deepening a well
at Evesham and drilling a new water disposal well at Macklin, which also
resulted in a significant Dina oil discovery and enlargement of the
Macklin pool.
-- As a result of these activities the Company increased its' production at
the end of the quarter to average 748 BOEd for the month of September,
and 950 BOEd for October.
Subsequent to the period end Tuscany closed an additional flow through share offering, issuing 2.7 million shares at a price of $0.44 per share for total consideration of $1.2 million. At November 27, the Company has 48.8 million shares outstanding.
The share issue has allowed the Company to commence its Q4 planned three well drilling program. The initial well at Macklin North has been drilled and is currently being completed and tied in. Drilling operations have commenced on the second Macklin North well.
Corporate Summary
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Three months ended Nine months ended
September 30 September 30
2014 2013 2014 2013
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($ Thousands, unless otherwise
indicated)
Financial
Oil & gas revenue $ 3,934 $ 3,842 $ 12,922 $ 6,780
Cash flow from operations (1) 1,862 1,477 6,152 2,098
per share, diluted (1) 0.04 0.05 0.15 0.07
Net earnings (loss) for the period 616 (84) 836 (961)
per share, diluted 0.01 0.00 0.02 -0.03
Capital expenditures, net of
dispositions 4,547 2,669 7,941 3,917
Net debt (1) (6,555) (8,139) (6,555) (8,139)
Total assets 38,324 37,023 38,324 37,023
Total shares outstanding at period
end 46,153 29,985 46,153 29,985
Operations
Production
Oil (Bopd) 502 457 553 329
Gas (Mcfd) 909 937 858 438
BOEd (6 Mcf = 1 Bbl) 654 613 696 402
Product Prices
Oil ($/Bbl) $ 78.23 $ 86.39 $ 78.46 $ 72.26
Gas ($/Mcf) $ 3.84 $ 2.44 $ 4.60 $ 2.43
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(1) See non-GAAP measures in MD&A for the nine months ended September 30,
2014.
Tuscany has filed its Interim Financial Statements and MD&A for the nine months ended September 30, 2014.
ADVISORY: This news release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this news release contains forward-looking information and statements' pertaining to Tuscany's drilling plans. The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such planned drilling involves known and unknown risks, uncertainties and other factors that may cause actual drilling plans to differ materially from those anticipated.
Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
Where amounts are expressed on a barrel of oil equivalent (BOE) basis, natural gas volumes have been converted to barrels of oil on the basis of six thousand cubic feet (mcf) per barrel (bbl). BOE figures may be misleading, particularly if used in isolation. A BOE conversion of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. 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 mcf : 1 bbl, using a conversion on a 6 mcf : 1 bbl basis may be misleading as an indication of value. References to oil in this discussion include crude oil and natural gas liquids (NGLs).
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 RELEASE.
Contacts:
Robert W. Lamond, President & CEO
TUSCANY ENERGY LTD.
Telephone: (403) 269-9889
Fax: (403) 269-9890
TSX Venture: TUS
Donald K. Clark, Vice President Operations
TUSCANY ENERGY LTD.
Telephone: (403) 269-9889
Fax: (403) 269-9890
www.tuscanyenergy.com
