CALGARY, ALBERTA -- (Marketwired) -- 04/30/15 -- Anterra Energy Inc. ("Anterra" or the "Company") (TSX VENTURE: AE.A) announces financial and operating results for the three months and year ended December 31, 2014, together with year-end reserve evaluations. Selected information presented below should be read in conjunction with the Company's audited financial statements and related management discussion and analysis for the year ended December 31, 2014, and the Company's Statement of Reserves Data as of December 31, 2014, available on SEDAR at www.sedar.com and on the Company's website at www.anterraenergy.com.
RESERVES
Anterra's proved plus probable oil and gas reserves increased to 6.0 million barrels of oil equivalent at December 31, 2014; an increase, net of production for the year, of 6% over reserves at December 31, 2013.The Company added 774 Mboe of reserves at Nipisi, primarily through extensions and improved recovery, which more than offset production and negative economic revisions relating to other properties. The Nipisi property was acquired in December of 2013.
Despite the overall increases in reserves, the Net Present Value ("NPV") of the Company's reserves at December 31. 2014, discounted at 10%, decreased approximately 32% to $57.5 million from 2013. The decrease in NPV is primarily the result of the significant reduction in crude oil prices at December 31, 2014 compared as to December 31, 2013.
The Company's reserves were evaluated by the independent reserves evaluator Deloitte LLP in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook") and National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). Additional reserve information as required under NI 51-101 is available on SEDAR at www.sedar.com. A summary of the Company's reserves and the net present value of future net revenue from those reserves, at December 31, 2014, is presented below:
Company Interest Reserves - Forecast Pricing (1) (2)
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NPV(3)(5), NPV(3)(5),
Oil & NGLs Gas Total 0% 10%
Reserve Category (Mbbl) (MMcf) (Mboe) ($M) ($M)
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Proved developed
producing 1,392 537 1,482 $ 36,115 $ 22,365
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Proved developed non-
producing 611 779 741 14,411 5,529
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Proved undeveloped 622 462 699 19,098 3,179
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Total proved(4) 2,626 1,778 2,922 $ 69,624 $ 31,072
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Probable 2,907 1,211 3,109 86,545 26,398
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Total proved plus
probable 5,533 2,989 6031 $ 156,169 $ 57,470
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(1) Based upon Deloitte LLP's January 1, 2015 forecast prices
(2) Company's working interest reserves before royalties
(3) Before income taxes
(4) Columns may not add due to rounding
(5) Estimates of future net revenue do not represent fair market value of
the reserves
OPERATIONS
-- Production and related revenue for the year increased significantly over
2013 primarily as a result of the Nipisi property acquisition. For the
year ended December 31, 2014, petroleum and natural gas sales averaged
670 boe/d respectively as compared to 389 boe/d for 2013.
-- Petroleum and natural gas sales revenue for the year ended December 31,
2014 increased 114% to $20,136,286 from revenue of $9,415,413 in 2013 as
a result of the acquisitions.
-- Midstream processing revenue for the year ended December 31, 2014,
increased 20% from $3,079,515 in 2013 to $3,696,527 in 2014, primarily
as the result of increased throughput from the Breton midstream
facility.
-- Funds from operations for the year ended December 31, 2014 totaled
$3,277,137 compared to funds from operations of $678,373 for the
comparable period in 2013.
-- Impairment expenses of $11.5 million resulting from lower year end
commodity prices together with clean-up and remediation costs of $2.9
million were major factors in the $16 million net loss reported for the
year.
Summary of Financial and Operating Results
Three months ended Dec. 31 Year ended Dec. 31
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2014 2013 2014 2013
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Financial
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Oil and gas sales 4,063,423 2,348,333 20,136,286 9,415,413
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Midstream revenue 1,029,371 890,321 3,696,527 3,079,515
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Funds flow from
operations(1) 716,278 132,965 3,277,137 678,373
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Per share basic &
diluted 0.001 0.001 0.005 0.002
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Asset impairment 11,553,164 1,099,100 11,553,164 1,099,100
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Net income (loss) (13,734,171) (6,284,168) (16,053,578) (7,179,170)
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Per share basic &
diluted (0.03) (0.01) (0.03) (0.02)
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Capital Expenditures 3,022,268 12,825,654 6,947,240 15,275,572
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Net debt(1) 24,919,498 17,685,841 24,919,498 17,685,841
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Net debt to annualized
funds flow(1) 7.6: 1 4.8: 1
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Property, plant and
equipment 68,892,877 76,869,554 68,892,877 76,869,554
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Exploration and
evaluation assets 386,667 386,667 386,667 386,667
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Shareholders' equity 17,632,799 33,684,625 17,632,799 33,684,625
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Operating
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Average production
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Light and medium crude
oil, bbls/d 581 298 573 270
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Natural gas, mcf/d 434 547 414 616
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NGLs, bbls/d 38 15 29 17
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Boe/d 691 405 670 389
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% Oil and NGLs 84% 74% 86% 69%
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Average realized price
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Light and medium crude
oil, $/bbl 70.43 76.60 90.15 83.79
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Natural gas, $/mcf 3.50 3.88 4.85 3.76
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NGLs, $/bbl 46.18 56.23 53.87 57.85
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Oil and gas field
netback(1)$/ boe
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Oil and gas sales 63.94 63.09 82.31 66.30
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Royalties 17.97 12.60 20.66 11.43
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Operating and
transportation
expense 37.46 43.41 44.10 41.20
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Operating netback 8.51 7.08 17.55 13.67
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Midstream net operating
revenue 572,946 513,386 1,887,452 1,781,214
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(1) Funds flow from operations, net debt, net debt to annualized funds flow,
and field netback are non GAAP measures. See Reader Advisories.
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About Anterra Energy Inc.
Anterra is an independent oil focused junior exploration and production company with an expanding presence in the Western Canadian Sedimentary Basin. The Company is actively engaged in the acquisition, development and production of oil and natural gas complemented by the operation of fee-based midstream facilities. Anterra is headquartered in Calgary, Alberta, is listed and trades on the TSX-V under the symbol "AE.A". Additional information is available on the Company's website at www.anterraenergy.com.
Reader Advisories
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 News Release.
Selected Financial Information and Non-GAAP Measures
Selected financial and other information for the three and twelve month periods ended December 31, 2014 and 2013 is set out above and includes non-GAAP measures. This information should be read in conjunction with the audited financial statements for the year ended December 31, 2014 and the Company's management discussion and analysis ("MD&A"), available under the Company's profile on the SEDAR website at www.sedar.com. Further information relating to the non-GAAP measures is contained in the Company's MD&A.
Forward-Looking Information
Certain information in this News Release constitutes forward-looking statements or information (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Forward-looking statements are usually identified by the words "believe", "anticipate", "expect", "plan", "estimate", "target", "continue", "could", "intend", "may", "potential", "predict", "should", "will", "objective", "project", "forecast", "goal", "guidance", "outlook", "effort", "seeks", "schedule" or expressions of a similar nature suggesting future outcome or statements regarding an outlook. In particular, forward-looking statements include:
Statements relating to Anterra's crude oil and natural gas reserves and net present values.
Forward-looking statements are not guarantees of future performance and the reader should not place undue reliance on these forward-looking statements as there can be no assurances that the assumptions, plans, initiatives or expectations upon which they are based will occur. In addition, forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Such factors include, among others: general economic and business conditions; the price of and demand for oil and natural gas and their effect on the economics of oil and gas exploration; fluctuations in currency and interest rates and their effect on projected profitability of the Company's operations; the ability of the Company to implement its business strategy, including exploration and development plans; the impact of competition and in particular the ability of the Company to maintain its land position in a competitive leasing environment; the availability and cost of seismic, drilling, completions and other equipment; the Company's ability to secure adequate transportation and markets for any oil or gas discovered; drilling and operating hazards and other difficulties inherent in the exploration for and production and sale of oil and natural gas; the availability and cost of financing; the success of any exploration and development undertaken; actions by governmental authorities; and, changes in government regulations and the expenditures required to comply with them (including, but not limited to, the changes in taxes or the royalty or other share of production taken by governmental authorities). Should one or more of these risks or uncertainties materialize, or should any of the Company's assumptions prove incorrect, actual results may vary in material respects from those projected in the forward-looking statements. Readers are cautioned that the foregoing list of risks, uncertainties and other factors is not exhaustive. Unpredictable or unknown factors not discussed could also have material adverse effects on forward-looking statements. The impact of any one factor on a particular forward-looking statement is not determinable with certainty as such factors are dependent on other factors, and the Company's course of action would depend on its assessment of the future considering all information then available. All forward-looking statements in this News Release are expressly qualified in their entirety by these cautionary statements. Except as required by law, the Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.
BOE Presentation
Production volumes and reserves are commonly expressed on a barrel of oil equivalent ("boe") basis whereby natural gas volumes are converted at the ratio of six thousand cubic feet of gas equal to one barrel of oil, based on an energy equivalency at the burner tip and does not represent a value equivalency at the wellhead. Used in isolation, barrels of oil equivalent may be misleading.
Contacts:
Dr. Gang Fang
Chairman and Chief Executive Officer
Telephone: (403) 215-2383
Facsimile: (403) 261-6601
E-mail: fangg@anterraenergy.com
Norm Knecht, CA
Vice President Finance and CFO
Telephone: (403) 215-3286
Facsimile: (403) 261-6601
E-mail: norm.knecht@anterraenergy.com
