Sea Dragon Energy Inc. Second Quarter 2013 Financial and Operating Results
CALGARY, Aug. 23, 2013 /CNW/ - Sea Dragon Energy Inc. ("Sea Dragon" or the "Company") (TSXV: SDX) announces its 2013 second quarter financial and operating results (the "Quarter" or "Q2 2013"). Highlights:
- Production increased by 67% to average 1,916 bopd for the quarter (Q2 2012: 1,147 bopd)
- Oil Revenues increased by 41% to US$15.2 MM @ US$97.64/bbl realized price (Q2 2012: US$10.8 MM @$103.90/bbl price)
- Cash flow from operations increased by 545% to US$0.9 MM (Q2 2012: US$(0.2)MM)
- US$2.2 MM cash and cash equivalents at end of Q2 2013
- US$4.2 MM of non-cash working capital
- US$(0.7) MM of Net Debt
Quarter Highlights & Post Quarter Events:
- Two successful producing wells and one exploration well drilled on NW Gemsa:
- AASE-17 successfully tested at 3,664 bopd, and
- AASE-18, originally planned as an injector but encountered thicker and better quality pay intervals than the AASE-17; now being completed and tested as a producer
- Shehab-2 exploration well under further assessment having failed to flow to surface
- Remapping of 3D seismic completed for the Gamma field in the Shukheir Marine concession; Shukheir Bay field also currently being remapped to determine the forward development plan for the concession.
- Successfully awarded South Disouq concession - on trend with prolific Abu Madi accumulations and in an area where management have encountered significant success.
- Strengthened management team with the appointment of Paul Welch as President and CEO
- Production currently stands at 1,959 boepd. Quarter end production was 92% above Q1 2013 as the Shukheir Marine well (SHB-5) was returned to production after a workover in February that affected the average production level for the quarter.
- Collected US$2.5 MM in outstanding accounts receivable.
Sea Dragon CEO, Paul Welch, commented:
"Having drilled two successful producing wells in NW Gemsa, one of which turned out to be a much better result than expected, and one exploration well that was below expectations but remains under review, it has been a busy and successful few months. In the months ahead, we are looking forward to announcing the test results for the AASE-18 well, the forward plan for the Shehab area and the results of our technical reviews of Kom Ombo, Shehab and Shukheir Marine areas. We are pleased with the recent results and look forward to continuing our significant improvements within our existing asset base."
KEY FINANCIAL & OPERATING HIGHLIGHTS
|Fiscal Year||Prior Quarter (1)||Three months ended June 30||Six months ended June 30|
|Cash, end of period||5,598||2,232||7,179||2,232||7,179|
|Funds from operations||1,962||949||(213)||2,910||184|
|Common shares outstanding (000's)||376,459||376,459||376,459||376,459||376,459|
|Warrants outstanding (000's)||-||-||30,000||-||30,000|
|Oil sales (bbl/d)||1,495||1,716||1,147||1,606||1,083|
|Gas sales (mcf/d)||-||1,058||-||532||-|
|NGL sales (Bbl/d)||-||24||-||12||-|
|Brent oil price ($/bbl)||112.07||101.47||108.44||106.74||113.42|
|Realized oil price ($/bbl)||106.28||97.64||103.90||101.64||109.17|
|Realized gas price (US$/mcf)||-||1.00||-||1.00||-|
|Realized NGL price (US$/bbl)||-||65.00||-||65.00||-|
|Net Realized price ($/bbl)||106.28||88.81||103.90||96.42||109.17|
|Operating costs ($/bbl)||12.11||13.76||8.36||13.04||10.85|
(1) Denotes the three months ended March 31, 2013
Certain statements contained in this press release constitute "forward-looking statements" as such term is used in applicable Canadian and US securities laws. These statements relate to analyses and other information that are based upon forecasts of future results, estimates of amounts not yet determinable and assumptions of management. In particular, statements concerning the 2013 drilling and capital expenditure programs of the NW Gemsa, Shukheir Marine, Kom Ombo and South Disouq Concessions and the results referenced or implied herein should be viewed as forward-looking statements.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or are not statements of historical fact and should be viewed as "forward-looking statements". All reserves information contained herein as well as the net present value of such reserves should be considered as forward looking statements. Such forward looking statements involve known and unknown risks, uncertainties and other factors which may 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 such forward-looking statements. Such risks and other factors include, among others, costs and timing of exploration and production development, availability of capital to fund exploration and development and political, social and other risks inherent in carrying on business in Egypt. There can be no assurance that such statements will prove to be accurate as actual results and future events could vary or differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release.
Forward-looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Company undertakes no obligation to update forward-looking statements and if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law. Although Sea Dragon has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Actual results may differ materially from those currently anticipated. See Sea Dragon's Annual Information Form for the year ended December 31, 2012 for a description of the risks and uncertainties associated with the Company's business, including its exploration activities. The forward-looking statements contained herein are expressly qualified by this cautionary statement.
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 THE RELEASE.
Notes to Editors
Sea Dragon Energy is an international exploration and development Oil Company with a focus on the Middle East and Africa. Activities are currently concentrated in Egypt, with interests in four concessions with short- and long-term potential. For further information please see the Company website at www.seadragonenergy.com or the Company's filed documents at www.sedar.com.
SOURCE Sea Dragon Energy Inc.For further information:
Sea Dragon Energy Inc.
President and Chief Executive Officer
Tel: +331 5343 9442
Chief Financial Officer and Director
Tel: +331 5343 9442
Pelham Bell Pottinger (Financial PR)
Philip Dennis / Joanna Boon
Tel: +44 (0) 207 861 3232
Brisco Capital Partners Corp. (Investor Relations)
Tel: +1 (403)262.9888