Calvalley announces results for the fourth quarter and year ended December 31, 2013 and provides operations update
CALGARY, March 5, 2014 /CNW/ - Calvalley Petroleum Inc., (TSX: CVI.A)
Earnings in the fourth quarter of 2013 were $0.08 per share ($6.0
million) compared to $0.06 per share ($6.0 million) in the fourth
quarter of 2012. For the year ended December 31, 2013 earnings were
$0.28 per share ($23.2 million) compared to $0.27 per share ($ 25.7
million) for the previous year. Inventory of crude oil at the end of
December 31, 2013 was approximately 29,600 barrels and represents an
increase of 11,200 barrels from December 31, 2012.
The Company's working interest share of production volumes before
royalties and taxes averaged 2,520 barrels per day for the year
representing a 4 per cent increase over the 2,430 barrels per day for
the 2012. For the fourth quarter of 2013 production volumes were 2,390
barrels per day compared to 2,890 barrels per day in the prior period
During the fourth quarter of 2013 the Company sold an average of 2,460
barrels per day of crude oil compared to 3,250 barrels per day in the
prior period of 2012. For the year ended December 31, 2013 crude oil
exports have averaged 2,330 barrels per day compared to 2,510 barrels
per day in the comparable period of 2012. For the fourth quarter of
2013, the average sale price received was $110.56 per barrel which
represents a premium of $1.32 to the Dated Brent Crude price of $109.24
for the quarter. The product netback for the last quarter of 2013 was
$41.15 per barrel, and for the year ended December 31, 2013, the
netback of $42.13 per barrel represents a decrease of 6 per cent from
$44.65 per barrel for 2012 reflecting both slightly lower realized
prices for crude oil and higher operating costs.
Funds flow from operations ("Cash Flow") for the fourth quarter was
$0.10 per share ($8.0 million) compared to $0.11 per share ($10.5
million) in the prior year period. For the year ended December 31, 2013
Cash Flow was $0.38 per share ($31.2 million) the same as $0.38 per
share ($35.7 million) in the prior year period.
Capital expenditures in the fourth quarter of $2.8 million include the
costs of equipment and services for the current year drilling program
and are up slightly from $2.0 million in the fourth quarter of 2012.
Capital expenditures for the year of $9.6 million are up 41 per cent
from capital expenditure of $6.8 million for 2012.
During the fourth quarter the Company purchased for cancellation 515,100
shares at an average price of $1.63 (CAD$1.71) per share under the
Company's normal course issuer bid ("NCIB"). For the year ended
December 31, 2013 the Company has purchased for cancellation a total of
1,344,000 shares at an average price of $1.62 (CAD$1.68) per share
under the NCIB. On March 5, 2013 the Company completed the purchase for
cancellation of 15,000,000 million shares at a purchase price of $2.40
(CAD$2.47) per share including transaction costs pursuant to an Offer
to Purchase and Issuer Bid Circular dated 22 January, 2013.
The annual "per share" calculations included in this release are based
on 81,555,977 weighted average shares. The fourth quarter "per share"
amounts are based on 78,269,091 weighted average shares. The Company
had 78,021,826 shares outstanding at December 31, 2013.
Calvalley has a strong balance sheet with approximately $87 million in
working capital at December 31, 2013. The working capital balance
increases to $89 million with inventory of crude oil valued at current
market value rather than cost.
Subsequent to the interruption of transportation of crude oil to the
Masila Export Pipeline System in late December 2013, the Company
initiated trucking crude oil in early February 2014 to Block 18 and has
transported over 40,000 barrels to date.
The Company has initiated production from some wells in the Hiswah Field
and started to empty storage tanks at Ras Nowmah and is optimizing
production operations given the local conditions, which continue to be
- The Company is working with both Government and local groups to resolve the issues that are affecting transportation of crude oil to Block 51. Drilling operations have been suspended due to the inability of service companies to mobilize staff and equipment to Block 9.
Significant financial information is included in the table below and is discussed further in the Company's Management Discussion and Analysis.
|(in thousands of US dollars except per share amounts)||
Three months ended
|Revenue from crude oil sales (net of royalties)||15,707||20,651||58,264||64,023|
|Funds flow from operations(1)||8,042||10,514||31,179||35,706|
|Cash flow from operating activities||6,267||10,829||30,360||37,919|
|(1) See "Non-IFRS Measures" disclosure in December 31, 2013 MD&A filed on www.sedar.com|
FILING OF REPORTS ON SEDAR
Calvalley's Management's Discussion and Analysis and Audited Consolidated Financial Statements for the year ended December 31, 2013 can be found for viewing by electronic means on The System for Electronic Document Analysis and Retrieval at www.sedar.com. They can also be found on the Company's website at www.calvalleypetroleum.com.
Calvalley is an international oil and gas company, with offices in Calgary, Alberta, Canada, that operates its 50% working interest in Block 9 of the Masila Basin, in The Republic of Yemen.
This press release may contain forward-looking statements. Words such as "may", "will", "should", "could", "anticipate", "believe", "expect", "intend", "plan", "potential", "continue", and similar expressions may have been used to identify these forward-looking statements. These statements reflect management's current beliefs and are based on information currently available to management. In particular, statements in respect of production optimization, the Company's efforts in resolving issues that are affecting transportation of crude oil, and the use of marketing outlets through Block 18 contain forward looking information. Forward-looking statements involve significant risk and uncertainties. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including, but not limited to, operational risks, availability of supplies and services, potential delays or changes in plans with respect to exploration or development projects or capital expenditures, delays and interruptions in drilling and completion activities for undetermined periods, success in drilling activities, changes in general economic and market conditions and other risk factors. Although the forward-looking statements contained herein are based upon what management believes to be reasonable assumptions, management cannot assure that actual results will be consistent with these forward-looking statements. Investors should not place undue reliance on forward-looking statements. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this press release are made as of the date of this press release and Calvalley assumes no obligation to update or revise them to reflect new events or circumstances except as expressly required by applicable securities law.
SOURCE Calvalley Petroleum Inc.For further information:
Edmund Shimoon, Chairman & CEO
Gerry Elms, CFO +1 (403) 297-0490