Georox has released its unaudited financial and operational results for the three months ended June 30, 2014

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CALGARY, Aug 26, 2014 /CNW/ - Georox Resources Inc. ("Georox" or the "Corporation") (GXR:TSX-V; OF6A:FRA) Georox has released financial and operating results for the second quarter ended June 30, 2014.

Unaudited second-quarter financial results are as follows:

  • Revenues from oil and gas sales increased 292 per cent to $1,501,543 for the three month period ended June 30, 2104 from the comparative period $382,688 in 2013.

  • EBITDA (earnings before interest, taxes, depreciation and amortization) increased to $1,272,679 as compared with an adjusted EBITDA of $90,875 for the comparative period of 2013. This represents an increase of 1300 percent in the second quarter.

  • Georox's oil and natural gas production increased by 236 per cent 16,861 boes for the three-month period ended June 30, 2014 from 7,140 boes for the comparative quarter in 2013. There was also an increase of 226 per cent from the first quarter to the second quarter of 2014.

  • Average net production volumes increased from 313 per cent to 250 boes per day for the three month period ended June 30, 2014 from 80 boes per day for the comparative period in 2013.

  • Operating net back increased to $56 on average for the three month period ended June 30, 2014 up from $46 for the comparative period in 2013.

  • The average oil price received was $89 per boe during the three month period ended June 30, 2014 from $76 per boe in comparative period in 2013. For the first quarter the oil price received was $74 per boe.

  • The Corporation has drawn an aggregate of $4,199,919 from the total of $4,550,000 available pursuant to its loan agreement with a bank as at June 30, 2014. As at August 26, 2014 the loan is $3,600,000. The Corporation also owes $2,200,000 on a second mezzanine loan.

 




Three months
ended

June 30, 2014

Three months
ended

June 30, 2013


Six months
ended

June 30, 2014

Six months
ended

June 30, 2013









Revenue








Petroleum and natural gas



1,501,543

382,688


2,060,886

674,529

Royalties



(270,401)

(30,803)


(284,822)

(66,038)



$

1,231,142

351,885

$

1,776,064

608,491

Expenses








Operating



238,604

118,033


418,801

215,323

Exploration



-

-


-

6,462

Depreciation, depletion and impairment



545,414

94,505


582,232

200,971

Stock-based compensation



14,946

-


14,946

-

General and administrative



265,809

159,756


409,137

274,884




1,064,773

372,294


1,425,116

697,640

Operating income (loss)



166,369

(20,409)


350,948

(89,149)

Gain on sale of property and equipment



-

49,299


-

463,895

Gain on acquisition of property and equipment



560,896

-


560,896

-

Finance income (expense)



(78,555)

(615)


(92,454)

(1,197)

Net income for the year



648,710

28,275


819,390

373,549









Other comprehensive income (loss)








Net change in fair value of available for sale financial
assets



2,500

(32,520)


-

(52,520)

Other comprehensive loss for the year



-

(32,520)


-

(52,520)

Total comprehensive income for the year


$

651,210

(4,245)

$

819,390

321,029









Income from continuing operations per share








                Basic and diluted


$

0.02

0.00

$

0.02

0.01

Net income per share








                Basic and diluted


$

0.02

0.00

$

0.02

0.01









The full Q2 Unaudited Financial Statements and Management Discussion and Analysis can be found in the Corporations filings at www.sedar.ca

Operations Update.

Georox is pleased to announce that the previously mentioned Silverdale vertical well B15-01-48-28W3 has been brought on production on July 15th and is currently producing at a stabilized rate of 19 m3/d of oil (120 bopd gross) of which Georox's Net share @ 8.458% is 1.6 m3/day or 10 bopd.

In Georox's Silverdale the GP Hz Project in which Georox has an interest is a well is scheduled to be drilled in the 3rd quarter that is expected to an increase in operating cash flow through the handling of produced water through its own facilities.

At Georox's recently acquired Red Earth field a Pressure build-up on one of its' prime workover candidates is currently taking place to assess the viability of fracing it to increase productivity.

About Georox

Georox is a Canadian natural resource company engaged in the acquisition, exploration and development of oil and gas properties in Western Canada.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements relating to the future operations of the Corporation and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "will", "may", "should", "anticipate", "expects" and similar expressions.  All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding future plans and objectives of the Corporation, are forward looking statements that involve risks and uncertainties.  There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

Although Georox believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Georox can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks.

The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect.  Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Georox.  As a result, we cannot guarantee that any forward-looking statement will materialize and the reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.  Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.  The forward-looking statements contained in this news release are made as of the date of this news release, and Georox 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 expressly required by Canadian securities law.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Georox Resources Inc.

For further information: Burkhard Franz, President and Chief Executive Officer, Tel: (250) 712-2213, Fax: (250) 712-2215