/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
CALGARY, March 5, 2013 /CNW/ - WesCan Energy Corp. (TSXV:WCE) ("WesCan" or the "Company") announces that at the annual general and special meeting held on
March 1, 2013, WesCan's shareholders elected the nominees standing for
Directors as presented in the Management Information Proxy Circular,
comprised of Greg T. Busby, Richard Orman, Mike Robichaud and Alfredo
De Leon Cu. Greg T. Busby is the Chief Executive Officer and President
The Company's stock option plan was re-approved by the requisite
percentage of shareholder votes cast at the meeting. In addition, the
shareholders re-appointed Manning Elliot LLP, Chartered Accountants, as
auditors for the ensuing year.
The Company also announces that it has filed on SEDAR its unaudited
interim condensed financial statements and management's discussion and
analysis for the three and nine month periods ended December 31, 2012.
The documents can be accessed through the SEDAR website at www.sedar.com.
Selected Quarterly Financial & Operating Highlights
The following table provides a summary of key unaudited financial and
operating results for the three and nine month periods ended December
31, 2012 (Q3 2013) and 2011 (Q3 2012):
Financial & Operating Highlights
(Cdn$ except shares, per share and per
Average daily sales volume (boe/d)
Petroleum and natural gas revenue,
net of royalties
Net loss from operations
Net loss and comprehensive loss
Production revenue per boe
Operating netback per boe (1)
Weighted average common shares
outstanding - basic (2)
(1) Operating netback represents revenue per bbl less royalty,
production and transportation expense per boe.
(2) The third quarter and nine months ended December 31, 2012
comparative weighted average number per share have been adjusted to
reflect the consolidation of the common shares on the basis of one (1)
common share for every twenty (20) issued and outstanding common shares
on October 3, 2012.
Revenue and Production
The Company's average production for Q3 2013 was 5 bbls per day of oil
(nil bbls per day in Q2 2013), an increase of approximately 20% over Q3
2012. The nominal increase was driven by a previously shut-in well (36%
net interest to the Company) being placed back on production by the
Operator at Peerless Lake, Alberta. During the nine month period ending
December 31, 2012, daily average oil production was 2 bbls per day
compared to the same period in 2011 of approximately 5 bbls of oil per
Gross production revenue for Q3 2013 was $42,825 ($537 Q2 2013) as
compared to $96,542 for Q3 2012, the decrease of which was due to one
of its wells being shut-in at Peerless Lake. The Company's revenue was
adversely affected by lower oil prices during this period as the Q3
2013 average realized price per bbl for the Company's oil was $82.15
compared to $92.47 in Q3 2012.
The Company capitalized and invested $68,541 on its exploration and
evaluation properties in the nine month period ended December 31, 2012
compared to $156,338 over the same period in December 31, 2011.
The Company continues to be challenged by volatile oil prices and
uncertainties within the capital markets. Future growth and reliance on
future equity raises is critical to the long-term growth and
sustainability of the Company.
WesCan is a junior oil and gas company formed to generate growth through
strategic acquisitions, development, exploitation and exploration. As
the Company's financial position and debt improved since the
announcement of new management and the reorganization on September 20,
2012, in order to realize on sizeable growth, management believes that
it is imperative to remain focused on a carefully executed business
plan combined with prudent fiscal responsibility so that the corporate
objective of increasing shareholder value can be achieved.
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
Barrels of oil equivalent (boe) is calculated using the conversion
factor of 6 mcf (thousand cubic feet) of natural gas being equivalent
to one barrel of oil. Boes may be misleading, particularly if used in
isolation. A boe conversion ratio of 6 mcf:1 bbl (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 6:1, utilizing a conversion on a 6:1 basis may be
misleading as an indication of value.
Certain information in this Press Release is forward-looking within the
meaning of certain securities laws, and is subject to important risks,
uncertainties and assumptions. This forward-looking information
includes, among other things, information with respect to the Company'
beliefs, plans, expectations, anticipations, estimates and intentions,
the success of future drilling and development activities, the
performance of existing wells, the performance of new wells, general
economic conditions, availability of required equipment and services
and prevailing commodity prices. The words "may", "could", "should",
"would", "suspect", "outlook", "believe", "anticipate", "estimate",
"expect", "intend", "plan", "target" and similar words and expressions
are used to identify forward-looking information. The forward-looking
information in this Press Release describes the Company' expectations
as of the date of this Press Release.
All such forward-looking statements involve known and unknown risks and
uncertainties, certain of which are beyond the control of the Company.
Such risks and uncertainties include, without limitation: risks
associated with crude oil and natural gas exploration, development,
exploitation, production, transportation and marketing; general
economic conditions in North America and globally; changes in the
demand for the Company's products; volatility in market prices for
crude oil and natural gas; unanticipated fluctuations or declines in
production; the effects of adverse weather conditions; changes in
foreign currency exchange and interest rates; changes in tax or
environmental laws, royalty rates or other regulatory matters affecting
the Company and its operations; inaccurate estimation of the Company's
crude oil and natural gas reserves; ability to attract and retain
qualified personnel; increased debt levels or debt service
requirements; limited, unfavorable or lack of access to capital
markets; and the impact of competitors. The forward-looking statements
contained in this Press Release are made as of the date hereof and the
Company does not intend, and does not assume any obligation, to update
or revise any forward-looking statements whether as a result of new
information, future events or otherwise, except as required by
applicable securities laws.
The Company cautions that the foregoing list of risks and uncertainties
is not exhaustive, is subject to change and there can be no assurance
that such assumptions will reflect the actual outcome of such items or
factors. When relying on WesCan's forward-looking information to make
decisions, investors and others should carefully consider the foregoing
factors and other uncertainties and potential events. the Company has
assumed a certain progression, which may not be realized. It has also
assumed that the risks and uncertainties referred to in the previous
paragraph will not cause such forward-looking information to differ
materially from actual results or events.
SOURCE: WesCan Energy Corp.
For further information:
Greg T. Busby, President & CEO
WESCAN ENERGY CORP.
Tel: (403) 265-9464