WesCan Energy Announces Results of Annual General and Special Meeting of Shareholders and Files Q3 Financial Statements

/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 of WesCan.

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
boe amounts)
Three Months
Ended
December 31,
2012
Three Months
Ended
December 31,
2011
Nine Months
Ended
December 31,
2012
Nine Months
Ended
December 31,
2011
Average daily sales volume (boe/d) 7 5 3 6
Petroleum and natural gas revenue,
net of royalties
$41,593 $17,135 $42,765 $90,297
Net loss from operations $71,584 $135,239 $356,110 $368,991
Net loss and comprehensive loss $73,308 $137,060 $357,834 $366,225
Production revenue per boe $82.70 $93.04 $82.80 $92.81
Operating netback per boe (1) $30.66 $50.89 $30.61 $31.04
Total assets $1,004,551 $1,921,556 $1,004,551 $1,921,556
Weighted average common shares
outstanding - basic (2)
2,652,853 47,478,432 2,795,793 47,478,432

Notes:

(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.

HIGHLIGHTS

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 day.

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.

Capital Resources

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.

Business Outlook

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 RELEASE.

Reader Advisory

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

Profil de l'entreprise

WesCan Energy Corp.

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