Wrangler West Reports 2013 First Quarter Operating and Financial Results

CALGARY, May 22, 2013 /CNW/ - Wrangler West Energy Corp. ("Wrangler West" or the "Company") (TSX-V "WX") announces filing on SEDAR of the Company's unaudited Financial Statements and related Management's Discussion and Analysis ("MD&A") and the 2013 First Interim Report to Shareholders for the three months ended March 31, 2013 with comparative data for the three months ended March 31, 2012. All documents may be viewed at www.sedar.com.

2013 First Quarter

  • Revenue $2.0 million
  • Funds flow from operations $0.3 million
  • Completed significant repairs and maintenance project at Riviere

Review of 2013 First Quarter

During 2013 first quarter, Wrangler West produced 750 barrels of oil equivalent ("boe") per day, an eight percent decrease compared to the same period one year ago.  The Company's current production base is 85 percent natural gas.

Compared to the same period one year ago, Wrangler West's 2013 first quarter netback rose slightly (two percent).  Crude oil and NGL prices received during 2013 first quarter were approximately six percent lower while natural gas prices increased approximately 50 percent from the comparative period.  The pricing power from natural gas was offset by 2013 first quarter expenses for repairs and maintenance required at Riviere.  Total operating costs for the period were up 13 percent from one year ago but decreased six percent from the 2012 fourth quarter.  For 2013, Wrangler West will undertake measures to reduce operating costs and continue to improve efficiencies.

Most of Wrangler West's assets are based in the Riviere core area.  During 2013 first quarter, the Riviere waterflood program, initiated in 2012, continued to demonstrate positive response from the Wabamun A oil pool.

Business Environment

Entering the spring shoulder season, production of natural gas continues to look positive.  A lengthy and cold winter during 2012-2013, combined with increased demand from electrical generation, has set the stage for a modest recovery in natural gas price. During May 2013, the NYMEX natural gas price remains above $4.00 per mcf.  Currently, it is possible to forward-sell summer natural gas at $3.45 per mcf and the winter strip price available is $3.86 per mcf.  While these prices are not expected to cause a dry natural gas drilling boom, they are expected to deliver an improved monthly bottom line for most producers when compared to results from one year ago.

Crude oil prices have strengthened recently with oil differentials narrowing from their historically wider spread as rail movement of crude oil provides an alternative access to a wider range of markets.

However, attracting capital remains a challenge for junior oil and natural gas companies.  Although strengthening commodity prices improve financial results, access to new capital will be an important element of oil and gas industry budgets for the remainder of 2013.

Outlook

Wrangler West remains cautiously optimistic as the spring shoulder season approaches.  Maintenance and repairs required to extract the full potential of existing assets were well underway by 2012 year-end and completed in 2013 first quarter.  With sustained stronger natural gas prices, the Company may have the opportunity to pursue the value of independently evaluated proved undeveloped reserves reported on the effective date of December 31, 2012.  Wrangler West continues to assess any potential merger and acquisition opportunities that may arise to fulfill the corporate mandate of maximizing shareholder value.

WRANGLER WEST ENERGY CORP.
STATEMENTS OF FINANCIAL POSITION
(Stated in thousands of dollars)
(Unaudited)   
           
    March 31, 2013     December 31, 2012
Assets          
Current assets          
  Accounts receivable $ 677   $ 1,079
  Prepaid expenses   192     132
    869     1,211
           
Property, plant and equipment (note 4)   23,475     24,132
  $ 24,344   $ 25,343
           
Liabilities and shareholders' equity          
Current liabilities          
  Bank indebtedness (note 5) $ 5,248   $ 4,734
  Accounts payable and accrued liabilities   1,255     2,073
    6,503     6,807
           
Decommissioning obligations   3,070     3,068
           
Deferred income tax   1,336     1,509
    10,909     11,384
           
Shareholders' equity          
  Common shares (note 6)   12,402     12,402
  Contributed surplus   4,924     4,909
  Retained deficit   (3,891)     (3,352)
    13,435     13,959
Going concern (note 2 and 5)          
  $ 24,344   $ 25,343

 

WRANGLER WEST ENERGY CORP.
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Stated in thousands of dollars, except per share amounts)
(Unaudited)  
             
      Three months ended     Three months ended
      March 31, 2013     March 31, 2012
Revenue            
  Petroleum and natural gas sales   $ 2,016   $ 1,932
  Royalties     (294)     (306)
      1,722     1,626
             
Expenses            
  Operating     1,180     1,041
  General and administrative     269     277
  Share-based payments     8     25
  Depletion and depreciation     994     1,212
  Gain on sale of assets     (23)     -
Results from operating activities     (706)     (929)
             
Finance expenses (note 8)     60     48
             
Other income     (54)     -
             
Loss before income tax     (712)     (977)
             
Deferred income tax benefit     (173)     (235)
             
Net loss and comprehensive loss   $ (539)   $ (742)
             
Net loss per share (note 7)            
  Basic and diluted   $ (0.08)   $ (0.11)

 

WRANGLER WEST ENERGY CORP.    
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY    
(Stated in thousands of dollars and shares)    
(Unaudited)  
                           
 
 
 
Number of
common
shares
   
Common
shares
 
  Contributed
surplus
    Retained
earnings
(deficit)
    Total
shareholders'
equity
Balance at January 1, 2013 6,466   $ 12,402   $ 4,909   $ (3,352)   $ 13,959
  Share-based payments -     -     15     -     15
  Net loss -     -     -     (539)     (539)
Balance at March 31, 2013 6,466   $ 12,402   $ 4,924   $ (3,891)   $ 13,435
                           
                           
Balance at January 1, 2012 6,466   $ 12,402   $ 4,740   $ 493   $ 17,635
  Share-based payments -     -     47     -     47
  Net loss -     -     -     (742)     (742)
Balance at March 31, 2012 6,466   $ 12,402   $ 4,787   $ (249)   $ 16,940

 


WRANGLER WEST ENERGY CORP.
STATEMENTS OF CASH FLOWS
(Stated in thousands of dollars)
(Unaudited)  
           
 
 
  Three months ended
March 31, 2013
    Three months ended
March 31, 2012
Cash provided by (used in):          
           
Operating          
  Net loss $ (539)   $ (742)
  Items not involving cash:          
    Depletion and depreciation   994     1,212
    Accretion   15     15
    Share-based payments   8     25
    Gain on sale of assets   (23)     -
    Deferred income tax benefit   (173)     (235)
    282     275
  Change in non-cash operating          
    working capital (note 9)   332     227
    614     502
           
Financing          
  Increase in bank indebtedness   514     918
           
Investing          
  Property, plant and equipment expenditures   (420)     (514)
  Proceeds on sale of assets   100     -
  Change in non-cash investing          
    working capital (note 9)   (808)     (906)
    (1,128)     (1,420)
           
Cash and cash equivalents,          
  beginning and end of the period $ -   $ -
           
Supplementary cash flow information          
  Interest paid   (46)     (42)

 

Additional Information
Wrangler West files additional shareholder and public information on SEDAR accessible at www.sedar.com. This includes the Statement of Reserves Data and Other Oil and Gas Information Form NI 51-101 F1, F2 and F3 effective December 31, 2012.  Alternatively, to obtain copies of published corporate information, contact Crista L. Ferguson, Chief Financial Officer, Wrangler West Energy Corp., 1950, 444 Fifth Avenue SW, Calgary, Alberta, Canada  T2P 2T8 (telephone +1 403 290 6800 or e-mail info@wranglerwest.ca).

Reader Advisory
This news release may contain forward-looking statements ("FLS") related to potential new crude oil and natural gas drilling, tie-ins, production operations, sources and use of capital, asset purchases or dispositions and expected future operations. Although Wrangler West believes the expectations reflected in FLS are reasonable, undue reliance should not be placed on FLS because the Company can give no assurance they will prove correct. FLS address future events and conditions and, by their very nature, involve inherent risks and uncertainties. A more detailed discussion of FLS is provided in Wrangler West's Management's Discussion and Analysis for the year ended December 31, 2012 which is filed on SEDAR (www.sedar.com).  The FLS contained in this news release are made as of the date hereof.  Unless so required by applicable securities laws, Wrangler West undertakes no obligation to update publicly or revise any FLS or information, whether as a result of new information, future events or otherwise.

Corporate Profile
Wrangler West is a Canadian junior crude oil and natural gas producer which explores for and develops natural gas and crude oil production assets in the Province of Alberta. Since inception, the Company's mandate has been to use the drill bit to add shareholder value. Disciplined management of operations and the production portfolio creates sufficient funds flow to support ongoing operations. Wrangler West intends to reinvest funds flow from operations and other available capital to protect current, and add future, value.  Wrangler West common shares trade on the TSX Venture Exchange under the symbol "WX".

Neither the TSX Venture Exchange nor its Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

 

 

SOURCE: Wrangler West Energy Corp.

For further information:

Wrangler West Energy Corp.
Steven F. Johnson
President and Chief Executive Officer
info@wranglerwest.ca

telephone:  (403) 290-6800

Profil de l'entreprise

Wrangler West Energy Corp.

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