PERTH, Australia, March 28, 2012 /CNW/ - Aurora Oil & Gas Limited (TSX: AEF) (ASX: AUT) today released financial results for the fourth quarter and year ended December 31, 2011.
Financial highlights for the 2011 year:
- Revenue $75 million
- Funds from operations $40 million ($0.10 per share)
- Operating Netback $46.28 / boe
4th quarter compared to the 3rd quarter:
- Revenue up 24% to $29 million
- Funds from Operations remain constant at $13 million reflecting timing differences in the recognition of certain costs around the time of the change in operator
- Production up 19% to 4,257 boe/d
All figures are reported in US dollars unless otherwise noted.
|Year Ended|| Six
| Dec 31,
| Dec 31,
|($ thousands unless otherwise stated)|
|Production Revenue - Pre royalty||75,079||627||11,874%|
|Funds from operations (net)(1)||40,375||(442)||n/a|
|Per share - basic (cents per share)(1)||9.88||(0.15)||n/a|
|Net earnings before tax||32,227||(5,925)||n/a|
|Net earnings after tax(2)||30,584||(5,925)||n/a|
|Per share - basic (cents per share)||7.49||(2.02)||n/a|
|Net earnings ($/boe)||29.32||(301.14)||n/a|
|Net capital expenditures||131,217||129,871||1%|
|Weighted average common shares outstanding (millions):|
|Production - Pre Royalties|
|Natural gas (mcf/d)||3,951||210||1,781%|
|Total oil equivalent (boe/d)||2,858||107||2,571%|
|Average Product prices - Pre royalties|
|Natural gas ($/mcf)||4.03||2.38||69%|
|Production revenue ($/boe)||71.97||31.87||126%|
|Operating expenses ($/boe)||6.45||7.57||(15%)|
|General and administrative expenses ($/boe)||8.42||73.49||(89%)|
|Total Proved F&D cost inc change in FDC ($/boe)||18.60(4)||21.53(5)||(14%)|
|Proved Recycle Ratio||2.49||1.13||120%|
|Total Proved + Probable F&D cost inc change in FDC ($/boe)||17.22(6)||16.86(7)||(2%)|
|Proved + Probable Recycle Ratio||2.69||1.44||87%|
|(1)||These financial measures are identified and defined below under "Non-GAAP Measures".|
|(2)||The income tax expense for the year ended December 31, 2011 of $1.6 million reflects the annualized accounting deferred income tax expense for the year. No current income tax is due for payment for the 2011 year.|
|(3)||Boe conversion is on a 6:1 basis, as explained below under "Cautionary and Forward-Looking Statements".|
|(4)||Calculated in accordance with NI 51-101. 2011 Development Capex $131.2million plus change in future development costs of $1,094.9 million divided by the increment in proved reserves of 65.9 mmboe.|
|(5)||Calculated in accordance with NI 51-101. 2010 Development Capex and Acquisition cost of $129.9 million plus future development costs of $97.0 million divided by the increment in proved reserves of 10.5 mmboe.|
|(6)||Calculated in accordance with NI 51-101. 2011 Development Capex $131.2 million plus change in future development costs of $941.3 million divided by the increment in proved plus probable reserves of 62.3 mmboe.|
|(7)||Calculated in accordance with NI 51-101. 2010 Development Capex and Acquisition cost of $129.9 million plus future development costs of $180.4 million divided by the increment in proved plus probable reserves of 18.4 mmboe.|
|(8)||The aggregate of the exploration and development costs incurred in the most recent financial year and the change during that year in estimated future development costs generally will not reflect total finding and development costs related to reserves additions for that year|
The selected financial and operational information outlined above should be read in conjunction with Aurora's audited annual financial report and related Management's Discussion and Analysis for the reporting period, which have been filed on SEDAR and will be available for review at www.sedar.com and on our website at www.auroraoag.com.au. Aurora's audited annual financial report and the financial information contained in this announcement were prepared in accordance with Australian equivalents to International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures compliance with International Financial Reporting Standards. Effective July 1, 2010 the Company changed its fiscal year end date from June 30 to December 31. The financial statements for the twelve months ended December 31, 2011 are compared to the financial statements for the six months ended December 31, 2010, the transitional period.
Briefing Conference Call
As previously announced, Aurora will host an annual 2011 results briefing conference call on the following date:
March 29, 2012 at 7 p.m. Eastern Time (Canada)
March 30, 2012 at 7 a.m. Western Time (Australia)
To access either briefing call by telephone, please use one of the following numbers
From the USA: Operator Assisted Toll-Free Dial-In Number: 1 (888) 231-8191
From outside the USA International Dial-In #: +1 (647) 427-7450
Conference ID #: 66281866
Toll Free International Numbers:
Please connect approximately ten minutes prior to the beginning of the call to ensure participation.
A recording of each briefing conference call will also be available on the Company's website following the briefing at http://www.auroraoag.com.au
Aurora is an Australian and Toronto listed oil and gas company active exclusively in the over pressured liquids rich region of the Eagle Ford Shale in Texas, United States. The Company is engaged in the development and production of oil, condensate and natural gas in Karnes, Live Oak and Atascosa counties in South Texas. Aurora participates in approximately 77,000 highly contiguous gross acres in the heart of the trend, including over 16,350 net acres within the liquids rich zones of the Eagle Ford.
Statements in this press release reflect management's expectations relating to, among other things, target dates, Aurora's expected drilling program and the ability to fund development are forward-looking statements, and can generally be identified by words such as "will", "expects", "intends", "believes", "estimates", "anticipates" or similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Statements relating to "reserves" are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions that some or all of the reserves described can be profitably produced in the future. These statements are not historical facts but instead represent management's expectations, estimates and projections regarding future events.
Although management believes the expectations reflected in such forward-looking statements are reasonable, forward-looking statements are based on the opinions, assumptions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include risks related to: exploration, development and production; oil and gas prices, markets and marketing; acquisitions and dispositions; competition; additional funding requirements; reserve estimates being inherently uncertain; incorrect assessments of the value of acquisitions and exploration and development programs; environmental concerns; availability of, and access to, drilling equipment; reliance on key personnel; title to assets; expiration of licences and leases; credit risk; hedging activities; litigation; government policy and legislative changes; unforeseen expenses; negative operating cash flow; contractual risk; and management of growth. In addition, if any of the assumptions or estimates made by management prove to be incorrect, actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this document. Such assumptions include, but are not limited to, general economic, market and business conditions and corporate strategy. Accordingly, investors are cautioned not to place undue reliance on such statements.
All of the forward-looking information in this press release is expressly qualified by these cautionary statements. Forward-looking information contained herein is made as of the date of this document and Aurora disclaims any obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, except as required by law.
Aurora presents petroleum and natural gas production and reserve volumes in barrel of oil equivalent ("boe") amounts. For purposes of computing such units, a conversion rate of 6,000 cubic feet of natural gas to one barrel of oil equivalent (6:1) is used. The conversion ratio of 6:1 is based on an energy equivalency conversion method which is primarily applicable at the burner tip and does not represent value equivalence at the wellhead. Readers are cautioned that boe figures may be misleading, particularly if used in isolation.
References to certain terms that do not have any standardized meanings prescribed by generally accepted accounting principles ('GAAP') may not be comparable with the calculation of similar measures by other companies.
Funds from operations is commonly used in the oil and gas industry. It represents funds provided by operating activities before changes in non-cash working capital. The Company considers it a key measure as it demonstrates the ability of the business to generate the cash flow necessary to fund future growth through capital investment. Funds from operations should not be considered as an alternative to, or more meaningful than cash provided by operating activities as an indicator of the Company's performance.
Management uses certain industry benchmarks such as operating netback to analyse financial and operating performance. Operating netback, as presented, represents revenue from production less royalties, state taxes, transportation and operating expenses calculated on a boe basis. Management considers operating netback an important measure to evaluate its operational performance as it demonstrates its field level profitability relative to current commodity prices.
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