WINNIPEG, Nov. 29, 2011 /CNW/ - Donald Benson, Chairman and Chief
Executive Officer of Nordic Oil and Gas Ltd. ("Nordic" or "the
Company") today announced the Company's financial results from
operations for the three-months and nine-month period ended September
30, 2011. All amounts referenced herein are in Canadian dollars.
Revenue from oil and natural gas sales (including liquids and transport
revenue) during the third quarter of 2011 totaled $271,310 up from the
$182,225 reported during the third quarter of 2010. When adding interest, total revenue for the third quarter this
year was $272,397 versus $182,715 for the same period a year ago.
The primary reason for the increase in revenue for the quarter was the
fact that the Company has a working interest in 16 heavy oil wells at
Lloydminster and nine natural gas and CBM wells in Joffre - up
substantially from last year.
On a year-to-date basis, production revenue for the nine months ended
September 30, 2011 totaled $811,302, as opposed to $520,110 for the
same period in 2010, an increase of nearly 56%. When adding interest
income, revenue for the first nine months of 2011 totaled $814,465, an
increase of some $290,425 when compared to the 2010 total of $523,740.The revenue increase for the
year-to-date is due to the fact that last year the Company's heavy oil
wells at Lloydminster were shut-in during February, March and much of
April, thereby significantly depleting revenue for the first and second
quarters of 2010 from that area.
Total assets, including cash, short-term investments, accounts
receivable, property and equipment and other assets (deposits), for the
period ended September 30, 2011 were $13,829,491, up slightly from
$13,527,126 at September 30, 2010, and up from the December 31, 2010
total of $13,538,405. The primary reason for the increase in assets was
the increase recorded in the petroleum and natural gas properties and
equipment, which was $5,554,459 at the end of September 2011, compared
to $5,071,873 as at December 31, 2010.
Total liabilities for the period ended September 30, 2011 were
$6,367,661, up approximately $965,000 from the $5,402,800 reported at
December 31, 2010, and down approximately $1.7 million from the
$8,091,322 reported as of January 1, 2010. The primary reasons for the
increase year to date are the increase in deferred taxes to $1,438,133
from the $1,272,032 as of December 31, 2010, the rise in convertible
debentures to $932,797 compared to $310,448 as at December 31, 2010,
and the increase in asset retirement obligation to $855,225 from
The net comprehensive loss for the three months ended September 30, 2011
before income taxes was ($236,008), compared to a loss of ($2,071,650)
recorded during the same period a year ago. When applying the deferred
taxes of ($11,094) for the period, the loss becomes ($224,914). Year to
date, the net comprehensive loss before taxes was ($1,357,487) versus a
loss of ($2,923,971) for the first nine months of 2010. When applying
deferred taxes, the year to date loss for 2011 was ($1,523,588),
compared to a loss of ($2,589,009) for the first nine months of 2010.
The decrease in the Q3 2011 loss and the year-to-date loss can be
attributed to a reduction in General & Administrative expenses, both
for the quarter under review and the year to date; and, the fact that
there was no loss of disposition of capital in 2011, which was not the
case in 2010.
Overall expenses for the quarter ended September 30, 2011 totaled
$382,045 down approximately $258,000 from the 2010 third quarter total
of $640,135. Production and operating expenses were down slightly when compared to
the third quarter of 2010: $138,503 this year compared to $149,296 for
the third quarter of 2010. The main reason for the drop in expenses
this quarter was the decrease in depletion, amortization & impairment
to $48,643 from $147,143 during the third quarter of 2010, and, the
significant drop in general & administrative cost to $120,380 versus
$323,605 during the same period last year.
On a year-to-date basis, overall expenses for the first nine months of
2011 totaled $1,836,558, up from the $1,621,002 for the same period
last year. The primary reason for the increase for the year to date was
the increase in depletion, amortization and impairment costs to
$615,229 in 2011 versus $308,237. As noted previously, this resulted
from an asset impairment charge of $464,583 with regard to the
Company's Talbot Lake property.
International Financial Reporting Standards ("IFRS")
On January 1, 2011, the company adopted International Financial
Reporting Standards ("IFRS") for financial reporting purposes, using a
transition date of January 1, 2010. The financial statements for the
three months ended March 31, 2011, including required comparative
information, have been prepared in accordance with International
Financial Reporting Standards 1, First-time Adoption of International
Financial Reporting Standards, and with International Accounting
Standard ("IAS") 34, Interim Financial Reporting, as issued by the
International Accounting Standards Board ("IASB"). Previously, the
company prepared its interim and annual consolidated financial
statements in accordance with Canadian generally accepted accounting
principles ("previous GAAP"). Canadian GAAP now comprises IFRS.
These interim consolidated financial statements have been prepared in
accordance with IFRS applicable to the preparation of interim financial
statements, including IAS 34 and IFRS 1. Subject to certain transition
elections disclosed in Note 2, the Company has consistently applied the
same accounting policies in its opening IFRS statement of financial
position at January 1, 2010 and throughout all periods presented, as if
these policies had always been in effect. Note 2 discloses the impact
of the transition to IFRS on the Company's reported financial position,
financial performance and cash flows, including the nature and effect
of significant changes in accounting policies from those used in the
Company's consolidated financial statements for the three months ended
March 31, 2010 and the year ended December 31, 2010. Comparative
figures for 2010 in these financial statements have been restated to
give effect to these changes.
The policies applied in these interim consolidated financial statements
are based on IFRS issued and outstanding when the Board of Directors
approved the statements. Any subsequent changes to IFRS that are given
effect in the Company's annual consolidated financial statements for
the year ending December 31, 2011 could result in restatement of these
interim consolidated financial statements, including the transition
adjustments recognized on change-over to IFRS. The consolidated
financial statements were authorized by the Board of Directors on June
The general principle under IFRS 1 is that an entity must prepare its
IFRS compliant financial statements as if the entity had always been
applying IFRS (i.e. retrospective application). IFRS 1 does however
provide mandatory exceptions and optional exemptions that require or
allow first-time adopters to deviate from the retrospective application
About Nordic Oil and Gas Ltd.
Nordic Oil and Gas Ltd. is a junior oil and gas company engaged in the
exploration and development of oil, natural gas and Coal Bed Methane in
Alberta and Saskatchewan. The Corporation is listed on the TSX Venture
Exchange and trades under the symbol NOG. Nordic was one of the "2008
TSX Venture 50" companies, a ranking of the top 10 public venture
capital companies in five industry sectors listed on the TSX Venture
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 the contents of
this News Release.
This press release contains forward-looking statements with respect to
Nordic Oil and Gas Ltd. properties, and matters concerning the
business, operations, strategy, and financial performance of Nordic.
These statements generally can be identified by use of forward-looking
words such as "may", "will", "expect", "estimate", "anticipate",
"intends", "believe" or "continue" or the negative thereof or similar
variations. Such forward-looking statements are qualified in their
entirety by the inherent risks and uncertainties surrounding future
expectations, including that the estimates and projections regarding
the properties are realized. Forward-looking statements are based on a
number of assumptions which may prove to be incorrect. Unless otherwise
stated, all forward looking statements speak only as of the date of
this press release and Nordic does not undertake any obligation to
update such statements except as required by law.
SOURCE Nordic Oil
For further information:
Don Bain, Corporate Secretary.
Nordic Oil and Gas Ltd.
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