LONDON, Nov. 25, 2013 /CNW/ - Sea Dragon Energy Inc. ("Sea Dragon" or the "Company") (TSXV: SDX) announces its 2013 third quarter financial and operating results (the "Quarter" or "Q3 2013"). Highlights:
- Production increased by 69% to average 1,938 boe/d for the quarter (Q3 2012: 1,149 boe/d)
- Oil Revenues after Royalties increased by 50% to US$16.7 MM @ US$105.10/bbl realized price (Q3 2012: US$11.1 MM @$105.33/bbl price)
- Cash Flow from Operations increased by 241% to US$2.3 MM (Q3 2012: US$1.0MM)
- US$1.3 MM cash and cash equivalents at end of Q3 2013
- US$10.9 MM of non-cash working capital (including Kom Ombo reclassification as current asset held for sale)
- US$(1.9) MM of Net Debt
- NW Gemsa concession.
- One injector well successfully drilled - AASE-15; second sidetrack currently being completed prior to testing.
- Shukheir Marine concession
- Detailed technical update in progress on the Gamma and Shukheir Bay fields.
- Ten-year licence extension application submitted to the Ministry.
Post Quarter Events
- Collected US$ 2.1 MM in outstanding Accounts Receivables.
- Concluded the sale of the Kom Ombo concession for US$ 7.2 MM.
- Paid back all debt balances. Currently no outstanding debt.
Sea Dragon CEO, Paul Welch, commented:
"I am delighted to report that the Company had very strong production numbers this quarter up significantly again year on year. It was also a quarter in which we completed the bulk of our restructuring efforts. We successfully completed the sale of our non-strategic Kom Ombo asset and also consolidated our activities into a London base and a Cairo operations center, closing both our Paris and Calgary offices. We are now positioned with a much leaner and simpler corporate structure. These changes, combined with the positive changes in the business climate in Egypt, will allow the Company to accelerate its growth in the future. I look forward to reporting on our growth efforts in future periods."
KEY FINANCIAL & OPERATING HIGHLIGHTS
(1) Denotes the three months ended June 30, 2013
|Fiscal Year||Prior Quarter (1)|| Three months ended
| Nine months ended
|Cash, end of period||2,232||1,300||5,405||1,300||5,405|
|Funds from operations||949||2,322||965||5,233||1,149|
|Common shares outstanding (000's)||376,459||376,459||376,459||376,459||376,459|
|Warrants outstanding (000's)||-||-||30,000||-||30,000|
|Oil sales (bbl/d)||1,716||1,727||1,149||1,647||1,105|
|Gas sales (mcf/d)||1,058||1,117||-||729||-|
|NGL sales (Bbl/d)||24||25||-||16||-|
|Brent oil price ($/bbl)||101.47||110.60||109.28||108.04||112.03|
|Realized oil price ($/bbl)||97.64||105.10||105.33||102.86||107.83|
|Realized gas price (US$/mcf)||1.00||1.00||-||1.00||-|
|Realized NGL price (US$/bbl)||65.00||65.00||-||65.00||-|
|Net Realized price ($/bbl)||88.81||95.07||105.33||95.93||107.83|
|Operating costs ($/bbl)||13.76||12.30||9.13||12.77||10.25|
Certain statements contained in this press release constitute "forward-looking statements" as such term is used in applicable Canadian and US securities laws. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or are not statements of historical fact should be viewed as forward-looking statements. In particular, statements concerning the 2013 drilling and capital expenditure programs of the NW Gemsa, Shukheir Marine, Kom Ombo and South Disouq Concessions and the results referenced or implied herein should be viewed as forward-looking statements. All reserves information contained herein as well as the net present value of such reserves should be considered as forward looking statements. The forward-looking statements contained in this document are based on certain assumptions and although management considers these assumptions to be reasonable based on information currently available to it, undue reliance should not be placed on the forward-looking statements because the Company can give no assurances that they may prove to be correct. By their very nature, forward-looking statements are subject to certain risks and uncertainties (both general and specific) that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. Such risks and other factors include, among others, costs and timing of exploration and production development, availability of capital to fund exploration and development and political, social and other risks inherent in carrying on business in Egypt. See Sea Dragon's Annual Information Form for the year ended December 31, 2012 for a description of the risks and uncertainties associated with the Company's business, including its exploration activities. The forward-looking statements contained in this press release are made as of the date hereof and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable law.The forward-looking statements contained herein are expressly qualified by this cautionary statement.
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 RELEASE.
Notes to Editors
Sea Dragon Energy is an international exploration and development Oil Company with a focus on North Africa. Activities are currently concentrated in Egypt, with interests in three concessions with short- and long-term potential. For further information please see the Company website at www.seadragonenergy.com or the Company's filed documents at www.sedar.com.
SOURCE: Sea Dragon Energy Inc.
For further information:
Sea Dragon Energy Inc.
President and Chief Executive Officer
Tel: +44 (0) 203 219 5640
Chief Financial Officer
Tel: +44 (0) 203 219 5640
Pelham Bell Pottinger
Philip Dennis / Joanna Boon
Tel: +44 (0) 207 861 3232
Brisco Capital Partners Corp.
Tel: +1 (403)262.9888