Triton Energy Corp.
TSX VENTURE : TEZ

Triton Energy Corp.

August 26, 2009 16:30 ET

Triton Announces Second Quarter 2009 Results

 CALGARY, ALBERTA--(Marketwire - Aug. 26, 2009) - Triton Energy Corp. ("Triton" or the "Corporation") (TSX VENTURE:TEZ) announces financial and operating results for the three and six months ended June 30, 2009. Triton has filed its interim financial statements for the three and six months ended June 30, 2009 and the accompanying Management's Discussion and Analysis with Canadian securities regulatory authorities. These filings are available for review at www.sedar.com and on the Corporation's website, www.tritonenergy.ca.

Highlights of the Second Quarter of 2009

  • Production increased by approximately 36% year-over-year to average 939 boe per day compared to 689 boe per day during the second quarter of 2008.
  • Operating costs were reduced by approximately 13% year-over-year to $8.15 per boe compared to $9.35 per boe during the second quarter of 2008.
  • The Corporation's realized sales price for petroleum and natural gas was 58% lower compared to the second quarter of 2008, the results of which are reflected in the Corporation's petroleum and natural gas sales, funds from operations and net income (loss).
  • Petroleum and natural gas sales were $2.04 million compared to $3.54 million in the second quarter of 2008.
  • Funds from operations were $0.42 million ($0.01 per share basic and diluted) compared to $1.77 million ($0.05 per share basic and diluted) in the second quarter of 2008.
  • The Corporation had a net loss of $1.17 million ($0.03 per share basic and diluted) compared to net income of $0.29 million ($0.01 per share basic and diluted) in the second quarter of 2008.
  • Capital expenditures totaled $1.78 million (2008 - $3.72 million), of which $1.51 million was spent on drilling and completions, $0.25 million on land and seismic and $0.02 million on facilities.
  • Triton participated in the drilling of one (0.125 net) unsuccessful deep exploratory well.

Financial Summary

  Three months ended June 30,Six months ended June 30,
  2009200820092008
Financial ($000's except for per share amounts)(unaudited)(unaudited)(unaudited)(unaudited)
 Petroleum and natural gas sales2,0403,5384,5977,561
 Funds from operations (1)4201,7651,1333,525
  Per share basic & diluted(1)(2)0.010.050.030.10
 Net earnings (loss)(1,170)295(1,872)304
  Per share basic & diluted(2)(0.03)0.01(0.05)0.01
 Working capital surplus (deficiency)(7,322)(4,111)(7,322)(4,111)
 Capital expenditures (3)1,7803,7166,0067,372
 Total assets37,41734,57337,41734,573
 Shareholders' equity23,94723,94323,94723,943
Notes:
  1. Funds from operations is a non-GAAP term and the Corporation calculates this measure as cash provided from operations before changes in non-cash operating working capital.
  2. At June 30, 2009 there were 3,675,000 options to purchase common shares and 900,000 non-transferable common share purchase warrants outstanding that have not been included in the calculation of the weighted average shares outstanding as the effect would be anti-dilutive.
  3. Excludes asset retirement obligations.

Operating Summary

  Three months ended June 30,Six months ended June 30,
  2009200820092008
Average production volumes       
 Petroleum & NGL (bbls/day)51245732
 Natural gas (mcf/day)5,3273,9945,2024,542
 BOE/day939689924789
Operating netback (per boe)       
 Sales price23.8956.3927.4852.68
 Royalties(3.86)(9.66)(5.24)(10.77)
 Operating expenses(8.15)(9.35)(8.95)(9.63)
 Transportation expenses(1.80)(1.85)(1.79)(1.80)
 Operating netback10.0835.5311.5030.48

Outlook

Triton's third quarter capital program includes the construction of an emulsion pipeline at Lanaway and drilling one (1.0 net) exploration well in the Corporation's Sullivan Lake core area.

At Lanaway, construction of the emulsion pipeline has recently been completed which should optimize production and reduce operating costs in this 50% non-operated working interest well. Production from the well was recently switched from the Rock Creek zone to the Lower Mannville zone and Triton expects the operator to submit an application to commingle both zones prior to year-end.

At Sullivan Lake, Triton recently drilled and cased a 100% working interest exploration well for potential Ellerslie oil. The well is expected to be perforated within the next week and shut-in to obtain an initial pressure. Testing operations are expected to be completed in September. Several offsetting drilling locations for Ellerslie oil have been identified utilizing proprietary 3-D seismic on Triton owned/controlled lands in the area.

In addition to the Sullivan Lake drilling locations, two new oil prospects have been developed internally. Both prospects are located in central Alberta and are targeting light to medium gravity oil at depths of less than 1,500 meters on Triton owned/controlled lands. Triton intends to continue to focus on developing and drilling oil prospects until natural gas prices recover to a level that makes drilling for natural gas more economic.

Low natural gas prices continue to reduce cash flows while corporate debt levels continue to rise. As a result, further consolidation among junior petroleum and natural gas producers is anticipated. The Corporation has been and will continue to review potential merger and acquisition opportunities with the objective of significantly growing production, reserves and shareholder value in a low commodity price environment.

Triton is a Calgary, Alberta based corporation engaged in the exploration, development and production of petroleum and natural gas. The Corporation's common shares are listed on the TSX Venture Exchange under the trading symbol "TEZ".

Forward-Looking and Cautionary Statements

This news release may include forward-looking statements including opinions, assumptions, estimates and management's assessment of future plans and operations, drilling plans, timing of completion and testing operations, the effects of completion of facilities, expected submission of commingling application and potential merger and acquisition opportunities. When used in this document, the words "anticipate," "believe," "estimate," "expect," "intent," "may," "project," "plan", "should" and similar expressions are intended to be among the statements that identify forward-looking statements. Forward-looking statements are subject to a wide range of risks and uncertainties, and although the Corporation believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. Any number of important factors could cause actual results to differ materially from those in the forward-looking statements including, but not limited to, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, the volatility of oil and gas prices, currency fluctuations, the ability to implement corporate strategies, the state of domestic capital markets, the ability to obtain financing, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, changes in oil and gas acquisition and drilling programs, delays resulting from inability to obtain required regulatory approvals, delays resulting from inability to obtain drilling rigs and other services, delays in tie-in operations, results from testing, environmental risks, competition from other producers, imprecision of reserve estimates, changes in general economic conditions and other factors more fully described from time to time in the reports and filings made by Triton with securities regulatory authorities. Readers are cautioned not to place undue reliance on forward-looking statements, as no assurances can be given as to future results, levels of activity or achievements. Except as required by applicable securities laws, the Corporation does not undertake any obligation to publicly update or revise any forward-looking statements.

Disclosure provided herein in respect of barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of 6,000 cubic feet of natural gas to 1 barrel of oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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 release.

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