Anterra Energy Inc.
TSX VENTURE : AE.A

Anterra Energy Inc.

May 27, 2015 16:05 ET

Anterra Energy Announces 2015 - Q1 Financial and Operating Results

CALGARY, ALBERTA--(Marketwired - May 27, 2015) - Anterra Energy Inc. ("Anterra" or the "Company") (TSX VENTURE:AE.A) announces financial and operating results for the three months ended March 31, 2015. Selected information presented below should be read in conjunction with the Company's unaudited interim financial statements and related management discussion and analysis for the three months ended March 31, 2015 available on SEDAR at www.sedar.com and on the Company's website at www.anterraenergy.com.

OPERATIONS

  • Low crude oil prices realized during the first quarter of 2015 had a major negative impact on the Company's overall first quarter 2015 performance. Production revenues, excluding the impact of risk management commodity contracts, for the three months ended March 31, 2015 decreased 57% to $2.5 million, from $5.7 million for same period in 2014 primarily as a result of a 51% reduction in realized average commodity prices. For the first quarter of 2015, realized commodity prices averaged $43.72 per boe compared to $88.78 per boe during the first quarter of 2014.

  • As a result of quality adjustments, blending charges and trucking costs, production from the Company's Two Creek property became uneconomical at the current low prices and was shut-in at the beginning of March, 2015.

  • Production for the three months ended March 31, 2015 averaged 622 boe per day, a decrease of 13% compared to 715 boe per day for the first quarter 2014. Quarter over quarter, Q1 2015 production decreased 10% from Q4 2014 average production of 691 boe/d.

  • First quarter 2015 revenues from midstream activities increased 12.6% to $994,438 from $892,909 during the first quarter of 2014 primarily as a result of increased oil emulsion throughput at the Breton facility. As a result of increased revenues and lower direct operating costs, funds generated by midstream operations (determined as revenues less direct operating expenses), increased 31% to $645,568 in the first quarter of 2015 as compared to $483,097 for the first quarter of 2014.

  • In addition to the contribution from midstream activities, overall Company operations were positively affected by risk management commodity contracts which resulted in a realized gain of $495,780 during the first quarter of 2015.

Summary of Financial and Operating Results Three Months ended March 31,

2015 2014
Financial
Oil and gas sales 2,448,012 5,713,795
Midstream revenue 994,438 888,729
Funds flow from operations(1) 398,426 1,392,563
Per share basic & diluted 0.000 0.002
Realized risk management gain 495,780 -
Net income (loss) (842,374 ) 167,659
Per share basic & diluted (0.002 ) (0.000 )
Capital Expenditures 148,817 745,541
Net debt(1) 24,797,436 17,189,723
Net debt to annualized funds flow(1) 15.6 : 1 3.2 : 1
Property, plant and equipment 66,301,526 71,836,739
Exploration and evaluation assets 386,667 386,667
Shareholders' equity 16,790,425 33,854,036
Operating
Average production
Light and medium crude oil, bbls/d 524 610
Natural gas, mcf/d 340 486
NGLs, bbls/d 41 24
Boe/d 622 715
% Oil and NGLs 91 % 89 %
Average realized price
Light and medium crude oil, $/bbl 48.03 96.28
Natural gas, $/mcf 3.14 6.28
NGLs, $/bbl 23.48 70.66
Oil and gas netback(1)$/ boe
Oil and gas sales 43.72 88.78
Realized risk management gain 8.85 -
Royalties 7.22 19.71
Operating and transportation expense 40.45 40.78
Operating netback 4.90 28.29
Midstream net operating revenue 645,568 483,037
(1) Funds flow from operations, net debt, net debt to annualized funds flow, and field netback are non GAAP measures. See Reader Advisories.

About Anterra Energy Inc.

Anterra is an independent oil focused junior exploration and production company with an expanding presence in the Western Canadian Sedimentary Basin. The Company is actively engaged in the acquisition, development and production of oil and natural gas complemented by the operation of fee-based midstream facilities. Anterra is headquartered in Calgary, Alberta, is listed and trades on the TSX-V under the symbol "AE.A". Additional information is available on the Company's website at www.anterraenergy.com.

Reader Advisories

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 News Release.

Non-IFRS Measures

This news release makes reference to terms commonly used in the petroleum and natural gas industry including funds from operations, net debt, net debt to annualized funds flow and netback. Such terms do not have a standard meaning as prescribed by International Financial Reporting Standards ("IFRS") and therefore may not be comparable with the determination of similar measures for other entities. These measures are identified as non-GAAP measures and are used by management to analyze operating performance and leverage. These measures should not be considered an alternative to, or more meaningful, than cash flow from/used in operating activities or net income (loss) as determined in accordance with IFRS.

Forward-Looking Information

Certain information in this News Release constitutes forward-looking statements or information (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Forward-looking statements are usually identified by the words "believe", "anticipate", "expect", "plan", "estimate", "target", "continue", "could", "intend", "may", "potential", "predict", "should", "will", "objective", "project", "forecast", "goal", "guidance", "outlook", "effort", "seeks", "schedule" or expressions of a similar nature suggesting future outcome or statements regarding an outlook. In particular, forward-looking statements include:

Statements relating to Anterra's ability to grow production from current levels, realize on existing development properties and pursue additional opportunities.

Forward-looking statements are not guarantees of future performance and the reader should not place undue reliance on these forward-looking statements as there can be no assurances that the assumptions, plans, initiatives or expectations upon which they are based will occur. In addition, forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Such factors include, among others: general economic and business conditions; the price of and demand for oil and natural gas and their effect on the economics of oil and gas exploration; fluctuations in currency and interest rates and their effect on projected profitability of the Company's operations; the ability of the Company to implement its business strategy, including exploration and development plans; the impact of competition and in particular the ability of the Company to maintain its land position in a competitive leasing environment; the availability and cost of seismic, drilling, completions and other equipment; the Company's ability to secure adequate transportation and markets for any oil or gas discovered; drilling and operating hazards and other difficulties inherent in the exploration for and production and sale of oil and natural gas; the availability and cost of financing; the success of any exploration and development undertaken; actions by governmental authorities; and, changes in government regulations and the expenditures required to comply with them (including, but not limited to, the changes in taxes or the royalty or other share of production taken by governmental authorities). Should one or more of these risks or uncertainties materialize, or should any of the Company's assumptions prove incorrect, actual results may vary in material respects from those projected in the forward-looking statements. Readers are cautioned that the foregoing list of risks, uncertainties and other factors is not exhaustive. Unpredictable or unknown factors not discussed could also have material adverse effects on forward-looking statements. The impact of any one factor on a particular forward-looking statement is not determinable with certainty as such factors are dependent on other factors, and the Company's course of action would depend on its assessment of the future considering all information then available. All forward-looking statements in this News Release are expressly qualified in their entirety by these cautionary statements. Except as required by law, the Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change

BOE Presentation

Production volumes and reserves are commonly expressed on a barrel of oil equivalent ("boe") basis whereby natural gas volumes are converted at the ratio of six thousand cubic feet of gas equal to one barrel of oil, based on an energy equivalency at the burner tip and does not represent a value equivalency at the wellhead. Used in isolation, barrels of oil equivalent may be misleading.

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